SMSF commutation requests to stay within new pension cap
The ATO recently released Practical Compliance Guideline PCG 2017/5 outlining the circumstances in which the ATO will not conduct compliance reviews for pension commutation requests made before 1 July 2017 by a member of a SMSF to avoid exceeding the $1.6m pension transfer balance cap.
Unsegregated method mandatory for some SMSFs from 1 July 2017
Traditionally, super funds that are paying pensions have two choices for determining how much of their income is exempt from tax under the pension earnings exemption, being the segregated method or unsegregated method (often also referred to as the ‘proportionate method’):
We’ve recently become aware of recent ASIC surveillance activity in the SMSF advice space.
It’s apparent that ASIC and the ATO are conducting a data matching program in relation to the establishment of SMSFs (at least, for the period May to September 2016).
Total superannuation balance – LCG 2016/12
The ATO has recently (on 20 March 2017) released Law Companion Guideline LCG 2016/12. This law companion guideline provides guidance on how an individual’s “total superannuation balance” is calculated from 30 June 2017.
The “total superannuation balance” is relevant in determining:
Changes to non-concessional contributions cap
It is important to be aware of the recent legislative changes that apply in relation to the non-concessional (after-tax) contributions that can be made to a superannuation fund (including an SMSF).
Super contributions and the small business CGT concessions
Small business owners looking to sell their business and contribute the proceeds to superannuation using the small business CGT concessions need to consider the changes to the contributions caps from 1 July 2017, says Peter Hogan, Head of Technical at the SMSF Association.
Can a child be a member of an SMSF?
It is well known that the trustee/member rules regarding SMSFs generally require each member to also be a trustee (or director of the corporate trustee) of the SMSF.
Superannuation transfer balance cap and TTR reforms
On 24 November 2016, the ATO released Draft Law Companion Guideline LCG 2016/D8 dealing with Superannuation reform: transfer balance cap and transition-to-retirement (TTR) reforms: transitional CGT relief for superannuation funds.
Disqualified persons cannot be trustees of SMSFs!
An individual cannot be a trustee (or a director of a corporate trustee) of an SMSF if he or she is a “disqualified person” as defined in the superannuation legislation.
ATO guidance regarding SMSF annual return and contribution reserves
The ATO has recently updated its SMSF annual return instructions to provide additional guidance for where a SMSF has used a superannuation contribution reserve strategy.
Survey for SMSF trustees using LRBAs
The ATO has announced that in November 2016, it will be contacting some SMSF trustees to participate in a survey about the use of limited recourse borrowing arrangements (LRBAs) to acquire assets for their SMSF.
It is conducting this survey as part of research to learn more about SMSFs’ use of LRBAs.
When does a TRIS become a standard ABP?
It is important to understand the circumstances in which a transition to retirement income stream (TRIS) can become a standard account-based pension (ABP).