The recent Federal Budget promised to simplify and streamline the rules on personal deductible superannuation contributions. This is welcome news and I commend the government for this announced change. However, the change won’t take effect until the 2018 financial year. Further, given the upcoming election, it’s also possible that a new government will be elected [read more]
The May 2016 budget proposals have generated an incredible amount of commentary, not only from industry participants, but also from the mainstream media outlets. There is no doubting the importance of superannuation and the role it plays for many in ensuring they have an adequate standard of living in retirement. This article considers the impact [read more]
The proposed $1.6 million balance cap will, if introduced, will result in substantial changes from 1 July 2017 and is likely to generate significantly more tax on the payment of death benefits. Summary of the new cap The Liberal Government’s balance cap announcement on 3 May 2016 involves: A maximum $1.6 million (plus earnings thereon) [read more]
This article considers some of the issues associated with whether a pension payable to a member can be converted to a ‘lifetime’ pension, such that the pension is automatically reversionary to the member’s spouse on their death, and then any remaining capital reverts, for example, to the deceased member’s children from a previous marriage. Case [read more]
Australia votes on 2 July 2016 and never before has so much superannuation policy turned on one election. A Liberal victory could mean very different things than a Labor victory. In this article, I explore some of the ins and outs of each party’s announced policies. [read more]
One of the most disturbing aspects of the $500,000 lifetime non-concessional contribution (NCC) cap announcement in the 3 May 2016 Federal Budget is that the new lifetime NCC cap catches prior NCC’s made since 1 July 2007. [read more]
All SMSF LRBAs where the lender is not a financial institution might need to take urgent action by 30 June 2016 or possibly face significant tax bills. We have previously written about this. We have drafted a free tool for non-arm’s length LRBAs. This tool is designed for advisers to use to contact their clients. [read more]
The ATO have released important information detailing interest rates, loan-to-value ratios (‘LVRs’) and other terms that constitute safe harbours for SMSF limited recourse borrowing arrangements (‘LRBAs’) so that arrangements will be taken to be consistent with an arm’s length dealing. The ATO is officially calling their release a ‘Practical Compliance Guideline’. Broadly speaking, LRBAs consistent [read more]
Though it is often overlooked, succession planning is a crucial aspect of successfully operating an SMSF. Every member should develop, implement and regularly review a personal succession plan to help ensure that there is a smooth process in place for succession to control of the fund and other succession arrangements appropriate for their individual circumstances. [read more]
There has been recent press publicity regarding SMSF members transferring life estate interests in business real property (‘BRP’) by way of an in kind or ‘in specie’ contributions to self managed superannuation funds (‘SMSF’). This article briefly examines some of the key points relating to these transactions and provides an update on my latest experience [read more]
