News

Double Contribution Strategy

As this is June you may like to consider the feasibility of a double contribution using an unallocated contribution reserve. The strategy involves making an additional contribution in June that will be allocated towards the member’s contribution caps in July. (The requirement is that such contributions are allocated within 28 days of the following month, so...

EOFY SMSF Checklist

End of Year SMSF Checklist This check list includes matters that aren’t exclusively End of Financial Year but might be also addressed at this time for the sake of convenience. Some items constitute financial advice so require licensing. Check that concessional contributions have not breached the $25,000 limit. Remember that, if they have, the excess may count...

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...