The delivery of advice for SMSF changed on 1 July 2016 when specific amendments to the FOFA (Future of Financial Advice) legislation came into effect. Before this time, accountants were permitted to provide advice concerning superannuation matters under the ‘accountants exemption’, but now only accountants registered as an Australian Financial Services Licensee (AFS Licensed Accountant) are eligible to do so.

Below are some examples of what accountants (licensed and unlicensed) can advise their clients on in relation to SMSFs after 1 July 2016.

AFS Licensed Accountants can advise on:

  • Setting up an SMSF
  • Whether to start or stop an account-based pension account
  • Contribution levels and amounts
  • SMSF investment strategies

Unlicensed Accountants can only provide you with:

  • Tax calculation and tax advice relating to your SMSF
  • SMSF year-end accounting, compliance and administration
  • Information on compliance and regulations relating to SMSFs

The legislation intends to protect you and your superannuation interests by formalising recommendations through Statement of Advice.

With the changes made to superannuation on 1 July 2017 that affect super contributions and the way super and retirement income is taxed, and the new TBAR reporting that came into effect on 1 July 2018 for SMSFs paying pensions, it is essential to contact us now to ensure you are compliant with the new rules.