Sent: 08-11-2011 10:27:06
In this issue:
Return to full article list
HomeFree weekly newsletterSelf Managed Super Fund ArticlesContact usLogin
Three Issues This Week
There are a few issues to discuss this week:
a. Coalition to allow SG increases through Parliament
This is an amazing decision of the Opposition especially as they oppose the measure which helps to pay for some or all of it. Already some Coalition front benchers are lining up to claim they don't support this intended action.
I find it amazing that the Opposition are party to enforcing low to middle income earners investing their foregone wages in a structure that is not only expensive but also tax inefficient compared to the amount of tax paid in their own names. Is it unreasonable to assume that no one cares about these issues?
b. APRA report on illiquid investments in large super funds
The report looks a period of time when illiquid investments performed well and notes that results may be different if we enter into a period of time when illiquid investments don't perform well.
The report doesn't have a lot to say about the valuation methodology used to place a value on these assets.
You can view the report here: http://www.apra.gov.au/AboutAPRA/Research/Documents/SA_WP_RRII_102011_ex.pdf
c. ATO SMSF Interpretative Decision
Towards the end of October the ATO released another Interpretative Decision about SMSFs. This time it was about a super fund and its related parties using a scheme to avoid the prohibition from acquiring certain assets from members.
The structure involves the use of trade dollars. The purpose of this particular transaction appears to be to circumvent the Contribution Caps.
It all looks very messy and as a result the outcome can be expected to be messy!
You can view this ID here: http://law.ato.gov.au/atolaw/view.htm?docid=%22AID%2FAID201184%2F00001%22
Finally please consider purchasing a copy of this book "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 4 to version 5 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.