Rarely do we go into an election with such contrasting policies from the major parties, and no more so than in superannuation. The nation’s decision on 18 May will have a big impact on retirement savings.
Author Archive | Mark Ellem
Even for this experienced SMSF technical services executive, the tighter rules for borrowing in his SMSF brought some unexpected problems. It’s much harder now than most people realise.
In certain limited circumstances, especially relating to Business Real Property, it is possible for an SMSF to acquire property from a member but check the rules carefully to avoid penalties.
Super contribution changes that took effect on 1 July 2017 and other changes coming in from 1 July 2018 aren’t all negative, leaving opportunities over the next few months to make the necessary adjustments.
SMSF trustees should understand the tax consequences when death benefits include insurance proceeds because it can vary greatly according to circumstances, and these should be planned for in advance.
The implications of the superannuation reforms did not end in 2017, and SMSF trustees should stocktake what they can do, especially focussing on the CGT and the unique definition of retirement for super.
Unlike the rest of a person’s estate assets, a will has no power over the decisions of trustees of a superannuation fund when it comes to the payment of a death benefit.
Transferring a death benefit pension can be complicated but new legislation from 1 July 2017 simplifies the process.
A point by point final reminder of actions needed before 30 June on large pension balances, plus good news about the timing to claim CGT relief to reset the cost base to market values.
The transfer balance cap affects the amount of a deceased member’s benefits that can be paid to the surviving spouse as a pension or income stream, but there’s a way to retain it in the super system.
Despite the confusing and technical nature of the CGT relief rules, it’s important for SMSF trustees and advisers to consider their implications as decisions need to be made prior to 1 July 2017.
Superannuation death benefits paid to adult children can incur a heavy tax impost, but there are strategies available to avoid paying more tax than necessary. It’s not always possible to know when you’ll die.