SMSFs and binding death benefit nominations – where is your limit?

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The superannuation environment may offer great tax efficiency in passing a member’s death benefits to their dependents, however there is a rider – the member will not have full control over how the benefits will be used by the beneficiary. One of the beauties of SMSFs is that members can be flexible with their directions... Read more continue reading

CPD: Ethics and SMSFs

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It was 1999 when self-managed superannuation funds (SMSFs) first became part of Australia’s superannuation landscape. Over the following twenty plus years, SMSFs have become a significant part of Australia’s $3 trillion[1] superannuation sector, with $766 billion in assets at end 2020, representing one quarter of the total super sector. Bound by an array of rules... Read more continue reading

SMSFs looking to ride the cryptocurrency wave

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The growing interest in cryptocurrency investment in Australia has spread to the self-managed super fund (SMSF) sector, with funds attracted by the appeal of capital gains and the opportunity to add new asset class to their portfolios. “There’s no doubt that bitcoin is now being seen as an alternative to gold as a store of... Read more continue reading

Can an SMSF member with a majority interest in the Fund expel another member? 

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The maximum number of members in an SMSF is expected to increase from 4 to 6 in near future. With economies of scale/pooling of resources, this could open doors to new SMSF opportunities. On the other hand, having more members in the same fund will increase the likelihood of disputes. If there is an unfortunate... Read more continue reading

Raiz Invest has SMSFs in its sights

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Raiz Invest, Australia’s largest mobile-first financial services platform, is targeting the $730 billion self-managed super fund (SMSF) sector as part of its strategy to accelerate the growth in its Funds under Management (FUM). CEO Australia & Group COO Brendan Malone says: “We have established the process to allow SMSFs to invest in any of our investment... Read more continue reading

SMSF death benefits – the case for flexibility

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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. Same story with SMSF death benefits. With... Read more continue reading

Uncertain future of attorneys making BDBNs for their principals

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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... Read more continue reading

Rice Warner research throws fresh light on SMSF costs

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A research report by the actuarial firm Rice Warner offers clear guidance to existing and potential self-managed super fund (SMSF) members whether this form of superannuation could be cost-effective and the right retirement savings vehicle for them. SMSF Association CEO John Maroney says the very important decision of choosing the right superannuation vehicle is one... Read more continue reading

Low interest rates prompting LRBA refinancing

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SMSF trustees should not give into the siren call of low interest rate refinancing of their Fund’s loan until they have considered these points. In the current low-interest rate environment, there has been an increased interest in refinancing an existing limited recourse borrowing arrangement (‘LRBA’) with a related party lender. For this financial year, the... Read more continue reading

Capital preservation the need of the hour for SMSFs

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Self-managed super funds (SMSFs) will be increasingly attracted to fund managers offering capital preservation post COVID-19, says Davin Hood, Managing Director at Cor Capital, a Melbourne-based investment manager. “With much of the evidence suggesting SMSFs will not enjoy the strong tailwind of strong equity market returns in the next decade as they did in the last,... Read more continue reading