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Hunter Partners are Accountants Tax Agents and Financial Planners

Self-Managed Superannuation Funds (SMSF) are super funds primarily used by famiies to grow their wealh

ASIC enforcement action on SMSF auditors over independence

ASIC enforcement action

ASIC enforcement action on SMSF auditors over independence. ASIC has released information on its enforcement action against over 100 SMSF auditors (some referred to it by the ATO for various breaches including not meeting independence requirements, not complying with auditing standards, not reporting non-compliance, and not meeting the fit and proper person requirement).

ASIC recommends SMSF reforms including trustee education

ASIC recommends SMSF reforms

ASIC recommends SMSF reforms including trustee education. As a part of hearings into ASIC’s oversight functions, the regulator presented the Parliamentary Joint Committee on Corporations and Financial Services with a range of policy solutions to be considered to remedy deficiencies identified in the SMSF space from its recent reports.

Business real property can be moved into your SMSF

Business real property

Business real property can be moved into your SMSF. Transferring a commercial property into an SMSF can be a great way to build retirement savings and take advantage of the concessionally taxed SMSF environment. But when acquiring property from a related party, it’s vital the property meets the “business real property” test.

Limited recourse borrowing arrangements (LRBA) and SMSFs

Limited recourse borrowing arrangements

Limited recourse borrowing arrangements (LRBA) and SMSFs. Limited Recourse Borrowing Arrangements (LRBAs) allow an SMSF to borrow money for the purchase of a single asset (or a collection of identical assets that have the same market value) to be held in a separate trust.

LRBA changes may inadvertantly hinder SMSF gearing

LRBA changes

LRBA changes may inadvertantly hinder SMSF gearing. Limited recourse borrowing arrangements have allowed many SMSFs to successfully invest in assets they otherwise would not have been able to acquire.

Setting up a SMSF, ensure it meets the sole purpose test

Setting up a SMSF

Setting up a SMSF, ensure it meets the sole purpose test. Setting up your own self-managed super fund (SMSF) can be a complex task even before you seek registration with the ATO. It’s important that the SMSF be set up correctly for the sole purpose of providing retirement benefits for their members.

SMSF discretionary powers override wills with death benefits

SMSF discretionary powers

SMSF discretionary powers override wills with death benefits. Death of a family member is often a difficult time, but if the deceased was a member of SMSF, complications from trustee arrangements and payment of the death benefit can make a difficult time even worse for the family members.

SMSF must have a sole purpose, does your fund comply?

SMSF

The sole purpose test is one the fundamental requirements for SMSFs to obtain tax concessions. It requires that the SMSF be maintained for the sole purpose of providing retirement benefits to its members or their dependents if a member dies before retirement.

SMSF sole purpose test and fractional investments

SMSF sole purpose test

SMSF sole purpose test and fractional investments. Previously, it was thought that any benefit provided directly or indirectly to members or related parties of an SMSF from an investment would contravene the sole purpose test. However, a Full Federal Court decision has re-framed the sole purpose test which will provide some flexibility to trustees on certain investments.

SMSFs differ from other funds so understand the differences

SMSFs differ from other funds

SMSFs differ from other funds so understand the differences. Insurance and dispute resolution might not be high on your list of things to consider when starting up an SMSF, but these issues do affect SMSFs differently to public offer funds. What will you do if a dispute arises between SMSF members, and what does taking out insurance in an SMSF practically involve?

Sole purpose test is an area of concern for SMSF trustees

Sole purpose test

Sole purpose test is an area of concern for SMSF trustees. If you are the trustee of one of the approximately 577,000 SMSFs in Australia at the moment, there are some areas the ATO wants you to pay particular attention to including the sole purpose test, the in-house asset rules, unlawful schemes and arrangements, and dividend-stripping.