SMSF administration software provider BGL Corporate Solutions has cited the 2017 federal budget as an example of how important it is for self-managed funds to use an administration solution based in the cloud.
“The budget again highlights why it is becoming more and more important for SMSF administrators to move to the cloud,” BGL Solutions managing director Ron Lesh said.
“This year’s budget changes will again require administrators to have more information for their clients and provide more reporting to the 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.”
Lesh’s conclusion stems from the measure to allow super to be used as a solution to the problem of housing affordability and allowing retirement savings contributions to be made from the proceeds of the sale of a dwelling due to downsizing.
“The First Home Super Saver Scheme and the downsizing exemption to superannuation caps are just further complications to an already ridiculously complicated system,” he said.
“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 and there has been very little consideration so far in the SMSF community on how the new bank levy will increase the cost of banking for SMSFs, as well as reducing dividends.”
He noted the continual increasing complexity of SMSF administration was potentially not as bad as it could have been as the government decided not to heed calls from the opposition to ban limited recourse borrowing arrangements due to their perceived ability to inflate the residential property market.