Have you considered what you will do if an unexpected event occurs?

Your SMSF is a long-term plan. Much can happen during this time including illness, incapacity or death of a member. It is best practice to have contingency plans in place to deal with unexpected events. For example, if a fund member dies, leaving you as the sole member are you happy to continue with the SMSF? Outlined are some issues … Read More

Superannuation changes – what is and what isn’t effective from 1 July 2018

As the new financial year is now truly underway, here is an overview of what lies ahead in 2019 so that you can ensure your SMSF is ready. Contributions a) Concessional contributions: the pre-tax contributions cap remain at $25,000 for everyone and includes the employer’s 9.5% super guarantee (unchanged from last year), salary sacrifice and personal deductible contributions For individuals aged 75 … Read More

Transition to Retirement Income Streams (“TRIS”) – once a TRIS always a TRIS?

Transition to Retirement Income Streams (“TRIS”) allow individuals to access their superannuation benefits prior to retirement or without having to terminate their employment. Who is eligible for a TRIS? Provided the individual has reached their preservation age a TRIS can be commenced. Date of birth Preservation age Before 1 July 1960 55 1 July 1960 – 30 June 1961 56 … Read More

I’m an ex-pat, what can I do with my superannuation?

These days there are many Australian ex-pats living around the world and there is often confusion surrounding what happens to their super when they leave Australia. Generally speaking, when a resident becomes an ex-pat there will be no impact on their Australian super – the monies can remain with their fund indefinitely. However, should the ex-pat also be a trustee … Read More

When can I access my super?

SMSFs have strict rules on when super monies can be withdrawn from the fund, most commonly when a member satisfies a form of retirement and/or reaches a certain age. Your super can be accessed: when you turn 65 (even if you haven’t retired); or when you reach preservation age and retire; or under the Transition to Retirement (“TTR”) rules, while … Read More

Are you ready for the 1 July 2017 super changes?

Part 3: Interaction of the $1.6m pension transfer cap and death benefit payments In last month’s Part 2 of the super changes newsletter, “I have more than $1.6m in pension phase so what are my options?” http://stanleywilliamson.com.au/ready-1-july-2017-super-changes-part-2-1-6m-pension-phase-options/, we discussed the $1.6m Transfer Balance Cap (“TBC”) and “Transfer Balance Account (“TBA”). Not only does this TBC affect members who are currently receiving … Read More

Accessing your super – special circumstances

SMSFs have strict rules on when super monies can be withdrawn from the fund, most commonly when a member satisfies a form of retirement. However, special conditions apply should a member be diagnosed with a terminal illness who are looking to access their super benefits. Terminal illness grounds A terminal medical illness exists when: two registered medical practitioners have certified, … Read More

February 2017 Newsletter

ATO TO REPORT BUSINESS TAX DEBTS TO CREDIT REPORTING BUREAUS From 1 July 2017 the ATO will be allowed to disclose tax debt information to Credit Reporting Bureaus. To avoid being impacted by these new measures you should read our full article. SMSF PROPERTIES – WHAT CAN AND CANNOT BE DONE TO THEM? Are you looking at buying a property, … Read More

SMSF Properties – what can and cannot be done to them?

Borrowing by a self- managed superannuation fund (“SMSF”) to purchase property, whether it be residential or commercial, is not a new investment strategy however care needs to be taken when trustees wish to start to make alterations and improve these properties.  What is the current legislation? Current Limited Recourse Borrowing Arrangements (“LRBAs”) allow for an SMSF to borrow money to … Read More

Are you ready for the 1 July 2017 super changes? Part 2: I have more than $1.6m in pension phase so what are my options?

  The changes to superannuation announced in the 2016 Federal Budget have been passed by Parliament. Amongst those changes was the introduction of a $1.6 million transfer balance cap which limits the tax exemption for assets funding superannuation pensions. This new limit on superannuation will apply from 1 July 2017 and creates additional responsibilities for SMSF trustees. The main issues … Read More