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.
Archive | SMSF Strategies
Is a Division 293 tax notice coming your way?
It sounds arcane but it could be costly. For the first time, about 44,000 individuals will receive their first Division 293 notice early in 2019, and it will surprise many.
Labor franking policy will change behaviour
Labor thinks disallowing excess franking will generate billions of dollars of additional revenues, but there is growing evidence that behaviour changes will severely limit the amount raised.
6 stark superannuation policy differences
Where once it was difficult to differentiate between the superannuation policies of the two major political parties, the 2019 Federal Election will deliver some stark choices for voters.
Cuffelinks’ Facebook debate on Labor franking
An edited extract from the Cuffelinks Facebook page shows how widespread the debate on Labor’s franking has become, and the majority of people need a simple, logical explanation on how franking actually works.
8 hints for any SMSF in both accumulation and pension modes
The transfer balance cap has required some large SMSFs to transfer pension money back to accumulation, and the two pools must be treated carefully to maintain the full benefits from superannuation.
How SMSFs can utilise franking credits under Labor
Labor’s proposal on franking credits is not only facing considerable opposition, but it is also encouraging people to consider future ways to utilise the credits. It is a chance to think deeper about estate planning.
Are retrospective tax policies fair or foul?
One person’s unjust retrospective policy change is another’s overdue and necessary reform. Did people objecting about unfavourable policy retrospectivity complain when they benefitted from a retrospective change?
More detail on the $1.6m Transfer Balance Cap
A reader thought Noel Whittaker’s article last week reported an ‘incredible’ claim, so more detail is provided on the correct documentation and management of Transfer Balance Caps.
7 vital steps to compliance for your SMSF
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.
When the $1.6m cap is no longer relevant
There has been a massive focus on the maximum allowed in a tax-free pension of $1.6 million, but what happens if your portfolio rises in value and you exceed it? Should you worry about it?
Six advantages of an SMSF
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.
Super is worsening for self-funded retirees
Increases in longevity, and the numerous changes to the super system since inception, have mostly worked against self-funded retirees. Meanwhile, politicians and bureaucrats enjoy far superior retirement benefits.
Heed my problems borrowing in my SMSF
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.
