When the global financial crisis savaged retirement savings in 2008, many self-managed super funds escaped the devastation better than other super funds.
What’s behind this better performance?
There’s nothing inherently better about DIY funds – but a likely reason was their asset allocation strategy.
With 30 June hitting on Monday, there are a plethora of things that you as a trustee of your SMSF should consider to squeeze the maximum possible benefit from your SMSF. Here are just 15 things to consider before the year is up:
1. Valuation of your SMSF’s assets
It is a requirement under the superannuation law that the assets in your SMSF be valued each financial year.
The ATO has introduced new penalty powers which it can impose on you if your fund breaks certain superannuation rules.
The new rules apply from 1 July 2014 and allow the ATO to fine you and require you to rectify the mistake that has been made.
Estate Planning is a crucial component to the management of your superannuation assets. In light of this, attention to Binding Death Benefit Nominations (BDBNs) should surpass ‘just filling in a form’.
In just over four weeks will be in a new financial year. Understanding what you could do before and after 30 June 2014 can provide the icing on the cake for employees, investors and those in small business. Such things as bringing forward tax deductions or delaying the receipt of income within the rules can mean less tax this year.
2014 Budget Summary
Superfund Partners Director and wordsmith Mark Beveridge has distilled the government spin doctoring down into a few pages of need to know information. It doesn’t cover every dollar saved or spent, but it will help answer your most common questions.
There has been a flurry ATO activity recently – with the latest target being the release of details of a private binding ruling around the provision of nil interest loan to an SMSF by a related party.
Since 2007 SMSFs have been allowed to borrow to purchase assets using instalment warrant or limited recourse borrowing arrangements.
Starting on 1 January 2015 Centrelink will apply a different income assessment to account based pensions (sometimes also called allocated pensions). Previously the income counted for the Centrelink income test was calculated by the formula ‘Purchase Price/Life Expectancy = annual exempt income’. So an account based pension of $300,000,