The latest Investment Trends research conducted on the SMSF sector has shown practitioners believe the proposed tax on total super balances above $3 million will be the most significant of a few current legislative changes that will impact their clients.
This response was supplied when advisers and accountants were asked which of the changes to superannuation and tax law, with reference to the Division 296 tax, the non-arm’s-length expenditure (NALE) provisions and the stage three tax cuts, would have the biggest effect on their client base.
“Both accountants and advisers identified the proposed tax on high super balances as the change that will have the most significant impact on their service. For accountants, 75 per cent of them said this will either have a somewhat significant impact or a very significant impact,” Investment Trends analyst Yigit Gunhan told selfmanagedsuper.
“It was a similar story with advisers where 63 per cent said this change would be either somewhat significant or very significant on their servicing.”
Respondents indicated the finalisation of the NALE rules was the second most impactful legislative change for their customers.
“Looking at accountants in particular, the second issue they identified as having at least a somewhat significant impact is the amendments to non-arm’s-length expenditure. Further, 15 per cent anticipate this to have a substantial impact,” Gunhan said.
Overall, 51 per cent of accountants said the NALE rules would be significant for their clients, while 31 per cent of advisers who took part in the study shared this sentiment.
The stage three tax cuts were ranked the least noteworthy legislative change out of the three initiatives.
To this end, 15 per cent of accountants thought the tax package would have a very significant impact on clients, while 26 per cent believed it would have a somewhat significant effect.
When assessing adviser responses, 5 per cent indicated the new tax cuts would be very significant for their services, while another 28 per cent thought the change would be somewhat significant.
The analysis was performed from information gleaned from an online survey conducted during February and March in which 652 accountants and 177 advisers participated.
