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]
Many have wanted to pay superannuation benefits — particularly death benefits — by way of mere journal entry. The ATO have clarified their position in this regard by publishing two interpretive decisions on Friday, namely, ATO Interpretive Decision ATO ID 2015/2 and ATO Interpretive Decision ATO ID 2015/3. The facts Each of ATO ID 2015/2 [read more]
Generally, a pension must be paid in cash. However, not every SMSF has ready cash to satisfy the minimum. Thus, it provides much needed flexibility when a pension can be satisfied in kind, eg, by way of an off-market transfer of listed securities, to ensure the pension exemption can continue and the minimum annual payment [read more]
ATO Interpretive Decision 2014/22 addresses the question: ‘Can an adult child be a ‘death benefits dependant’ of his or her deceased parent for the purposes of section 302-195 of the Income Tax Assessment Act 1997 (Cth)?’ The adult child was considered to be a death benefits dependant for the purposes of this section. Tax definition [read more]
There are many strategies put forward on how to provide smooth and effective succession for a self managed superannuation fund (‘SMSF’) members. Fortunately, while there is no ‘one size fits all’ solution, there are a number of strategies that are simple and cost effective that can substantially bolster your position and set the ‘foundation’ for [read more]
There is a special type of relationship called a fiduciary relationship. Trustees of SMSFs are in a fiduciary relationship in respect of the beneficiaries of the SMSF. The most recently available ATO statistics state that there are 1,006,975 members of SMSFs, so presumably there are a similar number of SMSF trustees (or directors of [read more]
Until 4 April this year, SMSF trustees with limited recourse borrowings that were ending were faced with a problem. With the loan paid off, there was the prospect of being forced to transfer the asset to the SMSF trustee. The fear had been that to keep the asset inside the trust would give rise to [read more]
On Friday the Supreme Court of Queensland handed down what I believe is a ‘first of its kind’ judgement. McIntosh v McIntosh [2014] QSC 99 was the first time that the following specific question was expressly considered by a court: If a person is eligible to receive a deceased’s super both as the deceased’s legal [read more]
The recent Federal Budget announcement that excess non-concessional contributions will be abolished is great news. However, there is a trap that means advisers still can’t afford to let their guard down when it comes to contributions and careful monitoring is still required. The announcement The Federal Budget contained the following announcement, which was ‘music to [read more]
The decision of EM Squared Pty Ltd v Hassan [2010] SASC 62 has absolutely critical implications for SMSF succession planning, yet few have ever heard of it. (The case is also sometimes cited as Re Australian Motors SA Pty Ltd Staff Superannuation Fund.) This article seeks to detail the vital messages of the case. In [read more]
