Being the trustee of a self-managed super fund can be a challenging task at times, and most people need a bit of help at certain stages when running an SMSF, particularly when a decision, or strategy, requires financial advice. Traditionally, many Australians have turned to their accountant for assistance, but under ... Read more
Employees can now make tax-deductible super contributions (since July 2017)
Note: The option for employees to make tax-deductible super contributions took effect from 1 July 2017. As an employee, the general rule when making super contributions is, you can take advantage of the concessional (before-tax) contributions rules by salary sacrificing, or by making tax-deductible super ... Read more
Who are the wealthy retirees targeted in Labor’s plans?
Roger Wilkins, University of Melbourne In Labor’s budget reply speech, Bill Shorten reaffirmed the plan to remove refundability of dividend imputation credits. His pitch was to Australian voters on lower and middle incomes, in which he pledged to look after the country’s ageing population: We know that giving older ... Read more
Shorten sweet: Destroy the retirement of millions of Australians
On 13 March 2018, the leader of the Opposition (Australian Labor Party) drew an ideological line in the economic sands and threatened the lifestyles of Australian retirees (including SMSF members) and low-income Australians. Taking effect from 1 July 2019, Bill Shorten (on behalf of the ALP) promises that his party ... Read more
SMSF residency: SMSFs must call Australia home
‘When I retire, I am going to travel…’ is a common phrase when Australians dream about life after work. For many Australian retirees, overseas travel features prominently in their retirement plans. If you’re an SMSF trustee however, and you intend to travel for extended periods, or even live outside Australia for a ... Read more
Special SMSF investment rules: A starting guide
As trustee of your SMSF, you’re responsible for investing your fund’s assets and monitoring the performance of those assets. Investing via your superannuation fund is markedly different from investing outside of super, because you must follow your fund’s trust deed, follow your super fund’s investment strategy, and ... Read more
Drafting your SMSF investment strategy: A Super Guide
Every super fund, including every self-managed super fund, is legally required to have an investment strategy. An investment strategy identifies financial goals (investment objectives) for the fund, and helps determine each fund member’s tolerance for risk and the investment time horizon for each member. Although ... Read more
SMSFs for beginners: What is an SMSF, and how does it work?
In the past, SMSFs were more commonly known as DIY super funds. Historically, self-managed super funds have been popular with business owners and other self-employed individuals With the introduction of compulsory super, and a growing awareness of the importance of saving for a long life in retirement, SMSFs have ... Read more
SMSFs: Driving your super C-A-R-T obligations
If you run an SMSF (or you’re considering running an SMSF), a helpful way to understand your responsibilities as an SMSF trustee, is to consider that operating an SMSF is all about steering your own super CART. CART is a term that I have coined to help SMSF trustees manage the mandatory aspects of running an SMSF, ... 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
Pensioners would retain cash refunds on franked dividends under Labor backdown
Labor has capitulated to pressure to exempt pensioners from its plan to end cash refunds for dividend imputation credits – a concession that would shave only A$700 million off its large projected savings over the forward estimates. The “pensioner guarantee” would mean more than 300,000 full and part-pensioners, and ... Read more
Concessional contributions: What form do I use to claim a tax deduction?
Q: I want to make a tax-deductible super contribution to my super fund, in this case, a SMSF, although I also have a super account with an industry fund. I am trying to find the official form for claiming this type of deduction. Could you lead me to a link where I could find a generic S290-170 notice of intent to ... Read more
