Research conducted by AMP suggests accountants are underestimating the costs of establishing and maintaining their own licence in the lead-up to the removal of the accountant’s exemption, slated for July 2016.
“Accountants can expect to pay from $20,000 to $34,000 for self-licensing, compared to $15,000 to $20,000 for becoming an authorised representative, according to AMP SMSF Advice research conducted as accountants consider their licensing options,” a statement said.
“Most accountants view the $1,485 ASIC application fee as their only up-front licensing cost, but in reality, licensing set-up can cost accountants about $11,500, more than eight times what most accountants expect.”
AMP’s head of SMSF Advice, Stuart Abley, said that while cost is an important factor in the decision facing accountants, there are other issues to take into account, such as the long-term implications for a business.
AMP SMSF Advice has prepared a report to assist accountants in making the decision regarding licensing post-2016.
Spot on Michael! I am an AFSL single practioner and while the costs are higher than some might like to bear, the freedom and independence are priceless. More should follow that route, perhaps with a pair or 3 or 4 combining practices under their own shared AFSL for some cost advantages to go with that?
Might be a bit more credible if self interest was not oozing out of the comments. Sought of ignores their own people making comments about the conflicted pressure of an APL that is biased, let alone the training and support.
There is a case for going alone and one for not. The cost factor is a consideration but far from the primary one. Having your own license, and doing it properly, will likely cost up to $50k pa but your independence can more than recover that cost in additional and unconflicted long term revenue.