Review your superannuation strategy.

Approximately 84% of Australians are retiring on $21,000 or less per year. The Association of Superannuation Funds of Australia (ASFA) states that for a comfortable retirement an Individual requires $42,604 per annum and a couple $58,364 per annum. The ASFA defines “comfortable” retirement as; “Comfortable retirement lifestyle – Enabling an older, healthy retiree to be […]

Superannuation Death Benefits – Lump Sum vs Income Stream

Where a beneficiary is eligible to receive superannuation death benefits, but does not meet the definition of a Death Benefit Dependant under the Income Tax Assessment Act 1997 Cth, death benefits can only be received as a lump sum.  In the situation where a beneficiary does meet the definition of a Death Benefit Dependant, the […]

Lump Sum Superannuation Death Benefits – Eligible Beneficiaries & Taxation Consequences

Eligible Beneficiaries For a binding death benefit nomination to be valid, an eligible beneficiary must be nominated.  To be eligible, a beneficiary must be either your Estate or meet the definition of a Dependant as defined under the Superannuation Industry (Supervision) Act 1993 Cth.  Section 10 of the Act defines a Dependant as including ‘… […]

Consider a family trust as an investment vehicle

Many taxpayers and investors consider self managed superannuation funds as an investment vehicle of choice but few consider the merits of a discretionary trust or a family trust. What is a Discretionary Trust? A trust is essentially a structure where the “trustee” holds assets on behalf of other person (s) being the “beneficiaries” An example […]

Increase in the number of SMSF trustee disqualifications

By way of background individuals seeking to provide for their retirement by utilizing a Self Managed Superannuation Fund need to follow the strict rules and regulations of the Superannuation Industry (Supervision) Act 1993 (SIS Act). It would appear from the latest Australian Taxation Office (ATO’s) annual report that the number of disqualification of trustees has […]

Executives, professionals and family business owners to suffer if SMSF borrowing is scrapped

By way of background in 2007 the Australian Government allowed superannuation funds to borrow under strict conditions. As a result of this legislation, executives, professionals and family owned businesses have chosen to purchase direct property as their investment of choice through their superannuation fund, rather than shares or managed funds.   Prior to the change […]

Gen X and Gen Y now entering the Self Managed Super Fund Market

Super funds are no longer viewed as an investment vehicle for individuals either in or approaching retirement.  New research shows that younger generations are now looking to establish Self Managed Super Funds.  According to Russell Investments and SMSF Professionals Association of Australia, about 14% of Generation X (31-45 years) and 10 per cent of Generation […]