SUPERCentral News
If you are looking to develop your expertise in Estate Planning to broaden your service offering to clients then you may be interested in our EPAdvantage Estate Planning Program, which will commence soon, and we are taking registrations now.
As we approach a time of rapid product innovation both in Australia and in many other countries, six member SMSFs allow a greater chance for the fund to amass capital, achieve better economy of scale and move into comparatively innovative products as well as maintaining blue chip investments, subject to the investment strategy.
The Government's focus for the 2020-21 Budget is to regrow the economy, create job opportunities and encourage spending. The spending will result in a cash deficit of $213.7 billion for 2020-21 with unprecedented net debt to peak at close to $1 trillion in June 2024.
If you have funds that are still in catch-up mode or are on different deeds, talk to us about our bulk SMSF conversion program. With all your SMSFs on the one set of Governing Rules, your firm gains major risk, time and opportunity cost savings.
The Government's 2019-20 budget measure to increase the cut-off age (from 65 to 67 years) that super funds can accept voluntary contributions in respect of a member regardless of the work test has been implemented.
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 2020-21 (both safe harbour and Divison 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.
The ATO has issued draft SPR 2020/D2 which when registered will exempt SMSFs that allow a rent deferral to a related party tenant from the in-house assets ("IHA") provisions in the following situations. The transitional measure applies to the 2019-20 and 2020-21 financial years.
The following integrity measures have been implemented in relation to downsizer contributions, to ensure that the provisions operate as intended when the initiative was first introduced. The changes were made to section 292-102 of the ITAA 1997.
The SUPERCentral Tool Kit is our comprehensive document centre for professional advisers and accountants. All Tool Kit documents have been reviewed and updated for the new financial year, and a range of new documents have been added.
The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 amended the Corporations Act to introduce a director identification number ("DIN") requirement. All directors of Australian companies, including corporate trustee directors of SMSFs are subject to this new DIN requirement.
If you are looking to develop your expertise in Estate Planning to broaden your service offering to clients then you may be interested in our EPAdvantage Estate Planning Program, which will commence soon, and we are taking registrations now.
The ATO has issued PCG2020/5 to extend its transitional compliance approach to general expenses NALI.
For 2019-20 and 2020-21 financial years, the Government has allowed a 50% reduction in the minimum pension limit ("transitional MPL") for account based and similar pensions as part of its COVID-19 economic response. The transitional MPL came into effect on 25 March 2020.
The recent Tax Act amendment on excepted income of testamentary trust distributions may potentially affect superannuation proceeds trusts ("SPT") that are structured as testamentary trusts. The amendment is an integrity measure to prevent assets unrelated to the estate being injected into the testamentary trust for the purpose of generating concessionally taxed excepted income.
The Total Superannuation Balance ("TSB") of a member calculated as at 30 June each year is pivotal to determining the SMSF's eligibility for certain super measures as well as contributions that may be made in respect of that member in the ensuing year.
The ATO has issued SMSFRB 2020/1 ("SMSFR") to highlight its main concerns in relation to SMSF property development. It is comprehensive and traverses structuring, investment rules, NALI and the anti-avoidance provisions. SMSF trustees that enter into property development projects must understand the complexity of such ventures and implement all the applicable rules from start to completion in a manner consistent with retirement income objectives. All transactions should be carefully documented.
The trust deed is the most pivotal document of a self-managed super fund. The trust deed, together with superannuation laws, set out the governing rules of the fund.An up-to-date, compliant and high-quality trust deed not only meets regulatory and legislative compliance but provides express permissions that enable specific investments, retirement and wealth creation strategies to be implemented.