SUPERCentral News
Interested in understanding Testamentary Trusts vs Discretionary Testamentary Trusts, how they differ and how they can be incorporated as part of an intergenerational wealth transfer strategy, then look out for our webinar announcement in next month's SC News.
A question we get from time to time is whether the trustee(s) of an SMSF can enter into transactions with a fund member's former spouse whether the transaction is a loan, lease or another type. In this article, we will consider a number of compliance issues with SMSF transactions involving a former spouse.
The salutary lesson to be learned from this case is that before any action is taken in respect of superannuation pension, always consider whether the pension is subject to Centrelink "pension grandfathering".
The Australian Taxation Office (ATO) maintains a publicly accessible website of Self Managed Superannuation Funds (SMSFs) - called SuperFund Lookup. This data base contains basic information about an SMSF such as its name, its ABN, contact details and, most importantly, its "status". Neither the name of the trustee nor the names of the members of the SMSF are disclosed on the website.
An amendment bill has now been introduced into Parliament to permit the Australian Taxation Office (ATO) to provide details about the superannuation accounts of a party to a Family Law property proceedings.
Our patented update process works a little differently, and a key benefit is Trustees only ever sign one set of documents.
In the 2016-17 Federal Budget, the Government announced targeted amendments to Division 7A. A single 10 year loan model will be used instead of the existing 25 year and 7 year loans. The interest rate will also be revised to the RBA overdraft rate for small business which is usually 2% higher than the current benchmark rate.
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.