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.
Archive | SMSF Strategies
It’s time for SMSF accountants and advisers to be friends
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.
When is it worth establishing a second SMSF?
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.
Do franking credits justify SMSF bias to Aussie shares?
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.
SMSF trustees may lose insurance after super changes
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.
Comment on franking and ‘direct investment’
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?
Caveat auditor and feeble SMSF investment strategies
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.
Court holds SMSF trustees accountable
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.
SMSF borrowing ban is a solution in search of a problem
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?
Sole purpose test needs level playing field
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.
How super became a poor deal for SMSF pensioners
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 response from Chris Bowen on franking
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.
On franking, all public funds are not the same
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.
Hey Mr Bowen, the franking credit is part of my taxable income
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.
Assessing Labor franking policy options
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.
5 common mistakes in running an SMSF
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.
