Core News

2017 heralds positive changes for Core

Tuesday, April 18, 2017

This year two significant and positive changes have occurred – we have changed our name and we’ve become licensed to deliver self-managed superannuation (SMSF) advice in accordance with the new laws.

Our new name is Core Business Accountants.

While we will continue to deliver ‘Business & Management Advice’, our shorter (and less confusing) name is a succinct representation of our accounting firm today.

We are, as we’ve always been, business accountants and we will continue to deliver advice for you across these key services:

  • Business Advisory
  • Taxation Consulting
  • Business Structuring & Asset Protection
  • Self-Managed Superannuation

It’s business as usual, except when it comes to SMSF, and this is because of new legislation which has heralded our second change.

In 2016, the federal government introduced laws that changed the way accountants can deliver SMSF advice.

The laws have been designed to uphold the very important principle of providing financial advice that is in the ‘best interests’ of the client.  

This principle is already firmly ingrained in our own Core values. However, the legislation has a two-fold requirement for formalising this commitment.

Firstly, we as your advisors must be licensed to deliver SMSF advice. This requires achievement of an additional qualification and licensing through an Australian Financial Services Licence provider.  

Our advice division will be known as Core Advice Pty Ltd and we are a Corporate Authorised Representative No. 1253800 with The SMSF Expert Pty Ltd, ABN 17 155 686 356 – AFSL No. 445113.

The second part of the new regime requires formal documentation, and this will involve SMSF trustees who do not have financial planning arrangements in place.

With the exception of tax advice and specific administrative matters relating to SMSF, we are no longer allowed to give ‘casual’ advice. That is, all advice must follow a protocol that involves formal consultation and documentation.  

The key document is a Statement of Advice (SoA) which is a detailed report of your SMSF needs in alignment with our advice and recommendations. You may already have a SoA in place with your financial planner, therefore we will liaise with your planner to integrate our recommendations so this service does not require duplication.

So, for those of you that do not have a financial planner and require us to provide SMSF advice for you, a SoA must be considered, signed and returned to us before our advice and recommendations may be implemented. If this applies to you, there are a number of steps involved and while they are relatively straight-forward they take time to complete.  

We are mindful that you will need advice about current contribution caps which remain available until June 30 and the new reduced caps that come into effect from July 1, 2017.

Further, the changes may also affect you if you are;

  • Taking a pension
  • Considering making non-concessional contributions (i.e. where no tax deduction is claimed)
  • You have an accumulated balance approaching or exceeding $1.6M; or
  • If you wish to utilise the CGT revaluation opportunity as part of your transitional arrangements.

It is for these reasons that we invite you to meet with us as soon as possible, not just to implement the paperwork, if it is required, but for timely execution of your SMSF strategy for you.

Over the coming weeks, we will be in contact with you to make arrangements. In the meantime, if you have any questions or concerns please contact us on 5438 8088.


More Information

We have been guilty of being busy and working in, rather than on our business. With the help of Core we’ve improved our financial and administrative systems and we’ve learnt more about the ‘business’ behind Dillon Folker Stephens and the opportunities available to us.
Kari Stephens, Dillon Folker Stephens