Q: Do you need to be 60 at July 1 or could you turn 60 any time in 2013/2014 to take advantage of the new $35,000 cap? A: For the benefit of other readers, I will first explain the background to the new over-60s cap. On 5 April 2013, the federal government announced that it will be introducing an … [Read more...]
We have received a lot of emails from readers who have expressed their frustration at the unfairness of the proposed pension tax on earnings above $100,000 a year, although a small minority have supported the tax. The common theme for the majority is that many Australians sacrificed and worked … [Read more...]
Note: This list of Q&As was created on 15 April, and will be updated and extended periodically. We will include the date of any future update in this note. An important consideration when reading these Q&As is that the proposed new tax is not yet law, and probably won’t become law until … [Read more...]
Q: On May 1 2013 I am transferring from accumulation phase to pension phase (I turn 65 on 30 April 2013). Is my super fund subject to tax (for 2012/2013 year) on income earned up until the date of conversion, or is no tax payable because the fund has been converted to pension phase? Earnings are … [Read more...]
Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund? A: I have divided your question into two parts. 1. Can someone who is 62 years of age and retired, continue to make super … [Read more...]
Q: How do you change your self-managed super fund (SMSF) from accumulation phase to pension phase (husband aged 60, and retired) and transition-to-retirement pension phase (myself aged 57 and still working part time)? If an accountant has to do it, what costs could be involved? Your site has been a … [Read more...]
If you run a self-managed superannuation fund, you can invest in all types of real property including residential property, commercial property, industrial property and even a farm (under certain circumstances). Before September 2007, the capacity to use borrowed money to purchase an SMSF asset, … [Read more...]
Q: I own a unit as an investment property. I would like to keep this unit as long as possible. The unit is a safe income stream and a safe haven against market uncertainty. However, if I have to sell it later, I won’t be able to put the money into my SMSF because of the work test (as it is … [Read more...]
Q: I am interested in setting up a self-managed fund. I would like to know more about the rules for purchasing property in a super fund, and whether it is possible to use borrowings to do so. Trish’s response: A self-managed (DIY) super fund can invest in all types of property, including … [Read more...]
Q: My wife and I purchased a licensed post office and freehold from Australia Post in the 1990s. In addition to the licence, we acquired one title with one building (part is leased to a commercial tenant and part we use to run the post office. A freestanding shop was added in 2000. The value of … [Read more...]
Q: Could you please advise me if the 45-day holding rule applies to shares held in a SMSF when the fund has accumulated less than $5,000 in franking credits during the entire financial year? A SMSF must hold company shares for at least 45 days (plus the day of purchase and day of disposal) to be … [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...]
Q: Can a SMSF buy/sell call/put options? I understand that CFDs are not permitted because it breaches the charge over asset regulation. However, is that true that options are derivatives and in giving shares as a collateral (when writing options) to the Options Clearing House, it will treated … [Read more...]
Q: I put money into my SMSF in June 2011 from a capital gain. I wasn’t able to tell the fund at that time what it was for as my accountant hadn’t completed the figures so that notice was sent to them in April 2012. As I understood the rules, so long as the money was in the fund at June 2011, I … [Read more...]
Note: This Q&A includes the latest SMSF cost data released in April 2012 by the ATO. The next SMSF cost update will be released by the ATO in April 2013. Q: My wife and I are considering setting up a self-managed super fund to be overseen by a licensed adviser. I asked two advisers for a … [Read more...]
