When a Self-Managed Super Fund (SMSF) lends money to members or their related parties, the loan constitutes as an in-house asset of the fund. However, it is not necessary that the fund has contravened Section 65 of the SIS legislation. The Australian Taxation Office...
What are the implications? A Self Managed Super Fund (SMSF) may become a ‘non-complying’ fund if it fails either the “residency test”, which means the fund is not a resident of Australia or the “compliance test”, when the fund has been issued with a Notice...
Understanding and maintaining tax components of a member superannuation account is important as it will determine the quantum of tax payable when benefits are paid out. Tax-free and taxable components The tax-free and taxable components can change over time and are...
In February 2014, the Australian Taxation Office published a FAQ to clarify the minimum pension payment requirements. Below will explain these requirements at a glance. What if fund fails to meet minimum pension? Fund cannot claim exempt current pension income...
Trustees of self-managed superannuation funds (SMSFs) are required to prepare financial statements in accordance with the accounting policies as per the requirements of the SIS Act 1993 and SIS Regulations 1994. There is no requirement for a superannuation fund to...
Trustees are responsible for running their superannuation fund according to its trust deed and the superannuation laws, and act in the best interest of its members. Failure to comply would affect tax concessions that normally apply to superannuation funds and result...
