News

SMSF Property Rental Relief

As financial conditions worsen, many landlords have been considering/offering their tenants a degree of rental relief to assist with both the survival of the tenant and the avoidance of a vacancy. SMSF trustees may provide this accommodation in the same way as any other landlord. An additional consideration comes into play when the tenant is a...

Coronavirus Super Changes

The Government is making two changes to superannuation in response to the Coronavirus pandemic. The pension minimum percentages for this year and next will be halved. This will allow a lesser payment to be taken but, where there will now be unexpected withdrawals in excess of the new pension minimum, a reassessment of the nature of any...

Excess Concessional Contributions – Part 4 (the strategy)

In Part 3 we investigated the maths behind excess concessional contributions tax. Bill’s example showed that, after undergoing this somewhat convoluted exercise culminating in a release of 85% of the excess contributions, he hasn’t achieved any advantage so why is this action being considered by some as a deliberate SMSF strategy? If the 15% contribution tax could...

SMSF Reflections

When I received the news that I had been admitted into the newly minted designation of Fellow of the SMSF Association it gave me cause to reflect on the sector - on how much has changed and how much has stayed the same. In 1994 there were 70k funds holding $12b in assets. The fund managers offering...

Concessional Contribution Excess Part 3 (the maths)

In this Part 3 we investigate the maths behind excess concessional contributions tax. The 3 parts lay the foundation for a consideration of the making of excess concessional contributions as a financial planning strategy. This will be dealt with in Part 4 where the example below will be revisited. Bill earns $225k. He’s already contributing $25k to...

Excess Contributions Part 2 – Extra Tax

Excess concessional contributions are subject to a maximum of 32% (including medicare levy) in extra tax. This is not a flat rate of tax. It can be less as it’s paid by the member personally, not the super fund, and calculated by adding the excessive amount to the member’s declared income in the year of contribution....

Excess Contributions – Part 1

Members need to be aware that the concessional contributions they believe they have made via their pay slips will often not match what has been contributed to their superannuation fund. This is because the fund will not receive the last quarter’s contribution until July. This timing factor can easily result in an inadvertent breach of the...

ATO Direct Trustee Alert

The ATO are now issuing alerts directly to trustees via email and/or text messages when any changes are made within their SMSF. This includes changes to: financial institution account details electronic service address (ESA) authorised contact or members. The purpose of the measure is to prevent fraud and mismanagement and works in conjunction with similar notifications from...