Budget 2013: What it means for planning firms

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In a budget focused on growth and jobs, there has been a considerable lack of support for the businesses that would be behind that growth, according to those in the finance industry.

There are 2.7 million small businesses in Australia, according to the Institute of Public Accountants, representing 96% of all businesses; employing 47% of private sector employment; and contributing 35% GDP. 

But the IPA and AFA both expressed disappointment at the lack of measures to support such an important sector of Australia’s economy.

“There isn’t anything in there that obviously looks at helping small business succeed so I think there’s a lack of initiative focused on small businesses and a number of people have made that comment publicly,” said Phil Anderson of the AFA.

“We need to be realistic about what we expected out of this budget and I think in an election year they’ve done more than they otherwise might have. But in terms of small business, one of the key lines is ‘this is about growth and about jobs’ and I think we’ve got to recognise that small business is a key driver of jobs.”

Dante De Gori, general manager of policy and standards at the FPA also said they were disappointed to see no announcement in support of small business. “The financial planning profession has been and will continue to be under significant strain as a raft of new regulation come into effect in 2013.

“These small financial planning businesses will receive no support from Government with the implementation of Future of Financial Advice laws on 1 July. This is unfortunate, however we encourage all financial planners to use all the tools and support being provided to you through your professional association.”

Another measure that will hit small planning firms is the $2000 cap on self-education expense deductions from 1 July, 2014. SPAA head of technical and professional standards Graeme Colley said the association was disappointed that the Government was proceeding with this measure as it would increase the cost for SMSF professionals to maintain their current knowledge and competencies.

“As a market leader in SMSF accreditation, SPAA sees this change as a real blow to SMSF professionals that want to stay up-to-date and competent.”

  • Ken on 16/05/2013 10:13:53 PM

    Alistair, you said it well!!

  • Alistair on 15/05/2013 1:07:23 PM

    What a pathetic joke this government is. No vision for the country just mindless nonsense coupled with debt and deficit. The true lefty will sight that our debt to gdp is lower than other countries however they fail to state that with 23 million people, an ageing population, with only half actually working and around 40% of those working are in part time or casual jobs we actually have a massive problem.
    To impose taxes and cutbacks on a population in an effort to make up for their stupid costly mistakes that are made to look like policies, they will in fact impose austerity measures which will see money out of the economy thereby creating unemployment or making underemployment and the working poor suffer.
    Wake up Australia. We are in strife with these fools at the helm. Enough being nice and polite They need to be thrown out.
    Can anyone tell me why when fund managers and our SOA's disclose fees that we now need yet another piece of paper in the form of a fee disclosure statement which will cost every practice money, why is this needed. No merely saying its the law is not an answer as there are just as well as unjust laws. This has no meaning and will effect all of us in the planning world. Yet the minions and visionless will persist in arrogance to impose this on an industry that is quite simply drowning in paper.
    Labor values....yeah right.

  • GAB on 15/05/2013 12:00:13 PM

    Small business is of no concern to this government and certainly not a focus of ASIC....they want the small ones to either fold or get swallowed by the major banks. Buy bank shares....they are the winners out off this FOFA mess.

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