Employers should be careful that you are not contributing to an Invalid SMSF!

Self-managed super funds that are failing to lodge their tax returns with the ATO (and therefore become an invalid SMSF) are not able to receive employer contributions. This can have a major effect on you, as an employer, when you try to contribute your quarterly superannuation contributions to the SMSF. In practical terms it can affect the whole batch payment … Read More

When did you last review your SMSF’s investment strategy?

You may be aware that the Australian Tax Office (ATO) has issued letters to nearly 18,000 SMSF trustees as part of a campaign to ensure trustees are aware of their investment obligations. Of key concern is ensuring that trustees have considered diversification and liquidity of their assets when formulating and executing their fund’s investment strategy. Importantly, it must be noted … Read More

Are the individual directors liable for the debts of a corporate trustee?

A trust can be a very good structure for asset protection and using a corporate trustee adds to this protection. In the event that a corporate trustee incurs a liability in excess of the assets of the trust, the corporate trustee can be placed into administration or liquidation without the directors or shareholders being personally liable. While the individual directors … Read More

Do you provide services to your SMSF?

Do you provide services to your SMSF? The government reintroduced its Treasury Laws Amendment (2018 Superannuation Measures No.1) Bill 2019 into Parliament a few months ago, which has recently been passed into legislation. At the time, advisers were contemplating whether these measures would present problems for trustees who may be providing financial services to their own fund which they may … Read More

Removal of Main Residence Exemption for Foreign and Temporary Residents – Update

The removal of the main residence exemption for foreign residents was announced on 9 May 2017. The measure was discussed in a previous newsletter article.  The bill that was originally introduced lapsed when the federal election was called earlier this year, but was reintroduced to the House of Representatives on 23 October 2019 as the Treasury Laws Amendment (Reducing Pressure … Read More

Single Touch Payroll – the Final Reminder before it starts happening!

As mentioned in previous editions of S & W Insight and as a final reminder before it starts happening, as from 30 September there will be changes applicable to the reporting for wages and super information for employers. This is called Single Touch Payroll (STP). What is STP STP is a new way of reporting your payroll information to the … Read More

From 1 July 2019 your insurance cover in your Superfund may be changing!

In February this year, the Government passed legislation which prevents trustees of APRA-regulated funds from providing insurance to members with inactive superannuation accounts, unless a member has directed otherwise. It is a common practice for many individuals with a SMSF to also have a secondary APRA-regulated fund which provides them with insurance. This may be done for two key reasons: … Read More