So what is that the ATO will be focusing on when it comes to the audit of superannuation funds for the 2013 year? As you would expect and rightly so, lets go straight to the SMSF trustee. The ATO will be reviewing to ensure that SMSF trustee understands their obligations and the fund has been…
As an auditor, an area of concern is when should I lodge a contravention report and could I be regarded as an auditor who under reports or over reports. In the process of this how do you eliminate human error and strike the right balance for your SMSF client. At SMSF Super Auditors our approach…
Effective 31 January 2013 the law in relation to the minimum standard of independence and competency across the SMSF sector for SMSF Auditors was amended (S.35C and regulation 8.03). From this date persons cannot audit an SMSF unless they qualify as an “approved SMSF auditor” (subject to transitional rules). This new regime was introduced under…
The Government has proposed the introduction of an annual (unindexed) concessional contribution cap of $35,000 that will apply to taxpayers who meet certain age requirements. Under this announcement, taxpayers who are 60 years and over from 1 July 2013 (ie; the 2014 income year) will be eligible to claim the new $35,000 concessional contribution cap….
As part of recent legislation changes as part of the investment strategy trustees / members are required to consider the holding of life insurance on behalf of members within the fund. There several advantages that may considered prior to undertaking this action. Even if you pay excess contributions tax, the benefits of the proceeds within…
Now that legislation requires trustees / members to consider the holding of life insurance on behalf of members within the fund, what are the disadvantages. The fund deed must allow the process and various different administrative aspects. There are no restrictions who can receive death benefits from a self managed superannuation fund. More documentation is…
What happens in the event a member dies and no Binding Death Benefit Nomination (BDBN)? Where a member dies and no BDBN is in place two options exist Where nomination was made. The trustee of the fund is obligated to administer the deceased member’s benefits in the best interests of the member. Normally, the trustee…
Referring to ATO ID 2012/79, trustees of a SMSF are required to return any contributions that exceed the fund capped contribution limit. Presently, this limit is $450,000 for a member under the age of 65 on 1 July or $150,000 over the age of 65. This limit applies separately to each contribution and not to…
The ATO has published taxpayer alert 2012/7 that focuses on investment decisions to acquire property using a limited recourse borrowing arrangement by the superannuation fund. In this alert the ATO points out where potential breaches may occur as per following: Failure to register title of assets in custodial trustee’s name. Signing of contact, before establishment…
What is an Anti-Detriment Benefit? Basically this benefit payment refunds the total amount of contributions tax paid by the SMSF member during their lifetime. Consider, Herb contributed to his super fund a total amount of $300,000. Tax rates on this contribution is 15% = $45,000 tax paid with a balance of $255,000 in the fund….