SMSF establishment at a 10 year low while unmet advice needs continue to grow

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The annual rate of Self-Managed Super Fund (SMSF) establishment has slowed, with just over 20,000 SMSFs being set up in the first quarter of 2019, down from the 40,000 established in late 2010, according to the latest Vanguard/Investment Trends SMSF Reports – the nation’s most comprehensive research into SMSF trustees and their advisers. Launched yesterday, […]

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Related party loan to SMSF – when is a loan not a loan?

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John is the sole member of his SMSF and is the sole director of the fund’s corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF’s available balance is $200k short […]

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Jumbo SMSFs and individual trustees

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While the Morrison Government is proceeding with its proposal to permit Jumbo SMSFs with 5 or 6 members, will Jumbo SMSFs have to have a company as trustee? This answer is determined by the legislation of the state or territory which applies to the SMSF. In summary, some jurisdictions do permit having 4 or 5 […]

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Can an SMSF be liable for foreign purchaser surcharge duty?

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John and Mary, a married couple, are members and individual trustees of their SMSF and their benefits in the fund represent 10% (John) and 90% (Mary) of the total value of the fund respectively. John is a foreign person for the purposes of the surcharge duty in NSW. Is the SMSF subject to surcharge duty […]

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SMSFs: Untouched by Hayne; Jumbo size; Unwinding LRBAs

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SMSFs suffer no pain from Hayne Two key issues on Superannuation from the Hayne Royal Commission were Agency Conflict and Invisibility of Fees (especially for no service). These two issues could be summarised as essentially poor and conflicted governance. These structural issues are not present in SMSFs – as, in general, members and the controllers […]

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Where is your trust deed?

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Document provider, SuperCentral, gets calls from SMSF clients weekly asking where their trust deeds are stored. Peter Townsend from SuperCentral said that he sometimes feels like he is running a detective agency. “We are often asked to provide a signed copy of a fund’s deed, usually at a time when it is of utmost importance, […]

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Can an SMSF lease residential property to a related party?

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“No” is probably the first answer that comes to mind but it is actually “maybe”, if we are to believe the full Federal Court in the judgement it handed down in the Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] case last month. One of the issues the Court examined is whether the leasing of a […]

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How does an SMSF buy a property?

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There are a lot of considerations about buying property as an investment and the complexities increase when the purchaser is an SMSF. Importantly with an SMSF, there are a number of protocols and structures to consider in the purchase process. This article will look at different funding strategies for SMSFs to consider, pros and cons […]

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Can you sue your SMSF auditor if things don’t go to plan?

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The NSW Court of Appeal has overturned the decision of the trial judge and held that an SMSF auditor was liable to pay damages for losses incurred by the SMSF. The case of Cam & Bear Pty Ltd v McGoldrick highlights the obligation of the fund’s auditor to protect the fund and its trustee against […]

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Replacing trustees and mental incapacity

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If you are currently a trustee or a director of a corporate trustee of an SMSF, you will recall signing a number of legal documents for your appointment and acceptance to be appointed as such. A position of trustee often entails extensive duties and responsibilities, and the formality is required as one should not be […]

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