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Relocation of Our Office

We are pleased to announce the relocation of our office effective as at 15th August 2015. Our new premises will be: Unit 4     65 Gilston Street Keperra QLD 4054 Our PO BOX and Telephone numbers remain unchanged. We will be having a new office launch on Friday the 11th September (4.30pm to 6pm) and would be delighted if you could call in. Relocation of Our Office    

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When is an Actuarial Certificate Required?

In an address to the Tax Institute in March 2015 Matthew Bambrick, ATO Assistant Commissioner for Superannuation, presented ‘some guidance around calculating and reporting ECPI (Exempt Current Pension Income).  The common industry practice of Segregating Assets part way through the year and not obtaining an actuarial certificate was singled out as needing to change. Andy O’Meagher, Actuary and Director of Act2 Solutions recently posted an article on Linkedin titled “SMSF ECPI Changes – take note!”about…

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Over 65 work test for contributions

Making concessional or non-concessional contributions for over 65’s is is possible, however you need to be aware of the rules. Aged between 65 and 75? The first thing to remember is that anyone age 65 or over must satisfy a work test before contributing to super. This applies up to the age of 75 when you no longer can contribute to super (your employer can still make SGC contributions).  If…

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Reasons to advise your clients to have a company as trustee for an SMSF

I am commonly asked by accountants “should I set my SMSF clients up with a company as trustee or just have individuals?” It is always my preference to have a company as trustee for an SMSF over individuals for a number of reasons. The main reasons are risk minimisation, asset protection and simplifying administration. Administrative Ease The administrative task of introducing a new member or if a member leaves the fund…

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Business Owners and SMSF Super Contributions

I was cleaning up my office at home over the Holiday period and came across some old “Money” magazines. Picking up one that had a special feature on superannuation and business owners from October 2002, I flicked through the articles and was interested to see how much things had changed and how much has stayed the same. Business Owners and SMSF Super Contributions One of the articles that struck me was entitled “Going it Alone” – it stated that “the Australian Bureau of Statistics tells us that only about 20% of small business people are contributing to super.”  Back in 2002, if you were self-employed (as a sole trader or in partnership) the maximum full tax deduction for superannuation contributions was $3000 (increased to $5000 during that year).  Now we…

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5 SMSF pension mistakes that accountants make

The SMSF pension rules can be a minefield to negotiate and it is so difficult for accountants in public practice keep up with all the changes to GST, Tax, FBT, Etc. Etc. let alone pensions that you may not come across very often. I see mistakes when dealing with income streams all the time, below are five of the common SMSF pension mistakes that I come across. 1 Set up documents Documentation is important to ensure that the pension actually commences when you want it to commence. Typically, a income stream may start before an actual pension payment is made. For example, sometimes the income stream start date will be 1st July and the actual pension payment may be a yearly payment commencing the following June. The documentation should reflect this and include…

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A Child member in your SMSF

The average Australian SMSF has 1.8 members, less than 10% of these have more than 2 members within the fund. This in term collates with other research, suggesting that SMSFs, are now becoming the ‘Mum and Dad Fund’. Over the past decade, we have seen an increase in the diversification of different age groups amongst SMSF members. According to ATO statistics, it has been suggested that the child members have been entering into Mum and Dad’s SMSF. So, what are the pros and cons of including a child member in your SMSF? Pros – There is more money within the SMSF in order to invest in a diverse range of assets – You get to invest, grown and make a profit as a family – The kids can take an active…

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Thinking about a SMSF Property?

We have been told that now is a great time to invest in a smsf property market, why not invest in property using your SMSF? Since the GFC, people have become increasingly aware and conservative when it comes to investing. Property is seen as a safer investment in comparison to something a little more risk intensive, such as trading stocks. For most people, property within a SMSF is a safe, reliable and profitable investment option, however, below are 10 things you need to know when investing in property through your SMSF.   1. SMSF must have an investment strategy No SMSF can exist to create wealth without an investment strategy. An investment strategy is a set of rules or guidelines as to how a trustee intends to invest funds and contributions…

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Documenting a SMSF Investment Strategy

SMSFs offer members great benefits and incentives. Essentially, the amount of investments in which you elect to hold is entirely up to you and the diversification of your investment strategy options are almost limitless. It is vital that you ensure that your SMSF investments are being used for the sole purpose of providing retirement benefits for the members of the fund. Also, it is also essential that the rules and regulations around the types of investments are maintained and well documented. One of the great attractions with a Self managed Super Fund (SMSF), is the choice of investment that is available to SMSF trustees in providing for their own retirement. A SMSF allows trustees to invest in; shares within a listed company (both within and outside Australia), buy residential or commercial…

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Is an Ex-wife a SMSF related party?

I had a phone call the other day regarding a question about an SMSF Related Party.  The person asked if a SMSF can loan money to an ex-wife of a member.  I must admit my first thought was you would have to be crazy! But it does pose an interesting question. Firstly, a SMSF cannot lend money or give any other financial assistance using the fund resources to a member or relative of a member (section 65 SISA). So who is a relative of a member? The definition of “relative” for section 65 can be found in Section 10 of SISA. It defines “relative” as; (a)  a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the individual or of his or her spouse; (b)  a spouse of the individual…

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