The first shots have been fired in a transformation of a “cottage industry” wealth industry that is being forced by clients demanding more sophisticated solutions to their financial needs.
Labor failed to get its legislation to tax the earnings on SMSF portfolios exceeding $3 million pass the Senate in the previous Parliament. With the Greens likely to support this Bill, it is now set to become law, and advisers are scrambling to devise strategies for their clients.
APRA put the cat among the pigeons when it put these securities on notice. Investors looking for alternative investments offering similar yields are finding they also come with risks.