Personal Superannuation Contributions – 10% rule repealed
With the end of the financial year fast approaching, it is time to start thinking about income tax deductions.
Under the new Government changes to super, effective 1 July 2017, the 10% maximum earnings condition for personal superannuation contributions was removed for the 2017-18 and future financial years.
You may have noticed significant media coverage recently regarding the Australian Labor Party’s proposed policy to stop SMSFs from receiving tax refunds for the franking credits they receive in conjunction with the dividends paid from Australian companies they own.
First of all, what are franking credits and how do they benefit SMSFs?
Under the Australian tax system companies pay 30 per cent tax on their profits. When these profits are then passed on to their shareholders in the form of dividends, the company also hands the shareholders a credit for the tax the company has already paid (the “franking credit”). The individual shareholder then pays tax on the profit they received from the company less the credit for the tax the company has already paid. The franking credit ensures that the company profits are taxed at a shareholder’s marginal tax rate.
The directly held property makes up approximately 19% of all SMSF assets, indicating that many SMSF trustees consider it’s an important and significant part of a diversified portfolio. There are numerous strategies and ways for property to form part of an SMSF’s investments and each must be carefully considered.
Continue reading
Shield Wealth and Stellar Super, in conjunction with Paul Salinas, from Campbell & Co Lawyers are hosting boardroom sessions in March.
Estate planning is a subject that we don’t like to think about but in its simplest form, it is just about ensuring peace of mind. It is about making sure that the investments you make now are passed on to your family or beneficiaries in the most effective way.
Developing an effective estate plan will ensure that:
• Any tax payable is minimised
• The ownership of assets passes to the right beneficiaries
• The assets are protected if any beneficiary has any legal issues
The superannuation trust deed, along with the superannuation laws, form the governing rules that a self-managed super fund (SMSF) need to operate by. The introduction of the $1.6 million transfer balance cap (TBC) and new transition to retirement income stream (TRIS) rules are a ‘game changer’ for SMSFs when discussing benefit payments and estate planning. With the new super rules in effect as of 1 July 2017, now is the right time to review if your trust deed needs to be enhanced or amended to deal with the new approaches and strategies you may need to implement.
This is an area that is becoming increasingly discussed within the self-managed superannuation fund (SMSF) environment and we encourage those that are interested in this type of investment contact us first to discuss the implications as there is no ‘one size’ fits all.
Some areas of compliance to review but not limited to, are:
Please note that there are taxation rulings and determinations issue by the Australian Taxation Office (ATO) and capital gains tax rules may apply to the disposal of the asset.
At Stellar Super we are passionate about helping our clients get the most from their Self-Managed Super Funds (SMSF’s) – what we deliver is confidence in the Super Advisory process.
We are offering an “audit only” service for financial providers who like to offer independent, third-party audits for their clients, as well as for SMSF Trustees that prepare their year-end work.
Our fee for this service will be a flat-rate, no matter the size of the SMSF, and you can be assured of privacy for your firm and your clients.
Our ASIC registered SMSF Auditors have extensive knowledge in this area and will be able to ensure a high quality and professional experience for your clients.
If you would like additional information about our services, please contact us at our office.
As Stellar Super we are passionate about helping our clients get the most from their Self-Managed Superannuation Funds (SMSFs) – What we deliver is confidence in the Super Advisory process.
We offer an audit service, to Trustees and other SMSF professionals, who would like an independent, third party, audit. Our fee for this service is a flat rate, no matter their size of the Fund, and you can be assured of privacy.
Our ASIC registered SMSF auditor has extensive knowledge in this area and will be able to ensure a high quality and professional experience.
Please contact us at 02 6274 0400 or superadmin@tribegroup.com.au.
We are offering a complimentary service for our clients called ViewSuper.
ViewSuper allows real-time two-way communication between us and you. It is an online portal that gives access to data for Trustees, including a snapshot of contributions received, withdrawals and any alerts to the Trustee of potential issues.
Trust deeds in the new SMSF world – Benefit payments and estate planning
The superannuation trust deed, along with the superannuation laws, form the governing rules that a self-managed super fund (SMSF) need to operate by. The introduction of the $1.6 million transfer balance cap (TBC) and new transition to retirement income stream (TRIS) rules are a ‘game changer’ for SMSFs when discussing benefit payments and estate planning. With the new super rules in effect as of 1 July 2017, now is the right time to review if your trust deed needs to be enhanced or amended to deal with the new approaches and strategies you may need to implement.
