Category: Blog
Notice of compliance for new SMSFs
ATO has changed the timeframe to issue notice of compliance for newly registered SMSFs. Before March 2019, new SMSFs' status is "Registered – status not determined". This status is only changed to "complying" after the first return is lodged and there is no compliance issue. After March 2019, af..Read More
Can an SMSF purchases a residential property with member’s partner?
An SMSF trustee can buy an investment residential property using tenancy in common or partnership structure. However, the following are issues associated with this transaction: 1. Member is unable to live in property whilst an asset of the fund. 2. The member can receive an inspecie lump sum (b..Read More
Common audit issues with SMSFs having crypto-currencies
SIS Act does not have any restrictions on cypto-currency investment. However the permanent documents needs to be reviewed before making such investment: Does the SMSF trust allows such investment? Does the investment strategy allow such investment? Is there any risk management statement ..Read More
Work test exemption for low balance SMSF members
From 1 July 2019, SMSF members aged 65 to 74 with total superannuation balances below $300,000 can make voluntary contributions to their SMSFs in the first year after they stop working. This means that SMSF members would be able to make voluntary contributions for 12 months from the end of the fi..Read More
Market value of assets
Reg 8.02B of SISR (Superannuation Industry Supervision Regulations 1994) requires all the assets held in the SMSFs must be valued at market value in the Statement of Financial Position. If there is no sufficient evidence about the material assets, SMSF auditors must qualify both financial and compli..Read More
Can private company shares owned by a SMSF be sold to the SMSF members?
The shares in unlisted companies owned by SMSFs can be transferred or sold to their members. However, the main issue here is the valuation of these share when they are sold to the SMSF members. The SMSF trustees need to make sure the disposal of these shares is in an arm’s length transac..Read More
What happens if an individual breaches their transfer balance cap?
If an individual has a retirement phase account balance in excess of the $1.6 million cap they will need to: – remove any amount over $1.6 million, plus excess transfer balance earnings, from retirement phase; and – pay excess transfer balance tax. If an individual exceeds the cap because..Read More
Event Based Reporting
Self-managed super funds (SMSFs) have new reporting obligations. This is due to the introduction of the new transfer balance cap and total superannuation balance measures. What is The Transfer Balance Account Report (TBAR) The Transfer Balance Account Report (TBAR) is a separate reporting fo..Read More
Understanding ‘Transfer Balance Cap’ and ‘Total Superannuation Balance’
The ‘transfer balance cap’ is a limit on the total amount of superannuation that can be transferred into the ‘retirement phase’ over the course of an individual’s lifetime, the current transfer balance cap is $1.6 million. All of an individual’s retirement phase account balances will b..Read More
Purchase a Property in a SMSF in India
In India, it is not possible to register the property in the name of a foreign entity, so you will need to be registering he property in the names of the trustees and you may make a declaration of trust. Do not use the online free sample declaration of trust and the free online copy of sale ..Read More