Q: Could you please advise me if the 45-day holding rule applies to shares held in an 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 entitled to ... Read more
Superannuation death benefits and the $1.6 million transfer balance cap
We have received many questions from readers about how the new $1.6 million transfer balance cap will operate when a fund member dies, especially if the fund member has arranged for his or her spouse to receive a superannuation death benefit pension, including a reversionary pension. This article provides a brief ... Read more
Non-concessional contributions: Re-contribution strategy still applies
Q: My wife turns 60 this financial 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 I correct in ... Read more
SMSF pension earnings remain tax-free after death
When a superannuation account enters retirement phase, the earnings on assets financing the super pension are exempt from tax, subject to meeting minimum pension payment rules. What this means is that capital gains, dividend income, interest income and any other type of income that the super pension account receives is ... Read more
Anti-detriment payments banned since July 2017
In the 1980s and 1990s, anti-detriment payments were always considered the pointy end of superannuation and very few Australians took advantage of the rules allowing a refund of a member’s lifetime superannuation contributions tax payments. In more recent years, a greater number of super fund members were taking ... Read more
Superannuation death benefits: Who receives super payments, and how much tax is paid?
On the death of a super fund member, a superannuation death benefit can be paid to the dependants of the fund member, or to the fund member’s estate. The term ‘dependant’ has two special meanings when referring to superannuation death benefits. A super fund can only directly pay a superannuation death benefit to ... Read more
Monthly Superannuation Returns Performance Reckoner (for 5 investment options)
You can find out the median monthly investment return of the 5 main investment options available in Australian super funds for at least the past 4 calendar years (from January 2014 through to the latest monthly results). You can also check out our SuperGuide article Investment performance: Latest super returns (to ... Read more
The super challenge: At what age should I retire?
Selecting a retirement age, even if you plan to continue some form of work during retirement, can be a difficult decision. In some cases, individuals don’t get a choice about when to retire due to health issues, or due to redundancy in later years and then difficulty finding another job. Although life after work is ... Read more
Superannuation death benefits: Dear Dad, Tax for everything
If you plan to leave your super to your adult children when you die, your superannuation death benefit may be hit with benefits 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 superannuation death benefits paid to ... Read more
SMSF investment: Can I invest my super money in my own company?
Q: Can I set up a self-managed super fund (SMSF) and invest the funds in a company of which I am the sole director? If yes, will the earnings of the super fund be tax free and would my drawings from the fund be tax free? I am 64 years old. Question one: Can you invest your super money in your own company? Your first ... Read more
SMSF investment: Companies that pay fully franked dividends
Q: Can you tell me how you find a list of all ASX-listed companies that pay fully franked dividends? The question you ask is a very popular question and unfortunately the answer is no longer straightforward. A complete list of companies that pay franked dividends used to be available for the cost of a daily ... Read more
Franked dividends and franking credits: How do they work?
Tax alert! Bill Shorten (on behalf of the ALP) promises that his party will ban cash tax refunds for excess franking credits for Australians not receiving a government pension, taking effect from 1 July 2019. Such a promise can only happen if a federal election is held in early 2019, and such a promise is also subject ... Read more
