Super Information

Superannuation CategoryThese days, keeping up with changes to superannuation legislation is as challenging as staying on top of Australian tax law - it's always changing!

Below you will find information, updates, tips and articles related to superannuation, whether you are in an industry fund or you have your own SMSF.

SMSF commutation requests: How to get the green light from the ATO

The ATO has issued guidance on its approach to commutation requests, which is an essential piece of information for SMSF trustees because it explains which commutation requests will not be subject to an ATO review. With recently introduced superannuation rules now in effect (from 1 July 2017), superannuation members with income streams that are valued […]

Require specific ATO advice on your SMSF? There’s a form for that

The ATO says it can provide tailored technical assistance for SMSF trustees in some circumstances, orally or in writing, depending on the nature and complexity of their query. For example, you may need to seek tailored technical assistance if: you are not able to find the ATO’s view of how the law applies to a […]

Valuations and your SMSF

The days of a lax approach to valuations are over.  While there is not always the need to employ a qualified independent valuer for each valuation, there are important circumstances where it is mandated, and others where it is recommended.  Where one is not used then appropriate documentation needs to be kept of how valuations […]

Can an SMSF invest in property development?

The ATO has been sending some mixed messages about property development involving an SMSF, and has indicated that it is one of the issues on its radar for 2018.  So is property development an allowable investment for an SMSF? The short answer yes, but be careful. A longer answer is be very careful — it […]

What if you are forced to unwind your LRBA?

Limited recourse borrowing arrangements (LRBAs) were once all the rage in SMSF land. However, with the tightening of banking rules this frenzy has begun to abate somewhat over the last few years. LRBAs are great in a growing market as they allow an SMSF to grow the value of assets it holds in the expectation […]

Ordinary time earnings: What’s in, what’s out

The superannuation rules stipulate that an employee’s earnings base must be the amount on which minimum superannuation contributions are payable to avoid the superannuation guarantee charge (SGC). This earnings base is determined as “ordinary time earnings” (OTE). In general terms, this seems self-explanatory — that is, OTE is what an employee earns for their day-to-day […]

Beware of Division 293 shock

If your remuneration, including reportable fringe benefits and salary sacrificed superannuation contributions is in excess of $250,000 per annum, you may have an additional tax liability over and above the normal income tax payable on such earnings… Now that would be a fairly substantial salary package,  so it may seem like a good problem to […]

Child death benefit recipients and the transfer cap

The death of a parent is hard on all those involved, however once the grieving  has eased, a time comes to address financial matters.  One of these issues can be what happens to any superannuation they have left. Making things harder is the fact that the new transfer balance cap (TBC) brought in as of […]

Tax deductions specifically for SMSFs

One overarching fundamental that SMSF trustees should ideally keep in mind is the sole purpose test — that is, every decision made and action taken is required to be seen as being undertaken for the sole purpose of providing retirement benefits for the fund’s members. If an SMSF trustee incurs an expense in the usual […]

What is your “total superannuation balance” and why does it matter?

Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case. What is the total balance relevant for? The total superannuation balance is relevant in determining a super […]