SUPERCentral News
A newsletter debate seems to have sprung up regarding automatic trust deed updating services. The key issue being debated is simple: should a trustee give up control of their trust deed? The answer to this question is no.
The Government has announced (and the announcement is now supported by a Class Order issued by ASIC – CO 11/576) that the mandatory start date for the new 8 page Super PDSs will be deferred by one year.
Anti-detriment payments are supplementary payments made to “reverse” the impact of contributions tax on the amount of a lump-sum death benefit paid from SMSFs. There have been two issues relating to anti-detriment payments for SMSFs. The first is how to finance such payments. The second is whether a partial payment could be made. Typically, SMSFs do not have sufficient unallocated cash to make a full payment.
The ATO 2011/12 Compliance Program will, amongst other things, focus on SMSFs which are
The regulations implementing the Government’s changes to the acquisition and holding rules relating to collectables and personal use assets are now in force. The new rules are set out in Superannuation Industry (Supervision) Amendment Regulations 2011 (No 2) and apply on and from 1 July 2011.
The SMSF segment remains the largest segment of Australia’s $1.347 billion super industry.
The administrative arrangements for the processing of claims for release of super benefits under the compassionate grounds release condition, by which Medicare is the administering agency, will now be made permanent and given legislative backing.
The concessional contribution limit for 2011/12 financial year is $25,000. The non-concessional contribution cap is set at 6 times the concessional cap. The “bring forward” non-concessional contributions cap is set at 18 times the concessional cap.
The approved form for the independent auditor’s report for SMSFs is not the most interesting read. However, there are two changes for the approved form for 2010/11 which should catch your attention.
Many people make last minute contributions at the end of June to fully utilise their contribution caps. However, the Australian Taxation Office ("ATO") has specific rules in relation to when a contribution is considered to have been made. This may result in excess contributions for some individuals as contributions intended for one income year may be counted as contributions for the ensuing income year. It has been reported that the Government has raised $400 million through tax penalties in excess superannuation contributions between 2006 and 2010 and this figure may rise.
We’re often asked by SMSF trustees and their accountants ‘Why should I update my trust deed?’ The answer is simple – to be sure that the trustee has all the necessary powers to comprehensively and legally administer the fund.
The other side of the coin is that a fund may be established late in the tax year for the purpose of generating the early issue of the notice of compliance.
The Government previously announced that the impact of tax on superannuation contributions for low income super members was to be ameliorated. The Government has recently reaffirmed this proposal and released a consultation paper as to the proposal’s implementation.
A super fund will only be established once there are assets of the fund. These assets could arise by an initial contribution or by rolling over super benefits into the newly established fund. Signing a superannuation deed and registering the fund with the ATO will not establish the fund.
$53,879 is now the estimated annual income level for a comfortable retirement for a couple. This estimate is provided by the Association of Superannuation Funds of Australia. $30,708 is the estimated annual income level for a modest retirement for a couple. This estimate is also provided by the Association.
Fund capped contributions do not include CGT contributions and contributions sourced from personal injury payments.
The Flood Levy applies only to the 2011/12 financial year and will be in addition to the Medicare levies. The levy is really the temporary flood and cyclone reconstruction levy. The levy applies to each individual taxpayer who has a taxable income of $50,001 or more. For taxable incomes greater than $50,001 but less than $100,001 the rate of the levy is 50c per $100 of taxable income above $50,001. For taxable incomes greater than $100,001 the levy will be $250 plus $1 for each $100 of taxable income over $100,000.
A recent decision of the AAT has highlighted certain basic rules when operating an SMSF. The facts of the case are very straightforward.
The Government has released for public comment the regulations which are to regulate SMSFs investments in “collectibles and personal use assets”. The rules will only apply to SMSFs and will apply from 1 July 2011. The rules will apply to affected assets first held by the fund on or after 1 July 2011. The application of the rules to affected assets held by the fund on 30 June 2011 will be deferred for 5 years and so will not apply until 1 July 2016.
The Treasurer brought down his 4th Budget on Tuesday, 10 May 2011. While the Budget deals with many issues, we have identified the following seven issues as being particularly relevant to self managed superannuation funds.