Accountants back industry funds on early release recontributions

Major accounting group CPA Australia has backed industry superannuation fund calls for the Government to use the forthcoming Federal Budget to enable people who accessed superannuation early release to recontribute without penalty, together with the reintroduction of a co-contribution scheme.

CPA Australia has used its pre-Budget submission to recommend a limited amnesty on concessional contributions for those who accessed their superannuation to undertake top-ups together with a co-contribution scheme.

The accounting group has also called for a holistic review of the regulatory frameworks for financial planning advice, with the objective of ensuring that regulation is fit for purpose.

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The big accounting body has also called for changes to the full cost recovery model for funding the Australian Securities and Investments Commission (ASIC) noting its negative impact on the supply of industry participants such as insolvency practitioners, SMSF auditors and financial advisers.

The CPA Australia submission also pointed to the “cumulative effect of other compliance requirements on those having to pay fees”.

The submission has recommended the Government move away from the full cost recovery funding model for ASIC’s regulatory fees and instead implements a partial cost-recovery model.

It suggested that, alternatively, the Government consider modifying the full cost recovery model.

The submission said that regulatory complexity was placing a significant burden on accountants in public practice which was having flow-on effects for the community and pointed to financial advice being particularly affected.

“The complex, multi-layered nature of Australia’s current regulatory environment, especially the regulation of financial planning advice, is alienating many consumers and small business – the very people it is seeking to serve – while placing substantial strain on accountants in practice who operate under these regimes,” it said.

“For example, in relation to financial advice, advisers must currently comply with the Corporations Act, the Tax Agent Services Act, and the National Consumer Credit Protection Act, In addition to obligations imposed under the ASIC Act and the Financial Adviser Standards and Ethics Authority (FASEA), among others(noting the government's recent announcement of the wind-up of FASEA).”

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