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Sent: 15-12-2009 16:49:03
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Market Timing: Judgements for 2010Email Marketing Business Opportunity - Helen BairstowA How To Book of Self Managed Super FundsThe Easiest way to do a Client NewsletterWhy Warren Buffett won't buy a NewspaperThe Cooper Review & SMSFsHow do I use ATC articles for my clients?
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The Cooper Review & SMSFs

Click here to buy - A How To Book of SMSF's by Tony Negline
Tony Negline

As you may have read elsewhere, the Cooper Review has released the issues paper for Phase III of its review into its review into the governance, efficiency, structure and operation of the super system.

The issues paper looks at structural issues for non-SMSFs and then a part specifically for SMSFs.

The review asks lots of questions about SMSFs which really should be asked. For example:

And so on.

Responses to Phase III of the review must be made by mid-February next year. No doubt there will be lots of views. At least you all have the Christmas holidays to give this some thought and decide if you want to put in a submission and what it might say!

Last week the Cooper Review issued some statistics about SMSFs. As I've been quoted saying elsewhere the research shows a segment of the super industry in reasonable health.

But of course there is always room for improvement.

For example about 15,500 tax agents provide services to SMSFs. 3,100 tax agents only look after one SMSF. 620 tax agents look after more than 100 funds. Clearly the old Pareto principle runs true in this area (20% of auditors look after 80% of all funds).

Given the complexity of superannuation rules and SMSF issues it seems to me that it cannot be possible to audit these in sufficient depth. The issue is not the financial audit but the regulatory compliance audit.

This has led the Cooper Review the ask a range of questions about this issue including:

It will be interesting to see how the accounting associations react to this. Coming out all guns blazing and claiming that "our association is better than the rest" and we're all fine might not work I think.

One another note, last week the ATO issued its quarterly report showing the growth of SMSFs. There are about 417,000 super funds with about $370b in them.

It will sure be interesting to see if this growth continues in the years to come.

Finally please consider purchasing a copy of my book. You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne

Two options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST).

The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb


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