Self-Managed Superannuation Fund service providers that started out as accountancy firms tend to be bigger and more profitable than those that started out as financial planner or administrators, a new report reveals.
The SMSF Service Model Report carried out by the SMSF Professionals’ Association of Australia (SPAA) and Macquarie Bank, found that while accountants outperformed other providers, many had expanded their service offering to include a range of additional services.
While accountants outperformed other providers, financial planning was the biggest revenue stream for all SMSF service providers (27 per cent), while accounting accounted for 23 per cent of revenue in the sector.
The report revealed that more than half of SMSF providers were giving their clients estate planning and tax advice, while almost 90 per cent where giving strategic advice and 69 per cent provided investment advice.
SPAA chief executive, Andrea Slattery, said the report showed that the SMSF professional service industry was expanding in a positive way.
“They now offer a range of services such as general insurance, estate planning and legal advice, administration and mortgage broking advice,” she said.
“It demonstrates that the primary profession is centred on SMSF advice and the secondary profession is the traditional professions, such as accounting and financial planning, which provide the supporting services.”
The report also revealed that the majority of SMSF service providers of all backgrounds were profitable, with just three per cent reporting a loss in the last 12 months.
The profitability of SMSF providers was associated with the provision of a wider range of services and a larger client base, Macquarie Bank and Financial Services Group executive director, Peter Shepherd said.
“Providing more service offerings to clients helps SMSF practices capture a larger share of business, which can ultimately help to increase revenues and profits,” he said.
