The Small Independent Super Funds Association (SISFA) has called on the government to refrain from implementing a restricted licensing framework for accountants, labelling it problematic.
SISFA used a submission on retirement and savings policy to the assistant treasurer to suggest that the government replace the removal of the accountants’ exemption on SMSFs with a more definitive framework allowing accountants to provide services and advice to fulfil "necessary obligations", and to develop specialist knowledge and competency requirements to provide that advice.
However, SISFA stopped short of supporting government plans to create a restricted licensing regime for accountants.
"SISFA would be concerned and regard as problematic any licensing or limited licensing regime," the submission stated.
An accountant advising an SMSF client on a broad range of financial issues was no different to an accountant giving the same advice to a client within a company or trust, SISFA said.
SISFA also called on the government to implement a rolling concessional contribution cap to allow investors to make more contributions if their previous year’s contribution was less than the cap limit.
The current regulations around contributions were too rigid to provide a long term consideration of retirement savings, the submission said.
SISFA also suggested the alternative of a life time cap of concessional and non-concessional contributions to allow investors to increase contributions when they were capable, or a single universal limit for life-time super contributions regardless of age.
The $500,000 threshold test for the $50,000 concessional contributions cap should be removed for that to happen, SISFA said.
SISFA slammed the current limits as almost penalising investors who didn’t start saving early or saved inconsistently.
They were rigid, discouraged saving through severe taxes, didn’t allow for significant events affecting the adequacy of retirement savings, and militated against those who bore the cost of raising a family, the submission stated.
