Welcome to ESUPERFUND’s March Newsletter.
In this issue, we inform you of the recent updates released by the Australian Taxation Office (ATO) in relation to the 2016-17 Federal Budget Superannuation Reforms. In addition, we look at some newly released updates to the Client Portal. Lastly, we highlight some audit requirements regarding expenses paid by SMSFs.
Client Services Manager
The changes to the superannuation system, announced by the Australian Government in the 2016-17 Budget, have been released with changes designed to improve the sustainability, flexibility and integrity of the Australian superannuation system.
The ATO is currently developing the best approach to implementing the Superannuation Reforms and detailed guidelines will be released gradually as the ATO progresses the administration of the changes within its current superannuation system.
During the last month, the following official resources have been published by the ATO:
ATO SMSFs Super Changes Webinar
The ATO has recently released a webinar to provide an outline of the latest superannuation changes with a focus on the impacts for SMSFs. It provided information to support SMSF Trustees to comply with the transitional rules as well as the new law post 1 July 2017.
The webinar recording can be accessed on the ATO’s website.
Overview of Super Changes for SMSFs
An overview of the Superannuation Reforms, along with the impacts on SMSFs can also be found on the ATO’s website.
Transitional CGT Relief
The draft Law Companion Guide (LCG) about Capital Gains Tax (CGT) relief has been finalised and released by the ATO on 08 March 2017.
Temporary CGT relief allows pensioners who will be affected by the Super Reform (i.e. TRAP earnings taxation measure / $1.6 million Pension Cap) to reset the asset’s cost base to its current market value on 30 June 2017. The relief will ensure that CGT is only payable (on the sale of these assets after 1 July 2017) on capital gains accrued from 1 July 2017. SMSFs must meet a set of conditions in order to apply the CGT relief.
Please visit the ATO’s website for a full description.
ESUPERFUND will update the website as the ATO releases further guidelines and you will be informed of the updates via our monthly client newsletters.
In the next issue of the monthly newsletter, we will provide detailed information in relation to the Contribution Reforms and explain some contribution strategies commonly used by SMSF Trustees. In addition, we will illustrate how CGT relief works with worked examples.
We are excited to announce that new features and updates have recently been released on the Client Portal. We continue to improve the Client Portal to provide you with a better user experience and ensure that you receive convenient online solutions. Login to the Client Portal to explore the new functions! If you have any queries or suggested enhancements, please feel free to contact us.
Expenses can only be paid for by the SMSF where they relate to running the SMSF and the tax invoice for the expense is in the name of the SMSF. In addition, the expense cannot have an element of personal use. That is notwithstanding that an expense is incurred in the running of your SMSF, you cannot pay for the expense with your SMSF if there is an element of personal use. Additionally, you cannot pro-rata expenses based on SMSF usage, in the same way as you can with your Individual Tax Return.
Please also note that the SMSF related expenses should be paid from your SMSF bank account directly. It is preferable that expenses are not paid with personal funds. However, where this is unavoidable then it is possible for you to pay an expense on behalf of the SMSF. In this case, you must ensure that the tax invoice for the expense is in the name of the SMSF and the reimbursement happens soon after the personal payment (preferably limited to only several days).
You can visit our website to for more information about Compliance of Expenses.
We have been with ESUPERFUND since November 2013. The website is user friendly and contains ample information to cater for any questions you may have. If it is unclear or you have any questions, they are only an email away. We have had our questions clarified on the same day or the next business day. We highly recommend them.
ESUPERFUND Pty Ltd as Trustee for ESUPERFUND Trust ABN 37 842 535 715
General Advice Warning
The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives,
financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products:
This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND.
Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product.
We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.
When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an
ATO Supervisory Levy
Company Trustee Setup Fee (where applicable)