The implementation date of the financial services reforms affecting the self-managed superannuation fund (SMSF) sector needs to be revised in order to allow the necessary transition arrangements to take place, according to a specialist adviser operating in the industry.
The new regulatory regime was set to begin on 1 July 2012, however, much of the associated draft legislation had not been released yet, with some of it still requiring a significant level of consultation before being finalised, Pitcher Partners director of superannuation Brad Twentyman said.
“If the scenario is that legislation goes through on 30 June 2012 and receives royal assent, it won’t give trustees, business or advisers enough time to prepare for the new requirements,” Twentyman said.
Some of the areas needing attention to facilitate adherence to the new rules include the banning of off-market transactions and independent valuations of assets that are not listed on an approved exchange.
Practitioners and trustees also need to prepare for the restrictions governing related-party in-specie transfers.
Other administrative requirements in the reform package that will potentially require adjustments to the current practices include the gathering of statistical data on behalf of the Australian Taxation Office and contributions reporting on employee payslips.
“We need a level of certainty to be in a position to gear up for these reforms and that requires legislation. Only then can we advise clients on the implications and how they should set themselves up to comply, such as changing their internal systems,” Twentyman said.
“These reforms started four years ago, and asking for another 12 months so the detail can be considered and planned for seems entirely reasonable.”
