SMSF ADVICE FROM YOUR ACCOUNTANT AFTER 1 JULY 2016?

You may have read in the financial press about the changes that will be happening from 1 July 2016 in the SMSF advice area. From 1 July 2016 new laws will come into play and accountants will no longer be able to give clients advice about SMSFs (Self Managed Superannuation Funds) unless they hold an Australian Financial Services licence (“AFS … Read More

HAVE YOU REALLY MET THE WORK TEST OR RETIREMENT DEFINITIONS?

How does the work test apply? If you are under 65, you are able to contribute to your superfund without having to satisfy a work test. If you are 65 or over, then your super fund will not be able to accept your contributions (either concessional or non concessional) until a work test is met. The work test is satisfied … Read More

Testamentary Trust – what is it and should I have one?

A Testamentary Trust is a trust established under a Will and it only comes into operation after the death of the person who has made the will (the Willmaker). There are many factors to consider in deciding whether to set one up. Our article covers a few of these factors. The key factors to consider in deciding whether to setup … Read More

Reversionary pension versus non-reversionary pension

When a member of a superfund commences a pension they can nominate a reversionary pensioner if they want to. So what is a reversionary pension? Reversionary Pension A reversionary pension is an income stream superannuation benefit paid to a member. Upon the member’s death the pension continues to be paid to a nominated reversionary beneficiary. The pension does not cease … Read More

Is your Death Benefit Nomination worded correctly? – Now is the time to check

After your family home, your superannuation is most likely the next largest asset. Do you know what will happen to your superannuation upon your death? Will it automatically get paid to your Estate? No. Death benefits are not automatically paid to your Estate. They are paid in accordance with the fund’s rules and by the fund’s trustee. To ensure your … Read More

Foreign buyer crackdown

  The Australian Tax Office (ATO) has ramped up its efforts to hunt down foreign buyers of Australian real estate, with the employment of 50 compliance officers who will investigate potential breaches of the law by cross checking the records of approximately 11 million people to find illegal owners. The ATO is responsible for overseeing foreign property investment and is … Read More

Pension payments – am I taking enough? Can I withdraw more?

  As we approach the end of 2015, it is a good time to check whether you are on track to meet your pension obligations for the 2015/16 financial year. Account Based Pensions (ABP) – Minimum annual payment percentages ABPs have a minimum pension payment which must be paid each year and care must be taken to ensure this is … Read More

Insurance cover – should it be held inside or outside of super?

Deciding whether to have your insurance held within super or outside super is not an easy decision so it’s best to be well informed before taking out a new policy or reviewing an existing one. There are 3 types of insurance cover that can be held inside super: Life insurance Total and permanent disability (TPD) insurance – “any” occupation only … Read More

What Capital Gains Tax will my family have to pay once I’m gone?

  Capital Gains Tax (CGT) is not payable as a result of your death, but your beneficiaries pay CGT if it is applicable, when they sell the assets they have inherited. They inherit your cost base if you acquired the asset on or after 20 September 1985. If you acquired it before that date, your cost base is the value … Read More

SHOULD I DO A DEATH BENEFIT NOMINATION (DBN)?

  What is a DBN? A DBN instructs the Trustee of your self managed super fund (SMSF) or corporate superfund how to pay your super benefits in the event of your death. Who can I nominate? Only your dependants are eligible: your current spouse (including de facto and same sex) your children (including step, adopted or ex-nuptial) any person financially … Read More