We have encountered a number of instances where Div 293 payments have been paid by an SMSF without first obtaining the ATO’s approval. These will be treated as loans and will need to be repaid. They will also raise an audit comment. Please ensure you follow the correct procedure if paying from the SMSF as per the...
Rice Warner’s recent report on the comparative costs of running an SMSF versus an APRA fund comprehensively debunks the misleading information that ASIC previously provided to the market. It’s a long and very interesting report but, to summarise; Since 2013, industry fund fees have increased while SMSF fees have decreased SMSFs with balances; less than $50,000...
The possibility of 6 member SMSFs is back on the table. The necessary Bill was tabled in the Senate on September 2nd and is being considered by a committee due to report back on November 4th. If it passes both the Senate and House of Representatives, it should receive Royal Assent before the end of March....
Parliament has now concluded its June sitting days without voting on the Bill which was intended to extend the bring forward non concessional contribution age to 67. This means it will not become law before 30 June 2020. Previously the work test age was extended to 67 so, collectively, both rules provided an opportunity for members...
The related party LRBA interest rates under the safe harbour provisions have been announced for 2020/21. A lesser rate may be utilised provided it can be justified as comparable to an arm's length lender. Financial Year Real Property Listed Shares/Units 2020/21 5.1% 7.1% 2019/20 5.94% 7.94% 2018/19 5.8% 7.8% 2017/18 5.8% 7.8% 2016/17 5.65% 7.65% 2015/16 5.75% 7.75% ...
This check list includes matters that aren’t exclusively End of Financial Year but might be also addressed at this time for the sake of convenience. Some items constitute financial advice so require licensing. Check that concessional contributions have not breached the $25,000 limit. Remember that, if they have, the excess may count against the non-concessional limit...
The introduction of our new portal gives us the ability to offer advisers an additional, no cost, service enhancement. Under our standard wholesale service, we receive little to no contact from the adviser’s trustee clients and vice versa. The adviser’s office is the central point for all communications. We have no problems with this and know that...
Members who have turned 65 this year need to be cautious about utilising their 3 year NCC bring forward provision in 2020 as they may be disadvantaged if they aren’t patient. Legislation has been tabled in the House of Representatives that will affect the optimum timing for such contributions. With the last sitting day for both Houses...
There is a danger that new pensions may be commenced that inadvertently breach the transfer balance cap. A member’s existing transfer balance account is unaffected by a drop in market valuations, so the member’s current pension balance is no guide to their available cap. In any case, the TBA should be checked - just in case...
The five professional bodies have released Record of Advice templates to satisfy the truncated regulatory requirements for early release of superannuation benefits. This link to the SMSF Association's web site provides you with the necessary facilities....