There are lots of rules that apply to your super if you’re going overseas for work or play for an extended period. If you are a member of an SMSF, it’s essential you understand the restrictions that apply to the fund under these circumstances or you could potentially face a serious reduction in your wealth. The rules ... Read more
How does SAPTO work? (Senior Australians and Pensioners Tax Offset)
A tax offset can reduce the amount of income tax you pay, but it doesn’t mean you get a refund. You’ll also still need to pay the Medicare Levy if you’re not eligible for an exemption or reduction. The Australian Taxation Office (ATO) assesses your eligibility when you submit your tax return.BackgroundThe Senior ... Read more
Guide to SMSFs and insurance
If you’ve elected to run your own SMSF, chances are you’ve also taken a proactive and responsible approach to insurance. Regardless of whether you already have life insurance outside super or in a pre-existing super fund, when you start an SMSF you need to jump through a few hoops regarding your insurance ... Read more
SMSF options: Should you remain invested or wind it up?
Running a self-managed super fund (SMSF) isn’t for the faint-hearted. Sometimes, an SMSF may make sense at one point, only to find it’s not the best option down the track.For instance, the flexibility an SMSF offers in terms of the types of investments it can hold may be valuable if you once ran your own business and ... Read more
Guide to transition to retirement pensions (TTRs or TRISs)
If you’re on the final stretch to retirement and would love to start winding back your working hours but you don’t think you can afford it, listen up. Ditto if you plan to keep working full-time for a while longer and want to boost your super but haven’t got the ready cash to make extra contributions. Help could be at ... Read more
What happens to an SMSF in the event of divorce?
The breakdown of a marriage has wide-sweeping financial implications, including for the members of a DIY fund. We look at what needs to happen if assets are to be split. ... Read more
How to invest in infrastructure through an SMSF
Self managed superannuation funds have a much wider array of investments available to them today than they did 10 years ago. However, some asset classes remain elusive due to the scale needed to invest in them effectively, compared to the investment capabilities of most SMSFs. Infrastructure is one such asset class. ... Read more
Definitive guide to the $1.6 million transfer balance cap
One of the most significant changes to superannuation – the introduction of the $1.6 million transfer balance cap – became effective on 1 July 2017. The Australian Taxation Office (ATO) estimates the changes will impact only 1% of Australian superannuants, however that 1% needs to be clearly across the Treasury Laws ... Read more
Why big super funds diversify and what you can learn from it
It’s a common saying that we shouldn’t put ‘all our eggs in one basket’. Although it’s a lesson many smaller investors and super savers forget, it’s one large super funds always follow. So, why are large super funds so committed to diversification and what are the lessons smaller investors can learn from ... Read more
Is super better or worse than ever?
Superannuation in Australia has a history that’s over 150 years long, but it’s really only in the last three decades that it’s become accessible to all working Australians.In that time, it’s undergone constant change, but does that mean we’re worse off than before – or better? ... Read more
Have you got an exit plan? The importance of estate planning
Australia is in the early throes of an unprecedented inter-generational wealth transfer, with Baby Boomers set to hand down in their Wills, an estimated $3.5 trillion over the next 20 years, according to McCrindle's Wealth Transfer Report.There’s no national data on the size of inheritances, but there are state ... Read more
Multi-generational SMSFs: Benefits and pitfalls
They say families who play together stay together, but what about families who save together in a multi-generational self-managed super fund? According to the most recent ATO statistics for 2015-16, the vast majority of SMSFs (69.8%) have just two members, usually a wife and husband. A further 22.9% have one member. ... Read more
The advantages of using MDAs in an SMSF
Managed discretionary accounts (MDAs) have become an increasingly popular option for self-managed super fund (SMSF) investors. This is because, unlike managed funds, the SMSF members remain the beneficial owners of the underlying assets in the structure. They also offer considerable tax benefits. There are lots of ... Read more
Find out about the new contribution rules that help bump up SMSF balances and reduce tax
New rules mean self-managed super fund (SMSF) members can make additional contributions to their SMSF, which can bump up their balance and at the same time offset their tax bill.There are two contribution strategies that could provide SMSF members with up to $50,000 in deductions against their income in a financial ... Read more
A short guide to platforms and wraps
If you’ve ever invested through an adviser, chances are they mentioned platforms or wraps. If you dozed off at that point, who could blame you. But if a small part of you would like to know what they were talking about, read on. After all, it’s your money that’s about to leave the station. What’s a platform? ... Read more