Issue: 328
Sent: 05-02-2013 09:10:02
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Good News as 2013 BeginsThe Essential SMSF Guide 2012-13Recent SMSF announcements from the ATO
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Recent SMSF announcements from the ATO

Click here to buy - A How To Book of SMSF's by Tony Negline
Tony Negline

There have been a number of announcements already this year and later last year. Here's a summary:

a. ATO minimum pension document - the ATO has removed another item from its controversial Tax Ruling 2011/D3; super fund trustees will have some leniency if they don't pay the minimum income.

In reality the leniency is minor for people who have often missed paying the minimum income. I have more to say on this in the Switzer Super Report

b. The ATO have acknowledged that it may be better for SMSF trustees to use a corporate trustee because any change in the trustees/members of a fund won't demand a change in the ownership of assets. "The easiest way to comply with these rules is for your fund to have a company set up solely for the purpose of being the corporate trustee of the fund. If there is a change in directors of the company, you don't have to change the name on the ownership documents for each fund asset as the trustee of the fund is still the same."

It can be quite cheap to set up a special purpose SMSF company and you can pay the annual ASIC fee 10 years in advance and receive a slight discount. The total corporate trustee (including annual fees for 10 years) can be about $100 per year. Personally I think this is a small price to pay

c. From 1 July '13 you may not be able to purchase own occupation insurance or trauma insurance in your super fund because of proposed amendments to the SIS Regulations.

d. The Government has released for comment Income Tax Regulation amendments that would allow a death benefit paid from a pension to be treated as a death benefit. To qualify as a death benefit and have the disposal of assets CGT free the benefit will have a specified period. "The specified period is from the death of the member until as soon as it was practicable to pay the lump sum or commence the new superannuation income stream. This will mean that the superannuation fund will continue to be entitled to the earnings tax exemption in relation to such an amount during this period."

e. ATO data and payment standard - these final version of these have been released. They won't apply to SMSFs where contributions are made by related parties.

f. I can't see the Government reintroducing Reasonable Benefit Limits prior to the election as has been widely reported in the newspapers


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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.

 
 
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