SUPERCentral is an independent online platform provider of SMSFs, advice, legal documentation and wealth management services to accounting and financial planning firms throughout Australia.

To access SUPERCentral SMSF media page please click here

News

Minimum pension limit reduction

01/04/2020

The SIS Regulations have been amended. There will be a temporary 50% reduction in the minimum pension limit applicable to the 2019-20 and 2020-21 financial years for allocated pensions, account based pensions and market linked pensions.

Temporary rent reduction

01/04/2020

This covers the situation where an SMSF owns real property which is leased to a related party. The property is typically business real property due to the in-house asset restriction. The rent must be "no more favourable to the other party than those which is reasonable to expect would apply if the trustee were dealing with the other party at arm's length" (Section 109 SIS Act).

In-house assets

01/04/2020

The downturn in the share market may result in the SMSF not meeting the 5% in-house asset limit at the end of the financial year. In such situation, the ATO will not undertake compliance activity if a rectification plan is in place by 30 June 2021, as follows:

Investment strategy

01/04/2020

The ATO considers that an SMSF investment strategy must be reviewed regularly at least annually and in the case of significant events. Major market correction and volatilities is a significant event in this regard. In relation to the coronavirus situation, the ATO accepts that short-term variations to the investment approach including asset allocations does not constitute a variation from the investment strategy but action must be taken to adjust the investments.

COVID-19 - early release of superannuation

01/04/2020

The Coronavirus Economic Response Package Omnibus Act 2020 ("the Act") received assent on 24 March 2020. Schedule 13 of the Act amends the SIS regulations to make provision for COVID-19 temporarily early release of superannuation. Application for this early release must be made within the period of 6 months starting on the day the new regulation commences.