Could lump sum changes bring-forward your recontribution plans?
Federal Budget / Opinion / SMSF

Could lump sum changes bring-forward your recontribution plans?

It’s typically about this time of year where the Government of the day starts to test the public ‘mood’ pre-budget with various policies under consideration.  One that has gained some momentum in the past few days within the media has been a potential to limit lump sum withdrawals from superannuation. A recommendation from the Financial Systems Inquiry … Continue reading »

Estate Planning / Pensions / Professionals / SMSF

Death and Taxes with Super Benefits

There has been a significant amount of focus on the benefits of reversionary pensions since the ATO released draft tax ruling, TR 2011/D3.  The ruling considers the issue of where a pension will cease in the event of death where there is no automatic reversion to a beneficiary.  This reversion will only occur where either: … Continue reading »

ATO / Professionals / SMSF / SMSF Compliance / Trustee education

Releasing benefits only under the right condition

A recent case of Mason and the Commissioner of Taxation has highlighted the importance of how and when a member can access their superannuation benefits. Benefits since 1 July 1999 are typically preserved (not accessible) until a member meets a condition of release.  Where the trustee(s) are satisfied that a member has met a condition … Continue reading »

Contributions / Professionals / SMSF Strategy / Trustee education

How a re-contribution strategy can save you and your family thousands of dollars

A recontribution (or recycling) strategy is a simple yet highly effective strategy in early retirement that when used effectively can save a member or their beneficiaries many thousands of dollars. The strategy involves a process of withdrawing benefits from a member’s superannuation account and then making a non-concessional contribution (NCC) of the same money back … Continue reading »

SMSF / Trustee education

Our latest video on pensions and lump sum

From the age of 55, you have the ability to pay yourself either a lump sum or pension out of your super fund. Where you are age 60 or over, the payment of super benefits can be taken tax-free. They don’t form part of your income. You don’t pay tax on them. If you are … Continue reading »

Professionals / SMSF / SMSF Compliance

Cheque your timing with benefit payments

The Australian Taxation Office has recently issued its first SMSF determination for 2011, SMSFD 2011/1.  This determination confirms that a benefit payable by cheque or promissory note is “cashed” at the time it is received by the member or beneficiary. This issue is very common when dealing with drawing minimum pension levels before 30 June … Continue reading »