SMSF Capital Gains Rules and how they affect your investments

SMSF capital gains rules state that if you make a net capital gain, it will be included in your SMSF’s assessable income. SMSFs have flat tax rate of 15%. Complying SMSFs are entitled to a CGT discount of 1/3 if the relevant asset had been owned for at least a year. Net capital gain is calculated as per below; Total …

SMSF Investment Rules – Are You Compliant?

The Superannuation law does not prescribe what a SMSF can and cannot invest in. But there are restrictions on where the fund can invest in and the entities from which the fund can acquire assets. The investment options available to an SMSF is quite broad. Your fund can invest in: Cash Direct Shares Direct Property Bonds Share & Property Trusts …

Can you have a Single Member SMSF?

Can you have a single member SMSF?  Yes you can. There are two options in creating a single member SMSF. Corporate trustee – A corporate trustee is established to act as the trustee of the fund in which the single member is the sole director. Individual trustee – For individual trustees, you are required to appoint two trustees. The single …

In House Asset SMSF

There are numerous investment restrictions placed on super fund trustees by SMSF rulings. These include very stringent restrictions on any investment that involves a fund member, a relative of a member or any related company or trust. In House Asset SMSF An in house asset  is defined by ATO as a loan to or an investment in a related party. …

Life Insurance through SMSF

Since August 2012, SMSF trustees are mandated by law to consider the appropriateness of life insurance for fund members.  SMSF trustees are not required by law to take out life insurance, however they do need to consider if it is appropriate.  Typical insurance consideration would include level of cover and the type of cover such as Life,  total and permanent …

How to Set Up an SMSF

It is important you obtain professional advice before your SMSF set up to ensure it is set up properly so that it’s eligible for tax concessions and easier to manage once it’s up and running. If your SMSF is not set up properly, it may cause significant issues in the future. SMSF Set Up Checklist Step 1 Decide how many …

SMSF Trust Deed Update | When should I update my Trust Deed?

The Trust Deed of a Self Managed Superannuation Fund governs the operation of the Fund. If the Trustee of a SMSF is permitted under the Superannuation legislation to undertake particular actions, it is still generally not able to do so unless permitted by the Trust Deed. Therefore, it is important to ensure that the Trust Deed remains current and that …

Letter of Compliance | SMSF ATO

Your new employer will request a Letter of Compliance issued by ATO to make employer contributions to your SMSF. The SMSF Notice of Compliance, also sometimes called a letter of compliance, is a document issued by the ATO to an SMSF. According to the ATO “an SMSF that holds a notice of compliance that is till in effect is eligible …

Tougher Rules for non-lodgement of SMSF annual returns

The Australian Taxation Office will take a tougher stance on the non-lodgement of SMSF annual returns. SMSFs which have two years or more of overdue lodgements will have their regulation details removed from Super Fund Lookup. ATO will keep the regulation details off Super Fund Lookup until an SMSF’s lodgements are up to date and that will potentially affect rollovers …