Govt Budget changes hit SMSF set-ups

The Government’s 2016 Budget changes to superannuation have proved negative for the self-managed superannuation fund (SMSF) sector, according to specialist SMSF administrator, Class Super.

Class Super chief executive, Kevin Bungard has told the company’s annual general meeting, that the immediate impact of the Budget super reforms proved to be negative, giving rise to six months of uncertainty followed by larger than expected and rapid changes and a decline in SMSF establishments.

He said SMSF establishments had, in fact, declined to their lowest level in five years.

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Bungard said that the firm had also been impacted in the June and September quarter as firms delayed the loading of funds or deferred their move to the cloud.

He added that the company believed the second quarter was the “calm before the form” and that there was a second wave of super reform that would impact the third and fourth quarters.

“We believe that impact will be bigger than last year, and we expected for many firms this has the potential to push their move to the cloud out to the first quarter of financial year 2019,” Bungard said.

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