SUPERCentral News

Previously, trustees of self managed superannuation funds were required to perform their duties and exercise their powers in the best interests of the beneficiaries of the fund. This requirement was imposed by s52B(2)(c) of the Superannuation Industry (Supervision) Act 1993.

This change applies from 1 July 2021. The relevant legislation being Treasury Laws Amendment (Self Managed Superannuation Funds) Act No 47 of 2021.

The pension drawdown relief which applies for the 2019/20 and 2020/21 financial years will be extended for a further financial year to 2021/22. The extension of this relief was announced on 29 May 2021 in a joint media release of the Prime Minister, Treasurer and Senator Jane Hume, the Minister for Superannuation.

The Government's 2018 Budget proposal to allow Self Managed Superannuation Funds (SMSFs) to have up to 6 members has now been finally passed by both the House of Representatives and the Senate.

The 2021 Budget can be summarised in one line - as a great budget for superannuation. The Budget sets out major beneficial changes for superannuation covering both contributions, legacy superannuation products, first home super saver scheme and residency issues for SMSFs.

From 1 July 2021, if a non-arm's-length capital gain is made by a segregated current pension asset on or after 1 July 2021, it will be treated as non-arm's length income ("NALI"), meaning that it will be taxed at the highest marginal rate of 45% under section 295-550 of the Income Tax Assessment Act 1997 ("ITAA97").

Contrary to popular belief, simply tearing up or ignoring signed legal documents does not eradicate its effect. The reality is, once a documented agreement is executed (by signature or common seal) it can only be unmade, corrected or amended by the signing of other relevant legal documents. So what are your options when a mistake is made or you find an error?

SMSF Deeds | Transactional | Trusts | LRBA | Remediation & Tailoring | Asset Structuring & Advice | Estate Planning | Probate & Administration | Strategic Business Services | Agreements | PD Training ... and more.

While the facts of a recent NSW Supreme Court case, G v G (No.2) [2020] NSWSC 818, relate to a financial manager appointed under the NSW Trustee and Guardian Act 2009 (NSW) and retail super funds, the decision that the fiduciary office has no authority to make a binding death benefit nomination seems to raise an interesting question quite relevant for SMSFs; namely, can an attorney under an Enduring Power of Attorney ('EPOA') validly make, change or revoke a binding death benefit nomination on behalf of their principal?

A withdrawal and recontribution strategy could over time permit a member to transfer a material part of their superannuation to a non-dependant who would not ordinarily be entitled to receive the member's super following the death of that member.

We often want certainty. In a world where there is increasing conflict between family members after a parent dies, and a greater propensity for children to challenge a deceased person's estate, anything that promotes greater certainty with regard to estate planning is usually seen as a good thing.