Sent: 08-11-2011 10:28:03
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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
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