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.
Tag Archives | SMSFs
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.
SMSFs are currently the largest segment of superannuation, but by 2020, industry funds are expected to dominate, having recently overtaken retail funds. Labor’s franking proposal will accelerate the trend.
If Labor legislates to withdraw franking credit refunds, retirees have an alternative for their pension superannuation to retain the refund. It shows the proposal does not have ‘horizontal equity’ between structures.
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.
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.
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.
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.
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.
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.