A desire for some people who exit large funds and start a new SMSF is to leave a portion of their superannuation in the large fund. This is often because it can be relatively simple to retain life, total and permanent disability (‘TPD’) and income protection insurance cover in a large fund. While the above [read more]
This article examines some of the key reasons for having a company appointed as an SMSF trustee as compared to having individual trustees. It also examines some issues that can arise when advisers are preparing change of trustee documents. Why do so many SMSFs have individual trustees? SMSFs can have either have a company or [read more]
All newly acquired investments by SMSF trustees in collectables and personal use assets since 1 July 2011 have been subject to strict rules under reg 13.18AA of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (‘SISR’). However, SMSF trustees should be aware that the grandfathering relief in relation to such investments that were held prior to [read more]
A new Federal Court case underscores the continuing relevance of pecuniary penalties under the civil penalties regime to the ATO’s enforcement toolkit. Facts of the case The facts in Deputy Commissioner of Taxation (Superannuation) v Ryan [2015] FCA 1037 (‘Ryan’) involve a husband and wife, Mr Joseph Ryan and Mrs Carolyn Ryan, who were the [read more]
This topic has given rise to considerable debate since the ATO’s view on ARPs was finalised in TR 2013/5. Thus, I thought it would be worthwhile illustrating by way of case study how the law applies to this type of situation. Facts We will assume the following facts exist in relation to Rob and Mary: [read more]
Introduction Advisers should be aware that there have been recent changes that reduce flexibility in implementing different types of insurance in an SMSF context. From 1 July 2014 regulated superannuation funds can only provide insured benefits consistent with the following conditions of release (subject to certain ‘grandfathering relief’): death; terminal medical conditions (‘TMC’); permanent incapacity [read more]
This article is to update you on my prior articles on SuperStream available at: SuperStream — latest developments Superannuation funds All regulated superannuation funds must generally have an electronic service address (‘ESA’) to receive contributions, rollovers and data in accordance with SuperStream. Broadly, SuperStream refers to the payment and data standards that superannuation funds must [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 are numerous pitfalls that can upset a binding death benefit nomination (‘BDBN’) and render it invalid. To help navigate this difficult terrain, we examine the major risks to be identified, managed or avoided. Essentially, a BDBN is a direction made by a member to the superannuation fund trustee requiring the trustee to pay the [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]
