Natalia Clack

With tough times facing individuals, such as bank foreclosures and retrenchments, the rising cost of living pressures and mortgage defaulting, some people might get caught up in illegal schemes to take their money out of super.

Promoters of illegal schemes single out people in financial strife, retrenched workers and some ethnic communities. They may claim you can withdraw your super or use a ‘self-managed fund’ to pay off debts, make a deposit on a home, or buy a car or holiday.

The COVID-19 pandemic has affected everyone’s lives, and SMSF trustees are no exception.

While the worst of the pandemic is (hopefully) behind us, trustees still have difficult questions to ponder as they focus on how best to position their SMSF in 2020-21 financial year.

If there is anything in this blog that you are unsure about, we encourage you to contact me to discuss your specific circumstances in more detail.

On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it would change the superannuation contribution rules for individuals between 67 to 74 years old. This repealing of the work test for voluntary super contributions occurred last month (July 1, 2022).

On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it would change the superannuation contribution rules for individuals between 67 to 74 years old. This repealing of the work test for voluntary super contributions occurred last month (July 1, 2022).

In June 2022, a milestone policy was included in the NSW Government Budget to offer first home buyers the choice to pay a one-off lump sum tax (‘stamp duty’) or an annual land tax when purchasing homes under a certain value.

There has been a lot of economic information prevailing in the headlines over the last few months.

The lowest unemployment rates in decades are currently in sight, each of the Reserve Bank of Australia’s (RBA) monthly meetings seems to be increasing the interest rates, and inflation is predicted to continue to rise. This is in conjunction with reports that wage growth is not keeping pace with rising prices across industries.

With continued reports of ‘times being tougher’, Australians are continuing to spend more money (leading to further inflationary pressure).

You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). It is a unique 15-digit identifier that directors apply for once and keep forever.

The following provides some useful further information.

Since 2012, it has been a part of the law that all of the assets held by an SMSF need to be in the accounts of the SMSF at market value at the end of each financial year. Recently, the ATO has increased their audit activity around this area and are attacking both trustees and auditors on market values.

Obtaining a market value could arguably be the main cause of delayed accounts for SMSFs. With the end of year quickly approaching, all trustees need to be looking at determining the market value of their assets on the 30th of June.

There are three types of people that have an interest in investing in overseas property.

First, there are those that are from a particular area who may like to hold real estate there. Secondly, there are those who have visited the area and may wish to return periodically for a holiday or make a more permanent move and are looking to establish a base. Finally, the genuine investors who may believe that a particular country offers better growth prospects rather than investing in their own country’s real estate.

Family trusts are a great vehicle for streaming income to family members, and often might include your parents. You may wish to help them out with the purchase of a new car and so might make a distribution to them from the family trust (so that it is more tax-effective). But how might this affect their eligibility for the Age Pension?

It’s because they are now considered a beneficiary of your family trust, and as such the trust is now to be considered under their income and assets test. A distribution from years before could cost them the Age Pension.