Sent: 30-11-2010 12:40:37
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Financial Planners as Tax Agents & More
There are three issues to discuss this week:
a. The regulation of financial planner's tax advice
You've no doubt heard the news that the government has issued a discussion document about this issue. It has proposed that either the Tax Agents Board should supervise financial planners or ASIC regulations should be amended to provide something equivalent of role played by the TAB.
This is a thorny issue. The Corporations Act does require financial planners do take tax impacts into account when providing financial planning advice.
Having said that I don't suppose many financial planners would welcome having to become a tax agent even if the new demands may not be too onerous. No doubt the government will get told about increasing costs of doing business etc etc. They might even be told that such a change will lead to mass unemployment!
Just remember - the government has only released a discussion document. There is a long way to go before this has been finalised.
b. ATO Small Business CGT Concession Interpretative Decision 2010/217
Last Friday the ATO released the above Interpretative Decision. It says that the retirement concession for those under 55 (which had to be contributed into super) can be an in-specie contribution.
This is a good concession. Until now it has been assumed that these contributions had to be made with actual money not assets.
Remember however that such contributions still have to be assets that a super fund can accept under its trust deed and the super laws.
c. Super gearing
The level of interest in super gearing continues to climb dramatically.
The transaction is not an easy one and must be approached with a reasonable level of caution.
There has been a fair amount of media coverage of late about the strategy especially related party lending (that is where a related party of the fund lends money to the super fund).
I hope that all this recent publicity doesn't lead to the normal government sledgehammer-type reaction.
My Super Book
Finally please consider purchasing a copy of "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 2 to version 3 visit: http://www.http://www.atcbiz.com.au/r.php?r=7aj5d3d
There have been many changes to this book. Version 3.0 contains over 30 pages of new material.
This update has taken longer than I would like however I have been delayed due to a frustratingly steady stream of political policy announcments, review documents and the release of various ATO documents.
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.