COVID-19 rent deferral IHA relief

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The ATO has issued draft SPR 2020/D2 which when registered will exempt SMSFs that allow a rent deferral to a related party tenant from the in-house assets (“IHA”) provisions in the following situations. The transitional measure applies to the 2019-20 and 2020-21 financial years. The moratorium A deferral of rental income under an arm’s length... Read more continue reading

Five traps for SMSFs buying off-the-plan

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John and Mary are looking to acquire an off-the-plan property through their SMSF. They need to consider the five following points. 1. Purchaser named on the contract It is important that the correct entity is named on the contract of sale to avoid any adverse tax consequences. If John and Mary’s SMSF will not be... Read more continue reading

Seamless SMSF appoints former Deloitte Partner

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SMSF administration and audit firm Seamless SMSF has hired former Deloitte Partner and Engage Super Audits CEO and founder Jo Hurley (Jo Heighway) to bolster its sales team. Ms Hurley has been appointed business development manager for the fast-growing Victorian-based business. Earlier this year, Seamless SMSF signalled ambitious growth goals, setting its sights on penetrating the... Read more continue reading

Costly self-managed super funds? Are they right for me?

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It has been a heated month in self-managed super fund (SMSF) land. The Australian Securities and Investment Commission (ASIC) started the ball rolling with a fact sheet that stated SMSF Trustees spend on average 100 hours a year managing their SMSFs and that the average cost of running a SMSF is $13,900 per annum. The... Read more continue reading

SMSFs and retirees should look at ‘all weather’ investing to avoid diabolical outcomes

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Every time the markets collapse, there is a particular group of investors that is hit the hardest. The reason why is that this group of investors don’t just lose a big portion of the value of their accumulated investment – they lose doubly, because they don’t have the time to redress the fall. They are... Read more continue reading

ATO concerns with SMSF property development

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The ATO has issued SMSFRB 2020/1 (“SMSFR”) to highlight its main concerns in relation to SMSF property development.  It is comprehensive and traverses structuring, investment rules, NALI and the anti-avoidance provisions.  SMSF trustees that enter into property development projects must understand the complexity of such ventures and implement all the applicable rules from start to... Read more continue reading

Plan B: SMSF pension strategies during the COVID-19 recession

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Investment values have nosedived but an SMSF is still required to pay the minimum pension amount – Townsends Lawyers believe it’s time for Plan B. Retirement is supposed to be the time when a person enjoys their hard-earned savings, i.e. superannuation. However when the value of investments made by the SMSF in the financial markets... Read more continue reading

SMSFs selling geared equities which the Fund borrowed to buy

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If your SMSF can’t hold on any longer and must sell a parcel of shares or units which it borrowed to purchase, there are compliance issues which must be remembered, pandemic or no pandemic. The pandemic is threatening the health of people as well as the economy. The circumstances might provoke trustees to rush into... Read more continue reading

What trustees need to consider in closing an SMSF

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What do trustees need to consider when winding up an SMSF? Mary is the sole member and one of two individual trustees of her SMSF – the other being her daughter. Mary’s health is starting to deteriorate and she no longer wishes to run the fund in the future. She now wishes to wind up... Read more continue reading

SMSFs driving non-bank lender raising

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A slowdown in growth for the big four and regional banks is being offset by investor interest in the burgeoning growth of non-bank lenders. This is evident in the recent capital raising by Australasia’s leading non-bank lender Metrics Credit Partners (Metrics), for its ASX listed MCP Master Income Trust (ASX:MXT). Its current $638 million Entitlement... Read more continue reading