On the 25th October 2022 the Labour Government handed out its first Federal Budget outlining how it aims to deal with the ever-changing economic climate. With regards to the SMSF sector, it was a relatively quiet budget, however the announcements that were made will have a very positive benefit on the sector at large. Three Year SMSF Audits Policy Cancelled The previously announced change of a three-year audit cycle was declared to no longer be proceeding. Since its original announcement, this proposed changed received major criticism, particularly from the SMSF sector. Downsizer Contribution ..read more

Picture this – you’ve lived in your family home raising your kids and getting them through school. It had all the room you needed for your family and suited the lifestyle. You’re now older, the kids have moved out and the space that once suited your lifestyle may have become a burden to maintain. So, you make the decision to sell up and move into a smaller house valued considerably less than your prior home. The question then on your mind… what do I do with the money?   One option that you might consider is to make a ‘downsizer contribution’ to your SMSF.  What is a ‘Downsizer Contri ..read more

There comes a point in time where a member of an SMSF wants to access their hard-earned retirement savings. Whether or not you can withdraw money from your SMSF is dependent on your preservation status and whether you have met a condition of release. Withdrawing money from your SMSF without meeting a condition of release can result in harsh penalties from the ATO; therefore, trustees must be aware when members are eligible to withdraw. Before understanding what a condition of a release is, it is crucial to understand what a preserved and non-preserved benefit is. Until you meet a condition of ..read more

The decision to implement a corporate trustee or individual trustees is one every SMSF faces. Both structures have pros and cons, making the decision-making process a case-by-case proposition. As of 30 June 2020, ATO statistics revealed 63% of SMSFs had a corporate trustee, whilst 37% had individual trustees.  Structure?  Corporate trustees are beneficial in that a single member fund can be the sole director of the company and comply with the structure requirements set out in s.17A of SISA. If there are 2 or more members, all members of the SMSF must be directors of the trustee compa ..read more

In recent years, the rise of illegal phoenix activity has become a primary concern of regulatory bodies. As per ASIC’s definition, illegal phoenix activity occurs when a new company, for little or no value, continues the business of an existing company that has been liquidated or otherwise abandoned to avoid paying outstanding debts. As a result, creditors and employees are often left financially out of pocket, and the greater community suffers due to the Government lacking in owed tax revenue.  The Australian Business Registry Service’s (ABRS) new solution to combat this ..read more

Pink diamonds are an item which are becoming more and more prevalent in the contemporary market, particularly in Australia where more than 90 percent of the world’s supply of natural pink diamonds are produced in the Argyle Mine in Western Australia.  From an SMSF viewpoint, holding an asset of this nature can be a lucrative proposition to potentially make significant profit, however, the key question to consider before buying pink diamonds is what category of asset class does it fall into – as the red ta ..read more

COVID-19 (the ugly beast we just can’t seem to shake) is doing a whole lot worse than just affecting businesses.  A June 2021 survey conducted by the Australian Bureau of Statistics found that one-in-five Australians are experiencing high or very high levels of psychological distress due to COVID-19. A lack of socialisation, increased stress, and a general level of uncertainty for our future have all been key factors affecting mental health in our communities.   Seamless SMSF’s attempt to mitigate the pandemic blues was to introduce Self-Care September for our staff. This program con ..read more

The ATO has recently announced that trustees are required to confirm the market value of any properties held by their SMSF each year. This doesn’t necessarily mean a new valuation is required each year, however, if the trustees wish to use the same valuation two years in a row, they need evidence or supporting information as to why the valuation still represents the current market value in the second year. The following valuation methods can be relied upon without requiring any secondary source of information: Valuations undertaken by a: Registered valuer Professional valuation service provi ..read more

Cryptocurrency has been a hot topic in the news of late. The surge in the price of Bitcoin between June 2020 & March 2021 has piqued investors wishing to explore new and unusual wealth-growing methods. The lucrative nature of crypto has seen a rise in SMSF’s investing in digital currencies. However, the investment’s speculative and decentralised nature has garnered attention from the ATO, who will be cracking down on regulatory requirements and tax obligations. Here are some key things you need to know before you decide to invest in crypto within your SMSF. Crypto is NOT a Cash Investment ..read more

From 1 October 2021, SuperStream will become mandatory for all self-managed super funds to rollover super to or from their funds.  With less than 60 days left until the implementation of the compulsory SuperStream, now is the perfect time to ensure your SMSF is well-prepared to make the change.  What is SuperStream?  SuperStream is a data-transfer method businesses use to pay super guarantee (SG) contributions to an employee’s super fund. Introduced in 2014, it digitalised the process ..read more