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 them is the challenge confronting trustees. The first changes are those to...
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 involves one partner (usually the older and higher earner) instructing their super...
An investment strategy is fundamental when it comes to self-managed super funds. Not only is having one a statutory requirement, but it also helps SMSF trustees know what to invest in to meet the fund's investment goal. Above all, an SMSF investment strategy must be designed to help trustees reach their retirement goal. To do this, the strategy must outline the fund's objectives. Every fund's objective will...
The number of self-managed super funds (SMSF) has grown sharply over the last few years. And it's in no small part because SMSF's can borrow to invest these days. Like any investment there's risk. Is the risk worth it? CPA Australia describes gearing as a legitimate wealth-creation strategy that's used widely outside superannuation. They see no reason why gearing shouldn't be used inside super, where it's part...
Former Prime Minister Paul Keating recently suggested that Self Managed Superannuation Funds (SMSF) should be restricted from investing in residential property. Mr Keating told the Financial Review, “If I was treasurer today, I would be looking very hard at the whole entitlement or availability of debt to SMSFs. They have gearing available to them and, of course, many of them are taking the option of...
Self-managed super funds (SMSF) can be beneficial to securing your financial independence. But is a SMSF the right option for you? What is a SMSF? Self-managed super funds essentially present a do-it-yourself approach to managing your superannuation. SMSFs can be single member, or comprised of up to four members. Members of a SMSF also act as trustee or director of a corporate trustee, and together, the trustees control...