Author: smsf

Lapsed Binding Death Benefit

One of the most common issues we uncover is where a "non-lapsing" binding death benefit nomination has been arranged for members of a fund that is subject to a deed that doesn't allow them. We do not have a standard deed that require all funds to adhere to. When an existing fund transfers to our service...

Investment Strategy Mismatch

Part of the SMSF's investment strategy includes  the bench marking of asset allocations. Any benchmark should include a reasonable variation to cater for practical considerations. An asset allocation of 0%- 100% for every investment type is not acceptable. How well the investments tracked the investment strategy allocation is for the fund auditor to decide but it...

Insufficient Cash

Insufficient cash is a user defined parameter. Essentially there should be sufficient cash retained within the fund to pay for expenses, tax and pension payments. How significant this buffer is will depend on you, however it is not unusual for one year's pension payments to be held as a minimum. Any amount held over this amount could reasonably...

Future Service Deduction

This item explores the relationship between the future service deduction and the generation of an untaxed element for members with existing cover. Because our default retirement date is 65 it does not include members who are over this age. This does not mean that they will not be affected. Should you have any clients that fall into this category you...

Excess Transfer Balance

Transfer balance account monitoring is a difficult one for us to deal with as our records are unreliable. This is because the ATO do not yet provide a data feed. Until they do we can only use a best estimate based on the data we hold. The ATO provide the data they hold to the individual...

Excess Contributions

Excess contributions may, potentially, be reallocated to other members, if they are discovered early enough. Rectification by removal will only be available within a very short time frame after the breach and, even then, the auditor will issue a note to the accounts or, in serious cases, a contravention report. Where the breach is of the concessional...

Excess Cash

Excess cash is a user defined parameter. Essentially there should be sufficient cash retained within the fund to pay for expenses, tax and pension payments. How significant this buffer is will depend on you, however it is not unusual for one year's pension payments to be held as a minimum. Fees will be incurred if there is insufficient...

Deed Upgrade Advisable

There are two reasons why you may have received an alert regarding a deed upgrade; we are flagging all deeds that have not been upgraded since 1 July 2015 as there have been significant changes to legislation since that time and it is likely that an older deed does not adequately incorporate them or we have...

Corporate Trustee Conversions

Individual trustee funds avoid the initial cost of establishing a corporate trustee, around $950, and the ongoing cost of ASIC lodgement - $53 per annum if the company is a special purpose company. If we act as the registered office and handle all secretarial matters there is an additional fee of $110 per annum. We believe...