SMSF overview of the Federal Budget 2017-18
Contributions / Federal Budget / Government / SMSF

SMSF overview of the Federal Budget 2017-18

As we still work through the impact of last year’s Federal Budget in readiness for 1 July 2017, tonight’s Budget delivered a much softer impact for superannuation and SMSFs specifically.  A focus on this year’s Federal Budget, delivered by the Treasurer, Scott Morrison, was around dealing with the cost of living pressures and living within our … Continue reading »

Understanding the new ‘red zone’
Contributions / Federal Budget / Government / SMSF

Understanding the new ‘red zone’

The decision by the Federal Government to abandon the $500,000 lifetime and replace it with a reduction in the non-concessional contribution cap has created some interesting challenges and opportunities for individuals looking to make after-tax contributions into super. The announcement last week by the Treasurer, Scott Morrison now means that the non-concessional contribution rules from 1 July 2017 … Continue reading »

Finally… draft super regulations have landed
Contributions / Federal Budget / Government / Professionals / SMSF

Finally… draft super regulations have landed

Well, it’s only taken 127 days for the Government to provide the first tranche of legislation for consultation through the release of an exposure draft on the proposed super reforms. Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 sets out a part of the Government agenda with reforms to superannuation tax concessions – many of the more … Continue reading »

What’s in store for 2016?
Government / SMSF

What’s in store for 2016?

The start to the new year provides a time to ponder the big issues likely to impact the superannuation and SMSFs in 2016. The year shapes as a pivotal one for the future direction of superannuation policy within Australia.  The finalisation of the tax white paper, along with a federal election will see the beginnings of a new tax landscape … Continue reading »

LRBAs are here to stay… for now
Government / Limited Recourse Borrowing Arrangements / SMSF

LRBAs are here to stay… for now

As we close on nearly 12 months since David Murray presented the Financial System Inquiry (FSI) final report, we have today seen the Government response overwhelming accept the majority of the inquiry’s recommendations.  Importantly, one key recommendation from the FSI panel was to impose a ban on the use of limited recourse borrowing arrangements (LRBAs) with self-managed … Continue reading »

Joe, what’s the cost of regulating the SMSF sector?
ATO / Federal Budget / Government / SMSF / SMSF Compliance / Trustee education

Joe, what’s the cost of regulating the SMSF sector?

We must be a patient bunch within the SMSF sector… it was some time ago now that the Federal Government decided not to proceed with a range of key measures that justified the increase in the SMSF Supervisory levy from $191 to $259.  Not only was there a significant increase in the SMSF levy to … Continue reading »

The importance of managing legislative risk
Federal Budget / Government / SMSF

The importance of managing legislative risk

The announcement by the Labor opposition to confront head-on the fairness and sustainability of tax concessions within superannuation is a timely reminder for trustees to be thinking about the management of legislative risk when building wealth for retirement.  With uncertainty amongst Government, the only certainty we do seem to have is that change will occur (at some … Continue reading »

The final nail in the coffin for LRBAs?
Government / Limited Recourse Borrowing Arrangements / SMSF

The final nail in the coffin for LRBAs?

The recommendation by the FSI panel to remove direct leverage from superannuation may have delivered the final blow to limited recourse borrowing arrangements.  Concerns about the growing use of leverage inside superannuation raised the attention of the Financial Systems Inquiry (FSI) Panel, in particular focusing on the increase in risk on Australia’s financial system that … Continue reading »

The end of the road for leverage inside super?
Government / Limited Recourse Borrowing Arrangements / SMSF

The end of the road for leverage inside super?

It appears abundantly clear from the FSI panel and a range of submissions including the Reserve Bank and Big 4 banks that the days are coming to a close for the use of leverage inside super.  You only need to look at the default position of the panel into the FSI interim report to understand that they … Continue reading »

Must be time for mud-slinging about SMSF fees and minimum balances
Government / Opinion / SMSF

Must be time for mud-slinging about SMSF fees and minimum balances

You can always tell when a Government inquiry is occurring because ‘mud-slinging’ becomes the national pastime for many pockets of the financial services industry. Self-managed super funds (SMSFs) become a key target for many at these times given its continued growth, with rhetoric about minimum balances again for SMSFs, the ATO’s ability to regulate the sector and more…  I am … Continue reading »