Toolbox

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...

Account Equalisation by Spouse Contribution Splitting

When the transfer balance and total super balance regime was introduced it included a significant lack of fairness as the limitations imposed were applied at a member, not a family, level. No allowance was made for couples with significantly disparate balances. The result was that a couple, where one has a $1.7m balance whilst the other,...