The 2017/18 Federal Budget offers “little good news” for self-managed superannuation fund (SMSF) trustees and administrators, according to SMSF administrator, BGL Corporate Solutions.
The firm, which also provided corporate compliance software to the corporate regulator, said the First Home Super Saver scheme and the downsizing exemption to superannuation caps would cause further complications to an “already ridiculously complicated system”.
BGL’s managing director, Ron Lesh, said that the budget again highlighted the need for SMSF administrators to move to the cloud as they would need more information for their clients and provide more reporting to the Australian Tax Office (ATO).
“It is really no longer a matter of when – we are past the when – those that have not moved or are not moving to the cloud are simply falling further and further behind,” he said.
“After the horrendous 2016/17 Commonwealth Budget changes, I suppose we should be relieved but our clients should not be under the misapprehension this budget is actually good for SMSFs.
“While these changes sound good in theory, they are going to make administration harder again for our clients who are already struggling with last year’s changes.”
On the positive note, according to BGL, the Government did not ban borrowing in SMSFs, as it had been recently announced by the Labor Party, or increase the tax rate on super.