Members can speak to their accountant for superannuation advice

By Cameron Micallef

April 15 2020
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ASIC has announced changes to help ease the backlog of superannuation members trying to access their super, by letting registered tax agents give superannuation advice.

The move follows 617,000 Australians registering their interest in the government’s early access to super measure, which would allow retrenched workers and those whose working hours have been reduced by 20 per cent or more to access up to $20,000 of their super.

The first $10,000 will be available from 20 April until 30 June 2020, with a further $10,000 available between 1 July and 24 September 2020.

ASIC’s temporary relief for tax agents will be subject to a number of conditions, including capping the advice fee to $300 and establishing that the client is entitled to the early release.

Clients must also be provided with a record of advice (ROA), to show that they have approached the advice provider for the advice.

As part of the relief instrument, ASIC will also allow advice providers not to give a statement of advice (SOA) to clients when providing advice about early access to superannuation.

The corporate regulator has yet to reveal an end date for the measure but notes that it will provide 30 days of notice to the industry before revoking the relief instrument.

“The decision to access superannuation early is significant, and many Australians will seek assistance from superannuation funds, financial advisers and registered tax agents before deciding whether to access the early release scheme,” ASIC’s statement said.

“ASIC will conduct surveillance activities to monitor the advice provided under this relief, to ensure that advisers, registered tax agents and superannuation trustees are acting in the interests of their clients and members.”

The corporate regulator’s relief instrument comes after combined lobbying by the joint accounting bodies, as well as the Financial Planning Association of Australia and the SMSF Association.

“We have come together and collectively worked with ASIC to help the Australian community and to ensure there are more skilled advisers in the marketplace to address this demand,” said the joint bodies.

“This move has removed significant red tape and ensured a simple, streamlined process is in place so those facing financial hardship during this time get the right advice.”

Chartered Accountants Australia and New Zealand’s Simon Grant said ASIC’s decision was an “excellent extension for clients”.

“As trusted advisers, accountants are well placed to provide individuals with advice, and many already have an existing relationship with their accountant,” said Mr Grant.

Likewise, Institute of Public Accountants chief executive Andrew Conway said the relief was needed in a time where Australians required financial advice more than ever.

“Decisions around superannuation are critical to quality of life. For this reason, a decision to access superannuation early should be based on advice that is easily accessible,” he said.

CPA Australia chief executive Andrew Hunter said that these unprecedented times called for a pragmatic approach to regulation and a commitment from the associations to work together in the public interest.

“Over 600,000 people have registered their interest accessing their super early, so there is great need for support. It’s important that these people and others also considering their options can access professional advice,” Mr Hunter concluded.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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Retirement