Two days ago I posted the contribution rules as at 24 February. As I suggested they might, the concessional and non concessional contribution rates for next financial year have now risen. Concessional contribution limits will rise to $27,500 and non-concessional (4 times the concessional rate) to $110,000 from 1 July 2021. Importantly no other contribution caps have been...
Much has been said about what has changed and what might change regarding contributions. Discussion around the impending transfer balance indexation has added to the confusion so that many are unsure as to what the contribution rules for this financial year actually are as of today. Concessional and non-concessional standard limits remain at $25k and $100k respectively. Personal contributions...
As previously noted, the Transfer Balance Cap will increase from July 1st this year. Following on from this, and the unwieldy system of calculating the individual TBC for existing superannuation pensioners, I have been approached to consider strategies which will allow existing pensioners to receive the full $100k increase. Unfortunately, once a member has registered a transfer...
Based on the current rules, the effect of the December 2020’s quarter CPI increase will be to increase the general transfer balance cap from $1.6M to $1.7m from 1 July 2021. Confusion will be the primary result. Only members who have not yet commenced a pension will be eligible for the new $1.7m TBC. For a member whose...
We have encountered a number of instances where Div 293 payments have been paid by an SMSF without first obtaining the ATO’s approval. These will be treated as loans and will need to be repaid. They will also raise an audit comment. Please ensure you follow the correct procedure if paying from the SMSF as per the...
Rice Warner’s recent report on the comparative costs of running an SMSF versus an APRA fund comprehensively debunks the misleading information that ASIC previously provided to the market. It’s a long and very interesting report but, to summarise; Since 2013, industry fund fees have increased while SMSF fees have decreased SMSFs with balances; less than $50,000...
The possibility of 6 member SMSFs is back on the table. The necessary Bill was tabled in the Senate on September 2nd and is being considered by a committee due to report back on November 4th. If it passes both the Senate and House of Representatives, it should receive Royal Assent before the end of March....
Parliament has now concluded its June sitting days without voting on the Bill which was intended to extend the bring forward non concessional contribution age to 67. This means it will not become law before 30 June 2020. Previously the work test age was extended to 67 so, collectively, both rules provided an opportunity for members...
The related party LRBA interest rates under the safe harbour provisions have been announced for 2020/21. A lesser rate may be utilised provided it can be justified as comparable to an arm's length lender. Financial Year Real Property Listed Shares/Units 2020/21 5.1% 7.1% 2019/20 5.94% 7.94% 2018/19 5.8% 7.8% 2017/18 5.8% 7.8% 2016/17 5.65% 7.65% 2015/16 5.75% 7.75% ...
This check list includes matters that aren’t exclusively End of Financial Year but might be also addressed at this time for the sake of convenience. Some items constitute financial advice so require licensing. Check that concessional contributions have not breached the $25,000 limit. Remember that, if they have, the excess may count against the non-concessional limit...