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 ... Read more
What is included in my Total Superannuation Balance, and when does it apply?
The concept of total superannuation balance, or TSB, was introduced on 1 July 2017 as part of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 as a means to measure your total superannuation interests at any point in time. It is used to determine eligibility for a number of new superannuation ... Read more
TBAR – Transfer balance account reporting for SMSFs
From 1 July 2017 the Federal government introduced the transfer balance cap, which currently sits at $1.6 million and which will be indexed periodically in $100,000 increments. The transfer balance cap is the limit on the amount that can be used to commence a pension in retirement phase. It is the total amount that can ... Read more
SMSFs: How to start a pension
One of the benefits of having a self-managed superannuation fund (SMSF) is its ability to pay members an income stream, or account-based pension. Of course any superannuation fund can do this, but paying a pension from an SMSF offers members more control and flexibility. The trustee can decide what assets will be ... Read more
What are the asset valuation guidelines for SMSFs?
SMSF trustees are required to regularly value their fund’s assets as a part of ensuring compliance with Australia’s super legislation. Assets must be valued at market value, based on appropriate evidence and data. The Australian Taxation Office (ATO) can review these asset valuations as a part of their ongoing SMSF ... Read more
Starting a pension from your super
After working for decades to build your superannuation, the day finally arrives when you can say goodbye to the nine-to-five and turn your super into a reliable source of retirement income. Depending on your account balance, a super pension can be used to supplement the Age Pension or replace it entirely. The most ... 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 some ... 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
Guide to SMSF trust deeds
An SMSF trust deed is a legal document that outlines how the fund will be set up and how it will operate. An Australian SMSF must be established with a trust deed that is compliant with Australian superannuation legislation. Why is an SMSF trust deed necessary? An SMSF must be set up as a trust. A trust is a type of ... Read more
Is $1 million really the magic number to start an SMSF?
Guest contributor: Meg Heffron, the author of this article, is co-founder and a Director of Heffron SMSF Solutions – a firm that specialises in SMSFs. She is a qualified actuary with more than 25 years of superannuation experience. Depending on who you believe, self-managed superannuation funds range from being the ... Read more
What are the Transfer Balance Account Report (TBAR) rules for SMSFs?
Guest contributor: Meg Heffron, the author of this article, is co-founder and a Director of Heffron SMSF Solutions – a firm that specialises in SMSFs. She is a qualified actuary with more than 25 years of superannuation experience. It would be hard for anyone interested in SMSFs to have missed the fact that a number ... Read more