SUPERCentral News
The law that permits a superannuation fund to borrow requires that the property acquired using the borrowed funds be held on a simple trust for the super fund by a separate trustee. Generally it is considered that there should be a trust document evidencing that trust.
Where a member who is receiving a transition to retirement pension satisfies the Terminal Medical Release Condition, the pension immediately changes to an account-based pension.
The design of the new pension arrangements indicated that in this situation the transition to retirement pension simply transforms into an account-based pension.
Under the rules which apply from 1 July 2007, these pensions must pay a minimum payment in each financial year.
These pensions are fully commutable.
If a member has commenced a transition to retirement pension and then subsequently suffers a terminal medical condition, the member will now be able to commute the pension and receive the commutation lump sum tax free.
If an SMSF wants to make use of the new provisions that allow an SMSF to borrow to acquire an asset, that asset must be held by a trustee on behalf of the SMSF.
Expanded administrative penalties now apply to SMSFs for..
The ATO recently released (4 April 2008) two important documents dealing with SuperGearing: an FAQ, and also a Taxpayer Alert.
The new SMSF Annual Return will require trustees to make disclosures in respect of the following matters...
In his speech to the SMSF Professional Associations of Australia conference in Brisbane, Senator Sherry said he supports the ongoing role of SMSF sector in the superannuation industry but expressed his concern over troubling figures revealed by a recent ATO survey.
Superannuation and taxation legislation imposes many complicated restrictions on superannuation fund trustees.
Under the rules which apply from 1 July 2007, these pensions must pay a minimum payment in each financial year.
Senator Sherry recently released details of the new top level super advisory committee.
Recent changes to the SIS Act now permit superannuation funds to invest in assets on a geared basis, thereby substantially improving the borrowing capacity of SMSFs.
It seems that the banks will be the winners: they have the existing products and will not have to invent a new structure to house these products, and they are also the lenders.
Senator Sherry, the minister with portfolio responsibility for Superannuation, has indicated that the Government will review the marketing and governance of self managed super funds (also known as DIY funds).
In this situation the transition to retirement pension simply transforms into an account-based pension.
Where a member who is receiving a transition to retirement pension suffers a Terminal Medical Condition, the pension immediately changes to an account-based pension.
If a member has commenced a transition to retirement pension and then subsequently suffers a terminal medical condition, the member will now be able to commute the pension and receive the commutation lump sum tax free.