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.
Tag Archives | SMSFs
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.
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.
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?
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.
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.
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?
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.