Assets in the changed super landscape?
I am a long-standing Eureka subscriber and I attended your event at the Arts Centre last Wednesday which I thought was very interesting and obviously a pipe-opener for other initiatives to follow. I had to leave just as Q&A was starting but I did have a question for Bruce Brammall regarding the super changes to which I have not seen any reference to in all the stuff that has been written.
Can you tell me, in the event that one is obliged to transfer assets out of a pension account and back into accumulation account (due to the $1.6m ceiling) what basis of valuation applies to the transfer of those assets – i.e. is it at cost, or at market valuation as at June 30, 2017, or at some other date or even on some other basis? This seems to be a very fundamental question which needs early clarification from the government or the ATO.
Answer from Bruce Brammall: Geoffrey, thanks for the question. We had quite a few people wanting to know exactly the answer to this question also during the Q&A session.
The fact sheets associated with the Budget night announcement (and there haven’t been any other details released) stated that the rollback of excess from pension to superannuation would have to occur on July 1, 2017. I would assume that the valuation would be market rates. That hasn’t been stated specifically, but I can’t see that they would allow purchase prices. Or people would be able to get $10m of BHP (and other shares) that they bought in the 70s into their pension fund. It would almost certainly have to be market prices on that date.
How will the video questions work?
Honestly, I'm quite worried about your viewer driven questions videos. I want discussions driven by the experts and I hope they still get to drive the conversations.
Editor's note: Thanks for your email Bill. We hope that our 'Advisor Q and A' series of videos, set to launch in August, will be useful to many subscribers who come to us on a daily basis with questions about tax, superannuation, retirement and portfolio planning. Our experts will be guiding the conversations based on current events and policy changes, while questions from the audience should help give some real-life grounding to these topics.
With regard to your request for suggestions regarding the launch of your video series, featuring Q&A sessions, etc, I would very much value access to CEOs of small cap companies – invaluable when trying to ascertain whether the company is a viable investment prospect.
Editor's note: Thanks for your feedback Julie! We're currently planning a full range of video content including Q&As, weekly market reviews and interviews with fund managers and CEOs. Stay tuned for more!