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SMSF trustees Operating expenses you can deduct

SMSF trustees: Operating expenses you can deduct

September 2, 2019

Operating expenses that are incurred by an SMSF are mostly deductible, however there can be exceptions to the extent that these relate to the gaining of non- assessable income (such as exempt current pension income) or are capital in nature. The following are examples of the types of operating expenses that are typically deductible for…

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Carrying forward concessional super contributions

Carrying forward concessional super contributions

July 4, 2019

The income year of 2019-20 has just ticked over, which is also the first year in which an individual is able to make additional catch-up contributions to super through the application of unused concessional (before tax) contributions. These are “unused” if the fund member made less than the legislated cap on such contributions, which was…

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Event based reporting mistakes lead to more SMSF audits

Event-based reporting mistakes lead to more SMSF audits

July 4, 2019

In the year since event-based reporting (EBR) started for SMSFs (from 1 July 2018) the ATO says an unprecedented number of transfer balance cap reports have required re-reporting. The transfer balance account report (TBAR) is used to report certain events and is separate from the SMSF annual return. The TBAR enables the ATO to record…

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Super downsizer scheme essentials

Super downsizer scheme essentials

May 2, 2019

Under the superannuation downsizer scheme, people aged 65 and older can make a non-concessional (post- tax) contribution of up to $300,000 from the proceeds of selling what was once their family home. Downsizing enables more effective use of housing stock, and existing contribution caps and restrictions will not apply to the downsizer contribution. The scheme…

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The ATO is looking for personal services income diverted to SMSFs

The ATO is looking for personal services income diverted to SMSFs

February 5, 2019

The ATO has announced that it is reviewing arrangements where members of an SMSF (typically at, or approaching, retirement age) purport to divert income earned from their personal services to their fund, which results in minimising or even avoiding tax altogether on that income. The ATO says these arrangements typically display all or most of…

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How much do we need to retire

How much do we need to retire?

November 6, 2018

The question of how much a person needs to have saved before confidently launching into their retirement years very much requires an individual answer. Each one of us lucky enough to reach the brink of those golden years will feel a lot better doing so with some assurance that we’ve squirrelled enough away to be…

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Carrying on a business through your SMSF

Carrying on a business through your SMSF

November 6, 2018

Under the regulations, self-managed super funds (SMSFs) are not prohibited from carrying on a business, however the business must be: allowed under the SMSF’s trust deed, and operated for the sole purpose of providing retirement benefits for fund members. Note however that the rules governing SMSFs prohibit or limit some activities available to other businesses,…

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Will new LRBA rules stymie your SMSF contribution plans

Will new LRBA rules stymie your SMSF contribution plans?

September 11, 2018

An “integrity” measure, which aimed to stop SMSF trustees from manipulating their total superannuation balance in order to keep below the $1.6 million threshold, may have the unintended outcome of reducing the appeal of LRBAs. Legislated changes to limited recourse borrowing arrangements (LRBAs) in regard to calculating an SMSF member’s total superannuation balance (TSB) amends…

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How to deal with SMSF trustee disputes

How to deal with SMSF trustee disputes

August 2, 2018

Everyone goes through the odd rough patch in their relationships with one another and SMSF trustees are no different. However the ramifications of a dispute between trustees are likely to have more wide ranging affects than the average quarrel between friends because SMSF trustees have vested interests, established duties and legal responsibilities towards the fund,…

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The proportioning rule and your SMSF: It’s all about balance

The proportioning rule and your SMSF: It’s all about balance

June 7, 2018

When calculating a super benefit, it is necessary to identify and determine the value of the various components that make up the benefit. The law around superannuation dictates that the tax-free component and taxable components of a member’s payment must be paid in the same proportion as the tax-free and taxable components of the member’s…

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