The ATO have released CRT Alert 004/2020 which contains the manner in which early superannuation release is to be implemented. Applications will be available from Monday 20 April from either the myGov site or phone. The member will need to provide; a list of open superannuation accounts they have and the last account balance reported for that...
Here are some further clarifications of the Covid-19 early superannuation release measures; They received Royal Assent on 24 March but are not active until 20 April. Member’s wishing to withdraw under these provisions must make application to the ATO via the MyGov site. Expressions of interest can be made now but they will not be processed...
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...
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...
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...
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...
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 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....