Class Ltd said it achieved a record increase in the number of SMSFs administered using its software, Class Super, in the 2016/17 financial year.
Class added a record 31,503 accounts in the 2017 financial year, according to a statement released to the ASX, beating the 30,618 added in 2015/16.
This takes Class to over 140,000 SMSFs – an estimated market share of 24%, compared to 19% at the start of the financial year.
“In the June quarter Class added over 8,200 accounts – this is a great result given the ATO, in response to industry input, deferred the mid-May lodgment date for SMSF Annual Returns to the end of June,” said Class in the ASX statement.
“This shifted some loading of accounts out to July because practices typically wait until they complete tax lodgments before transitioning to a new software solution. That shift, along with a great sales pipeline, positions us well for a strong September quarter.”
Class ascribes its growth, in part, to efficiency gains compared to legacy solutions and the changes to superannuation policy.
“Super legislation changes, especially the need for real time reporting, continued to drive increased interest in system automation. Accountants using end-of-life desktop systems and Excel are unable to meet the new requirements.”
Class CEO Kevin Bungard said: “Accounting practices that have embraced cloud technology are winning share from those stuck in the past.”
CGT Relief and Transfer Balance Cap features added to Class Super
Class announced that it has released a “major update” to its Class Super software for superannuation changes applying from 1 July 2017.
The ‘CGT Relief Applications’ will allow accountants to “easily” compile and submit the data required for transitional CGT relief to the ATO.
“We’ve streamlined one of the most complex parts of the Super Reform changes,” said Mr Bungard.
“Class Super automatically calculates the deferred notional capital gain until the assets are sold.”
Another addition to the software allows data on pension establishment and commutation for the $1.6 million Transfer Balance Cap to be collected.
“The ATO has made it clear that events like pension commutations should be recorded as such at the time they are made,” said Mr Bungard.