Note: This article is the second in a series of special articles that SuperGuide will be publishing, designed to help SuperGuide readers more easily access the hundreds of questions and articles that we have published on the SuperGuide website. The first article in the series is Super Checklist: … [Read more...]
SuperGuide receives hundreds of questions every week from Australians wanting to create a better life for themselves in retirement. The types of questions we receive include: how much super should my employer contribute each year, how much money is enough, how can I work out if I am in a good super … [Read more...]
Congratulations to the Federal Government for applying common sense when dealing with death benefits paid to beneficiaries from a superannuation pension account. The Government, in its 2012/2013 Mid-year Economic and Financial Outlook, has confirmed that investment earnings derived by superannuation … [Read more...]
Q: I recently read your book on DIY Super for Dummies and picked up a number of useful hints. Thanks for writing it. My wife and I have only recently established a SMSF and are on a steep learning curve. We are in the pension phase. Both of us have a large tax free component and a smaller taxable … [Read more...]
In September 2012, the Australian parliament decided that it was not the right time to allow same sex couples to marry. This outcome must be very disappointing for lesbian or gay couples seeking legal recognition of their committed relationship. Although your relationship may not be equal in the … [Read more...]
Note: This article is current for the 2012/2013 year. At the start of each financial year, SuperGuide publishes an updated super checklist for readers. Use this list as a kick-start for your 2012/2013 super resolutions. You may not keep all of your resolutions, but if you do just a handful of … [Read more...]
Q: My wife will turn 60 next year and it has always been my intention to cash out her portion of our small self managed super fund (SMSF) and re-contribute it straight back in so as to ensure that when she and I pass away, our children are not hit by tax. Is that still a valid strategy and if so, am … [Read more...]
Q: I have a life insurance policy owned by my self-managed super fund (SMSF) of approx $2 million. Currently there is only about $80,000 accumulated in the fund. I am 40 years old. If I die tomorrow is my wife able access an income stream from the fund tax-free? For instance, upon my death if this … [Read more...]
If you plan to leave your super to your adult children when you die, your death benefit may be hit with tax, even though you would have received that benefit tax-free (if aged 60 or over) while you were alive. The reason for this inconsistency is that death benefits paid to non-dependants, such … [Read more...]
Q: It has been suggested, that a family self-managed super fund (SMSF) can become a multi-generational tax haven, which can go on into perpetuity, provided that you establish a special corporate trustee, as well as a SMSF Will. The money as I understand cannot remain in the fund indefinitely and the … [Read more...]
Although superannuation death benefits are tax-free when paid to dependants, a “death tax” continues to apply when super monies are paid to non-dependants. Any of your children aged 18 or over, who can’t prove they were dependent on you financially, or can’t prove they have an … [Read more...]
This article has been updated due to the July 2011 release of Draft Taxation Ruling TR 2011/D3 ‘Income tax: when a superannuation income stream commences and ceases’. The ruling is not yet legally binding but a final tax ruling will be issued after taking into comments received from the super … [Read more...]
Q: What is the difference between a binding death benefit nomination and a reversionary pension? Should a retail fund offer a reversionary pension option? The forms for my fund only mention binding death nominations. The terminology surrounding superannuation death benefits can be confusing and … [Read more...]
In the latest preliminary report from the Super System Review (SSR) (see article SMSFs: Nothing exotic or personal says Cooper Review), the SSR recommends that the Superannuation Complains Tribunal (SCT) have a greater role to play in the resolution of complaints over death benefit payments. The … [Read more...]
Update: Good news for SMSF art collectors and SMSF trustees investing in other collectibles. On 30 July 2010, the ALP Government announced that it would not be adopting the Cooper recommendation to ban art and other collectibles from SMSFs. The Government has imposed stricter storage requirements … [Read more...]
