Stronger Super's off-market transfer ban contentious
The most contentious issue for self-managed superannuation fund (SMSF) trustees to emerge from the Government's Stronger Super package is the proposed banning of off-market transfers of assets with related parties.
That is the analysis of the Self Managed Super Professionals' Association, which polled its members in the wake of the Stronger Super Package and found that 91 per cent believed the ban on off-market transfers was unnecessary, and would drive up transaction costs for SMSFs.
Commenting on the findings, SPAA chief executive, Andrea Slattery said his organisation had advocated strongly against the banning of off-market transfers because APRA-regulated super funds (which would not have the same obligations) would end up having an unfair advantage over SMSFs.
He said the other issue of concern to SMSF professionals surveyed was Australian Securities and Investments Commission (ASIC) registration of auditors.
The survey found that while 68 per cent of respondents agreed auditor registration and a competency exam would lift professional standards and the quality of audits, more than half believed a competency exam would also reduce the number of auditors and increase compliance costs.
"SPAA believes SMSF auditors who already undertake 20 or more SMSF audits a year should be exempt from taking a competency exam as a condition of ASIC registration," Slattery said. "For these professionals, an entry level exam would do little to lift professional standards and would potentially add a costs burden in an area which, for many firms, is a marginally profitable component of their business."
AUTHOR
Mike Taylor
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