Recently, I've received several inquiries regarding the treatment of fee-for-no-service refunds. I can only assume that some affected institutions are trying to finalise payments by the end of this financial year. I posted on this matter in August last year but, due to the increased activity, I thought it worthwhile to repeat that post. The ATO has published a fact sheet...
Ungeared companies or trusts can be an attractive way to hold direct property when multiple investors are involved. Provided they are established and operated in accordance with SIS Reg 13.22C, the SMSF investment is not an in-house asset even if it, directly or via associated parties, controls the entity. If, however, the entity is not operated correctly...
As you know, there can be a significant difference in after tax benefits between a member withdrawal and a member death benefit payment. From age 60, member withdrawals are tax free but a death benefit payment from that same member account, if paid to a non tax dependant, will be reduced by 15% tax on the...
Opportunities are being lost due to a general misunderstanding of the nuances of life insurance in SMSFs. A deduction for term life insurance premiums is allowable, irrespective of whether the premium is paid from an accumulation or a pension interest. Clearly this is irrelevant if the fund is totally in pension mode however, where a portion of...
We will waive our wholesale base administration fee for the preparation of the 2021-2022 financial statements and income tax return where an application to transfer the Fund’s administration to our service has been submitted by close of business on 30th June 2022. Ancillary fees, including for audit, actuarial and various non-standard items will still apply. In addition...
The SIS Act pays special attention to the inherent conflict of interest that exists in all SMSFs due to the trustees being the members and vice versa. This limits the financial dealings that the fund can have with related parties so identifying who these are is vital. SIS sec 10(1) defines these as a member, standard...
If a fund increases in value for any non-investment related activity the increase will be a deemed contribution. Most commonly this occurs when an expense is paid on behalf of the fund without reimbursement. Where the action can be attributed directly to a member or their spouse it is a non-concessional contribution by default but the...
We all know that the level of in-house assets cannot rise above 5% of the fund value at the end of the financial year but what value is that? What is often not appreciated is that it is the gross value. That means that a fund with a $500,000 balance generally has an in-house asset limit...