Overview This article focuses on managing a member’s transfer balance cap (‘TBC’) with a view to minimising excess transfer balance tax (‘ETB Tax’). We provide a brief background to assist members and SMSF trustees to better monitor transfer balance caps (‘TBC’) so they can avoid or minimise ETB Tax. We primarily cover account style pensions [read more]
Recently the ATO’s Acting Assistant Commissioner for Superannuation, Steve Keating, outlined the ATO’s current approach to dealing with SMSFs facing compliance issues and making voluntary disclosures. The ATO has recognised that many Australians are experiencing financial hardship as a result of the COVID-19 pandemic and therefore it is not pursuing its usual audit program. For [read more]
Background The Superannuation Guarantee (‘SG’) amnesty was introduced as law on 6 March 2020 by the Treasury Laws Amendment (Recovering Unpaid Superannuation) Act 2020 (Cth) and the deadline of 7 September 2020 is near. The amnesty enables ‘employers’ to rectify any shortfall and related amounts under the Superannuation Guarantee (Administration) Act 1992 (Cth) (‘SGAA’) for [read more]
On 3 August 2020 the ATO released draft legislative instrument Self Managed Superannuation Funds (COVID-19 Rental income deferrals – In-house Asset Exclusion) Determination 2020 for industry consultation. The determination is intended to protect SMSF trustees from adverse compliance problems under the in-house asset rules where, due to COVID-19, a rent deferral arrangement has been put [read more]
SMSFs paying market linked pensions (‘MLPs’) should carefully review the potential impact of recent changes to the transfer balance cap (‘TBC’) rules where an MLP that commenced prior to 1 July 2017 was commuted or restructured on or after that date. The Treasury Laws Amendment (2019 Measures No. 3) Act 2019 (Cth) received royal assent [read more]
Overview There have been numerous SMSF advisers putting forward their views on whether an SMSF trustee needs to pass on rent relief to a related party tenant in view of the COVID-19 impact on the economy. The two main opposing views that have captured recent press publicity are summarised as follows: Unless rent relief is [read more]
The COVID-19 pandemic has raised various practical issues for SMSF trustees and members. Members may wish to make a binding death benefit nomination (‘BDBN’) but may be frustrated by the requirement to have two independent witnesses available as this can prove challenging, if not impossible or illegal, during these difficult and dangerous (COVID-19) times. To [read more]
Click here to provide your instructions Introduction The COVID-19 pandemic has caused an immense amount of financial stress on tenants, especially commercial tenants who have suffered a severe downturn in their businesses. As a result, many commercial tenants are approaching their landlords demanding a rent reduction and variation to their lease. Landlords may be willing, [read more]
Minimum pension payments for the current financial year (ie, FY2020) and next financial year (FY2021) have been halved. This measure addresses concerns of the current market volatility and aims to provide SMSF trustees with discretion and flexibility to better manage their cash flows and retain assets that may have substantially decreased in value in recent [read more]
SMSFs that own property are facing the prospect of tenants falling behind in their rent payments and their other obligations under the lease due to the economic stress arising from COVID-19. Australian states and territories will put a six-month moratorium on evictions for both residential and commercial tenants during the coronavirus pandemic, Prime Minister Scott [read more]
