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Our advisers and experts love to answer questions on anything to do with superannuation, SMSF compliance, tax, markets and investment strategy.


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Max Newnham Answered by Max Newnham 3wks ago

Questions for SMSF

I have two questions/comments regarding1. A possible strategy re franking credits My wife and I are both over 70 years of age.Our assets are just above the cut off for access to aged pension. I have been advised by the Shadow Treasurer's office that if in future I become eligible for an aged pension if funds in the SMSF were transferred to personal names the franking credit cash refund would then apply. Advise if you are in a self-managed super fund, you will not be exempt, even if you do later qualify for the pension. If you took your money out of a SMSF annd simply owned shares, then later if you qualified for the pension, you would be covered by the Pensioner Guarantee. Not all my shares are ones that pay dividends with franking attached. MY SUGGESTED STRATEGY Once age pension is approved I transfer shares with franking credits to our joint names leaving other shares in SMSF. This would protect the bulk of the cash refund of franking credits2. An interesting implication if Cash refunds for SMSF are lost For over 10 years my SMSF has had shares in Copper Strike Ltd (CSE). The only major asset of CSE is a share holding in Syrah Resources Ltd (SYR). Directors of CSE have indicated that when they will sell these shares in due course and return proceeds to shareholders indicating it would be by way of capital return plus franking credits. Proceeds of sale by CSE will create a tax liability for it and in turn franking credits. The ATO have given advice that proceeds after tax can be returned to CSE shareholders in the year after sale is completed. The bulk of proceeds returned will be franking credits and if Labor's policy is in place my SMSF will not receive any refund.Your comments appreciated

Tony Kaye Answered by Tony Kaye 3wks ago

SMSF franking credits

For what is worth I would like to submit my ideas of the ALP franking idea. I think the super funds will be taxed after they have received income above $85K. The income will consist of: dividends, capital gains and franking credits. I think the $1.6m cap will go and the excess franking credits will be refunded. I believe this will make the system simple to manage and fair to all. I look forward to your comments.

Max Newnham Answered by Max Newnham 3wks ago

Tax payable in accumulation phase

Max Newnham recently wrote that SMSF members who were receiving a pension from their fund before March 28, 2018 will continue to receive the benefit from receipt of franking credits. My wife and I draw benefits as we have done for several years. I have under the $1.6 million. However, my wife has over the $1.6 million and has elected to transfer her excess into accumulation phase as at July 1, 17. Will this affect our ability to receive the franking credits in full? Thanking you. Keith

Max Newnham Answered by Max Newnham 3wks ago

SMSFs and dividends

At the recent webcast on the 'super franking credit' Max stated that dividends should be taken up in the tax return in the year dividends were declared and not when paid. My understanding is that individuals claim dividends on receipt, whereas companies usually take-up dividends on an earnings basis (viz declared date). However I have noticed that for individuals trust distributions are taken up on an earnings not receipt basis to add to the confusion. I would appreciate clarification whether the above is correct and what basis should SMSF adopt in taking up dividends.

Mickey Mordech Answered by Mickey Mordech 1mth ago

Value Investing Fundamentals and Membership Companion

Where can I get a copy of Membership companion and Value investing fundermentals

Mickey Mordech Answered by Mickey Mordech 2mths ago

URW Question

i Have been slowly accumulating URW on your Buy advice. I have a contact(family member in Munich). He is relocating to Sydney so did not have the time to fully research for me. His initial thoughts 1. Shopping centres are a 20th century investment-the business model is dying around the world. I can"t remember the last time we went to one, we buy most things on Amazon or over the internet. 2. I like that they have airports,conference centres and office space. 3. The 2 Westfields in London are very popular. They are almost like entertainment districts than Shopping Centres. He comments 1H18 earnings of 37.5c. So possibly 75c for the year. Thus a P/E of 15 which at first glance is not overly cheap. I bought to avoid franking problems if Labor get in. Do you still have it as a strong buy, and could you give reasons. My ibformant is a 40 year old highly paid professional at a major company(cannot name). He is re-locating for life style with his wife and two little boys after 10 years away

Mickey Mordech Answered by Mickey Mordech 2mths ago

Halifax Investments entering administration

Hi I have a few questions in relation to Halifax Investments which was recently put into voluntary adminstration and all funds frozen. My question is as follows. I currenlty trade using their platform being interactive brokers. I have open positions in the derivatives market currently secured with cash and shares in the US and europe. Where are these shares and cash held, I would assume they would be held via the variouse exchanges. If the funds are frozen and the positions are still open would the administator therefore be laible for any potentila losses as the only option would be to close down positions at a loss or leave them open but where are the securities for these positions. A final question , based on the extensive media stating that this firm had ticked all the boxes with ASIC and the ASX why has it ended up in this state. Is this another ASIC failure, really why are they there if these failure are still going on? YOur thoughts and inputs would be appreciated

Mickey Mordech Answered by Mickey Mordech 2mths ago

Unlisted vs ASX listed funds

What reasons can you suggest that would make me buy an unlisted equity product as opposed to buying an ASX listed equivalent? For eg. Antipodes Global (long) vs the newly listed offering by the same fund manager.

Mickey Mordech Answered by Mickey Mordech 2mths ago

Effect of removal of franking credits on stocks

After Labor’s announcement removing franking credit cash refunds I pretty much stopped buying Australian shares. I suspect a few others are nervous too and have reduced their exposure to the ASX. In the increasingly likely event Labor win power next year, what impact do you think their policy will have on ASX share prices and dividend payments? Or am I missing a trick here.. are the leaders likely to pay out as much of their franking credits now while they can?

Tony Kaye Answered by Tony Kaye 2mths ago

Super fund asset options

I have two super funds. One has reached the transfer balance cap and has a mix of equities and cash. My other fund is relatively small and is mainly cash. Notwithstanding the opportunity to use an industry fund, what sort of assets should be held in the respective super funds?

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