SPAA critical of self-education deductions cap
The Federal Government's decision to cap tax deductions for self-education at $2000 flies in the face of its stated aim to improve professionalism across the financial services sector, according to Jordan George, senior manager, technical & policy for the Self-Managed Super Fund (SMSF) Professionals' Association of Australia (SPAA).
George said that the decision was both "short-sighted and self-defeating".
"A quick check of what's involved for SPAA members to remain at the top of their game in a FOFA (Future of Financial Advice) environment clearly indicates that the $2000 cap is totally inappropriate and misunderstands the costs of professionalism," he said.
"By our reckoning, a SPAA specialist would spend more than $6000 a year attending conferences and participating in courses and webinars just to stay abreast of developments in their professions, and that's taking a conservative view of what courses and conferences they attend.
"What has to be remembered is that gaining a qualification doesn't end the education process; a changing world means members have to continually improve their skills."
According to George, feedback from SPAA members indicated quite clearly the enormous value they were deriving from the technical content provided.
"(They believe) it's integral to their professional development," he said.
"And it's the clients who lose when our members face barriers to improving their professional skills."
With the SMSF sector approaching $500 billion in assets under management, and with the number of trustees approaching one million, George said that the need for trustees to be able to access the highest quality professional advice had never been greater.
"We constantly read how the Government and regulators have concerns about the SMSF sector," he said. "One way to help alleviate those concerns is to ensure SMSF advisers are encouraged to continually upgrade their skills."
Originally published on SMSF Essentials.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
