Accountants still driving SMSF set-ups
Accountants are still the primary driver for the establishment of self-managed superannuation funds (SMSF), according to data recently collected by the Australian Taxation Office (ATO).
The data, contained within a speech delivered by Assistant Deputy Commissioner of Taxation Ian Read, found that when it came to setting up an SMSF, 85 per cent of people actually received professional assistance, and 48 per cent of those people sought the help of an accountant.
This compares to the 32 per cent of people who used their financial planner and the 5 per cent who received the assistance of an administrator.
The ATO noted, however, that its research had also revealed that while around 90 per cent of new SMSF trustees had an adequate knowledge of the basic processes involved, such as annual lodgements, audits and the separation of assets, they had “uneven” knowledge about their broader responsibilities and obligations.
It said, for instance, that 29 per cent were not aware of the new contributions cap introduced by the super simplification law while 26 per cent said they were not aware of the restrictions on acquiring assets from related parties.
Perhaps more disturbingly, 15 per cent of the trustees surveyed by the ATO revealed they did not fulfil the mandatory requirement of having an investment strategy.
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