Australia’s superannuation industry may experience a boom in the number of self-managed super funds (SMSF), following the passing of the ‘Simple Super’ legislation this week, predicts industry player Super Concepts.
Super Concepts national sales manager Justin Sadler said the new legislation will in time be seen as a watershed for the superannuation industry, especially for SMSFs.
“As a result of the legislation being passed, not only will we see more SMSFs being set up but we will see client portfolios containing larger percentages of direct growth assets, such as property and direct shares,” Sadler said.
He said from July 1, 2007, the changes to the rules and the removal of Reasonable Benefit Limits will result in clients asking, ‘What is the best way to move assets into the superannuation system to ensure they receive tax free income from age 60 upon retirement?’.
“Going forward, financial planners and accountants will have an increased role to play with SMSF clients in relation to deducted and undeducted contributions limits, CGT, stamp duty and costs of transferring assets into superannuation,” Sadler said.
He said the new super regime also opens up new opportunities in estate planning to enable the passing of wealth to the next generation. However, Sadler warned advisers and clients who want to take advantage of the $1 million opportunity for undeducted contributions would need to seek assistance as soon as possible due to the surge in demand and the time required to transfer assets.
“Financial planners and accountants will need to be prepared — take control and a leadership position in directing their clients, look for new opportunities, and protect their existing client bases, as more than ever before they and their clients will need time to plan.”
