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Investment segregation in an SMSF explained

Investment segregation in an SMSF explained

When advisers hear the word ‘segregation’ in an SMSF context, they typically think of segregation for tax purposes. Broadly, this type of segregation involves calculating a fund’s exempt current pension income exemption for a financial year under the segregated method, with any capital gains (or losses) in respect of ‘segregated current pension assets’ being disregarded. [read more]

Six member SMSFs –– the pros and cons

Six member SMSFs –– the pros and cons

Overview The prospect of six member SMSFs has moved a step further when the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 (‘Bill’) was recently introduced into Parliament. If the Bill is finalised as law in November, the increase to the maximum allowable number of members for an SMSF could commence as early as 1 [read more]

Discretionary trusts & the foreign purchaser duty surcharge across Australia

Discretionary trusts & the foreign purchaser duty surcharge across Australia

Broadly, foreign purchaser duty surcharge of 7% to 8% applies on top of the normal duty impost (typically between 5% to 6%) where a discretionary trust acquires relevant real estate and the trust is deemed to be a ‘foreign trust’ in the relevant jurisdiction. For simplicity, we refer to ‘discretionary trusts with foreign beneficiaries’ that [read more]

Draft determination provides in-house asset exclusion for SMSFs providing rent deferrals

Draft determination provides in-house asset exclusion for SMSFs providing rent deferrals

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]

Why use pension documentation from DBA Lawyers

Why use pension documentation from DBA Lawyers

DBA Lawyers offers industry-leading pension documentation. In this article, I set out several key benefits of using pension documentation from DBA Lawyers. Our expert lawyers regularly review and revise our documents Our documents are regularly reviewed and revised to ensure they reflect the latest superannuation, tax and related practical and strategic developments. Each suite of [read more]

Sutton v NRS(J) Pty Ltd [2020] NSWSC 826: Lessons for managing lost trust deeds

Sutton v NRS(J) Pty Ltd [2020] NSWSC 826: Lessons for managing lost trust deeds

The recent decision of Sutton v NRS(J) Pty Ltd [2020] NSWSC 826 highlights the importance of having original executed copies of all constituent trust documents. It has tremendous relevance for SMSFs. Facts The facts of the case were as follows: In 17 August 1972, a discretionary trust (‘Trust’) was established for the benefit of the [read more]

Advantages of the DBA Lawyers SMSF deed (2020-21)

Advantages of the DBA Lawyers SMSF deed (2020-21)

DBA Lawyers provides the best SMSF governing rules and related documents, with numerous value-added features. This article briefly explains why our SMSF documents are the best available. Recent changes to DBA Lawyers’ SMSF governing rules Our latest DBA Lawyers’ SMSF governing rules (version 2020/21) comes with the following upgrades: enhanced binding death benefit nomination (‘BDBN’) [read more]

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SMSF Succession Diagnostic Service

Click here to provide your instructions For many Australians, SMSF investments are a key component of their retirement savings and wealth creation strategies. For example, the ATO confirmed there were more than 600,000 SMSFs with an average value of more than $1.27 million for the quarter ended 30 September 2019. Unfortunately, many do not plan [read more]

SMSF succession –– minimising risk given COVID-19

SMSF succession –– minimising risk given COVID-19

In recent months, we have seen a significant increase in succession planning queries and assignments where we have been asked to provide advice and/or documents, including binding death benefit nominations (‘BDBNs’), reversionary pensions, planning for control of an SMSF and implementing timely member exit strategies for those who may be left with a limited time [read more]