Financial Planning
Tax (financial) advice services status to be displayed on Financial Advisers Register (FAR)
ASIC has stated that its Financial Advisers Register (FAR) is soon to display whether a financial adviser can provide tax (financial) advice services. This will take effect from 1 February 2023.
ASIC also reminds Australian Financial Services (AFS) licensees that it is their responsibility to ensure that the details recorded on the FAR about their financial advisers is correct. If ASIC is not notified whether a financial adviser is qualified to provide tax (financial) advice services by 1 February 2023, the FAR will not display that the adviser can indeed do so.
Superannuation
ASIC guidance on SMSF advice
ASIC has updated its guidance on the provision of SMSF advice via the publication of Information Sheet INFO 274 (Tips for giving self-managed superannuation fund advice). When providing personal advice about SMSFs, ASIC says that AFS licensees and their representatives must highlight SMSF risks and ensure that any comparisons between SMSFs and APRA-regulated funds remain relevant and up to date.
ASIC also called for the removal of any statements about a minimum balance for an SMSF reflecting that balance alone is not the driving indicator of suitability. Other factors include the risks and costs associated with setting up and/or switching to an SMSF, investment strategies, diversification, liquidity, asset choice, insurance, trustee responsibility and the time commitment with running an SMSF. INFO 274 replaces INFO 205 and INFO 206, which have been withdrawn.
Reduction in the eligibility age for downsizer super contributions
The Treasurer has issued a media release stating that the eligibility age for downsizer super contributions has been reduced to 55, with effect from 1 January 2023.
The measure was implemented by the Treasury Laws Amendment (2022 Measures No 2) Act 2022. People previously needed to be 60 or older to be eligible. There is no maximum age limit.
The maximum downsizer contribution is $300,000 per contributor (ie $600,000 for a couple), although the entire contribution must come from the capital proceeds of the sale price. A downsizer contribution must also be made within 90 days after the home changes ownership (generally the date of settlement).
Source: IPA Australia
