Toolbox

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...

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...