“The government's agenda was to maintain integrity or have some level of integrity in the system, and I think once you start having different rules for different people then all of a sudden you start to throw that integrity out of the window,” said Mr Miller.

“If you're going to have a rule for SMSFs, then have a rule for all SMSFs.”

Mr Miller said it’s also unclear why $1 million has been singled out as the threshold amount.

“What makes $1 million the magical number anyway? What about all those clients that have got $1,000,005? Why should they have to report and someone with $6 less than them doesn't have to,” he said.

“You always start to get into dangerous territory when you bring in low balances and I understand the reference to how far away it is from $1.6 million so there's no risk of a transfer balance cap excess, but then why not $1.4 million? There's no logic to it.”

Mr Miller also noted that with the one-year transitional period, and the ATO stating that they plan to take an educational approach for the first 12 months of the new reporting, this effectively means a two-year transitional period for the industry.

“[With a low balance threshold] there's also additional work that's going to be involved in working out which clients are below or above and then doing the reporting for some and not others.”