SUPERCentral News
We have seen a marked increase in advisers requiring estate planning assistance for their clients. If you have clients with these needs please don't hesitate to call us on 02 8269 6266 to discuss how we can assist or go to our website.
Temporary early access to superannuation is an integral measure of the Government's Economic Response package to the coronavirus. In providing this relief, the Government recognises that early access to some super benefits for those significantly affected financially may outweigh the advantages of preserving these benefits until retirement.
Following the suite of new measures announced by the Federal Government last night in response to the coronavirus, the consolidated support package comprising the first and second tranches now amounts to $189 billion and represents 9.7% of GDP. These measures will provide welcome relief for impacted businesses and households. This article provides a summary of the relevant measures including superannuation, tax, support payments as well as the ATO measures.
The ATO has recently issued new guidelines in relation to SMSF investment strategy compliance. The rules or legislation in this regard have not changed but the ATO has stepped up its documentation requirements. The adoption of a tailor-made investment strategy approach by the ATO will necessitate changes in some industry practices. A "one size fits all" template is unlikely to deliver the required results. Financial advisers may potentially add value by their facilitation with the clients' SMSF investment strategy formulation and review under the new guidelines.
The new NALI provisions have been passed by Parliament and received Assent on 2 October 2019. The new rules are complex and many SMSFs may have to reorganise due to the introduction of the non-arm's length expenses (NALE) segment. This article provides information on the new rules, implications, interpretation issues and strategies going forward.
If you are looking to establish estate planning as part of your service offering, or are looking for a course to improve your capacity and capability in developing you estate planning business then our EPAdvantage program could be the solution.
The Gearing Handbook e-Guides have now been updated to cover the LRBA Integrity Measures being inclusion, in respect of certain LRBAs, of the loan amount as at 30 June in the calculation of the total superannuation balance of participating members and the change to the definition of non-arm's length income.
The OSR have recently sent out a letter to discretionary trusts with residential properties in NSW asking if foreign persons have been excluded, which has seen an increase in clients looking to amend discretionary trust deeds in order to avoid paying surcharge land tax on properties owned by the trusts.
Often a member of a superannuation fund (whether self managed, industry or retail superannuation fund) will want to provide for their spouse and, if the spouse should predecease them to their children and, if one of the children predeceases them, to the issue of the deceased child; that is, their grandchildren.
Legislation has now been enacted to include a member's share of any LRBA borrowing in their total superannuation balance. This measure is described by the Government as an "Integrity Measure" as it is intended to address two mischiefs arising from the interaction between LRBAs and the non-concessional contribution cap.
The process of probate may seem straightforward but, depending on the complexity of a client's estate plan, along with family dynamics, it is not always easy to navigate. Rely on us as experts to provide you with the right guidance. Here we cover some of the frequently asked questions about probate.
The ATO has initiated a review of SMSFs which hold 90% or more of the fund's assets in a single class of investments. Apparently, the ATO is using the 90% threshold as a means of identifying SMSFs which may have an inappropriate investment strategy. Inappropriate in this context means lack of diversity.
SUPERCentral now have available six new Retirement Pension Kits, available for unlimited use for an annual licence fee basis. These important kits have been updated to reflect the 20 March 2019 and 20 September 2019 Age Pension Rates and Means Test Thresholds, and the change in Deeming Rates.
A Legal Entity Identifier (LEI) is a 20 character code, which provides a globally unique "name" for entities which participate in certain types of financial markets. The 20 character code is not only a unique name but also provides a coded description of the entity.
As a transitional measure associated with the introduction of the $1.6m limit, individuals who had more than $1.6m but less than $1.7m in retirement phase immediately before 1 July 2017, were allowed 6 months in which to reduce their excess transfer balance to zero by cashing out or rolling back as necessary to reduce the balance to $1.6m or less. If the necessary reduction was achieved within the 6 months, no charge would be imposed. However, what would be the position if the necessary reduction was achieved in part by taking additional pension payments before the end of the 6 month grace period? Unfortunately, that would not be effective to achieve the necessary reduction, as the taxpayer has found out in a recent AAT.
A Power of Attorney is a document by which a person (called 'the principal') appoints another person ('the attorney') to act on the principal's behalf in relation to the principal's property and financial affairs. Sometimes it's necessary to change your power of attorney in which case you're going to need to revoke the existing appointment.
Superannuation Funds have a number of identifying monikers - what are they and what is their function? In August 2015, SUPERCentral News explained the various monikers. Now, more than five years later, we again unravel the monikers and also unravel some new ones.
Of recent times there has been much controversy in relation to whether one trumps the other or whether one is better than the other. Does a reversionary pension trump a binding death benefit nomination? Is a binding death benefit nomination better than a reversionary pension? This article will consider what they are and will also consider whether one does indeed trump the other.
It seems that the ATO will change the status of SMSFs which fail to lodge their SMSF annual returns by the due date (subject to a 2 week grace period) from "complying" to "regulation details removed". This will effectively be social exclusion (if not death) for SMSFs.