Three weeks to go before the EOFY is still enough time to comply with the rules and make the most of superannuation and income tax opportunities. Here’s a quick checklist.
In the world of SMSFs, an aligned accountant and financial adviser can make a formidable, synergistic team. Specialists who can’t be friends can be the opposite, when the best interests of the client are paramount.
With limits placed on the size of a pension SMSF, there may be good reasons to establish a second SMSF and segregate assets and strategies for optimal outcomes, if the effort and cost is worth it.
This analysis suggests that Australian investors who lose franking credit refunds under the Labor proposal should significantly increase holdings of global equities to meet an efficient investment frontier.
If you have been maintaining a small inactive superannuation fund purely for insurance purposes, you need to act quickly to avoid losing cover which might be difficult to replace.
The ‘direct investment options’ may have structural advantages for franking credit refunds, but that does not mean SMSFs do not have their own specific advantages. What’s best for the superannuant?
Two court cases have laid the blame for poor SMSF documentation and investments at the feet of auditors. It’s not a ‘tick and flick’ exercise and there are lessons for SMSF trustees and professionals.
A recent case highlights the importance of SMSF trustees exercising discretion to pay death benefits in good faith, with real and genuine consideration and in accordance with the purpose of the conferred power.
The two major political parties have opposing views on whether SMSFs should be allowed to borrow, but what is the clear argument that there should be a limit on SMSF opportunities?
An inducement offer by a super fund is currently active, and it is creating confusion about what marketing is permissible, given that previously, regulators held such to be in violation of the sole purpose test.
Amazingly, SMSF pensioners invested in Australian shares will be much worse off under the Labor franking policy than in the ‘bad old days’ when their pensions were taxed.
A reader provides a copy of a letter on franking credits received from Chris Bowen, and we want to give the Shadow Treasurer a chance to put his side of the story.
Many commentators are assuming all industry and retail funds can utilise their franking credit refunds, but a case-by-case check is required. Plus hard words from a cranky reader.
The Labor franking credit proposal creates a group of people who count franking credits as taxable income, and another group that doesn’t. A basic principle of tax should be horizontal equity between investment structures.
Investors whose income may be hit by Labor’s franking credits proposal can reallocate away from fully franked dividends to other investments to maintain their income, but it will involve different risks.
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.