Category: Blog
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
SMSF Property Investment in India – Trust Structure & Compliance Requirements Investing in overseas property through a Self-Managed Super Fund (SMSF) requires strict compliance with both Australian superannuation law and the property laws of the country where the asset is located. In Ind..Read More
In-specie Transfer Unlisted Unit Trust or Other Assets Due to Marriage Breakdown
When a marriage or de facto relationship breaks down, it may be possible to transfer assets between complying superannuation funds, including SMSF without triggering an immediate Capital Gains Tax (CGT) liability. Under the Family Law Act and Division 126 of the Income Tax Assessment Act 1997, ..Read More
Is the Bare Trust (Custodian) Trustee Company a Special Purpose Company?
As per ASIC, the definition of the special company can be found as below: What is a special purpose company? Definition of special purpose company is under paragraphs (f) of Regulation 3 of the Corporations (Review Fees) Regulations 2003 and it states that ; the constitution of the co..Read More
Early Access Due To Financial Hardship
You can access your SMSF member balance early if you meet the following conditions due to financial hardship: 1. Must have been receiving Commonwealth government support continuously for at least 26 weeks 2. The money is needed to meet reasonable and immediate family living expenses 3. Obta..Read More