The ATO has confirmed that they will closely scrutinise SMSF reserves that have been established from 1 July 2017 to determine that their use is not to circumvent the transfer balance cap or total super balance restrictions. Though they acknowledge that there are legitimate uses for reserves, the ATO will be looking at the unexplained creation of...
The primary relevance of the 30 June 2017 total super balance is its effect on a member’s eligibility to make non-concessional contributions in the current financial year. Where the amount is over, but close to, the trigger points of $1.4m, $1.5m and $1.6m enhanced eligibility will be obtained if the TSB can be reduced below these...
There’s a lot of Downsizing information being distributed at the moment. I am concerned as a major eligibility requirement is often being ignored or incorrectly stated. Not only does the ability to make downsizing contributions commence after 30 June 2018, the contract of sale for the property must be after that date as well. If the sale...
There continues to be a high degree of confusion surrounding the mandatory education requirements for planners. This is partly because they are still being discussed but also because insufficient detail on the proposals has been released. Neil Kendall, the Chair of the FPA, has released an update which sheds some light on the process as well as...
Now that the anomaly that would have required a TRIS to be stopped and restarted as a standard pension once a condition of release has been triggered is being removed, we need to consider what this means in the context of the new rules. Assuming that the announcements will be enacted, a TRIS may convert to a...
The ATO Deputy Commissioner has announced that they have extended the lodgement due date for SMSFs to the 2nd of July 2018. This gives advisers more time to consider the changes in the recent Superannuation Reforms, including CGT Transitional Relief, and to discuss these matters with clients. This extension is applicable to all SMSFs except those that were...
There's been much discussion regarding SMSFs investing in Bitcoin of late. We don't make a judgement on the suitability of any SMSF investment so long as it's legal. SMSFs are legally able to invest in Bitcoins but there are a few issues. SMSF Adviser published an excellent article on these which is available here....
Each week a woman dies due to domestic violence. Women often remain in abusive relationships for financial reasons. Submissions close on 12th Feb on a Treasury review of early release rules and includes this issue but states that the government already “provides support through timely and targeted assistance, including through the welfare system.” Unfortunately, this statement...
Under European rules, investment firms executing transactions in financial instruments must report complete and accurate details to their regulators. This requires a Legal Entity Identifier (LEI) to be held by both EU and non-EU market participants in a variety of circumstances in order to trade or clear. Once a legal entity obtains an LEI code, the...
This strategy allows eligible members to make an additional $100,000 non-concessional contribution by adjusting their reported total super balance. A member cannot make a non-concessional contribution in any year where their previous 30 June total super balance (essentially the cash value of their member benefits where no defined benefit pensions are involved) was at least $1.6m. If...