SMSFs are useful retirement vehicles, but there are rules to follow which can easily be overlooked in haste. Run your eyes over the next five rules in this continuing list.
Author Archive | Graeme Colley
Watch the exact timing of super contributions to create a tax deduction, especially this year, and anyone with a pension that reverts to another person on death has particular timing issues to address.
Sections of the superannuation industry presented a wishlist to Government for the 2019 Budget. How many changes made it into Josh Frydenberg’s document? None of the significant ones.
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.
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.