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

Six member SMSF as pooled investment structure

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There is currently legislation before Parliament to increase the maximum number of members of SMSFs from four to “not more than six”.  When passed, the measure will commence from the start of the first quarter that begins after the Act receives Royal Assent. Background In the Explanatory Memorandum to the amendment legislation (Treasury Laws Amendment... Read more continue reading

Buy your retirement home now in your SMSF and use it when you retire?

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Garry and Betty are the directors of the corporate trustee of their SMSF.  They are contemplating acquiring a property through their SMSF, which they plan to lease to an unrelated third party at market value until both of them reach their preservation age and retire as a condition of release. They want to know whether... Read more continue reading

Asset rich, cash poor: Meeting cash obligations with all eggs in one basket

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What to do when the fund owns a property and one of the members dies.  Can the fund delay selling the property to pay the death benefit? A self-managed superannuation fund (“SMSF”) is an investment vehicle granted tax concession because it has the sole purpose of providing aged pensions in retirement for its members.  Members... Read more continue reading

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