The reforms, which kicked in on 1 July 2017, included the $1.6 million pension cap and the introduction of the transitional CGT relief. In particular, the CGT relief has been a major point of contention for accountants with SMSF clients.
“My pick for the biggest tax and accounting headache for 2017 has to be the transitional CGT relief introduced as part of the broader superannuation reforms,” said DBA lawyer Philippa Briglia.
“While the ability to step-up the cost base of assets was welcomed by those affected by the introduction of the $1.6 million transfer balance cap, the provisions detailing the relief are incredibly complex and technical.”
Ms Briglia also took aim at the licensing rule changes, echoing comments from within the industry, panning the cost and complexity of the licensing regime for accountants.
“The position was further complicated by the changes to the AFSL regime, and the fact that not all SMSF firms had adequate software in place to perform the necessary calculations and store relevant information about SMSF assets,” said Ms Briglia.
“In many cases, advisers would have had to conduct a review on a client-by-client and asset-by-asset basis to determine whether an election should be made for a particular member and in respect of each particular asset.
“This is no easy task given that SMSFs had $696.7 billion in assets as at 30 June 2017.”
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day