There is a deduction available under s 295-470 of the Income Tax Assessment Act 1997 (Cth). It is called a deduction for future liability to pay death benefits. Sometimes this deduction is thought of as an accompanying deduction along with s 295-485 anti-detriment deductions. However, a s 295-470 deduction for future liability to pay death [read more]
The United Kingdom (‘UK’) tax authority, HM Revenue & Customs (‘HMRC’), has recently notified superannuation funds in Australia (including SMSFs) that are registered as Qualifying Recognised Overseas Pension Scheme (QROPS) of new UK regulations that apply from 6 April 2015. Broadly, the new UK regulations require, among other things, that the fund rules do not [read more]
There is often a last minute or second panic to ensure a contribution is made prior to each 30 June. Unless a contribution is made by 30 June a deduction may be denied or the contribution may count towards the next financial year’s contribution caps. This may result in excess contributions or other issues. Also, [read more]
Imagine I am the only member of SMSF 1 and I roll assets over to SMSF 2, where I am also the only member: does this trigger a CGT event? Some answer this with a no. The no is derived on the purported basis that since I am the only member of each fund, I [read more]
There are rules regarding the ability to commute. One rule that applies to most SMSF pensions these days is that before commuting a pro-rated pension minimum must be paid, calculated as: [minimum annual amount] x [days in payment period] ÷ [Days in financial year] But what happens if the pension is commuted on 1 July? [read more]
Common sense has a very simple answer: no, where rolling a pension from one fund to another, the pension does not need to be commuted. But does common sense prevail? Consider Bob. Bob is in receipt of an account-based pension from SMSF 1. He simply wants to move that pension from SMSF 1 to SMSF [read more]
Related parties can lend to SMSFs. However, it is critical to watch out for non-arm’s length income. The solution is to benchmark. But how do you benchmark in situations where banks won’t lend? This is particularly an issue where the asset being acquired is units in a reg 13.22C unit trust. I have a solution! [read more]
An SMSF trustee is required to reject contributions in certain circumstances. This rejection rule can prove very helpful for overcoming an excess non-concessional contribution (‘NCC’). Advisers must be aware of how this rule works if they seek to rely on it. Fund-capped contributions can be rejected Regulation 7.04(3) of the Superannuation Industry (Supervision) Regulations 1994 [read more]
I presented at the 2015 SMSF Association 2015 National Conference on 18 February 2015. It was a great conference and the SMSF Association should be congratulated. My seminar covered various methods of providing for children and future generations both via superannuation (including SMSFs) and outside of super via companies, trusts and other methods. In particular, [read more]
In certain cases, members can claim a deduction for personal contributions made to a superannuation fund. In order to claim this deduction, it is essential that the appropriate paperwork is in place. However, there is a trap that many unknowingly trigger, rendering many personal contribution deductions invalid! Background Section 290-150 of the Income Tax Assessment [read more]
