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

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Does a discretionary trust protect beneficiaries? Part 1

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Dominique Perry from Townsends Lawyers has produced a two-part overview on whether a discretionary trust protects beneficiaries. This is the first in the series.  One of the supposed benefits of a discretionary trust is that it protects the assets of the key beneficiary(s) of the trust from attack by their creditors because although those beneficiary(s)

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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

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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

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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”)

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Where does a company ‘reside’ for tax purposes?

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Australia levies tax on its residents. But how can a company ‘reside’ anywhere for tax purposes? And can a company ‘reside’ in Australia if its directors and or shareholders are overseas? Section 6(1) of the Income Tax Assessment Act 1936 (Cth) defines a “resident of Australia” to include a company that has not been incorporated in Australia, so

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Changing your mind about your enduring power of attorney

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Has the relationship with your attorney tarnished? An Enduring Power of Attorney (POA) is a significant legal document necessary for empowering an ‘attorney’ to make decisions on your behalf. These decisions can be related, in some States just to financial issues, superannuation and asset management and in others extending to residence, health services and more.

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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

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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

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The impact of transfer balance cap indexation

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Starting 1 July 2021, the transfer balance cap (“TBC”) will be indexed from $1.6 million to $1.7 million (“Indexed TBC”). Although this change sounds like good news, it does come with quirks not everyone is aware of and not knowing them can lead to adverse outcomes. Before 1 July 2017 there was no limit on

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