Author: smsf

Reversionary to TBA shortly

A reversionary pension commences on the date of death of the pension member. The transfer balance account of the reversionary pensioner will not be affected for one year but, at that time, it will form part of the reversionary pensioners transfer balance account to the extent of the pension balance at the date of death. If...

Recontribution for Tax

Some members are concerned at the level of tax that would be payable by their adult independent children on receipt of the taxable portion of their superannuation death benefit. The tax payable by a spouse or tax dependent is zero however adult children are very seldom tax dependants - a notable exception is a profoundly disabled...

Account Equalisation by Recontribution-Gifting

When the transfer balance and total super balance regime was introduced, couples were treated unfairly. With the individual's general cap of $1.6m set at an individual level, there was no allowance made for couples with significantly disparate balances. The result was that a couple, where one had a $1.7m balance whilst the other had a $200k...

No Death Benefit Nomination

This alert identifies members that have not made any death benefit nomination at all. A member is not compelled to nominate a death benefit beneficiary but, in the absence of a binding nomination, the responsibility rests with the trustees to exercise their discretion. SMSFs are generally family funds so the surviving trustees will generally be one or...

New Pension Opportunities

We have identified unrestricted non-preserved monies, or amounts that could reasonably become unrestricted non-preserved, that may be available to commence a retirement phase pension. This will include a member between the ages of 60 and 65 as the retirement trigger is not difficult to achieve at this age. Unfortunately our transfer balance account information is unreliable and...

Member/Trustee Mismatch

This is a difficult check for the system to perform accurately as small variations in the manner in which member and trustee names are entered can create a mismatch however, where valid differences have been identified,they have the potential to cause the SMSF to fail the basic test of being an SMSF so they must be...

Maximising This Year’s NCC Eligibility

Non-concessional contribution eligibility is dependent on a number of factors. This opportunity assumes that the member's eligibility is affected only by their total super balance at the last 30th June. This opportunity includes two strategies which may be used singly or collectively to retrospectively reduce the members total super balance. If we can achieve a reduction below...

Maximising Next Year’s NCC Eligibility

Non-concessional contribution eligibility is dependent on a number of factors. This opportunity assumes that the member’s eligibility to contribute in next financial year is affected only by this financial year's total super balance at the  30th June. As the strategy takes place in advance of the measuring point it may fail if unexpected investment growth increases the member's account...

Life Insurance Opportunity/Danger

This item explores the relationship between the future service deduction and the generation of an untaxed element. It displays the effect if $1 of insurance is added to the lump sum benefit paid. This enables you to consider both the level of future service deduction available to the fund and the untaxed element that would be...