In regards to price rises theoretically Class, Xero and the like...

In regards to price rises theoretically Class, Xero and the like can justify price rises as their software increases efficiency i.e. they take a slice of the pie away from accountants / administrators. There a few factors here why I don’t believe this will happen (at least in the short term)

1. BGL is already cheaper and a viable product.
2. As you have pointed out many SMSF are yet to even be administered on a a Cloud based platform.
3. It is worth noting that the bulk SMSF administrators administer thousands / 10 of thousands of funds on their chosen platform. It’s not like Class and BGL’s client bases are made up of only small chartered firms with little negotiating power.
4. We are assuming that the efficiency savings will go to the software provider or the accountant. It may be that these savings get passed onto the consumer. As you have mentioned there are other credible superannuation options which SMSF competes with to an extent.

You would need to review AMP announcements but my understanding is that they administer approximately 5% of all SMSFs through their various brands. These are all on their own product SuperMate or are being migrated to this product. They are actively seeking acquisitions as well.


You make valid points re Class Portfolio. However I would note that there is huge application in accounting firms as long as it is priced correctly. For example Determining the CGT impact of a corporate action manually for a client could easily equal the cost of a Class Portfolio license.

The superannuation reforms/reinterpretations of the law by the new ATO commissioner mean that a lot of couples will be forced to withdraw A chunk of their super upon the death of the first member. This should see an increase in family trusts and family investment companies being established Which would be a positive for Class Portfolio.