Author: smsf

Transfer Balance Account Reporting

The ATO has released a discussion paper on the new Transfer Balance Account Reporting regime. Significantly, the paper assumes that the merits, desirability and practical implementation of the new regime are settled. What is now open for discussion are two alternative implementation options concerning which events should be reported 10 days from month end and which...

ASIC SPAM Emails

We have noticed that there has been an increase in emails supposedly from ASIC requesting that the Business Name or Company Renewal is due. If we are your registered agent you will not receive these emails. Before clicking the links please check the sender address, if it ends in AustralianGovernment.com it is not from ASIC. If it also...

Order of Pension Commutation

In our last newsletter we announced the release of our documentation tool which satisfies the requirements of PCG 2017/5. Where the member has multiple pensions, the completion of this document involves the selection of the order in which pensions are to be commuted. The selection will involve the following considerations. Firstly, which pensions, if any, are grandfathered...

Mandatory Document Tool Released

To avoid a breach of the transfer balance cap it is necessary for members to limit their retirement phase balance to $1.6M by the 30th June 2017. The ATO acknowledge that 30 June member balances will not be known until sometime after that date so, in deference to the rule of bureaucracy, PCG 2017/5 has been...

Market Linked Pensions Tips & Traps

The transfer balance cap limits the amount that can be in the retirement phase on 1 July 2017. This will be the annual income for the 2017/2018 year multiplied by the term remaining from 1 July 2017. As market linked pensions can be paid plus or minus 10% of the calculated amount, it is possible to make...

Great News

A couple of weeks ago we referred to the contentious limited recourse borrowing proposal that would see the debt counted as an asset for total super balance purposes. The good news is that it is missing from the Bill that has just been tabled in Parliament. The first part is still there but it merely states that,...

Don’t Fix It Too Quickly

Just be aware that, for unsegregated funds, the CGT reset is only available for adjustments made on 30th June 2017. This means that such funds must have a member with more than $1.6m in pension or with a transition to retirement pension on that date. If members have taken measures to deal with these matters by ceasing a transition...

And the Bad News Is

The assault on limited recourse borrowing arrangements flagged in the draft amendment has been included in the budget but with a little more enthusiasm. The proposal was that the counting of the loan balance against a member’s total super balance would begin from the date of royal assent of the enabling legislation. The budget has moved...

Bureaucracy Wins Out

Somewhere in the bowels of Government the gremlins are hard at work dreaming up new and totally unproductive ways to occupy our time. The latest result, PCG 2017/5, is a requirement for SMSF trustees to enter into a written, irrevocable agreement with a member, by 30th June this year, to commute the member's pension balance over...

Urgent – Proposed SMSF Loan Amendments

Last night Treasury released a rather nasty proposed amendment for hasty public comment. It is a very significant amendment. It was issued on a Thursday night with all submissions required by next Wednesday. Monday is a public holiday in most States. The amendment focuses on limited recourse borrowings in two ways. Transfer Balance Credits Where a fund contains...