Adviser feedback
What do you think of the Government’s proposals to include assets held in private trusts and private companies as part of the means test for the age pension?
What do you think of the Government’s proposals to include assets held in private trusts and private companies as part of the means test for the age pension?
The approach is not unpredictable. I was surprised they didn’t suggest this earlier. We are not involved in this sort of planning. We only come across clients using private trusts or private companies in some situations. We don’t hide assets for cli-ents.
For those clients using these vehicles, I would always couch any advice by letting them know that these are the sort of arrangements that will come under scrutiny (from Centrelink). I haven’t advised clients to put their assets into these vehicles.
Andrew Cunich
Perpetual Private Clients
The Government’s proposals are pretty Draconian. It’s only been in the past 20 years that trusts have been used as a tax vehicle. Different advisers have different levels of ethics, it would appear. I can give you stories of advisers from both sides of the ethical fence.
Instead of taking the usual broad brushstrokes, why don’t you find the ones who misuse these trusts and target them? And why not allow an active business assets test and rollover relief? If it’s just an investment structure that’s been set up then target them. It would be less harrowing
It’s a cost issue. A lot of people in advisory-type businesses need this type of structure to protect their assets. This is not an Alan Bond scenario. One disaffected customer can ruin you. These trusts serve as legal protection.
The discussion paper is in a sense ignoring some of the business issues around trusts.
Michael Burke
Lifespan
I think Senator Jocelyn Newman is on the wrong track. This certainly wouldn’t be an easy loophole for advisers to access. It’s fairly difficult to work outside the law and there wouldn’t be a lot of cost to the country (from people claiming social se-curity while having sizeable assets in these vehicles). There are bigger fish to fry than that one.
Another example of this is Meg Lees with negative gearing. They (politicians) get on a little narrow track when it’s not worth the effort.
I think an adviser has to work for the best interests of the client. That’s where an adviser’s allegiance must lie.
Kevin Wyld
Beacon Investment Service
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
