The SMSF Professionals’ Association of Australia (SPAA) has called on the Financial System Inquiry (FSI) to provide fresh insights into how to achieve better outcomes for both SMSF trustees and practitioners rather than bring down restrictive recommendations for the sector.
In particular, the industry body’s submission to the FSI detailed its belief the SMSF sector was underpinned by sound fundamentals, eliminating the need for restrictive proposals, such as imposing minimum standards of trustee education and a mandatory minimum asset balance before an SMSF could be established.
“SMSF establishment should be an informed and educated choice by an individual based on their personal circumstances and there should no barriers to them making this decision,” SPAA chief executive Andrea Slattery said.
“SPAA also recognises the need for appropriate and high-quality financial advice to assist people make this important decision.”
SPAA’s submission also contained factual evidence supporting its argument the costs associated with running an SMSF were not a concern.
“We showed that SMSF costs are generally low, driven by a range of SMSF administration service offerings that suit different trustees’ needs,” Slattery said.
“The cost of operating an SMSF is only one factor in a person deciding to establish an SMSF, with control, flexibility and planning for retirement other key motivators in establishing a fund.”
She said she was confident SPAA’s submission would allay any areas of apprehension the FSI might have about SMSFs because the sector was functioning well.
“This was the final outcome with the Cooper review in 2010 when it found the SMSF sector was a well-functioning part of the superannuation industry, and we believe the FSI will reach the same conclusion in its final report,” she said.
“SMSFs are essential to provide consumer choice and competition within superannuation and have been critical in increasing Australians’ engagement with their retirement savings.”
