The Government has announced some changes to the superannuation proposals originally announced in the May 2016 Federal Budget. While these are just proposals, and therefore not law, it is likely that they will be introduced into Parliament as a Bill. The Coalition’s proposal is to reduce the existing annual non-concessional (after-tax) contributions cap from $180,000…
Those living in households where one spouse has a much lower super balance may want to start considering their options as to how to even up the superannuation imbalance. In Australia, many couples and families have at least one member with limited finances due to taking time off work to raise a family. But there…
Carrying forward significant capital losses can be a viable strategy for trustees wanting to offset gains and achieve tax savings in the near future. This kind of strategy is suitable in circumstances where it is likely that younger members may join the fund or when members are considering switching back to the accumulation phase. One…
Self-managed super funds (SMSFs) that are not well diversified are quite risky investments since they aren’t as protected as they could be against shocks and volatility in the market. Diversification aims to maximise an individual’s return by investing in different asset classes that react differently to the same event. Although it does not guarantee avoiding…
Starting a self-managed super fund (SMSF) may be a good idea for those after more control over investment choices and fund running costs. However, those considering an SMSF need to ask themselves some key questions such as: if they can do a better job investing their super than the trustees of their existing super fund…
It is vital for those with a self-managed super fund (SMSF) to carry out all the necessary checks before purchasing a property in their SMSF, especially when borrowing is involved. Investment strategyThe SMSF’s investment strategy must be considered. If the purchase of a property will cause the fund’s other investments to be out of alignment,…
The Coalition resuming power in the 2016 Federal election has created a number of challenges for SMSF trustees, who now have to deal with the super reforms unveiled in the 2016 Federal Budget. While the changes do not come into effect until 1 July 2017, and some may be modified before this date, preparing for…
With the end-of-financial year looming, there are some key strategies you can utilise to maximise your nest egg ahead of 30 June. Maximise super contributionsReview your contribution types and amounts to ensure you have maximised (not exceeded) your contribution caps for the financial year. The non-concessional contributions cap for 2015/16 is $180,000 or $540,000 over…
The ATO has extended its 30 June 2016 deadline to 31 January 2017 for SMSF trustees to review limited recourse borrowing arrangements (LRBA) for non-arm’s length income. The Tax Office issued the Practical Compliance Guide 2016/5 in April to provide guidance for SMSF trustees to ensure LRBA arrangements are on terms that are consistent with…
Since change is an inevitable part of Australia’s superannuation system, trustees and taxpayers should always be aware of and on the lookout for tax-saving strategies to prevent the consequences of unforeseen super changes. One such strategy, which is not only straightforward but also highly-effective, is splitting superannuation with your spouse. Splitting super with your spouse…