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 9 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
How does SAPTO work? (Senior Australians and Pensioners Tax Offset)
SAPTO is a tax offset that’s available to eligible seniors and pensioners in Australia. It can reduce or even totally eliminate a recipient’s tax liability. It’s important to understand though that SAPTO is a tax offset. Tax offsets can only be used to reduce or eliminate your tax liability, they can’t generate you ... Read more
SMSFs: Trust deed health check for 2019
A self-managed superannuation fund’s (SMSF’s) trust deed is one of its most important assets. While legislation sets out what trustees must not do, the trust deed specifies what a trustee is allowed to do. Now’s the time of year to perform the yearly review of the deed. Experts say it can be the ‘make or break’ ... Read more
SMSF investment rules: What every trustee should know
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee. While most of the time people choose an SMSF because of the freedom of investment choice it provides, it’s important to understand the rules around what you can, and ... Read more
Guide to minimum pension payments rules (including calculator)
Once you retire and reach your preservation age you can start to withdraw your superannuation as an income stream, a lump sum or both. Most retirees choose to take at least part of their super as an income stream because it provides them with regular tax-free payments until their money runs out. A super income ... Read more
How super works: A beginners guide to superannuation
Simply put, superannuation (or super) is money you put in a super fund while you are working to provide income later in life when you retire. Given the average Australian can expect around 20 years of retirement, and the Age Pension is designed to provide only the most basic needs, the more you can save now the more ... Read more
SMSF investors’ concern levels fall in January 2019
2018 was quite the rollercoaster for Australian markets, as fear and uncertainty ruled various global economies in the later stages of the year. At the close of 2018, Australia’s leading stock index the S&P ASX 200 presented a negative yearly dip of 3%, the worst seen since 2011. Correspondingly, the last ... Read more
What expenses can an SMSF deduct?
Self-managed super fund (SMSF) expenses can be tax deductible provided that they comply with Australian taxation legislation. It’s important to understand that SMSFs should only pay expenses that are: Allowed for under superannuation legislation and the SMSF's trust deed Consistent with implementing the ... Read more
Estate planning, super and SMSFs: Getting your house in order
Estate planning is often overlooked or neglected by superannuation investors. A broad and complex topic, it can be made easier by breaking down the key elements. This article won’t address all financial and legal issues in depth, especially for non-super assets. Instead, in the context of SMSFs, we will highlight ... Read more
How to create an SMSF investment strategy (including examples)
Self-managed superannuation funds are required, under the Superannuation Industry (Supervision) Act 1993, “to formulate, review regularly and give effect to an investment strategy.” What is an SMSF investment strategy? That investment strategy needs to take into account the following things: The risk involved in ... Read more
Guide to transition to retirement pensions (TTRs or TRISs)
Transition to retirement income streams (or pensions) allow you to gradually draw on your super benefits while you’re still working and moving towards your retirement. They go by a variety of acronyms, including TTR and TRIS. For simplicity, we’ll use the TTR acronym in this article. There are different ways that ... Read more
Guide to SMSFs and insurance
SMSF trustees must consider whether to take out appropriate insurance cover for each member of their fund as part of preparing their investment strategy. It’s a legal requirement for all super funds (including SMSFs) to prepare a documented investment strategy during the SMSF's set-up process. This strategy ... Read more
Guide to in-specie transfers for SMSFs
In specie superannuation transfers are transfers of assets in and out of super funds, rather than actual transfers of money. In specie is a Latin phrase meaning “actual form”. An in specie transfer to or from a super fund is therefore the process of transferring an asset in or out of the fund without any money ... Read more
Guide to the SMSF trustee declaration
An SMSF trustee declaration is an Australian Taxation Office (ATO) document that summarises the duties and obligations of an SMSF trustee or director. SMSF trustees/directors are responsible for their fund’s compliance with superannuation legislation. What is the difference between an SMSF trustee declaration and a ... Read more
Guide to SMSF administration, reporting and record-keeping
SMSF trustees have a number of administrative, reporting and record-keeping obligations to ensure their fund’s compliance with superannuation and taxation legislation. Compliant super funds are eligible for the tax concessions available under Australian superannuation law. Member contributions and fund earnings for ... Read more