What you need to know and DO so that you aren’t caught unaware by SMSF & Superannuation Changes

The combination of the new advice delivery legislation and changes to super contribution rules are on a collision course that may catch you unaware, UNLESS action is taken as a matter of some urgency.

This is the first of a series of articles that aim to help you to understand the changing financial services legislation as well as the new superannuation rules.  In this article, we outline why it’s so important to take action. In coming articles, we will drill down on the detail of contribution cap changes and other matters that need consideration now, so that later you achieve the financial outcomes you need to fulfil your retirement plans.

1. Advice Delivery:  Formal Documentation Required

As a result of the new FOFA (Future of Financial Advice) legislation we, and all other accountants in Australia, are no longer allowed to provide advice under the Accountants Exemption ruling.
The new and strict legislative changes include three key steps for formalising the delivery of financial advice that includes SMSF and superannuation advice and recommendations.

Step 1: We are legally required to provide you with a copy of our Financial Services Guide (FSG);
Step 2: We must conduct a Fact Find interview with you; and
Step 3: We must prepare a Statement of Advice (SOA) to formally document your needs and our recommendations.

To complete the process, you must review the SOA, sign an authority to proceed and return it to us BEFORE we can implement advice or recommended strategy.

Once your SOA is in place, any future SMSF or superannuation advice may be given by us at any time using a Record of Advice (ROA) to satisfy the formal advice process requirements.

Naturally, this new legal process takes time.

At RV Partners, we can assure you that we have achieved the required qualifications and we are fully compliant to carry out the advice you need in accordance with the new laws.

However, as we’re sure you will appreciate, time is of the essence.

By working together, we can formalise documentation for you and still have sufficient time to implement SMSF or superannuation recommendations that may be required prior to June 30.

2. Contribution Caps are Changing:

It is also important for you to know that there are significant changes to the superannuation rules which could affect your retirement plans. It is very likely that you will need advice to make appropriate decisions in accordance with the current rules which are available until June 30.  You will also need to consider the new rules that will come into effect from July 1.

Following is a brief overview of some of the key changes that may require advice:

  • From 1 July, 2017 there will be significant reductions to the contribution caps (before-tax as well as after-tax)
  • The income threshold for high income earners will also be reduced from 1 July. You will need to consider this carefully as your income affects the taxation rate of concessional (pre-tax) contributions into super
  • A new super balance cap has been introduced that may limit your any non-concessional (after-tax) contributions to super.
  • Changes to taxation associated with Transition to Retirement income streams may also impact your retirement planning.

As you can see, there is much to consider. We strongly recommend you take action now to formalise the necessary documentation so we may provide the advice you need, when you need it.

As your key financial professionals, we can assure you that we are proudly CPA accredited SMSF Specialists and registered ASIC SMSF Auditors. Our specialist skills and training allows us to remain at the forefront of the changing landscape of Superannuation legislation enabling us to recommend appropriate strategies to help you make the most of your SMSF and achieve your financial goals.

If you would like to know more about the new financial services legislation changes to superannuation rules or if would like to make an appointment to discuss your SMSF or superannuation needs, please contact us today on 03 9708 8801 or email info@rvpartners.com.au

General Advice Disclaimer: The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
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