Private binding ruling [PBR 1051920326857] dealt with a circumstance where a super death benefit was paid, via the estate, into a testamentary trust. The beneficiaries of the testamentary trust included beneficiaries who would be classed as super death benefit dependents so the ruling considered whether the lump sum death benefits should be free of tax or...
The work test no longer applies for members wanting to make a personal non-concessional contribution up to age 75. If all, or part, of the personal contribution is required to be concessional then the work test must be satisfied at any time during the year. Note that unused concessional contributions, dating back to the 2018/2019 financial...
Hopefully trustees have not left their contributions and pension payments to the last minute as there is a likelihood that they may not be completed by 30th June if electronically initiated this week. As a solution, SMSFs can find a promissory note useful to back a bank transfer that might miss the 30 June deadline. A contribution...
The need for financial planners to stay abreast of the ever-changing rules affecting their clients is a challenge. This is particularly so with age based rules. Our proactive birthday alerts provide advisers with 28 days notice of the specific rules (there are currently 15 age variations) that will apply to their SMSF members from their next...
With the increasing number of Australians dabbling in crypto investment, inevitably some SMSF members will wish to add them to their fund. Cryptocurrency is generally allowable subject to adequate consideration in the fund's investment strategy and allowability in the fund's trust deed but be careful of variations. Non-fungible assets are arguably works of art and therefore...
This check list includes some items that aren’t exclusively End of Financial Year but might be addressed at this time for the sake of convenience. Some items constitute financial advice so require licensing or need closer analysis to ascertain applicability. 1. Check that concessional contributions have not breached the $27,500 limit unless they can be included within...
Incoming Financial Services Minister, Stephen Jones, made a couple of pre-election statements that caught my attention. His view on adviser experience pathways has been commented on by many. His statement about financial planner access to MyGov data has received less coverage but is, at least, as significant. Only the ATO has the consolidated member data on multiple...
The number of random ATO checks of new SMSF registrations has been increasing. This means that new fund trustees should be more prepared than usual to receive a direct phone call from the ATO. The result of an unsatisfactory interview could see their fund registration rejected so some preparation is advisable. What is the reason for commencing...
Recently, I've received several inquiries regarding the treatment of fee-for-no-service refunds. I can only assume that some affected institutions are trying to finalise payments by the end of this financial year. I posted on this matter in August last year but, due to the increased activity, I thought it worthwhile to repeat that post. The ATO has published a fact sheet...
Ungeared companies or trusts can be an attractive way to hold direct property when multiple investors are involved. Provided they are established and operated in accordance with SIS Reg 13.22C, the SMSF investment is not an in-house asset even if it, directly or via associated parties, controls the entity. If, however, the entity is not operated correctly...