Issue 18 | 16 September 2015
Welcome to ESUPERFUND’s September Newsletter.
In this issue we provide you with some detailed information about the Refund of Excess Non-Concessional Contributions. We are also pleased to announce that two new mortgage lenders are available for Residential Property Loans and we highlight an online SMSF assistance tool that was recently released by the ATO. Lastly, we remind you of the pros and cons of property investment for SMSFs.
Client Services Manager
Refund of Excess Non-Concessional Contributions
If you make a Non-Concessional Contribution exceeding your Non-Concessional Contribution Limit during the 2015 Financial Year, your SMSF must return the excess contribution to the contributing Member within 30 days of receiving the contribution. To the extent that this did not occur, members now can choose how they wish the excess to be taxed.
Option 1: You can choose to withdraw all of your Excess Non-Concessional Contributions and 85% of the associated earnings from your SMSF. The full associated earnings amount will be included in your individual income tax return and taxed at your marginal tax rate. You will also receive a 15% tax offset to recognise the associated earnings that are already taxed in the SMSF.
Option 2: You can choose not to release your Excess Non-Concessional Contributions from your SMSF, the Excess Contributions over the Non-Concessional Contribution Limit will be subject to Excess Contributions Tax at the highest marginal tax rate.
Affected members will receive a Release Authority Election Form from the ATO upon the lodgement of your Fund’s income tax return. Upon receipt of the ATO form, you may choose and then notify the ATO of the way the excess should be taxed.
If you did not return the excess contribution to the contributing Member within 30 days of receiving the contribution, please do not withdraw the excess amount from your SMSF until you receive a Release Authority Form from the ATO.
More information can be found on the ATO’s website.
1. New Mortgage Lenders
We are excited to announce that we are now offering two more mortgage lenders for Residential Property Loans - Commonwealth Bank and Resimac Platinum. Clients of ESUPERFUND who wish to borrow to invest in Residential Property for their SMSFs now can choose an SMSF Loan Product from the following Mortgage Lenders:
Bank of Melbourne/St George
More information about the Rates and Fees of the above loan lenders can be found here.
2. SMSF Assist
SMSF Assist is an online SMSF assistance tool released by the ATO. By typing a question or selecting a topic about SMSFs, you will have access to all the related information on the ATO website.
Got a question about your SMSF today? Click here to find out the answer!
Do You Know?
Avoid the pitfalls: Property investment and SMSFs
While property is an increasingly popular investment class for SMSFs, it is not quite as simple as buy, set and forget. It is crucial investors seeking to realise investment returns from this asset class do so lawfully and effectively by first weighing up the benefits and drawbacks.
You can read our article by clicking here to find out more information about the pros and cons of property investment for SMSFs.
Thanks again for your excellent help and service. ESUPERFUND would have to be the simplest and easiest financial organisation we have ever dealt with. I have now submitted the checklist so I hope I have provided all the correct uploads. Thanks again for your excellent help and support.
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