News

SMSFs Post Election

Much will be written about Scomo’s “miracle” win and its implications. It’s certainly good news on the SMSF front. Apart from avoiding the legislative assault promised by Labor (“If you don’t like it don’t vote for us” said Chris Bowen) we can expect the following changes; removal of the work test requirement for those aged over...

Spouse Contribution Splitting Strategy

A spouse contribution split can be of assistance in reducing a member’s total super balance below one of the trigger points or, adopted as an ongoing strategy, a means to achieve a measure of account equalisation between spouses. To be eligible, the receiving spouse must be under age 65 and, if over preservation age, not retired. Where...

Future Service Benefit

I posted this article over a year ago but, now that our Toolbox calculates the numbers automatically for you, I thought it was worth repeating. It is also of interest as it provides an income tax deduction which will soak up excess imputation credits that would otherwise be lost if Labor win the election and make...

Pre Budget Super Changes Announced

In a pre-budget announcement, the Treasurer has announced 3 proposed changes to superannuation; Individuals who are 65 to 66 will be able to contribute without passing the work test in the year of contribution. It has already been proposed that individuals over age 65, who have passed the work test in the previous financial year, would...

Another Disputed SMSF Death Benefit Claim

The Supreme Court of Victoria has prevented a surviving trustee from exercising discretion and paying the adult daughter (trustee) the deceased benefits instead of the surviving spouse. Echoing the Katz v Grossman case of old, in Marsella v Wareham the daughter was the only other trustee when Mum died. The daughter needed a second trustee so...

The Royal Commission

The much anticipated Royal Commission report on our sector will be released by the government following close of share trading on Monday and we can expect the press to focus on little else for the next couple of weeks. Many participants and product providers have already pre-empted its findings and have made sweeping changes to their...

Is Labor’s Trust Tax Relevant to SMSFs?

There's been some media coverage in recent days about the effect that Labor's tax proposal for discretionary trusts will have on SMSFs given that "SMSFs are commonly invested in discretionary trusts". This surprised me as SMSFs never invest in discretionary trusts. They only invest in fixed, or unit, trusts and these aren't included in Labor's proposal....

6 Members from 1 July?

The increase in the SMSF member limit from 4 to 6 from 1 July will require either the return of the government at the next federal election or the introduction and passing of the enabling legislation in the few days that Parliament will sit before the election. Notwithstanding their superior economic credentials, the government has been working...