COVID-19 – Providing concessions for the LRBA in my SMSF

Petra King

The economic impacts of the COVID-19 crisis are causing significant financial distress for many businesses and individuals. If your SMSF has a related party loan and is impacted due to the financial effects of COVID-19, you may be able to provide your LRBA with relief under an agreed commercial arrangement. Ordinarily, not paying market interest rates in an SMSF is usually a breach of superannuation laws. However, the ATO have…  Read more

SMSF Trustee obligations

Petra King

An SMSF is not for every client, even if they do have a significant amount to invest. Factors such as their financial literacy, understanding of the legal, taxation and other requirements, available time and general interest are all things to be considered. SMSF trustees need to understand the obligations associated with undertaking the role. Do you? Obligations with which SMSF trustees must comply under superannuation and taxation laws include: Sole…  Read more

Reasons to consider hiring a financial planner

Bizink

For business owners who want financial security now and freedom in retirement, having a financial planner on the team is a must. A financial planner will create a customized, strategic action plan to help you achieve your personal financial goals. Getting to know you and your business inside out is the first step a financial planner will take to understand where you are now, where you want to go, and…  Read more

COVID-19 – Providing rent relief for the tenant in my SMSF property

Xperion

The economic impacts of the COVID-19 crisis are causing significant financial distress for many businesses and individuals. If your SMSF has a property and a tenant in financial distress, you may be able to provide your tenant with rental relief under an agreed commercial arrangement. This may even be the case when the tenant is a related party or yourself. Ordinarily, charging a tenant a price that is less than…  Read more

COVID-19: Negative returns – looking for the positive?

Petra King

Despite well formulated investment strategies and appropriate investment advice, no trustee could have foreseen the impacts of COVID-19 on financial markets globally. Whilst history suggests that a strong recovery is likely within a relatively short period after large market corrections, it is still too early to know the impact of COVID-19 on members’ retirement plans. If your SMSF has experienced some negative returns, there may be an opportunity to ensure…  Read more

Superannuation specialist finalist

Xperion

We’ve done it again! Petra has been shortlisted for the Australian Accounting Awards 2020, named as a finalist in the Australian Accounting Awards for Superannuation Specialist category. Accountants Daily’s Australian Accounting Awards showcases the industry’s most prestigious accolades recognising excellence across the entire accounting industry. The awards pinpoint professional development and innovation, showcasing both the individuals and firms which are leading the way in the industry.   Award recipients represent…  Read more

Should you engage a financial planner

Bizink

For business owners who want financial security now and freedom in retirement, having a financial planner on the team is a must. A financial planner will create a customized, strategic action plan to help you achieve your personal financial goals. Getting to know you and your business inside out is the first step a financial planner will take to understand where you are now, where you want to go, and…  Read more

Can SMSF buy property from yourself?

Xperion

Whilst generally SMSF cannot acquire assets from related parties, there are some exceptions. SMSF can buy property from yourself, but strict rules apply: It must be a business real (commercial) property. The property must be used wholly and exclusively in one or more businesses (not necessarily in your business). Being zone for business use is not enough. The property must be transferred at market value. If your SMSF pays less…  Read more

Can your SMSF borrow?

Xperion

Can your SMSF borrow? The technical answer is no, however, since 2007 they are allowed to enter into limited recourse borrowing arrangements. If done right, and if you considered your investment strategy, the risks that come with borrowing, the sole purpose of your fund, then they can really help you get ahead. You should always start with reading your deed and considering what you are trying to achieve. Just because…  Read more

Making a Division 293 election

Xperion

That’s right! Another tax year is upon us! While we may lodge your return and you may get a nice refund early on, keep in mind that your superfund does not send data to the ATO until later. That means, that if your income is over $250,000 and your employer contributed to your super, your assessment will be amended to include Division 293 and you may be asked to return…  Read more

Division 293 assessments

Xperion

Just when you thought you got through the tax hurdle, it hits you… Div293 notices… They are never pretty, they are never easy to explain to clients, the Government keeps changing the thresholds and the tax office keeps changing the means of payments… Let’s just say, they are painful no matter how you look at them… and at the end of the day, you just feel like they are trying…  Read more

Division 293 tax – high income earners

Xperion

What is Division 293 tax? Division 293 tax is the tax paid by high income individuals. It reduces the super tax concession they receive. Since 1 July 2012, high income earners are generally liable to pay Division 293 tax if their income for surcharge purposes (disregarding their reportable super contributions) and their low-tax contributions are greater than $300,000. This is to reduce the tax concession received on concessional contributions from 30%…  Read more