The ATO, as regulator of self-managed superannuation funds, has reported an increase in the number of SMSF trustees entering into arrangements involving buying and then developing property (either with related or unrelated parties) that is subsequently sold or leased. Trustees should be aware that the ATO is taking an active interest in property development investments...

The government is allowing the early release of superannuation and a temporary reduction in minimum pension drawdown rates to help individuals deal with the adverse economic effects of COVID-19. Retirees watching their savingsgo down amid volatile markets will no doubt welcome the temporary reduction in minimum pension drawdown rates to help them better manage the...

SMSFs must transact on an arm’s-length basis. The purchase and sale price of fund assets should always reflect the true market value of the asset, and the income from assets held by a fund should always reflect the true market rate of return. Any non-arm’s length income (NALI) is taxed at the highest marginal rate....

When establishing a self managed superannuation fund (SMSF), one central decision to be made early on is if the trustee structure is to consist of individual trustees or a corporate trustee. Between these choices, you can have up to four individual trustees, or one company that acts as trustee (with that incorporated body having up...

The ATO recently released the latest statistics regarding SMSFs (to the end of September 2019). Highlights include: There are 598,582 SMSFs. There are 1,124,699 members of SMSFs. The total estimated assets of SMSFs are just over $746 billion. The top asset types held by SMSFs (by value) are   listed shares (31% of total estimated SMSF...

There are very limited circumstances when you can access your superannuation savings earlier than when you meet what the ATO calls a “condition of release” — which for most people generally means achieving a certain age and retiring. The other limited circumstances mainly relate to specific medical conditions, severe financial hardship or on compassionate grounds....

Trustees of SMSFs can expect a new label in their annual return forms, which the ATO says should be available from the end of May. After the Treasury Laws Amendment (2918 Superannuation Measures No 1) Bill 2019 became law in October 2019, the ATO reminded trustees that additional reporting requirements would be coming there way...

Tax offsets (sometimes referred to as rebates) directly reduce the amount of tax payable on your taxable income. In general, offsets can reduce your tax payable to zero, but on their own they can’t get you a refund. There are two superannuation-related tax offsets for which you may be eligible. The Australian super income stream...

The majority of people who set up their own SMSF say that “control” is a big reason for doing it. There is flexibility and benefits in running your own superannuation fund, but it is also a big responsibility to make sure your fund grows and provides for your retirement. Preparing an “investment strategy” is one...

The super downsizer scheme started on 1 July 2018 and has allowed older Australians to sell their homes and contribute up to $300,000 of the proceeds from the sale into super. Recent figures from the ATO show that more than 5,000 people Australia-wide have made this type of contribution, with 55% being made by females. You...