Liam Shorte

Putting people back in control of their wealth
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All posts tagged Government

The Hidden Value of Great Financial Planning

Following on from my own article on our main VERANTE website called Services We Provide as Professional Financial Planners I read a great white paper from a UK not-for-profit organisation called Sensible Investing who are committed to promoting clear, concise and independent information about investing and, specifically, the benefits of evidence-based (or passive) investing. I asked for permission to share the ideas and so here is a guest blog from them. A long read but a worthwhile read for anyone doing long-term planning and needing to understand what a financial planner can add in terms of value.

A man who does not plan long ahead will find trouble at his door

Confucius

The equation between the value that a client receives and the fees that they pay needs to make sense. Yet, because the benefits of good advice often materialise in the far-off future, it is sometimes easy to miss, or dismiss, the value received along the way. Market noise, emotions and periods of what may seem like inactivity on an adviser’s behalf, can also impact on the perception of value. This volume of Acuity is a reminder of the seen and, as importantly, the often unseen or unappreciated value that a great financial planning firm can deliver to its clients.

Financial planning: the world’s best kept secret

As you are reading this, we can assume that you are one of the few, lucky people who have discovered proper, lifelong financial planning. Almost everyone worries about time and money, what the future may hold, and the decisions and choices that they face; yet few realise that financial planning is the key to sorting it all out. In the bad old days, people went to IFAs for help and in all likelihood got sold a bag of commission-laden products under the pretext of ‘advice’. Fortunately, today, a small group of high quality, local, boutique financial planning firms has emerged providing truly great financial planning.

The problem is that most people don’t know what ‘financial planning’ is or understand how valuable it could be to them. Instead of trying to define what financial planning is in a few choice words, it is probably more useful to think about it in terms of the questions it answers. Here are some examples:

Lifestyle worries

• What does the future hold?
• Will we be able to maintain our current standard of living when we retire?
• When will I/we be able to retire safely?
• Will we need to downsize the house to survive?

Money worries

• How much is enough?
• Will we run out of money?
• Can we manage financially if one or both of us needs long-term care?
• Can we afford to put our children through private school?
• Can we have more holidays?

Money and life challenges

• What happens to my partner if I die? Will they be alright?
• What happens if the markets deliver really poor returns?
• How can we help out the children and grandchildren?

Good financial planning helps to resolve these kinds of questions. It helps people feel confident that they have the financial flexibility to survive whatever life and the markets may throw at them. It is also comforting for them to know that they have a trusted finance professional on hand, who intimately understands their family’s circumstances and goals, and who will monitor their finances over time and help them to make the tough decisions that they will inevitably face along the way. That’s the true value of financial planning. Cash flow models, sensibly structured portfolios, tax efficiency and contingency planning
are simply the tools that experienced planners use to help them to build and maintain the working plan.

In exchange for the financial planning service, clients pay an annual fee. It is often easy to appreciate the value received in the first year, and easy to forget or appreciate the value on an ongoing basis. The financial planning relationship can be broken down into three
key phases of value.

Value phase 1:

Sorting out the mess and building the plan

New clients often arrive with a proverbial suitcase of bits and pieces collected over the years, such as a number of pension plans, with-profits bonds, endowment policies, life insurance and a stock broker or IFA managed portfolio. They invariably have concerns about what the future holds, and have a strong desire to get their finances in order. Some do not have a clear vision of what they want their future to look like, whilst others lack the confidence that the suitcase full of products will get them there. That’s a stressful place to be.

The first and most vital step is to help clients to set out their vision for the future, both in terms of lifestyle goals and the money needed to fund them. Understanding how important it is that they are achieved is critical. Next comes the analytical work, which may involve using cash flow modelling tools to gauge the magnitude of the gap between the client’s vision and the financial reality (or to plan a range of possible scenarios).

In some cases, the two may be close. In others the gap may be wide. For some this may mean tough choices: saving more, retiring later, downsizing the house or leaving less for the children. For others, this might mean the chance of actually spending more, gifting money early or pursuing philanthropic interests. Empowering clients to make sensible choices is the objective of the planning process.

The resulting ‘plan for the future’ becomes a joint effort between client and planner. The overall strategy is agreed and recommendations are made to reposition the affairs of the client, potentially across a broad range of areas including asset allocation, investments, tax, wills and contingency planning. Once sorted, the client is then back in control of their future and their finances. The actual implementation can be complex, detailed and time-consuming for the financial planning team, as dealing with product companies can be a tortuous process! The value received is easy to see and even sometimes quantifiable,
such as the measurable benefits of restructuring to reduce Inheritance Tax liabilities, other taxes or reducing costs.

Value phase 2:

Plan progress and progressing the plan

Financial planning is not a ‘set-and-forget’ process; far from it, in fact. Regular review meetings help to provide clients with an insight into how things are going relative to the plan. They are also an opportunity for the client to raise issues or discuss changes to their circumstances, and for the financial planner to raise concerns about the progress of the plan and if there are any decisions that need to be made or actions taken. Reviewing past progress is important, but backward looking.

What is more important is the future and how the plan needs to progress from this point forward. Some issues and consequent decisions faced may relate to events in the client’s life, or may be more technical issues that sit in the financial planner’s jurisdiction. The latter may relate to things like new investment ideas or solutions, changes in pension or tax law, and refinements to the long-term portfolio strategy (remember that the true value when it comes to investing lies not just in the initial structuring of a robust portfolio, but the adviser’s role as a foil to avoid the truly dangerous combination of investor emotions and bad, yet often tempting, investment ideas). On some occasions, there will be little new to report, but that does not mean that no value was received: the financial
planner is out there reviewing, analysing and interpreting a wide range of different issues and challenges on the client’s behalf. Clients have better things to be doing with their time!

Over the many years that a client maintains a professional relationship with a financial planning firm, some may be quite uneventful, but they can always be confident that they remain on track and that their adviser has his or her eyes and ears open to issues that may affect them or are of concern and need to be flagged. There will be times when events are momentous, either in the client’s life (divorce, ill-health, an unexpected inheritance or triplets) or in the planner’s world (the markets falling precipitously, as they will do from time to time, or the Chancellor’s new pension regime, for example). Understanding the issues faced, finding a solution that makes sense, facilitating decisions that need to be made and having the fortitude to execute under pressure, is where great financial planners come into their own.

Value phase 3:

Long life, death and immortality!

There are also some more subtle areas of the value of a long-term relationship with a trusted financial planner. For many people, living longer is a two-edged sword. On the upside, we can all now expect to live materially longer than our grandparents’ generation. In fact it has been estimated by the Office for National Statistics that 8% of men and 14% of women age 65 today are projected to live to 100. On the downside, we also know that with longevity comes attendant health problems, not least the rise in dementia. It is a very distressing and worrying time when someone falls ill and often many life and financial decisions need to be made at this difficult time. A financial planner, who has arranged for powers of attorney to be prepared long before they are needed, and who knows the
family and their financial circumstances well, is well-placed to provide advice, support and to facilitate the financial consequences of the new change in circumstance at these stressful times.

Many clients – often one of a couple who takes more interest in the finances than the other – worry about what will happen to their partner on their death. Having a trusted financial planner (and an up-to-date plan), allows them to be confident that, in the event of their death, their partner will be well cared for financially and that their affairs are in order. Probate too, is a far easier process when everything is organised.

Most people would like to feel that they will, in some way, leave behind a lasting legacy. For some, that can mean spending time and money supporting their philanthropic works and for others it may mean passing on wealth from one generation to the next. The proposed changes in pensions legislation have created an opportunity to pass on wealth to future generations in a tax effective manner, for example. Again, financial planners can play an important role in helping clients to make decisions surrounding such issues.

In conclusion

It is easy to forget when you meet with your financial planner for your annual review meeting that the scope and value of the relationship is far deeper and more important than worrying about the 12-month market noise that has resulted in your portfolio going up and down, or the fact that neither your portfolio nor the plan has changed much. Meeting your goals, feeling confident in the future and having the time to enjoy the opportunities that your money provides you, your family and your community are what really matter.

Delivering ‘peace of mind’ may sound a bit trite, but that is the goal, consequence and value of great financial planning.

For access to the White Paper and some other great articles from Sensible Investing visit http://sensibleinvesting.tv

Turned 65 this year? Superannuation Contribution Rules, Limits and Traps

I have had three calls this week on the subject of making contributions for people who turned 65 this year and want to make non-concessional (after tax) contributions to their funds. I have had to tell one to reject the contribution already made. one to go do some work and the other to relax. The lessons to learn are; do not listen to friends, don’t rush in and seek professional advice from your accountant, financial planner or if you are really smart a SMSF Specialist Advisor™.

Get advice – Get it right

GENERAL INFORMATION ONLY: DO NOT RELY ON THIS CONTENT FOR YOUR PERSONAL SITUATION – GET PERSONAL ADVICE.

If you are 64 then you can still make a contribution of up to the $300,000 max up to June 30^thas long as long as you have not triggered your “bring forward” cap previously or exceeded your Total Super Balance Cap.
If you have turned 65 this year already then you can still make a contribution of up to the $300,000 max up to June 30^thas long as you meet the work test this year (40 hours in 30 days) or if you meet the criteria for the Work Test Exemption which applies from 1 July 2019. Again you must not have exceeded your Total Super Balance Cap
If you have turned 65 this year already and have not met the work test yet, then you cannot make a contribution until after you meet the work test this year (40 hours in 30 days).

So here is how each of my callers found my advice essential to making their decision.

Client 1

He turned 65 in January 2018 and had fully retired but made a large contribution on the basis he would be managing their son’s business for 2 weeks in June 2018 and would meet the work test easily. As he had not met the test at the time of contribution I had to tell him as SMSF Trustee, he had to reject the contribution and return the funds to his personal account. They can contribute the funds in late June after meeting the work test.

Client 2

He is fully retired and turned 65 in March and at least called me before making the contribution. He has not met the work test yet but has an offer of part-time work in the “Big Green Shed”. Great way of meeting the 40 hours in 30 day Work Test and I personally would probably pay them to work there as I spend so much time and money in there already.

Client 3

She is still working but turns 65 next week and sent through an urgent request to sell down shares in her personal name and so I called to ask why and “her friend had told her she could not use the bring forward rule after her 65th birthday.” So she had panicked and decided to sell down what are excellent shares but with huge capital gains. I had to tell her to relax and take a breath! We have a term deposit maturing in the May and can use that to make the contribution and avoid the estimated $300,000 CGT on the sale of the shares. As she running her own business, she has met the work test and can make her $300,000 contribution anytime up to June 30th 2020 as long as she does not exceed her Total Super Balance cap..

So here is a breakdown of the specific contribution rules applying at various ages.

If you turn 65 in a financial year the question of whether you are able to make a contribution to superannuation depends on:

• the amount you wish to contribute;

• whether you wish to claim a tax deduction for all or some of the contribution;

• whether you need to meet a work test during the year;

• whether you are under your Total Super Balance Cap.

Here are some tables that put it all together.

Table 1: Non-concessional Contributions

Age at the beginning of the financial year	Work test or Work Test Exemption to contribute?	Maximum non-concessional contribution without penalty
Less than 64	No	As long as you have room in your Ttoal Super Balance cap, $100,000 standard non-concessional contribution; $300,000 two year bring forward rule is triggered if greater than $100,000 has been contributed in year 1.
64	Only required if age 65 when contributing	As long as you have room in your Ttoal Super Balance cap, up to $300,000 if two year bring forward rule is triggered.
65 and up to the person’s 75th birthday*	Yes	As long as you have room in your Ttoal Super Balance cap, $100,000 standard non-concessional contribution.

Table 2: Personal Concessional Contributions*Once a person reaches 75 they can contribute up until 28 days after the month in which they turn 75.

Age at the beginning of the financial year	Work test or Work Test Exemption to contribute?	Maximum concessional contribution without penalty
Less than 64	No	$25,000
64	Only required if age 65 when contributing	$25,000
65 and up to the person’s 75th birthday*	Yes	$25,000

So what is the WORK TEST EXEMPTION?

Work test exemption (applies form 1/7/2019)

Allows an individual’s super fund to accept voluntary contributions made by individuals ages 65 to 74 for an additional 12-month period from the end of the financial year in which they last met the work test, subject to their total super balance being less than $300,000.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

7 Comments

by SMSF Coach - Liam Shorte on April 13, 2015 • Permalink

Posted in Contribution Strategies, Trustee

Posted by SMSF Coach - Liam Shorte on April 13, 2015

https://smsfcoach.com.au/2015/04/13/turned-65-this-year-superannuation-contribution-rules-limits-and-traps/

Tips for Positioning Your SMSF Portfolio for Volatile Times

SMSF Portfolio Management

I am becoming increasingly cautious in the portfolio guidance for clients in the current market where very low interest rates have driven equities and property higher, faster and seemingly without any concern for lack of underlying sustainable growth in earnings.

From what I am reading and from listening to market commentators we are probably going to see the domestic, European and USA share markets thrive over the coming months but the chance of a entrancement has increased significantly for different reasons. Here it is low-interest rates driving our market and alone that is dangerous without economic growth. In the US they also have very low rates but they have a recovering economy which underpins the growth in share prices there as companies improve earnings but if the cost of servicing debt rise that will affect the share market. In Europe they have just started Quantitative Easing (money printing) so easy access to capital will spur on their share and property sectors but that may set them up for more pain in the long-term if they don’t see sustained spending and growth in their economies.

There is plenty of talk of a pull back in share markets when the US Federal Reserve starts increasing its interest rates. We probably already see the first one or two rates priced in to the market and hence the current volatility so it maybe the third or fourth rise that causes a share market pull back.

So how can a SMSF trustee prepare for a short to medium term change in market sentiment and a possible 10-20 per cent drop in markets.

For our clients we are retaining our long-term strategies but reviewing asset allocation. Taking the basic advice to “Sell High Buy Low” but in a gradual movement over 6-18 months. Basically banking some of the profits and re-balancing portfolios with an eye to future volatility.
We are dampening down return expectations: After a sustained period of decent returns post GFC we know share and property markets will revert to the mean as explained by Roger Montgomery in a recent Cuffelinks Article This is mean (-reverting that is) so we are going back to focusing clients on the outcome they were seeking such as a 6% net return in retirement funding a 5% pension drawdown.
Not chasing “Yield” stocks. We are spending a lot of time explaining to clients that you can lose on capital value on “blue chip yield” stocks. Most already have a decent exposure so we are just asking them to be patient and look for opportunities on the dips.
Educating clients that higher volatility will be the norm for a prolonged period: As global interest rates start to revert to their long-term averages this could easily trigger capital losses in the bond markets so not to be complacent about exposure to any sector even if labeled “Defensive”.
As Roger Montgomery mention in the article above “Cash is Ammunition” so we are recommending building cash reserves to capitalise on opportunities from market corrections. Yes rates are low but a good purchase on a dip can swing the return balance significantly in your favour. Patience!

Traditionally, May and June are statistically volatile and weak months as investors review risk exposure, do some tax loss selling as they approach the end of the financial year. There is a market adage “Sell in May and go away” which although not a certainty, does have a history to be aware of when positioning portfolios. Here is a great article by Marcus Padley from 2009 but still relevant that explains this phenomenon in good detail: Sell in May and go away.

Sell in May and Go Away

We are not suggesting exiting portfolios but we are are recommending sitting on the fence ready to buy on significant dips rather than just buying into the current market and diversification and asset allocation is key at present.

I would love to here other’s sentiments so please take the time to comment below with your own strategy, tips or critique.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

55 No Longer Target Age for Transition to Retirement Pension Strategy

The milestone for when you reach preservation age and can access your super is now starting to change. The gradual move from 55 – 60 for access to Superannuation has begun.

If you are already over 55 then you can ignore this blog and you should be reading Understanding transition to retirement pensions

If you are over 59 and not in a Transition to Retirement pension then you really need to read this article Aged 59 – 64 and not on a Transition to Retirement Pension – SHAME ON YOU

For those approaching 55, listen up! As we approach 1 July 2015, we encourage you to check if you have met your preservation age requirements prior to planning for the new tax year. You may finally be able to make the most of the superannuation and tax systems and open up some lifestyle options for yourself like reducing work hours or pursuing an alternative career while maintaining a steady income stream.

However if you have not met your preservation age, you may not be able to:

open a Transition to Retirement (still working) or Account Based (met other condition of release) Pension Plan account;
withdraw a lump sum super amount (fully retired); or
process a contributions splitting request.

From 1 July 2015, your preservation age can range between 55 and 60 years of age, depending on your date of birth.

Your preservation age is determined using the following table:

Date of Birth Preservation	Age	Preservation age reached in year:
Before 1 July 1960	55	2014-15
1 July 1960 – 30 June 1961	56	2016-17
1 July 1961 – 30 June 1962	57	2018-19
1 July 1962 – 30 June 1963	58	2020-21
1 July 1963 – 30 June 1964	59	2022-23
After 30 June 1964	60	2024-25

Using a Transition to Retirement Pension means you can move your funds to Tax Free earnings phase, draw a tax efficient pension and use salary sacrifice at the same time to build a bigger nest egg for retirement. All without reducing your net take home pay! The other option is to use the TTR to reduce your working hours and supplement your lower earnings with a small pension and really transition to your retirement as the strategy intended.

Either way if you are over or approaching your retirement age then speak to a well rated financial adviser as there are a number of very clever strategies around pensions, tax and debt recycling that they can use for you now that you are UNPRESERVED!

Are you looking for an adviser that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

1 Comment

by SMSF Coach - Liam Shorte on April 1, 2015 • Permalink

Posted in Pension Strategies, Tax Planning

Posted by SMSF Coach - Liam Shorte on April 1, 2015

https://smsfcoach.com.au/2015/04/01/55-no-longer-target-age-for-transition-to-retirement-pension-strategy/

How to Qualify for the Commonwealth Seniors Health Card

Deeming Rates have changed again and so that makes it a little easier to access the Commonwealth Seniors Heath Card (CSHC) so I thought I should revisit the way you can access this valuable benefit.

A key change to legislation that commenced on 1 January 2015 impacts the Commonwealth Seniors Heath Card (CSHC) Income Test. Previously the Income Test only looked at a person’s adjusted taxable income, however the new rules include deemed income from account-based income streams. This may mean higher assessable income for some, making them ineligible for the card. For others, it may mean the loss of the card under certain situations from 1 January 2015.

It is important that SMSF Trustees and Self Funded Retirees in general understand how these new rules work and how they can impact them in different scenarios so that appropriate adjustments can be made to their strategies where necessary.

So here in this guide, we look at the rules around the CSHC as they apply from 1 January 2015 and the implications on different client situations. We will also explore options available to those effected from 1 January 2015 that can help them obtain or retain the card.

The benefits

The CSHC is designed to assist eligible self-funded retirees with certain medical and prescription costs. A summary of these concessions and other benefits available to card holders are as follows:

prescription medicines at concessional rates through the Pharmaceutical Benefits Scheme (PBS)
access to PBS prescriptions, generally without charge, for the remainder of the calendar year after reaching the PBS Safety Net
bulk-billed doctor (GP) appointments, at the discretion of the GP (the Australian Government provides financial incentives for GPs to bulk-bill concession card holders)
tax-free energy supplement1 of $366.60 per annum for singles and $275.60 per annum for each member of a couple
tax-free seniors supplement2 of $886.60 per annum for singles and $668.20 per annum for each member of a couple
concessional travel on Great Southern Rail services (the Indian Pacific, the Ghan and the Overland)
other concessions offered by local governments and private businesses at their own discretion. These concessions vary between states and territories.

Eligibility

With the exception of the Income Test, eligibility for the CSHC has largely remained unchanged. To qualify for the card a person must:

have reached the qualifying age for the Age Pension (currently 65 for men and women) or Department of Veterans’ Affairs (DVA) Service Pension (currently 60 for veterans and 65 for non-veterans)
be an Australian citizen, a holder of a permanent visa, or a Special Category Visa holder and meet other residence requirements
reside in Australia
not be receiving a Centrelink pension or benefit, a DVA Service Pension or Income Support Supplement
meet the requirements of an Income Test (there is no Asset Test when determining eligibility for the card)
provide their tax file number.

Applicants are required to be in Australia at the time of claim, however once received, card holders can travel outside Australia temporarily without having their card cancelled providing the period of absence is less than 19 weeks. This will be particularly important for those who wish to retain grandfathering on their account- based income streams (discussed further under the grandfathering provisions section).

The Income Test

From 1 January 2015, the Income Test assesses both a person’s ATI and deemed income from account-based income streams that are not grandfathered.

A person will satisfy the Income Test if their ATI plus deemed income from their account-based income stream is below the relevant income threshold.

Income thresholds

The income thresholds are indexed on 20 September each year and are currently:

Table 1: CSHC income thresholds applying from 20 September 2014 to 19 September 2015

Single	Couple (combined)	Couple separated by illness (combined)
$51,500	$82,400	$103,000

These income limits are increased by $639.60 for each dependent child in the person’s care.

Adjusted taxable income (ATI)

Adjusted taxable income is the sum of:

taxable income
reportable superannuation contributions (salary sacrifice, personal deductible and additional employer contributions)
total net investment losses (including net rental property losses)
target foreign income (income and certain other amounts from sources outside Australia that are not included taxable income or received as a fringe benefit), and
employer provided fringe benefits.

For many people applying for the CSHC, the most important component of their ATI is their taxable income. However, there are circumstances where the other components of their ATI may be important such as where the person claiming the CSHC or their spouse is still working (e.g. on a part-time basis).

To verify the person’s income, Centrelink/DVA will generally require their tax return and/ or tax notice of assessment for the financial year prior to the year of claim. In situations where the person does not complete annual tax returns, Centrelink/DVA will request other documentation to verify the person’s ATI.

For example, where a person only receives tax-free income from an account-based pension and does not complete an annual tax return, Centrelink/DVA will request their latest superannuation statement to work out deemed income (see the following section on deemed income for further information).

For others, an estimate of their income as opposed to their tax return can be used. This is where they are able to demonstrate a change in their personal circumstances, such as retirement and ill-health, which would cause their income to be significantly different to their tax return.

Managing adjusted taxable income

Where a person is expected to exceed the CSHC income threshold for a particular income year, and where they have significant ATI, a few options that may help bring them back below the threshold include:

investing in an insurance/investment bond as earnings are internally taxed at a maximum rate of 30% and are not included in a person’s assessable income for tax purposes
investing in a non-account-based non-superannuation term or lifetime annuity that has a deductible amount for tax purposes
setting up a family trust and distributing income to other beneficiaries
invest in growth assets instead of income producing investments
deferring and/or spreading realised capital gains across multiple income years.

Deemed income

From 1 January 2015, account-based income streams will be deemed and included as part of the CSHC Income Test unless grandfathering provisions apply. Where grandfathering does not apply to the account-based income stream, the entire account balance will be used to work out deemed income.

It is important to note that deemed income is in addition to ATI; meaning a person with no ATI (e.g. a retiree with no other income apart from tax-free income from an account-based pension) may still be ineligible for the card if their account-based income streams have large account balances. The table below shows the amount required in account-based income streams to have deemed income exceed the relevant CSHC income threshold (assuming no ATI). It also highlights how this amount changes from 20 March 2015 and if deeming rates were to rise to 3% and 4.5%.

Table 2: Total account-based income stream balance that would exceed the CSHC income threshold

Applicants are:	Deeming rates as at 20 March 20151.75% and 3.25%	If deeming rates are 3% and 4.5%
Single	$1,606,770	$1,160,445
Couple	$2,572,124	$1,857,645
Couple separated by illness	$3,205,970	$2,315,423

Also worth noting is that, unlike deeming of financial investments for social security pensions (although the same deeming rates and thresholds are used), only the account-based income stream will be deemed i.e. other financial assets are not deemed under the CSHC Income Test.

If you want to know current thinking on the amount needed for a comfortable retirement then read my earlier article How much do I need to live comfortably in retirement?

Feel you are falling behind? Then read 10 Tips For Salvaging Your Retirement Plans and then contact me for personal advice.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

5 Comments

by SMSF Coach - Liam Shorte on March 20, 2015 • Permalink

Posted in Centrelink, CHSC, Retirement Planning

Posted by SMSF Coach - Liam Shorte on March 20, 2015

https://smsfcoach.com.au/2015/03/20/how-to-qualify-for-the-commonwealth-seniors-health-card/

Stamp Duty on Transfers of Property to an SMSF

Immediately after I published my last blog Stamp Duty Requirements on Change of SMSF Trustees I got questions on stamp duty on property transfers to a Self Managed Superannuation Fund. At first I attempted to the answers myself but to ensure ongoing accuracy I am pleased to have Caroline Harley, one of the best lawyers in the SMSF sector review and update this information.

Caroline Harley | Special Counsel

So here is the current breakdown on stamp duty for property investors or small business owners looking to move property they own personally in to their SMSF.

Stamp duty imposed by State and Territory governments should always be researched and considered before transferring land to an SMSF. Concessions or exemptions from duty may be available depending on the State or Territory in which the land is situated.

This concession can be very significant. If the SMSF purchases NSW land/property from a member with a market value of $500,000, the duty which would apply (but for the concession) is $17,990. With the concession, the saving in duty is $17,240 as concessional duty is only $750.

Reminder: the land/property must be business real property owned in the personal name of the member rather than a company (otherwise the trustee would not be permitted to acquire the real estate).

The provisions of the duties legislation of each State or Territory differ, however where concessions or exemptions are available they generally require the transferor to continue to be the beneficial owner of the land (this relates to business real property as it is the only land which an SMSF may directly acquire from a member).

The following tables set out the details of the stamp duty offices and relevant provisions of the relevant legislation in each State and Territory. This is up to date as at 27 February 2017.

NSW	Transfer to a SMSF
Duty payable	$750 subject to conditions being met. Previously $500 but increased 01/02/2024. Depending on the documentation in place for the transaction you may be able to apply for a retrospective re-assessment and obtain a refund. An SMSF specialist lawyer would be able to advise you on this.
Relevant provisions	62A NSW Duties Act 1997
General description of legislation	Nominal duty is charged on a transfer of dutiable property from a person to a trustee of an SMSF where the: transferor is the only member of the super fund or the property is to be held by the trustee solely for the benefit of the transferor (ie property or proceeds of sale of property cannot be pooled with property held for another member and no other member can obtain an interest in the property or proceeds of sale); and property is to be used solely for the purpose of providing a retirement benefit to the transferor.
Document-ation	Evidence that it is a complying SMSF as at the date of the agreement/transfer, copy of minutes of meetings of the SMSF stating the intention to have the property transferred to it and confirming that the property was owned beneficially by the transferor member, copy of the SMSF trust deed or a variation to it, showing a non revocable clause that the property is segregated for the transferor member’s benefit only (follows wording in section62A(2))
Legislation	Duties Act 1997 (NSW)
Legislation website	http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/
Office	Office of State Revenue
Website	http://www.osr.nsw.gov.au

VIC	Transfer to a super fund
Duty payable	No duty subject to conditions being met
Relevant provisions	Section 41 Vic Duties Act 2000
General description of legislation	No duty is charged in respect of the transfer of dutiable property made without monetary consideration to a trustee of a super fund, where there is no change in beneficial ownership (again, property must be held in the personal name of the member and not a company name). A transfer of property to a trustee of a super fund by a beneficiary of the fund does not, for the purposes of this section, effect a change in the beneficial ownership of the property.
Document-ation	Documents are required – refer to ‘Evidentiary Requirements for Dutiable and Exempt Transactions’ on SRO website
Legislation	Duties Act 2000 (VIC)
Legislation website	http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/
Office	State Revenue Office (SRO)
Website	http://www.sro.vic.gov.au/land-transfer-duty

No luck in QLD

QLD	Transfer to a super fund
Duty payable	$20 subject to conditions being met
Relevantprovisions	You can claim this concession on transfer duty if you: transfer dutiable property between superannuation funds to merge or split the funds create a trust of dutiable property because of the variation or reconstitution of a superannuation fund. (Read more about transfer duty on trusts.) The superannuation fund must become a complying superannuation fund within 1 year. A complying superannuation fund is: a complying superannuation fund under the Superannuation Industry (Supervision) Act 1993 (Cwlth), section 42 or 42A an exempt public sector superannuation scheme under that Act.
General desc-riptionof legislation	A transfer of dutiable property is a concessional dutiable transaction.
Document-ation	Duties office form and documents are required. https://www.publications.qld.gov.au/ckan-publications-attachments-prod/resources/755a8bd9-7134-4a5f-85e7-a54c747ec7bd/form-d2.6-v2-effective-7-jan-2008.pdf?
Legislation	Duties Act 2001 (QLD)
Legislationwebsite	http://www.austlii.edu.au/au/legis/qld/consol_act/da200193/
Office	Office of State Revenue
Website	http://www.osr.qld.gov.au/duties/index.shtm l

WA	Transfer to a super fund
Duty payable	$20
Relevant provisions	Sections 122 – 124 WA Duties Act 2008
General description of Legislation	Nominal duty is charged on a transfer of dutiable property by a person to the trustee of a super fund where –

	▪ there is consideration for the transfer; and
	▪ only the transferor can be a member of the super fund or the property is held in the superfund specifically for the transferor (ie property cannot be pooled with the assets of another member and no other members can obtain an interest in the property); and
	▪ the property (or if sold, the proceeds) can only be held in the superannuation fund to be provided to the transferor as a retirement benefit.
	If the fund subsequently fails to satisfy any of the requirements (above) full stamp duty is payable in respect of any dutiable property still held.
	Nominal duty is charged under section 124 in respect of a transfer of dutiable property to the trustee of an SMSF that is an employer sponsored fund where –
	there is no consideration for the transfer.

Document- ation	Application form is required – ‘Superannuation Fund Transactions – Application for Nominal Duty’.
Legislation	Duties Act 2008 (WA) Also refer to Duties Fact Sheet – Superannuation Transactions
Legislation website	http://www.austlii.edu.au/au/legis/wa/consol_act/da200893/
Office	Office of State Revenue
Website	http://www.finance.wa.gov.au/cms/section.aspx?id=209

ACT	Transfer to a super fund
Duty payable	Ad valorem duty applies
Relevant provisions	No provision for exemption or concession from duty
General description of legislation	Duty is charged on a transfer of dutiable property.
Document-ation	Lodgement form and documents are required.
Legislation	Duties Act 1999 (ACT)
Legislation website	http://www.austlii.edu.au/au/legis/act/consol_act/da199993/
Office	ACT Revenue Office
Website	http://www.revenue.act.gov.au

SA	Transfer to a super fund
Duty payable	Ad valorem duty applies
Relevant provisions	No provision for exemption or concession from duty
General description of legislation	A transfer of property to a person who takes as trustee is deemed to be conveyance whether or not any consideration is given (except in certain circumstances regarding the transfer of family farming properties)
Document-ation	Lodgement form and documents are required
Legislation	Stamp Duties Act 1923 (SA)
Legislation website	http://www.austlii.edu.au/au/legis/sa/consol_act/sda1923157/

Office	Revenue SA
Website	http://www.revenuesa.sa.gov.au

NT	Transfer to a super fund
Duty payable	Ad valorem duty applies
Relevant provisions	No provision for exemption or concession from duty
General description of legislation	A conveyance of dutiable property is a dutiable instrument.
Document-ation	Lodgement form and documents are required
Legislation	Stamp Duty Act (NT)
Legislation website	http://www.austlii.edu.au/au/legis/nt/consol_act/sda151/
Office	Territory Revenue Office
Website	http://www.treasury.nt.gov.au

TAS	Transfer to a super fund
Duty payable	$50
Relevant provisions	Section 49 Duties Act 2001 (TAS)
General description of legislation	Where the duties office is satisfied there is no change in the beneficial ownership of the property duty chargeable on the transfer is $50. Also an exemption is available in certain circumstances regarding the transfer of primary production land.
Document-ation	For primary production see ‘Documentary Evidence requirements Guideline’, for other transfers duties office reviews each transfer on its own facts recommend seeking confirmation of eligibility prior to lodgement.
Legislation	Duties Act 2001 (TAS)
Legislation website	http://www.austlii.edu.au/au/legis/tas/consol_act/da200193/
Office	State Revenue Office
Website	http://www.sro.tas.gov.au

If you don’t get an exemption the the rates applicable are:

Moving Property to an SMSF is not something to be done lightly without looking at the pros and cons as well as the procedures in your state or territory.

We have design a 3 part guide to buying a property in an SMSF

Even more information and complimentary strategy ideas are available on our Property in a SMSF page. Contact Caroline for specific legal advice on your proposed strategy.

IMPORTANT

This information is current as at the date of publication but may be subject to change. This article is general in nature and has been prepared without taking into account a potential your objectives, financial situation or needs. Before making a recommendation based on this article, seek personal legal and tax advice and consider its appropriateness based on the your objectives, financial situation and needs.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02 9899 3693, Mobile: 0413 936 299

PO Box 6002 NORWEST NSW 2153
Suite 40, 8 Victoria Ave, Castle Hill NSW 2154
Suite 4, 1 Dight St., Windsor NSW 2756

Corporate Authorised Representative of Viridian Advisory Pty Ltd ABN 34 605 438 042, AFSL 476223

Image courtesy of jscreationzs at FreeDigitalPhotos.net

16 Comments

by SMSF Coach - Liam Shorte on March 12, 2015 • Permalink

Posted in LRBA, Property, SMSF Management, Trustee

Posted by SMSF Coach - Liam Shorte on March 12, 2015

https://smsfcoach.com.au/2015/03/12/stamp-duty-on-transfers-of-property-to-an-smsf-as-at-01-jan-2015/

Stamp Duty Requirements on Change of SMSF Trustees

Don’t you just love dealing with different sets of State and Territories legislation when dealing with property. I recently went through a whole strategy with a client before they told me that the property was in a different state and I had to start again as the rules were different in that state.

As someone who highly recommends the use of a Corporate Trustee for SMSFs I thought it would be handy to provide a guide to the various state and territory stamp duty provisions when changing trustees.

The following tables set out the contact details for the stamp duty offices and provisions of the relevant legislation in each State and Territory. Please make sure to check that they are still current with your legal and tax advisers before changing trustees. I remind you yet again that this is General Information only.

In summary the amount of duty payable on the appointment of a new trustee and resignation of a current trustee is:

NSW: Duty of $50 payable

VIC: No duty payable

WA: Duty of $20 payable

SA: No duty payable

QLD: No duty payable

TAS: Duty of $50 payable

ACT: Duty of $20 payable

NT: No duty payable

DETAIL

NSW	Change of trustees
Duty payable	$50
Relevant provisions	Section 54 (2A) NSW Duties Act 1997
General description of legislation	Duty is charged in respect of a transfer of dutiable property to a trustee of a self managed superannuation fund as a consequence of the retirement of a trustee or the appointment of a new trustee.
Documentation	No form required. Cover letter including background to the transaction and return address.Client identification required: Individuals – certified copy of document proving date of birth. Companies – ABN/ACN
Legislation	Duties Act 1997 (NSW)
Legislation website	http://www.osr.nsw.gov.au
Office	Office of State Revenue
Website	http://www.osr.nsw.gov.au

VIC	Change of trustees
Duty payable	Not dutiable
Relevant provisions	Section 33 Vic Duties Act 2000
General description of legislation	No duty is chargeable in respect of a transfer of dutiable property to a trustee of a complying super fund solely because of the retirement of a trustee or the appointment of a new trustee.
Documentation	Refer to ‘Evidentiary Requirements for Dutiable and Exempt Transactions’ on SRO Website.
Legislation	Duties Act 2000 (VIC)
Legislation website	http://www.legislation.vic.gov.au
Office	State Revenue Office (SRO)
Website	http://www.sro.vic.gov.au

WA	Change in trustees
Duty payable	$20
Relevant provisions	Section 119 WA Duties Act 2008
General description of legislation	Nominal duty is chargeable on a transfer of dutiable property to a trustee as a consequence of the retirement of a trustee or the appointment of a new trustee (if the transfer does not confer an interest in trust property to any other person to the detriment of the beneficial interest of any person).
Documentation	Refer to ‘Duties Information Requirements’ – change of trustee.
Legislation	Duties Act 2008
Legislation website	http://www.slp.wa.gov.au/legislation/statutes.nsf/default.html
Office	Office of State Revenue
Website	http://www.finance.wa.gov.au/cms/section.aspx?id=209

SA	Change in trustees
Duty payable	Not dutiable
Relevant provisions	Section 71(5)(d) SA Duties Act 1923
General description of legislation	A conveyance of property for the purpose of effecting the retirement of a trustee or the appointment of a new trustee is exempt from duty, where the beneficial interest of any beneficiaries of the trust has not changed.
Documentation	Application for Opinion form and document that conveys land to new trustee (is stamped as exempt).
Legislation	Stamp Duties Act 1923 (SA)
Legislation website	http://www.revenuesa.sa.gov.au/services-and-information/legislation.html
Office	Revenue SA
Website	http://www.revenuesa.sa.gov.au

QLD	Change of trustees
Duty payable	Not dutiable
Relevant provisions	Section 117
General description of legislation	Transfer duty is not imposed on a dutiable transaction for the sole purpose of giving effect to a change of trustee (where the interests of beneficiaries do not change and transfer duty has been paid on all trust acquisitions for which transfer duty is imposed for the trust before the transaction).
Documentation	Must be stamped. Lodgement form and statutory declaration required.
Legislation	Duties Act 2001 (QLD)
Legislation website	http://www.legislation.qld.gov.au/OQPChome.htm
Office	Office of State Revenue
Website	http://www.osr.qld.gov.au/duties/index.shtml

TAS	Change in trustees
Duty payable	$50
Relevant provisions	Section 37 TAS Duties Act 2001
General description of legislation	Duty of $50 is charged in respect of a transfer of dutiable property to a special trustee as a consequence of the retirement of a trustee or the appointment of a new trustee. Special trustee includes the trustees of a superannuation fund.
Documentation	See ‘Documentary Evidence Requirements Guideline’
Legislation	Duties Act 2001 (TAS)
Legislation website	http://www.thelaw.tas.gov.au
Office	State Revenue Office
Website	http://www.sro.tas.gov.au

ACT	Change in trustees
Duty payable	$20
Relevant provisions	Section 54(4)
General description of legislation	Nominal duty is charged for the transfer of dutiable property to a person as a consequence of the retirement of a trustee or the appointment of a new trustee for a self managed superannuation fund.
Documentation	 Conveyance lodgement form Memorandum of transfer – Form52T Change of trustee deed Evidence that the property was purchased by the fund
Legislation	Duties Act 1999 (ACT)
Legislation website	http://www.revenue.act.gov.au/legislation/
Office	ACT Revenue Office
Website	http://www.revenue.act.gov.au

NT	Change in trustees
Duty payable	Not dutiable
Relevant provisions	Schedule 2, Exemption 6
General description of legislation	A conveyance that is made solely for the purpose of effecting the appointment of a new trustee on the retirement of a trustee or as an additional trustee if – no beneficial interest passes in the property conveyed; and no change of beneficial interest occurs as a result of the transaction; and the property conveyed was acquired by the retiring trustee or existing trustee in the capacity of trustee by virtue of an instrument that was stamped or was exempt from duty. (This rewritten stamp duty provision refers to ‘a discretionary trust’ however the application of the provision remains the same as Item 9A of the repealed Stamp duty Act – which referred to a trust.)
Documentation	Refer to ‘Stamp Duty Lodgement Guide’
Legislation	Stamp Duty Act (NT)
Legislation website	http://www.treasury.nt.gov.au
Office	Territory Revenue Office
Website	http://www.treasury.nt.gov.au

IMPORTANT

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

Image courtesy of jscreationzs at FreeDigitalPhotos.net

4 Comments

by SMSF Coach - Liam Shorte on March 9, 2015 • Permalink

Posted in SMSF Management, Trustee

Posted by SMSF Coach - Liam Shorte on March 9, 2015

https://smsfcoach.com.au/2015/03/09/stamp-duty-requirements-on-change-of-smsf-trustees-as-of-01-jan-2015/

6 Key Considerations for your SMSF Investment Strategy

So your SMSF Administrator/Accountant is now having to use an Independent Auditor and suddenly you are being asked for more than just the 1 page SMSF Investment Strategy template provided by the Accountant that you used to sign without filling in the blanks and without considering its purpose.

The reason an Investment strategy is required by an SMSF and also required to be reviewed regularly is that personal circumstances changes as do markets and economies. You need to consider your investment portfolio in the light of these changes and this is a way of prompting you to do so as part of the annual review.

Each year we experience a lot of market and political volatility with differing views on where the economy is headed, leading to a subsequent impact on share and property markets.

As an investor is can be easy to get caught up in the short-term noise and lose focus. The SMSF Investment strategy requirement is a way of prompting you, the Trustee(s), to really consider what objectives you are trying to achieve and the strategies and asset allocation that you need to follow to achieve them.

Having a well thought out SMSF investment strategy is a key element in helping you achieve a smooth transition in to and through retirement.

Here are 6 important considerations in establishing your SMSF investment strategy.

Liquidity Needs: What life stage are each of the members in?
The members’ personal circumstances and life-stage will have the most important impact on your SMSF investment strategy. If you are all 20 years out from retirement, you may choose to invest for growth and ride with volatility of the share and property markets to benefit from the risk/return premium attributed to those sectors which are less liquid than cash and bonds. If however one or more of the members is approaching retirement or using a Transition to Retirement Pension strategy you may choose a more cautious approach to ensure sufficient income is available for pensions regardless of market ups and downs. That requires more active management to maintain some liquidity still seek a decent return through a diversified portfolio. For example we always recommend 12-36 months pensions are retained in cash or fixed interest to avoid selling assets in a downturn and reducing your capital value.
What’s the members’ risk tolerance
The ability of all involved to sleep comfortably at night without worrying about their investments should always be taken into consideration regardless of your age. If you or another member have no experience or confidence in certain market sectors, then short-term your investment strategy should be tailored accordingly. But you should then seek more information, education and guidance to build your knowledge and then your confidence in those missing sectors so that you can adopt a well diversified strategy long-term. It is generally accepted that the greater the risk of an asset, the greater the potential returns but this risk abates as time passes so riskier assets can pay off handsomely over time with less risk than perceived short-term. A portfolio designed to reduce your concerns while not providing optimal returns provides THE SLEEP FACTOR!
Asset allocation
Investing in the right asset classes is a major factor in the returns you will receive. Aussie Equities and Cash are not a full solution long-term. Cash and TD rates are currently low and our share market had a poor year last year and our economy is struggling while international equities, property and infrastructure are benefiting from improving economies, low interest rates and the dropping Aussie dollar. Your asset allocation should be reviewed annually and rebalanced to account for the returns from various asset classes and their future forecast. We are not saying make dramatic changes but do take tilts to certain sectors that will benefit from the current economic climate.
Avoid sector bias
The Big 4 Banks, Woolworths and Telstra do not make a diversified portfolio! Once you have decided which asset classes to invest in, it is important to diversify within those asset classes. Frequently I see investment portfolios with a narrow range of large Australian companies just like mentioned above providing very poor diversification – and leaving the overall investment portfolio heavily reliant on the fortunes of one or two sectors. Self Managed Superannuation Funds (SMSF) set up for the benefit of control without the willingness to take advice or learn about portfolio design, frequently lack diversification with an over reliance on one property, Australian shares and/or cash. With Control comes responsibility to learn and adapt.
Tax efficiency
Often the spur to look at complex and structured investments near June 30^th is the tax consideration. The amount of tax you pay on investment has a major impact on your SMSF investment strategy. Here is the tax basics for SMSFs:

15% tax on earnings and capital gains on assets held for less than 12 months in accumulation phase
10% tax on Capital Gains on assets held for greater than 12 months in accumulation phase
0% tax on earnings and capital gains on assets sold in pension phase

For example, if you were lucky enough to have bought 1000 CBA shares during the GFC at $30 and sell them now at $90 in accumulation phase you will pay $6,000 in tax with a net profit of $54,000. While if you were lucky to move in to pension phase you receive the full $60,000 tax-free. Tax is an important consideration and an understanding of the tax impacts which you purchase your asset in, and the tax payable when you dispose of the asset, are very important but should not be the sole driver of your Self Managed Superannuation Fund investment strategy.

Insurance Needs of the Members

Trustees of SMSFs now have to consider, as part of its Investment strategy “whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.”

This is a significant addition to the previous provisions, and has been prompted by the Super System Review panel noting that less than 13% of SMSFs have insurance. This is a subject on its own so please refer to my earlier article for guidance Self Managed Super Funds must include an Insurance Needs Analysis as part of the fund’s SMSF Investment Strategy.

It is important to update your investment strategy on an annual basis or more often if making large contribution or large investments to make sure you are maximising the probability of achieving your financial goals whilst reducing the risk of capital losses.

You can seek professional advice to help with your investment strategy, but remember: as trustee, you are still ultimately responsible for your fund’s investment decisions so next time you sign off a template provided by your administrator remember it is you that are responsible not them.

Please contact us on 02 9894 1844 or Liam@verante.com.au if you would like to review your current SMSF investment strategy, or need assistance in preparing an SMSF investment strategy that matches your members’ needs.

I’ll leave the last word or should I say video to the ATO

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　96993693, Mobile: 0413 936 299

PO Box 6002, NORWEST NSW 2153. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Advisory Pty Ltd ABN 41 621 447 345, AFSL 476223

Image courtesy of pakorn at FreeDigitalPhotos.net

4 Comments

by SMSF Coach - Liam Shorte on March 4, 2015 • Permalink

Posted in Audit, Investment Strategies

Posted by SMSF Coach - Liam Shorte on March 4, 2015

https://smsfcoach.com.au/2015/03/04/6-key-considerations-for-your-smsf-investment-strategy/

Multiple SMSFs may be a Smart Strategy for Property Investors

More than one fund! Am I kidding you? No I’m not as there are very valid reasons for using more than one SMSF for your investment needs.

To minimise Land Tax issues as detail further below but subject to State provisions;
To allocate certain assets for estate planning purposes to specific beneficiaries;
To keep a blended family superannuation interests separate;
To keep higher risk assets separate from other SMSF assets. (Retail shop with increased public liability risk);
To cater for separate risk tolerances for member of a family rather than running segregated accounts

So more on uses of multiple SMSFs by property investors

Land tax is a form of taxation applied to the value of any land that an individual or entity may own. For an individual their primary place of residence is normally exempt from Land Tax. Depending on your state or territory, land is a very broad term that encompasses vacant blocks of land, commercial and residential properties. I will be talking about NSW in this article.

Facts on NSW Land tax 2024

The Tax Year Threshold Rate for 2024 is $1,075,000

Tax on land value above the threshold $100 plus 1.6% up to the premium threshold.

Premium Threshold is $6,571,000

Tax on land value above the threshold is $88,036 for the first $6,571,000 then 2% over that

Strategy to manage land tax:

Land tax can be minimised by taking advantage of land tax thresholds that apply per entity not in aggregation. So Land tax can be controlled through the use of a separate Self Managed Super Funds (SMSF) for additional properties once you reach the exempt threshold ; .

Currently the Land Tax Free threshold sits at a land value of $1,075,000. Therefore any land value that exceeds this can be taxed at a rate as high as 2%. However, each SMSF is treated as a separate entity meaning each SMSF has its own $1,075,000 threshold. This allows property investors to hold their land across multiple SMSF’s in order to never exceed the threshold in any of these funds and in effect become exempt from land tax.

Example:

Sharon and Robert through their Love Property Superannuation Fund own an investment property in Castle Hill with land valued at $802,000 as part of a diversified strategy of their Self Managed Super Fund. Intent on expanding their property empire the couple has recently received pre-approval for an investment loan to purchase an additional property in Rouse Hill with land valued at $813,000. With this purchase the Love Property SMSF would have a combined Taxable land value of $1,615,000 obligating them to $8,740 in land tax.

However on speaking to their “SMSF Association Accredited SMSF Specialist Adviser“ (Yes you guessed ME!), Sharon and Robert set up a second Self-Managed Super Fund, Love More Property SMSF to purchase the second property. This means the land owned in their first SMSF is below the tax threshold and the land in their second SMSF is valued at below the tax threshold which effectively exempts Sharon and Robert from land tax. Running a second fund can be done for less than $2,000 per annum so a net saving of $6,740 per year or at least $67,400 over a 10 year property buy and hold strategy.

So you can see that multiple SMSFs are an effective tool to boost the returns of your property investment.

Be care of State Land Stax Legislation or Provisions

Strategy may not work in if there are grouping provisions. So please seek specialist tax advice.

https://www.sro.vic.gov.au/legislation/grouping

If you want to know see more about property in a Self Managed Super fund the go to the page https://smsfcoach.com.au/property-in-a-smsf/ for articles that cover most of the strategies and questions on this subject including Tips and Traps to be aware of in advance.

Feel you are falling behind? Then read 10 Tips For Salvaging Your Retirement Plans and then contact me for personal advice.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98993693, Mobile: 0413 936 299

PO Box 6002 NORWEST NSW 2153

40/8 Victoria Ave. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Advisory Pty Ltd ABN 34 605 438 042, AFSL 476223

Image courtesy of cooldesign at FreeDigitalPhotos.net

1 Comment

by SMSF Coach - Liam Shorte on February 27, 2015 • Permalink

Posted in Property, Tax Planning

Posted by SMSF Coach - Liam Shorte on February 27, 2015

https://smsfcoach.com.au/2015/02/27/multiple-smsfs-may-be-a-smart-strategy-for-property-investors/

Using your SMSF to plan now for a future downsize and a seachange

Living in Sydney and I have many clients who dream of retiring up or down the coast or inland to more suitable and often slower paced areas of Australia.

Many plan to downsize and sell their Sydney home in retirement and purchase a place on the coast. The issue that arises is that they often feel they have identified the area or actual property they want to live in during retirement and want to secure it now. Others are afraid that the selected area will be priced out of their budget in future years with so many baby boomers retiring over the coming decades.

So here is a solution we used for a few of our clients wanting to plan ahead and reduce that risk.

Jeff & Joan (of course it’s not their real names!) came to see me in 2006 and they had a lovely house in Hills District of Sydney but it was 2 storeys and with Jeff’s knees playing up they knew that they would need a single level property later. Also they planned to move to Lake Macquarie in 10 years to be nearer their children and hopefully future grandchildren in Newcastle in retirement.

They could not borrow to buy a property in their own names as they had business and family commitments that reduced their borrowing capacity.

They had a decent sized SMSF and could afford to buy a property as part of their diversified strategy so we put this strategy to them.

Sole Purpose Test issues

Due to the issues with the sole purpose test we convinced them that rather than looking for a specific property in the range of $750,000 they might use themselves but stretch their budget, they should identify a suitable investment property with good rental and capital growth prospects to deliver the best possible return for their retirement. Our argument was that the debt burden would be too high and their personal circumstances and needs can change but a good investment property could deliver the result they need to fund a better retirement regardless of those changing circumstances.

They identified a good investment property in Lake Macquarie that ticked all the boxes including affordability and was currently tenanted. We revised the SMSF Investment strategy and put the trustees reasoning for investing in residential property and the projected returns and maintained a diversified investment portfolio with the other funds. We also looked at options and exit strategies as part of the analysis and the investment stood up as a sound one for their portfolio.

There SMSF purchased the property in early 2007 for $400,000 and it was a sound investment over the following 5 years providing a reasonable rental income and about 3% capital growth per year over that time which was decent for a single level property just one street back from the water.

In 2012 Jeff decided to retire early and Joan agreed to reduce her hours. They put their house in Castle Hill on the market on reviving their needs thy believe it would be prudent not spend too much for their dream home and settle for the current investment property. gave the Lake Macquarie Tenants 4 months notice which they felt was fair. Their Sydney property sold a few months later for $850,000.

We got a professional valuation on the Lake Macquarie property and it was valued between $480,000-$500,000, so we agreed a market value of $490,000. The couple elected for a lump sum pension commutation from their SMSF paid “in-specie” as the Lake Macquarie property from their Self Managed Super fund and because it was in NSW they did have to pay Stamp Duty on the transfer. I believe on Victoria and WA there are exemptions that apply on such transfers as long as it is the same Beneficial Owners after the transaction. We sought legal advice here in NSW and were unable to get this concession.

The couple then used $150,000 to renovate the property and kept $150,000 in Term Deposits in their own name. This left approximately $500,000 which they contributed as Non-Concessional contributions equally to the SMSF.

What were the benefits?

If they had stretched to the mor expensive property they would gave had to take on debt and could not have considered the early retirement.
Secured a foothold in the property market in their area of choice for future retirement. The relief of having some certainty should not be underestimated by advisers.
They did not over extend their personal debt which would have left them very exposed during a downturn in their business from 2008-2010
Rental income from 2007 to 2012 was taxed at only 15% rather than their higher marginal rates.
Secured a $90,000 tax-free gain on the investment property as they were in pension phase.
Turned their superannuation accounts from mostly a Taxable component to accounts with more than $250,000 each of non-concessional components and Tax Free to their adult children as part of their Estate Planning.
Oh and they missed the GFC effect on this portion of their investments!

Downside:

Yes we had to pay Stamp duty but that was highlighted from the start as a possibility
The house prices did not run away from them in Lake Macquarie but at least they were not worried.

I must also mention a comment the clients made in their latest review and that was that in the 12 months since they moved they realise a waterfront property comes with higher rates and maintenance costs that would not have suited their retirement budget so well. Oh and they now have 2 grandchildren that they look after 2 days per week while enjoying the Lake Macquarie lifestyle they wanted.

Why not checkout my article “ What can my SMSF invest in?” as a good place to start.

As always please contact me if you want to look at your own options. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or online via Skype.

Keep updated by putting an email address in on the left hand column and pressing the “Sign me up!” button. Happy to take comments in the section below.

Bye for now.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

Owning your business property in a SMSF

Business Premises owned by SMSF

Interested in property and also running a business? Then one popular strategy used by many small business owners is to own their business premises in their self managed superannuation fund (SMSF).

Before we start let me emphasise, this is not a strategy to prop up a failing business.

There are a number of benefits in adopting this strategy:

As superannuation is generally more tax-effective than other investment entities you can have one of your major assets owned by a separate entity to yourself or your business thereby offering a greater degree of diversification of risk and ;
some asset protection as in the event of severe financial difficulty or even bankruptcy, creditors find it more difficult to get access to or create caveats over super fund investments as long as the premises were bought or transferred to the SMSF in good times, for clearly documented reasons and not deliberately to prevent creditors efforts to seek redress.
By having the premises owned by the fund rather than a third-party landlord you have more freedom to add fixtures and fittings, additional capacity and make changes to the layout without having to seek someone else’s approval and have surety of tenure that the costs can be recouped over time rather than worrying about ability to renew a lease at the landlords whim.
By accessing the capital held in a self managed super fund, your business can have more flexibility to make better use of its own capital to build or maintain the business.
It can often make it easier to sell a business later or pass it to family if they are not burdened with the capital requirements of funding a property purchase as part of the deal. This can also be a very stable income source in retirement as commercial / industrial property rents are often 7% or more.

When a SMSF owns real estate and you want to lease it back to your business which is seen as a related party of the fund the property must meet the definition of business real property (BRP).

Related parties of your fund include all its members, all their relatives and entities that those members and relatives control, or are deemed to control.

The definition of business real property is in subsection 66(5) of the SIS Act:

business real property , in relation to an entity, means:

a) any freehold or leasehold interest of the entity in real property; or

b) any interest of the entity in Crown land, other than a leasehold interest, being an interest that is capable of assignment or transfer; or

c) if another class of interest in relation to real property is prescribed by the regulations for the purposes of this paragraph – any interest belonging to that class that is held by the entity;

where the real property is used wholly and exclusively in one or more businesses (whether carried on by the entity or not), but does not include any interest held in the capacity of beneficiary of a trust estate.

Accordingly, two basic conditions must be satisfied before an SMSF, or any other entity related to or dealing with an SMSF, can be said to hold business real property :

the SMSF or the other entity must hold an eligible interest in real property; that is an interest identified in paragraph (a), (b) or (c) of the business real property definition; and

the underlying land must satisfy the business use test in the definition, which requires the real property to be ‘used wholly and exclusively in one or more businesses’ carried on by an entity.

For more detail and numerous examples of Business Real Property you should see Self Managed Superannuation Funds Ruling SMSFR 2009/1

If the property does not easily fit the definition of a BRP, then the asset will be considered an in-house asset and my advice is to not to push the limits of the ATO’s patience. Seek good legal and tax advice to ensure you understand all the implications and requirements of having or transferring a property into a a SMSF

SMSFs with in-house assets need to make sure that their fund’s total in-house assets do not exceed 5 per cent of the market value of all the fund’s assets. The 5% test is measured at acquisition and at the end of each financial year. If there is a breach, then corrective action must be taken.

Document the Lease

To keep the relationship on an arm’s length basis do not take short cuts, treat the lease like it was between 2 unrelated parties out and formal lease between the SMSF and the tenant (your or any other business). The terms of the lease should be clear and easily identified by an auditor reviewing the actions and paper trail of the trustees.

As trustee’s you are dealing with this property on behalf of the SMSF so you must be prepared to enforce the terms of the lease with the tenants. Lease payments must be paid on time and I recommend a direct debit be set up to ensure the temptation to delay or miss payments is avoided. If the business fails to meet its rental payment schedule the default penalty clauses must be enforced as they would for a third-party lease.

TIPS

For an online source to a flexible comprehensive lease agreement that ticks all the boxes you can visit DIY Legal Kits – Lease Agreements

Example

Peter the Physiotherapist is specialising in rehabilitation and water therapy and needs a property where he can install heavy equipment bolted to the floors and a hydrotherapy pool.

A suitable property is available locally for $750,000. The problem is that the business doesn’t have the capital to purchase the property or the capacity to borrow that amount.

Peter and his wife Margaret have their own SMSF which has $450,000 in the fund.

Peter & Margaret decide that SMSF should purchase the property using a Limited Recourse Borrowing Arrangement to borrow the other $400,000 plus costs leaving $100,000 liquid cash in the fund.

They must use a Holding trust arrangement to hold the property under this type of scenario.

A lease must be put in place between the SMSF and the Business

A commercially comparable rent needs to be agreed and paid from the business to the SMSF.

The SMSF is a very tax effective investment vehicle in the long-term as once the members enter pension phase, the CGT and tax on rental income can be minimised.

For more details on how borrowing to buy a property in an SMSF works please see the following 3 part series of articles from earlier this year:

Property through super in a SMSF – Part 1: Background

Property through super in a SMSF – Part 2: The Process

Property through super in a SMSF – Part 3: 20 most common mistakes

Before contemplating this type of transaction is contemplated, it’s essential to consider the member’s long term retirement needs and the super fund’s investment strategy. Consider what are the impacts on the super fund in terms of liquidity, diversification, returns on the investment and what if the business fails and the property remains vacant unable to find a suitable tenant.

Keep updated by putting an email address in on the left hand column and pressing the “Sign me up!” button. Happy to take comments in the section below.

To discuss your needs you can contact me at my Castle Hill or Windsor offices or I am happy to use Skype, phone or email as suits your needs.

Bye for now.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

1 Comment

by SMSF Coach - Liam Shorte on July 29, 2013 • Permalink

Posted in Borrowing, Property

Posted by SMSF Coach - Liam Shorte on July 29, 2013

https://smsfcoach.com.au/2013/07/29/owning-your-business-property-in-a-smsf/

Make sure you do not leave SMSF money idle in savings accounts

Have you put aside some money in a savings account or high interest savings account that you have put aside and are not making transactions on? Well beware of you could find the funds get nabbed by the Government when after 3 years they qualify as a “Dormant Account“.

I was alerted to this by an Accountant friend who held some of their SMSF money in an online high interest savings account and had parked a fixed amount there for more than 3 years as it was earmarked for a specific future use. Low and behold the Government nabbed it as it qualified as a Dormant Account. It was not some minor amount either as it was over $10K!

So if you have such an account look after your interests and make a small transaction yearly to ensure it remains “Active”. As little as 1 cent being transferred in or out will keep the account as on Active status. As a Trustee it’s your duty to look after the money of the Self Managed Super Fund and to take reasonable care to protect it..

Unforeseen Outcomes

The action of the government raises an issue for fund administrators and auditors:

The client has not met a condition of release so the money is restricted and should not leave the fund so the question is has this money left the superannuation system or not?

Further, if the funds are to be claimed back with this good online provider is arranging asap, as the funds will be coming from outside of the SMSF fund will they be considered a form of contribution?

Want a Superannuation Review or are you just looking for an adviser that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options. Do it! make 2016 the year to get organised or it will be 2026 before you know it.

Please consider passing on this article to family or friends. Pay it forward!

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

1 Comment

by SMSF Coach - Liam Shorte on June 28, 2013 • Permalink

Posted in Audit, News & Stats

Tagged Asset Allocation, Baulkham Hills, Castle Hill, DIY Super, Dormant accounts, fines, Government, Interest Rates, Investment, protection, superannuation, Trustee, Windsor

Posted by SMSF Coach - Liam Shorte on June 28, 2013

https://smsfcoach.com.au/2013/06/28/make-sure-you-do-not-leave-smsf-money-idle-in-accounts/

Using Beer To Explain How Tax Concessions Work

Let’s put tax concessions for superannuation in terms everyone can understand.

Suppose that every night, ten men go to their favorite bar for a few beers. The tab for all ten
comes to $100. If they paid their bill the way we pay our taxes, it would go something like
this:

The first four men (the poorest) would pay nothing.

The fifth would pay $1.

The sixth would pay $3.

The seventh $7.

The eighth $12.

The ninth $18.

The tenth man (the richest) would pay $59.

So, that’s what they decided to do. The ten men drank in the bar every night and seemed quite happy with the
arrangement, until one day, the owner threw them a curve ball.

“Since you are all such good customers,” he said, “I’m going to reduce the cost of your nightly tab by $20.”

So, now drinks for the ten only cost $80. The group still wanted to pay their tab the way we pay our taxes. So, the first four men were unaffected. They would still drink for free.

But what about the other six, the paying customers?

How could they divvy up the $20 windfall so that everyone would get his ‘fair share’?

The six men realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being ‘PAID‘ to drink beer!

So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).

The sixth now paid $2 instead of $3 (33% savings).

The seventh now paid $5 instead of $7 (28% savings).

The eighth now paid $9 instead of $12 (25% savings).

The ninth now paid $14 instead of $18 (22% savings).

The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once drunk and outside the bar, the men began to compare their savings.

“I only got a dollar out of the $20,” declared the sixth man. He pointed to the tenth man “but he got $10!”

“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than me!”

“That’s true!!” shouted the seventh man. “Why should he get $10 back when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up at the bar, so the nine sat down and drank without him. But when it came time to pay the tab, they discovered something important. They didn’t have enough money between all of them for even half of the tab!

And that, ladies and gentlemen, journalists and Mr Freydenberg, Mr Shorten and Mr Morrison and his shadow Mr Bowen, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction or concession like the Superannuation contribution tax rate. Tax them too much, attack them for being wealthy, and they just may not show up to pick up the tab anymore.

In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

“everyone will worry about the poor people in the wagon and not about the people pulling the wagon, until there are no more people to pull the wagon!”

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible

This article has been adapted to Australian circumstances and is based on what is believed to have originally been a letter to the Chicago Tribune by a Mr Don Dodson in March 2001 (Source SNOPES.com )

As always please contact me if you want to look at your own particular situation as we specialise in plain English strategies. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

5 Comments

by SMSF Coach - Liam Shorte on April 4, 2013 • Permalink

Posted in Superannuation, Tax Planning

Tagged beer, Government, SMSF, Strategy, superannuation, tax concessions, tax offsets, Tax Planning, Taxes

Posted by SMSF Coach - Liam Shorte on April 4, 2013

https://smsfcoach.com.au/2013/04/04/using-beer-to-explain-how-tax-concessions-work/

Government bonds arrive for retail investors but may not jump out of the gate

Legislation passed through parliament yesterday that followed through on a promise by “the world’s greatest treasurer” Wayne Swan that Government bonds will be listed for the retail market (I nearly said the ASX but now we have to be generic as we have Chi-X as well). the Treasurer took his time getting the legislation together but now we have it in place.

Click the link below to read more of this article

http://www.smh.com.au/business/government-bonds-set-to-fail-with-retail-investors-20121102-28nqj.html

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

1 Comment

by SMSF Coach - Liam Shorte on November 2, 2012 • Permalink

Posted in Bonds, Term Deposits

Tagged Asset Allocation, DIY Super, Government, hybrids, Income Protection, Interest Rates, International, Investment Strategy, Pensions, RBA, Retirement Planning, Savings, Self MAnaged Super, SMSF, Tax Planning, Trustee

Posted by SMSF Coach - Liam Shorte on November 2, 2012

https://smsfcoach.com.au/2012/11/02/government-bonds-arrive-for-retail-investors-but-may-not-jump-out-of-the-gate/

What information do I need to provide for my SMSF Audit

At the end of each financial year your Self-Managed Super Fund will need to be audited by an independent third-party SMSF auditor.

Having your SMSF audited isn’t exactly exciting, but it is an essential part of the compliance process. Looking to save money on the audit by going for a cheap service may come back to bite so I always recommend paying a decent fee to an experienced auditor is worthwhile. If they are not doing at least 25 audits a year then don’t use them as experience is crucial and it is necessary to have knowledge of what to look for and how to guide you the ultimate client.

The SMSF audit involves a review of your fund and the strategies and transactions during the year to ensure it remains a ‘complying fund’ in line with the ATO’s definition.

Who can audit my SMSF?

Your SMSF can only be audited by an approved SMSF auditor. SMSF auditors are most commonly qualified accountants; however there are some additional requirements.

Members of the following organisations are qualified SMSF auditors:

SMSF Specialist Auditors, accredited by the SMSF Professionals’ Association of Australia (My personal preference)
CPA Australia
The Institute of Chartered Accountants Australia
National Institute of Accountants
Association of Taxation and Management Accountants
Fellows of the National Tax and Accountants Association Ltd

SMSF Specialist Auditors, as appointed by the SMSF Professionals’ Association of Australia, are also qualified to complete this important SMSF function.

SMSF Audit Check-list

The person performing the SMSF audit will require a number of documents and may seek these from your Administrator, accountant or directly from you the Trustees. The auditor will generally have a standard SMSF audit check-list, however the following will give you some guidance on what you are generally asked to provide:

Financial statements of the fund.
Cash Management and Bank statements for all fund accounts including Cheque, Savings and Term Deposits.
Managed fund /Wrap annual transaction and income report.
Share Broker’s statement showing all transactions.
Holding statements for all shares held during the year and the end of year balance.
Buy & sell contracts for all shares held during the year including Off Market Transfers and any corporate actions.
Statements showing clearly the ownership of all fixed interest securities like bonds, hybrids and notes.
Contracts for any property purchased or sold
Copy of the Title deed showing evidence of ownership for any property in the correct name.
Property valuations and updated if starting a new pension.
Building & Liability insurance certificates of currency
Lease agreements and rental income statements
Documentation for any art or collectables including evidence of Insurance in the name of the SMSF.
Details of any debts owed by the SMSF including loan statements showing repayments
Documentation of any related party loans or investments
Confirmation of any contributions or withdrawals
Confirmation that the member is eligible for contributions or meets a condition of release for withdrawals
Pension or lump sum benefits payment details including copies of Pension Agreements and minutes.
Information on any other investments not mentioned.
Completed SMSF Investment Strategy in writing including consideration of members’ insurance needs.

This is not an exhaustive list and your SMSF auditor may require additional documentation.

For further information on the issues raised in this blog please contact our Castle Hill SMSF Centre or Windsor Financial Planning Office. While we are not auditors we can point you in the right direction of people you can trust.

I hope this guidance has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, put on your Facebook page if you found information helpful.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　9899 3693, Mobile: 0413 936 299

PO Box 6002, Norwest NSW 2153

40/8 Victoria Ave, Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Advisory Pty Ltd ABN 34 605 438 042, AFSL 476223

3 Comments

by SMSF Coach - Liam Shorte on October 30, 2012 • Permalink

Posted in Audit, Checklists, SMSF, SMSF Management, Trustee

Posted by SMSF Coach - Liam Shorte on October 30, 2012

https://smsfcoach.com.au/2012/10/30/what-information-do-i-need-to-provide-for-my-smsf-audit/

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In conclusion

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So here is a breakdown of the specific contribution rules applying at various ages.

Here are some tables that put it all together.

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So how can a SMSF trustee prepare for a short to medium term change in market sentiment and a possible 10-20 per cent drop in markets.

We are not suggesting exiting portfolios but we are are recommending sitting on the fence ready to buy on significant dips rather than just buying into the current market and diversification and asset allocation is key at present.

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Income thresholds

Adjusted taxable income (ATI)

Managing adjusted taxable income

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Caroline Harley | Special Counsel

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DETAIL

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So more on uses of multiple SMSFs by property investors

Facts on NSW Land tax 2024

Strategy to manage land tax:

Example:

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So here is a solution we used for a few of our clients wanting to plan ahead and reduce that risk.

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This article has been adapted to Australian circumstances and is based on what is believed to have originally been a letter to the Chicago Tribune by a Mr Don Dodson in March 2001 (Source SNOPES.com )

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