The tax benefits of holding money in an SMSF come with a responsibility to follow the rules, and the penalties can be severe for what seem like innocent or mistaken breaches.
Author Archive | Graeme Colley
A significant compliance breach can materially affect the tax effectiveness of your SMSF, so check you are complying with these seven steps and stay on top of the administration and obligations.
In considering whether setting up an SMSF is the right decision for you, weigh up compliance obligations and cost with the main advantages SMSFs offer over other super funds. The 6 key positives are enumerated here.
What to do if super guarantee payments from multiple employers, combined with salary sacrifice arrangements, have resulted in a breach of the concessional contribution cap.
With the maximum number of members in an SMSF likely to increase from four to six, weigh up the pros and cons when deciding if an increase is in the best interests of all members.
When changes to regulations are as extensive and complex as the coming 1 July rules, many misconceptions about how they work arise for both advisers and their clients. Here are a few common mistakes.
A positive development from recent super changes is the lifting of current restrictions on claiming tax deductions for personal super contributions and a flexible carry-forward rule.
A unique feature of SMSFs is the concept of ‘superannuation interests’ which must be monitored to keep track of the taxable components in a super fund. Good records can avoid problems later.
Graeme Colley answers a reader’s question on making non-concessional contributions to super after the age of 65, including how the contributions caps work in different situations and how to make the most of them.
It’s popular to argue that the contribution caps are severe limits to the amount placed in super. But a couple can put up to $1.5 million into super in the next few months, so make the caps work in your favour.
Contribution splitting allows a super member to split up to 85% of concessional contributions received in a financial year with their spouse, and there are times when this is a good strategy.
The main benefit of a Transition to Retirement (TTR) pension when under age 60 is not the cash flow from the pension, but income earned in the fund on the investments supporting the TTR pension is tax free.
Whether a reversionary or non-reversionary pension is better is not straightforward and depends on the circumstances of the case, but it’s an important part of estate planning.
Technical but important – recent amendments allow the income on investments supporting a non-reversionary pension to continue as exempt current pension income after the death of the member.