SUPERCentral News
An ATO SMSF News Alert summarises the position.
Hippolyte and Dido have just successfully made downsizer contributions of $250,000 and $290,000 to their Self Managed Superannuation Fund. As the close of the financial year is fast approaching and Hippolyte wants to impress the auditor of the fund with his record keeping, what evidence must he obtain in relation to the downsizer contributions?
The ATO PCG 2016/5 sets out the "safe harbour" terms on which SMSF trustees may structure their LRBAs consistent with an arm's length dealing. Further to this, the ATO publishes annually the safe harbour LRBA rate for SMSFs. This article provides the applicable rates for 2021-22i (both safe harbour and Division 7A benchmark interest rates), the related proposed Division 7A changes and implication for LRBAs that do not meet the safe harbour rates or other terms.
This change applies from 1 July 2021 and will cease to apply on 30 June 2030. The relevant legislation being Schedule 3 to the Treasury Laws Amendment (More Flexible Superannuation) Act 2021 No 45 of 2021.
Previously, trustees of self managed superannuation funds were required to perform their duties and exercise their powers in the best interests of the beneficiaries of the fund. This requirement was imposed by s52B(2)(c) of the Superannuation Industry (Supervision) Act 1993.
This change applies from 1 July 2021. The relevant legislation being Treasury Laws Amendment (Self Managed Superannuation Funds) Act No 47 of 2021.
This change applies to the 2020/21 and following financial years.
The pension drawdown relief which applies for the 2019/20 and 2020/21 financial years will be extended for a further financial year to 2021/22. The extension of this relief was announced on 29 May 2021 in a joint media release of the Prime Minister, Treasurer and Senator Jane Hume, the Minister for Superannuation.
To complete the government's super trifecta of Super Bills which have been accepted by the Senate, the Treasury Laws Amendment (Your Future, Your Super) Bill 2021 has been passed by the Senate - but with two significant changes.
The Government's 2018 Budget proposal to allow Self Managed Superannuation Funds (SMSFs) to have up to 6 members has now been finally passed by both the House of Representatives and the Senate.
Another Government's superannuation reform has now been accepted by the Senate. The Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 has now been passed by the Senate (after adding further beneficial changes).
The 2021 Budget can be summarised in one line - as a great budget for superannuation. The Budget sets out major beneficial changes for superannuation covering both contributions, legacy superannuation products, first home super saver scheme and residency issues for SMSFs.
From 1 July 2021, if a non-arm's-length capital gain is made by a segregated current pension asset on or after 1 July 2021, it will be treated as non-arm's length income ("NALI"), meaning that it will be taxed at the highest marginal rate of 45% under section 295-550 of the Income Tax Assessment Act 1997 ("ITAA97").
Contrary to popular belief, simply tearing up or ignoring signed legal documents does not eradicate its effect. The reality is, once a documented agreement is executed (by signature or common seal) it can only be unmade, corrected or amended by the signing of other relevant legal documents. So what are your options when a mistake is made or you find an error?
We are taking enrolments for our course commencing on 15 July, so if you are looking to develop your expertise in estate planning to broaden your service offering then consider enrolling.
If you have SMSF trust deeds which have not been updated recently and you would like to hear how our SUPERCentral bulk update process works, please give us a call on 8296 6266.
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The superannuation environment may offer great tax efficiency in passing a member's death benefits to their dependents, however there is a rider - the member will not have full control over how the benefits will be used by the beneficiary.
In this article we discuss whether it is possible to control the commutation of a child pension, without jeopardising the compliance and validity of said pension.