When a superannuation account enters pension 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
Estate planning: How can a SMSF live forever?
Q: It has been suggested, that a family self-managed super fund (SMSF) can become a multi-generational tax haven, which can go on into perpetuity, provided that you establish a special corporate trustee, as well as a SMSF Will. I thought that the super money could not remain in the fund indefinitely because eventually ... Read more
SMSF advice: Is your accountant still allowed to help your fund?
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 a SMSF, particularly when a decision, or strategy, requires financial advice. Traditionally, many Australians have turned to their accountant for assistance, but ... Read more
Tax-deductible super contributions: Timing start of pension is essential
Q: I put money into my SMSF in June 2017 from a capital gain. I wasn’t able to tell the fund at that time what it was because my accountant hadn’t completed the figures so that notice was sent to them in August 2017. As I understood the rules, so long as the money was in the fund at June 2017, I could then withdraw any ... Read more
Boost your super: 10 planning tips for 2017/2018 year
Although many people are still grappling with the July 2017 superannuation changes (announced in the 2016 Federal Budget), it’s important to note that many of the underlying super rules remain unchanged. For example, the Superannuation Guarantee (SG) rates remain the same, contributions caps are still around (albeit ... Read more
SMSF compliance: ATO’s hit list for the 2016/2017 year
Each year, the ATO promotes a list of compliance areas that the regulator intends to target when reviewing SMSFs during the financial year. This is the hit list for the 2016/2017 year, although you can expect many of the areas to be focused on in the early parts of the 2017/2018 year as well.In August 2016, Kasey ... Read more
SMSF trustees face bigger penalties from 2017/2018 year
SMSF trustees can expect harsher fines from the next financial year (2017/2018 year) onwards with administrative penalties of up to $12,600 per trustee (including corporate trustee) for a breach of the super rules. A value of a penalty until will increase to $210 (from the current $180) from 1 July 2017.At the time ... Read more
Anti-detriment payments banned from July 2017
Note: This change is now law receiving royal assent on 29 November 2016, and taking effect from 1 July 2017.On 3 May 2016 (2016 Federal Budget), the Coalition government announced that it would abolish the anti-detriment provisions from July 2017, and this change became law on 29 November 2016.From 1 July ... Read more
Transition-to-retirement pension (case studies): How does a TRIP work?
Important! From 1 July 2017, the tax exemption on fund earnings financing a transition-to-retirement pension (TRIP) will be removed, due to the laws no longer considering a TRIP to be a superannuation income stream. This change is now law, and will apply to TRIPs in place before July 2017 as well as TRIPs commenced on ... Read more
Less tax, more super? A transition-to-retirement pension is no longer the answer
Important! From 1 July 2017, the fund earnings on assets financing a transition-to-retirement pension (TRIP) will no longer be exempt from earnings tax. From 1 July 2017, a TRIP is no longer considered to be in pension phase. Superannuation changes creating this law passed both houses of parliament on 23 November 2016 ... Read more
SMSF pension payments: A little bit under may be OK
SuperGuide often receives questions from readers asking what happens if they don’t withdraw the minimum pension amount required to be paid each year from their super pension account, especially when the underpayment is due to an honest mistake, or due to circumstances beyond their control.Before January 2013, the ... Read more
Retirement and tax: What are the minimum pension payment rules?
Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me?A: Your question is really four questions in ... Read more
