It’s that time of year, when the receipts are collected, and we combine all out financial information to obtain that total number – of course we’re talking about tax time. But unlike David Rose from Schitt’s Creek, most of us are aware that purchasing products you like does not equal a write-off – so how can you get the best tax return? With the rising costs of living, it’s important you’re aware how you can legally beat the tax man. We’re talking super. Like many Australians, you probably don’t know much about it – but the potential savings you can make are significant, so it may be worthwhil ..read more

New research released New research released by the University of Adelaide provides tangible evidence of the benefits of investment diversification.   In its report, titled “Understanding self-managed super fund performance” and using data from over 318,000 SMSFs between 1 July 2017 and 30 June 2019, the University of Adelaide explored the relationship between the investment performance of self-managed super funds (SMSFs) and their level of diversification across multiple asset classes. The asset classes that were considered included: Cash and term deposits  Listed Australian eq ..read more

Several key super changes which may impact your ability to contribute to your SMSF, are set to take effect from 1 July 2022. These changes create opportunities for all SMSF members, young and old, to grow their retirement savings.  What are the changes?  Originally announced in the 2021 Federal Budget, the following changes apply from 1 July 2022:  Individuals up to the age of 74, will no longer need to meet a work test to make voluntary, non-deductible, contributions  Individuals up to the age of 75, with a total super balance under $1.7 million, will have the opportuni ..read more

We’ve noticed many SMSF trustees are making the decision to invest in Precious Metals. We’re going to explain how to do it in a compliant manner. The first item to ensure is that the asset is acquired in the name of the super fund, not in your personal name. A copy of the tax invoice for the acquisition must be supplied to us as supporting evidence. Next we need to consider the annual fund audit. Gathering sufficient audit evidence to support existence, where bullion is not a collectable or personal use asset by definition, is clearly simpler when it is stored in an independent specialist stor ..read more

Josh Frydenberg announced the 2021 Federal Budget last night, which focused on the unemployed, housing, mental health and aged care. In total the budget committed $9.46 billion over 5 years. The following is a summary of the budget announcements most relevant to growing businesses: Business tax concessions The Budget extends by one year two business tax concessions announced in the 2020-21 Budget — temporary full expensing and temporary loss carry-back. Together, temporary full expensing and temporary loss carry-back provide an incentive for businesses to bring forward investment to access the ..read more

Parliament are currently deliberating over the six-member bill for SMSFs which is expected to come into effect next financial year. The announcement of a six-member fund surprised many in the industry given over 90% of SMSFs currently have only one or two members. However, a six-member fund provides people with more flexibility in an SMSF and will be attractive in some circumstances, so we’re going to explore the benefits of them and highlight important questions to consider. Benefits of a six-member fund There are some significant benefits in increasing the number of members in a fund from fo ..read more

Whilst establishing an SMSF with individuals acting as trustees may save a few dollars in the short term, the benefits of registering a corporate trustee for any new SMSF can far outweigh the short term savings and I’ll explain why. Reason 1 – Succession upon death A company is an indefinitely continuing entity. Having a company as trustee for the Fund ensures control of the SMSF is always certain – an especially important factor when a member of the SMSF dies. Reason 2 – Trustee litigation exposure Another important reason to have a corporate trustee is litigation exposure. Individuals acting ..read more

How to buy cryptocurrencies in your SMSF and satisfy your annual audit You can buy cryptocurrency in your SMSF, however, there are many things to keep in mind. If an SMSF transacts in cryptocurrencies, SMSF trustees and members need to be aware of the tax consequences; in each case, these will depend on the nature of the SMSF’s circumstances. SMSFs involved in acquiring or disposing of cryptocurrency must keep records in relation to their cryptocurrency transactions. There are also super regulatory considerations for SMSF trustees, members and SMSF auditors. While SMSFs are not prohibited from ..read more

It is fair to say that 2020 has been a challenging year for most people on some level. From the fires, the floods, share markets dropping and then Covid! Amongst all this bad news there is a unique opportunity which has presented itself for a certain demographic this year. 1 July 2020 saw the age for members to make a voluntary super contribution without meeting the work test increased from 65 to 67. This means that those members last year who weren’t able to make a contribution because they were 65 and didn’t satisfy the worktest of 40 hours of paid work in a 30 day period meant they were ine ..read more

COVID-19 has resulted in the most severe global economic crisis since the Great Depression. The 2020/21 Federal Budget is an attempt to lift the Australian economy, gain fiscal strength and provide support to keep Australians in work and businesses in business. The Budget further highlights additional support in response to the health and economic effects of the COVID-19 pandemic and implements the next phase of Australia’s COVID-19 Economic Recovery Plan to create jobs, drive sustainable, private sector led growth while continuing to deliver the essential services on which Australians rely. A ..read more