SUPERCentral News
If the May 2016 Super Changes proceed and the $500,000 lifetime non-concessional contribution cap becomes a reality (but we await changes on this issue) - then it will be vital to know a taxpayer's non-concessional contribution balance ("NCC balance").
The Federal Court has rejected the attempt by bankruptcy trustees of a deceased super member who argued that a benefit paid to the widow of the deceased super member who was herself a bankrupt was divisible property and so vested in them.
Since 1 July 2016, only individuals who are authorised under the Corporations Act can provide financial advice in relation to self managed superannuation funds. An individual will be authorised if they are directly or indirectly licensed under the Corporations Act.
While the Government or, some elements of the Government, may be rethinking the proposed Super Changes announced in the May 2016 Budget, it should be noted that, to date, there has been no official statement as to whether there will be changes and, if so, what changes they will be.
We as advisers all should know that a Will is not enough, as it only operates when you die. If your client doesn't die but loses mental capacity (eg, due to stroke or dementia), they need to have appointed someone to be their Enduring Power of Attorney to be able to manage their financial affairs whilst the client is unable to do so for themselves. Hopefully there is no argument about that!
With the first of the "baby boomer" generation now hitting their 70's and many going into retirement mode, indications are that there will be a huge impact on the provision of aged and community care in Australia...
To ensure that all clients SMSF funds are fully SIS compliant, or to update a number of funds from an individual SMSF structure to corporate, your firm may wish to use our special bulk update service.
Have the ScoMo changes (which now seem likely to be implemented - subject to one or two minor changes) amounted to the demise of SMSFs as the preferred private wealth investment vehicle?
Will all nominations lapse after 3 years? Must all nominations be witnessed by 2 independent witnesses (in the manner of a will)? The answers to these questions depends on whether the fund is an SMSF and whether or not the nomination is a lapsing or non-lapsing nomination.
It was only two week ago (more or less) that the election was held. With the Government returned, but with a much reduced majority, will it still proceed with the ScoMo superannuation changes? Unfortunately, this is likely to be the case.
It seems (based upon a response to a question posed during the course of the campaign) that the Government will introduce transitional measures in relation to this $500,000 cap. The transitional measures will apply in two situations.
We all know that life's pretty expensive living in Australia these days - especially if you have a hankering for buying residential real estate in a capital city...
Yes, you heard it right - it's NOT too late to change a Will - even after death! Although, there are a couple of little catches...
As we draw closer to the end of another financial year, we wish to remind you about some of our complimentary services available to you, which certainly bode well for efficiency, and cost saving.
Essentially, collectable and personal-use assets which were acquired by a superannuation fund before 1 July 2011 (collectively called "Old Collectables") must from 1 July 2016 comply with the following 5 rules:
If a contravention occurs - then each individual trustee (and in the case of a corporate trustee, the company itself) is liable for an administrative penalty.
There have been two recent cases which considered whether a parent/child had an interdependency relationship. The first is a Federal Court Case and the second is a decision of the Administrative Appeals Tribunal.
The 1 July 2016 deadline is fast approaching for trustees with "Old Collectables". This deadline relates to trustees having to satisfy the "5 Collectables" rules in respect of collectables which were purchased before 1 July 2011.
This is a concept introduced into the SIS and tax legislation in 2005. It seems to have been introduced as a means of providing tax free payment of super benefits to an individual who was in a marriage like relationship with a deceased member but which did not satisfy the traditional definition of marriage.
The essence is the relationship is the concept of a "close and personal relationship" which relationship would normally involve "living together" and the provision of "support" by one to the other (whether financial, domestic or personal care).