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

Michael Hallinan reviews recent superannuation changes

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Six member SMSFs finally arrive Why have a 6 member SMSF? A 6 member SMSF may be relevant to situations where a parent or a couple have children who are working part time and wish to accept their children’s SG contributions Another situation where a 6 member SMSF may be relevant is where business principles... Read more continue reading

SMSFs transacting with former spouse, cousins or friends

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A question we get from time to time is whether the trustee(s) of an SMSF can enter into transactions with a fund member’s former spouse whether the transaction is a loan, lease or another type. In this article, we will consider a number of compliance issues with SMSF transactions involving a former spouse. You will... Read more continue reading

What happens when the last surviving trustee dies?

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Mary being the sole individual trustee of her trust has recently passed away. Her daughter Sarah is her executor. Because Mary was the sole individual trustee of the trust this raises the issue of whether the trust has automatically vested on her death. If the trust has vested this could be very unfavourable from a... Read more continue reading

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