In previous years, the government has made a large number of changes to the superannuation law and regulations. But in this year’s budget, only small changes were made which will directly influence the self managed superannuation funds (SMSFs) industry. One of the changes is with regards to accessing superannuation under the terminal illness condition. According…
INVESTMENT STRATEGY OR NOT. Quite often when we audit a fund we discover the fund does not have an Investment Strategy or has failed to update/review that strategy. This failure to have the correct documentation then means that the fund is non complying, a situation no trustee would want. What exactly is involved in having…
As part of the process of operating a SMSF Trustees must know the rules and legislation that administer their fund. Yet many trustees continue to make the same mistakes. The ATO monitor these breaches closely and below are the ATO’s current ten most common compliance errors and the % they make up alongside value of…
LIFE INSURANCE OR NOT FOR MEMBERS. SIS regulations have changed and SMSF trustees are now required to consider the life insurance requirements of the members of the super fund. This requirement now forms part of the Investment Strategy in order to ensure that the fund remains complying. Amended regulation 4.09 (2)(e) states: The trustee of…
As auditors we have seen a growing trend amongst SMSF’s where they have moved away from direct share investment towards property. In 2007 the government relaxed the rules applicable to self managed superannuation funds when it came to borrowing for the acquisition. Prior to 2007 funds were not allowed to borrow. The change in 2007…
In recent years the ATO has developed a list of breaches and contraventions that they find constantly taking place within many self managed superannuation funds. These breaches and contraventions are bought about in many cases by Trustees who are not up to date with the operating of their SMSF. When it comes to the audit…
Where a member directs how their superannuation death benefits are to be paid after their death it is called a binding death nomination. It is a written direction to the trustee to pay the member’s superannuation benefits to certain dependents or LPR in proportions set out upon their death. The normal valid period for a…
One of the most common questions we as auditors get is “why should I get you to audit my superannuation fund?” Initially we respond we respond with that we are trained professionals who are registered with ASIC and have broad knowledge when it comes to the administration and operating a fund. We are required to…
Where a member directs how their superannuation death benefits are to be paid after their death it is called a binding death nomination. It is a written direction to the trustee to pay the member’s superannuation benefits to certain dependents or LPR in proportions set out upon their death. The normal valid period for a…
Recently, it has come to our attention that there are several education promoters offering courses to be held in overseas locations such as Aspen, Phuket, Bali etc. The issue at hand, can the trustee attend such a course, have a holiday at the same time as being educated about running their SMSF, then charge the…