Structuring

Can an SMSF have a ‘pot of gold’ as an investment

Can an SMSF have a ‘pot of gold’ as an investment?

Whether it’s for diversifying the investment pool or even for the trustees fearing the next financial ‘doomsday’ event, a common question we get asked at Superfund Partners is “can an SMSF buy gold? And are there any rules we need to be aware of?”.

In short, yes and yes!

The first thing to consider is what type of gold we are analysing; are they collectable gold coins or bullion bars?  For the purpose of our blog, we look at bullion bars. Please refer to ‘collectable rules’ via the ATO website for more details on collectables.

 

Gold bullion bars

Since they are not defined as a collectable, when an SMSF buys bullion bars, the key issues to consider are as follows;

 

  1. Where will it be stored?

    • Whilst there are no specific rules around this, it’s the trustee’s responsibility to make sure the gold assets are securely protected.

Should children be members of your SMSF?

A question we often get asked is whether children – either minors or adults – should be included in your SMSF.  In this article we run through some common situations where it can go horribly wrong, and the few occasions when you may be able to make it work.

Firstly, let’s start with the positive. SMSFs are fantastic vehicles for building wealth and when operated correctly can boost the financial literacy of all members regardless of age and you can have up to four members in an SMSF – so why not take advantage of it?

End of financial year action list

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.  When it comes to superannuation, make sure you maximise the tax deduction this year or salary sacrifice the right amount so you get the best possible outcome and don’t end up with tax penalties.

ATO letter – participation in a franking credits arrangement

You may have received a letter from the ATO entitled “Your participation in a franking credits arrangement” and wondering whether it applies to you and whether you need to do anything – such as amend your SMSF annual returns.

This letter has been prompted by the the previous Labor Government’s intention to close a loophole which enable an investor (via the assistance of their broker) to effectively obtain twice the amount of franking credits on the same parcel of shares.

Changing your SMSF trustee from individuals to a special purpose company

There are a number of reasons why you should make the decision to appoint a special purpose company as a trustee of your SMSF, but what exactly needs to happen?

There are two main areas that need to be addressed as part of the change:

1. The legal change

2. Investment name changes

How our data feeds work

One question our clients commonly ask is “How do these data feeds work”?  This article answers that question and provides an insight into how the third party authorities you provide have a huge impact on our how we look after you and your fund.