SMSF Community in Wollongong, New South Wales | Business and economy website

SMSF Community

Locality: Wollongong, New South Wales

Phone: +61 432 358 114

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23.01.2022 Concessional Contributions Concessional contributions are contributions when a tax deduction is claimed, including the following contribution types: Employer Contributions (Currently 9.5%) Salary Sacrifice Arrangement... Transfers from reserves Personal Concessional Contribution The tax rate on concessional contributions below the cap is generally 15%. In the 2016-2017 Federal Budget it was announced that from 1st July 2017 the concessional super contributions cap is $25,000 for all individuals. For more information on concessional contribution cap for previous financial year, click here. High-income earners For those who earn more than $300,000 a year, the tax rate on concessional contributions is 30%. The ‘Income’ in this context is the sum of the taxable income, concessional contributions, adjusted fringe benefits and total net investment losses. This is referred to as the Div 293 tax and the threshold will be lowered to $250,000 from 1 July 2017. Low-income earners People who earn less than $37,000 a year do not incur contribution taxes on their concessional contributions. Specifically, the contribution taxes will be returned to their account, with a maximum amount up to $513 (9.25%x$37,00015%).

21.01.2022 The ATO has moved to better explain some variations to the annual supervisory levy SMSF trustees are required to pay when they lodge the fund’s annual return.

17.01.2022 Post-COVID, business owners will be looking for opportunities to use gearing on the back of low-interest rates to invest in real property. Due to this SMSFs and LRBAs are likely to continue growing in a responsible and sustainable way.

16.01.2022 Will its record ever improve?

15.01.2022 Sole Purpose Test The Sole Purpose Test is designed to ensure that each investment made or action undertaken by the SMSF is for the sole purpose of providing retirement benefits or death benefits to the Beneficiaries of the SMSF. It is important that the sole purpose test is adhered to at all times. If Trustees use the SMSF for any other purpose, e.g. to access funds before retirement or run a business in the SMSF, the Fund may forfeit its compliance status. This means the Fu...nd will no longer be taxed at the concessional rate of 15% but at a much higher rate, with added penalties. So stay within the Superannuation rules! In its capacity as regulator of SMSFs, the ATO does not take a big stick approach to applying these rules and regulations. As long as the Trustees have a genuine interest in the retirement benefit of the Fund at heart, there won’t be any penalties. Trustees must maintain an SMSF in a manner that complies at all times with the sole purpose test. This is the most important rule of Superannuation.

13.01.2022 A higher number of trustees failed to meet minimum pension payment standards in 2017/18, suggesting many commuting a pension do not fully understand their obligations.

12.01.2022 The regulator’s compliance approach to COVID-19-driven rent relief provided by SMSF landlords will shortly be legally formalised....

11.01.2022 Excess concessional contributions When contributions in excess of the concessional contributions cap (general cap of $25,000 per annum) is made to an SMSF, an additional tax is applied to the Members of the Fund. From 2014 onwards, if concessional contribution exceeds the cap, the excess amount will be included in your personal assessable income and taxed at the marginal tax rate.... From 1 July 2018, Members can make ‘carry-forward’ concessional super contributions if they have a total superannuation balance of less than $500,000. Members can access their unused concessional contributions caps on a rolling basis for five years. Amounts carried forward that have not been used after five years will expire. The first year in which you can access unused concessional contributions is the 2020 financial year. For more information, please refer to the ATO Website.

10.01.2022 Super guarantee percentage The Super guarantee percentage will gradually increase to 12% as follows: Period Super guarantee (%) 1 July 2002 30 June 2013 9... 1 July 2013 30 June 2014 9.25 1 July 2014 30 June 2021 9.5 1 July 2021 30 June 2022 10 1 July 2022 30 June 2023 10.5 1 July 2023 30 June 2024 11 1 July 2024 30 June 2025 11.5 1 July 2025 30 June 2026 and onwards 12 See more

10.01.2022 SMSF annual returns still require a signature of some sort, regardless of COVID-19 isolation practices, a technical specialist has said.

07.01.2022 Off-the-plan Property It is possible to buy off-the-plan property in an SMSF; however, if you intend to take out a loan to do so, you will have to establish a bare trust as explained on our property page. Investment Strategy Buying off-the-plan property can be risky and Trustees must ensure that this type of investment is allowable and appropriate for their SMSF. One of the risks of purchasing with a mortgage is that if the lender’s final valuation comes in lower than the con...tracted price, you may be forced to make up the shortfall in your SMSF, which could be an issue if the SMSF does not have sufficient funds. Points to remember when purchasing off-the-plan with loans in an SMSF: The property purchase should be subject to one contract, which must be for the completed house and land. Do not purchase land and then look for an SMSF loan to construct a property on it. You will not be able to use the land as security. A custodian Trustee must be in place before the purchase is made so that the contract can be signed with this name. Only one property can be added in a bare trust. When purchasing a second property, a new bare trust must be set up. The same custodian trustee can be used for multiple bare trusts. Do not borrow to the limit of your SMSF. Make sure you have some liquidity to manage low valuations or the demand for a lower loan-to-valuation ratio from the lender. Alternatively have the capacity and ability to add funds to your SMSF without breaching the contribution caps. ATO Guidance For detailed guidance on the issues involved we recommend that you read the ATO’s Taxpayer Alert TA and in the minutes of the NTLG Super Technical sub-group (September 2019).

06.01.2022 Toowoomba has just two (2) two years of subdivisional approvals which is below the four (4) years minimum SEQ Growth Monitoring recommendations and the area has less that 6 months’ supply for sale. https://matusik.com.au/2020/10/20/toowoomba-land-supply/

06.01.2022 Administration and audit firm Seamless SMSF has hired a former Deloitte partner as a business development manager as it looks to expand into the financial planning market. Victoria-based firm Seamless SMSF has hired Jo Hurley, the founder and former chief executive of Engage Super Audits, to bolster its sales team. The appointment signals Ms Hurley’s return to the SMSF industry after previously announcing she was taking a career break from her role as SMSF assurance and advis...ory partner for the big four firm Deloitte in February 2018. She is a long-term industry leader with almost 25 years of experience in the SMSF sector and is best known for her success as chief executive of the SMSF audit business Engage that was acquired by Deloitte in 2015. Under her leadership, the business grew rapidly from a small regional start-up to one of Australia’s largest independent SMSF audit providers. Seamless SMSF chief executive Mike McHenry said he was excited to welcome Ms Hurley to the team as part of the business’s long-term growth strategy. First and foremost, Jo is a terrific person who will be culturally in tune with our business. She is driven, professional, sets high standards, respectful and has a lot of fun in the way she goes about things, Mr McHenry said. In such uncertain times, taking an aggressive approach to access accounting and financial planning firms that need our help requires the right people. Jo working in our amazing sales team will be great for the business and clients. Commenting on her new position, Ms Hurley said she was looking forward to returning to the SMSF industry and proud to be joining such a high-quality and talented team. Following the sale of my business, I felt it was important to take time out to consider my next career step. I have always had a strong drive to make a positive contribution to the SMSF industry, enjoying the opportunity to work with like-minded people with a similar passion to change our industry for the better, she said. I am really impressed with the culture and values Mike has instilled in the Seamless SMSF team, and this role represents the perfect opportunity for me to return to an industry I know and love.

05.01.2022 Now the serious stuff...

05.01.2022 What Is A NDIS/SDA Property?

04.01.2022 SMSFs Can Invest In Commercial Or Residential Property; however, neither Trustees nor related parties are permitted to live in the property or use the property as a holiday house. The sole purpose of the property must be as an investment of your SMSF. Some important points regarding SMSF property investment: It is important that the SMSF, including the structure above, is set up before you invest in any property. An SMSF can’t borrow money in its own right; hence, a Holding T...Continue reading

01.01.2022 I couldn't resist...

01.01.2022 Case Study: I have over $600,000 in my SMSF and would like to invest in a NDIS property. The property needs to be built so it will be a 2 part contract. There will be no borrowings involved. Can my SMSF invest in this property?

01.01.2022 SMSF Compliance is so complex...let's brighten our day.

01.01.2022 Are you looking to boost your SMSF? Investing in government backed NDIS/SDA properties can add $50K net to your SMSF year on year. Currently NDIS/SDA properties are in high demand, government funding is in place and the rental return is predetermined based on property type and location.... Limited single contract SMSF ready packages are available. If you would like to know more, have any questions or would like to see what properties we currently have available please book at time here with our director Phil Allen https://bit.ly/3goiJkL NDIS Investor will manage the whole process for you, from helping you with finance to presenting the right property, the entire build process and even helping to find your participants/tenants.