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.
Tag Archives | superannuation law
A bill that allows the ATO to merge dormant super accounts with active ones and release super members from compulsory life insurance embedded in enterprise agreements and from exit fees was tabled on 21 June 2018.
It’s crucial for super fund or SMSF members to understand the law as it relates to death benefit nominations to ensure desired outcomes are achieved. Don’t leave a mess for others to fix.
The law in relation to SMSFs is complex and unfortunately, even professional advisers can get it wrong. Take this example of related party lending.
The three main issues for SMSFs today are the complexity of super rules, unmet financial advice needs and changes in asset allocations both aggressively and defensively.
Monica answers questions on her article on the $1.6 million cap. As she will be unable to answer more questions directly for a while, consider registering for her upcoming webinar.
SMSF trustees and other people with large super balances should realise there are two applications of the $1.6 million transfer balance cap, and final opportunities to grow retirement savings in the most tax-effective way.
The quality of life for retirees and future tax-payers will rest on achieving a fiscal balance between supporting the aspiration of more self-reliant retirees and the continuation of a strong social safety net.
When is family not family? In the case of SMSF members lending to their relatives, some are more ‘related’ than others. Even so, you still need to comply with arm’s length transaction rules.
A common concern for superannuants is how changes to the super system will affect their retirement outcomes. In reality, the proposed changes won’t affect the majority, but poor investment choices will.
While it is possible for an SMSF to invest in overseas real estate, staying on the right side of the superannuation law and regulations in the foreign country may be more trouble than it’s worth.
The superannuation law allows SMSFs to borrow under a limited recourse borrowing arrangement to acquire an asset, but if multiple assets are involved, like a property on more than one title, things can get complicated.
A warning not to take short cuts when settling a death benefit from a deceased SMSF member. Even if the payment is being transferred within the same fund, you still need to follow the law.
It’s tempting for an SMSF trustee to try to offset capital losses from share sales against other income by becoming a share trading business. It’s not easy to satisfy the provisions of superannuation law.