Accidental vesting of an SMSF

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In essence a self-managed superannuation fund is a special form of trust and satisfies general trust law as the assets of the fund are held on trust by a trustee to provide retirement or death benefits for its members, with those members being the beneficiaries. A superannuation fund can be wound up voluntarily or intentionally... Read more continue reading

SMSFs’ investment returns competitive with APRA funds at $200,000

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The investment performance of a typical self-managed super fund (SMSF) improves as the fund balance approaches $200,000. Once this threshold is reached the fund achieves comparable investment returns with APRA regulated funds, according to comprehensive research released yesterday by the University of Adelaide’s International Centre for Financial Services (ICFS). In its report, titled “Understanding self-managed... Read more continue reading

Does a criminal record disqualify you as an SMSF trustee?

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It is best for SMSF trustees to continuously maintain a clean record to keep their SMSF but getting a criminal record is not yet the end of the world. An SMSF is a great way for people to manage their own super if they are willing to put in their time and effort to invest... Read more continue reading

What to consider when updating SMSF trust deed

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If your trust deed was prepared quite some time ago, it may be time to update the governing rules of your SMSF trust deed. Doing so means that you can have peace of mind in knowing that the rules are current. Transactions such as an LRBA are permitted by the SMSF’s governing rules. John and... Read more continue reading

SMSFs transacting with former spouse, cousins or friends

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There are circumstances where a former spouse could be considered a related party of the fund. Any transactions would be subject to the sole purpose test and the investment strategy requirement. Trustees should not assume that a member’s ex-spouse or other non-relatives such as distant family members or friends are not related parties of the... Read more continue reading

SMSF: When a member has a terminal medical condition

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When an SMSF member is diagnosed with a terminal medical condition, it is not only devastating news to them but also to those close to them. With perhaps little time left, planning for their loved ones is usually paramount. Let’s take Gary for example. Gary is the sole member of the Miller Superannuation Fund (“Fund”)... Read more continue reading

Can an SMSF sell a collectable to a related party?

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Can SMSF trustees sell a collectable (artwork) to a relative and does it require a valuation report? John and Mary’s SMSF has purchased a collection of artwork as an allowable investment under s62A of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SIS Act’). John and Mary want to know whether it is possible for their SMSF to sell... Read more continue reading

SMSF NALE ruling finalised – ATO gives some good news, some not so good

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A key ATO ruling (LCR 2021/2) was released yesterday to update the original draft from 2019. It deals with the vexed issue of when transactions between a superannuation fund and another party potentially create non arm’s length expenses (NALE). NALE exists when expenses incurred by a SMSF are too low – they are less than... Read more continue reading

Are you up to speed on the latest process to rollover a member of an SMSF?

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Rollovers from one SMSF to another must comply with the technical requirements. Elizabeth Wang from Townsends Law has summarised those requirements to save you time. John and Mary have an SMSF. John has decided to establish his own SMSF where he will be the sole member of the Fund and will act as the sole... Read more continue reading

SMSF Trustees go for growth in low-yield environment

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In a reversal from last year, SMSF trustees intend to increase their allocation to equities and decrease their allocation to cash in the current low-rate environment, according to the 2021 Vanguard/Investment Trends SMSF Investor Report launched last week. Some 49 per cent of SMSFs who want to decrease their cash allocation cited cash as a... Read more continue reading