Author: David Busoli

Future Service Benefit

I posted this article over a year ago but, now that our Toolbox calculates the numbers automatically for you, I thought it was worth repeating. It is also of interest as it provides an income tax deduction which will soak up excess imputation credits that would otherwise be lost if Labor win the election and make...

Work Test Exemption

The new ‘simplified’ work test exemption, from 1 July 2019, will allow individuals to have an extra financial year in which contributions can be made after the year in which they last met the work test. Therefore, contributions will be allowed in the year even though the individual has not worked in the financial year provided...

Can We Expect an Increase in Audit Fees?

Two recent court decisions may well herald a rise in SMSF audit fees. It has long been understood that SMSF trustees should take responsibility for their own investment decisions. There have been claims against advisers and lawyers for inappropriate advice, but auditors have been relatively unscathed – until now. In both cases the trustees willingly entered into...

TBAR Alert

By 28th October, some SMSFs will need to have reported any pension establishments or commutations that occurred since July 1. These are the funds that have been self assessed as quarterly reporting for TBAR purposes. To work out if quarterly or annual reporting arrangements apply, an SMSF will need to know the total super balance of all...

Alternative Property Gearing Strategy

Sometimes we encounter an SMSF with members who are non-family business associates. Invariably the fund is holding business real property tenanted by the business. Often such arrangements include a limited recourse borrowing. Where SMSF members/trustees are not family members there is the potential for significant problems in the event of a member’s death. In addition, should...

Related Party Clarification

Following the last 3 week's posts I have received a number of questions about related party directors. If two individuals are in a partnership they are Part 8 Associates however, if their business venture is operating through a company of which both are Directors, this (of itself) will not make them associates for the purposes of SIS. Commonly,...

Coping with the TBAR regime

How will SMSF administrators minimise the compliance risks and procedural disruption of the TBAR regime? This year, SMSF trustees must consider whether they are permanently locked into a quarterly reporting regime for certain pension events. All such SMSFs must lodge a TBAR for reportable events that occurred in the 17/18 financial year by 28th October and quarterly...

3 Year Audit – Good, Bad or Ugly

I confess I have a vested interest in supporting the government’s three yearly audit proposal so why am I totally opposed to it? “The objective of the measure is to incentivise good record-keeping and compliance by SMSFs whilst maintaining system oversight and integrity.” What this measure will achieve is quite the opposite. Significant incentives already exist for good...