SUPERCentral News
The ATO has just published its quarterly statistical report for self managed superannuation funds. The report is based upon the December 2018 financial quarter.
While the Morrison Government is proceeding with its proposal to permit Jumbo SMSFs with 5 or 6 members, will Jumbo SMSFs have to have a company as trustee? This answer is determined by the legislation of the state or territory which applies to the SMSF.
The ATO has just released some of the key super thresholds which will apply for the 2019/20 financial year.
The wheels are turning for the next update of the SUPERCentral Governing Rules and the process will soon commence.
Legislation to ensure that Reversionary Transition to Retirement Income Streams (TRISs) will not be precluded from transferring to a nominated reversionary beneficiary simply because the nominated reversionary beneficiary is not in retirement phase has now received Royal Assent and is in operation.
Draft legislation has been released to correct, amongst other things, two unintended drafting errors arising from the "Fair and Sustainable" Superannuation changes of 2017.
The proposal, announced in the May 2018 Budget, has now been introduced as draft legislation. The proposal is to amend the definition of "self managed superannuation fund" in s17A of the Superannuation Industry (Supervision) Act 1993 by the simple device of changing "fewer than 5 members" with "fewer than 7 members". This change, if enacted, will apply from 1 July 2019.
The ATO has advised that from early March 2019 its policy as to the issue of Notices of Compliance for newly established SMSFs will radically change – for the better! Under the new policy, the ATO will issue a Notice of Compliance within a few weeks of a new SMSF first being registered with the ATO.
If you believed the press DIY superannuation is all but finished. Don't believe the press. Even with the proposed limiters superannuation still remains a very efficient and attractive structure for your retirement planning, and particularly self managed superannuation.
Two key issues on Superannuation from the Hayne Royal Commission were Agency Conflict and Invisibility of Fees (especially for no service). These two issues could be summarised as essentially poor and conflicted governance.
Since its introduction, Limited Recourse Borrowing Arrangement (LRBA) has served many Australians to buy real property in their SMSF. We have seen an increase in the number of SMSFs that have repaid the loans and are unwinding the arrangements.