Author: smsf

First Home Super Savings Scheme

Voluntary concessional and non-concessional contributions can be made into super to save for a first home. To be eligible to release these amounts, plus earnings, members must occupy the purchased premises for at least 6 months on the first year of ownership or intend to as soon as practicable. A maximum of $15,000 of voluntary contributions (plus earnings)...

Contribution Reserving

This description is not quite correct. It refers to the making contributions to an SMSF in June but not allocating them to a member account until July. It is more correctly described as a deferred allocation of contributions as the conditions for a reserve are not applicable. The result is that a contributor can potentially make a...

Carried Forward Concessional Contribution Caps

Unused concessional contribution cap amounts, commencing from 1 July 2018, can be used for up to 5 years by members with less than $500,000 total super balance as at the previous 30 June. The $500,000 limit may have been exceeded in some of those prior years. The amount still accrues and eligibility for the entire period is...

Work Test

To satisfy the “work test”, a member must be “gainfully employed” for at least 40 hours within no more than 30 consecutive days in a financial year. The work test must be satisfied prior to the contribution being made and in the same financial year as the contribution. Being gainfully employed means being employed or self employed...

Collectables

Collectables and personal use assets are an allowable investment for an SMSF but the administrative conditions and restrictions surrounding them often make them impractical to hold. From 30 June 2016 all such assets have common requirements. There is no grandfathering of pre 2016 assets. Collectables and personal use assets include: artwork – including -  paintings -  sculptures -  drawings -  engravings - ...

Divorce

Superannuation interests may be split as part of a divorce settlement. The ATO has produced a brilliant publication which covers the subject admirably. It may be accessed by clicking here....

Understanding QROPS (UK Pensions)

There’s a great deal of complexity in transferring benefits to Australia. This is because you need to ensure that you are complying with both Australian and UK taxation and super/pension laws. We supply QROPS approved SMSF deeds and, where we are administering the fund on an ongoing basis, the necessary HMRC reporting. The UK regulator Within the UK,...

Promissory Notes

There are always those who leave their super contributions to the last minute. As a contribution is not made until it is received by the fund, invariably, some don’t quite make it in time. A contribution is made by cheque if the trustee receives it by June 30th, the cheque is banked in early July and it’s...

Birthdays

Birthdays provide an opportunity for you to reinforce your personal client relationships. Many also have legal ramifications that will affect your clients’ superannuation position. To assist you we; list all client birthdays indicating those that are within 28 days before the birthday send you an email alert 28 days beforehand, to prompt you to make an appointment if...

Pension issues for last year

This alert is intended to ensure that the appropriate levels of pension have been paid last year. It is only useful if last year's financials have not been completed and if benefit payments have actually been made. Typically the following adjustment types would be expected; seeking to limit the damage where pensioners have breached the maximum ...