Sent: 28-09-2010 10:48:09
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The Future of SMSFs
No doubt you've read about the Treasury's advice to the in-coming Government especially about the line, "The superannuation system is increasingly leaking revenue, with Self Managed Super Funds now the tax minimisation vehicle of choice. Better enforcement and acceptance of the Cooper recommendations are part of a solution to plug some structural holes."
I wonder if the author (and the intended readers) of these sentences actually realises they are two different thoughts.
That said some people in the SMSF space do press way too hard on trying to maximise the tax benefits.
Don't misunderstand me. I dislike paying tax.
But it's important to be practical. Superannuation contains some excellent tax concessions which are useful for all but the lowest and highest on the socio-economic table. It does not take too much trickery to get a fair share of these concessions.
Those who do push the edge of the envelope do everyone a great disservice.
The Super Resources Profits Tax is a clear indication that it's essential to be regularly talking to politicians and all their advisers
I can only urge you to do three things as soon as possible:
- Don't push the edge of the envelope from a SMSF tax concession point of view and discourage your clients from doing the same. If possible discourage your colleagues as well
- Contact your local parliamentarians - Federal and State - via whatever means and let them know that SMSFs are important. It's only two phone calls or a quick email or letter. Don't expect someone else to do it
- Remember the bumper sticker, "I fish and I vote"? Perhaps it's time for a similar campaign
You'd be amazed at how powerful such simple tactics are.
Some of you might think I'm being a bit paranoid. Afterall you could argue that SMSFs are already too big to pick on. To some extent this is true.
Why do I think such tactics are necessary?
I think that a Government desperate for revenue (which will happen at some stage in this Parliament) together with a political party that openly despises wealth creators controlling the Senate - that is, the Greens - can actually cobble together anything.
For these reasons it's essential to get on the front foot.
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
I have just released the 3rd edition.
For details of the many changes made since the previous release visit: http://www.atcbiz.com.au/SMSFBookAmendments.pdf
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.