Self-managed super funds
Self-managed superannuation funds pose new and challenging problems for their trustees under the changes announced by the Federal Government as part of the new Simpler Superannuation arrangements.
Self-managed super funds are now administered by the ATO so it is vital that the members /trustees of SMSFs understand their responsibilities for complying with the super and tax laws.
Your fund investment plan:
One of the basic requirements for each self-managed superannuation fund is to have an investment plan that meets the requirements of the SIS Act. There are significant penalties for funds that do not meet the legislative requirements. Each fund is required to have a written investment plan that is regularly updated.
Your fund portfolio structure:
If your SMSF consists of direct investments in shares or equities, a range of managed funds, some property both direct and indirect or fixed interest of a variety of types, the investment plan needs to be documented. It also has to meet the "tests" imposed under the new legislative regimes. For example the holding of your holiday home in the portfolio may not meet the “sole purpose” test under the legislation.
Your fund life stage and capital gains tax:
Your portfolio also needs to take into account when your fund is likely to go from the accumulation stage to the pension phase, and needs to take into account any capital gains tax implications of this phase change. There have been significant changes for the holding of business property assets inside self-managed super funds in relation to capital gains tax, when the fund changes from accumulation to the pension phase. Further details will be provided when the legislation is finalised as part of the current taxation changes.
New provisions for SMSFs.
You need to be aware of recent changes in the legislation that apply to self-managed funds and your fund needs to be reviewed to ensure that you comply. Penalties for non-compliance of your fund are quite severe.
To organise a review of your self-managed superannuation fund you should:
- Collate all of your statements, bank details and share portfolio data together
- Organise your past fund returns and accounting statements for your fund, including any audit reports
- Gather any prior data in regard to other super funds you were a member of in order to document the days of service and types of contributions you made.
For more information please contact us.