With the growing number of SMSF members moving towards retirement, there is a growing focus on benefit payments from superannuation. Within the SMSF environment, the ATO has taken an increased interest in this area from a compliance perspective, with guidance focusing on when pensions commence and cease, along with key issues around funds claiming tax … Continue reading »
Forgetting to take the minimum pension is one of the cardinal sins when it comes to operating your self managed super fund. This issue was highlighted within draft tax ruling, TR 2011/D3 where the Commissioner states that failure to meet the minimum will mean the fund is not entitled to tax exemption on the income … Continue reading »
The ability to utilise borrowings to repair and maintain an asset as part of an SMSF limited recourse borrowing arrangement (LRBA) has been a key feature of the revised legislation since 7 July 2010, when section 67A & 67B were introduced. However, being able to redraw on a loan facility to make such repairs is … Continue reading »
With a growing number of self managed super funds, it is without question that adequate resources are required to ensure that SMSFs remain as a well-functioning sector. It is with some concern however, that the cost of regulation may soon become a barrier to entry, in particular where these costs are increasing against administration and … Continue reading »
It’s been a fascinating year… an Olympic year, with golden memories from London, a diamond jubilee, a Korean named Psy had a billion visits on YouTube in just five months, and the world still lingers on the precipice of further economic turmoil. It is this global uncertainty that has arguably continued to have the biggest impact on superannuation and … Continue reading »
Last week saw the release the ATO’s SMSF quarterly statistics (September 2012) which again showed strong growth in fund establishments. A further 8,183 new funds were setup in the first quarter of 2012-13 financial year, taking the number of SMSFs to 488,576. Total assets grew to more than $458 billion, which now shows the average … Continue reading »
The ATO’s recent release of Taxpayer Alert – TA 2012/7, provide trustees and professionals with a timely reminder about acquisition of property using a Limited Recourse Borrowing Arrangement (LRBA) and also through related unit trusts. Some of the examples of concern raised by the Commissioner in TA 2012/7 surrounding LRBAs suggest individuals are either: oblivious … Continue reading »
Whilst most of the attention with limited recourse borrowing arrangements (LRBAs) has centred around property transactions, there has been a need to clarify a range of issues on other acquirable assets, in particular assets allowable as a collection of identical assets under the definition of a single acquirable asset (SAA). It’s not uncommon when placing an … Continue reading »
The next few months starts a transformation for more than 12,000 SMSF auditors, with ASIC registration to open to become an Approved SMSF Auditor. This registration is mandatory for all SMSF auditors to continue to conduct self managed super fund audits post 1 July 2013. With about 50% of the SMSF auditors currently auditing 10 … Continue reading »
After only just discussing the regulatory focus by ASIC on SMSFs and property investments, we have seen further regulatory “alarm bells” ringing through the ATO’s release of taxpayer alert, TA 2012/7. A Taxpayer Alert is an “early warning” of significant new and emerging higher risk tax and superannuation planning issues or arrangements that the ATO … Continue reading »