SMSF Alert: February 2015

Liam Shorte and Richard Livingston highlight the past month’s key SMSF developments.

Key developments

  • Tax Office decisions on paying super death benefits by book entry

There’s been plenty of political intrigue, but SMSF developments have been thin on the ground over the past month. Fortunately for SMSF trustees, we suspect the uncertainty around the Coalition leadership has made it less likely our concerns about limited recourse borrowing (see in-specie distribution and contribution of the assets. This minimises the cost of buy/sell spreads, brokerage or early break penalties, although you’ll probably have to pay an off-market transfer fee (around $50) or other transaction costs (check first). Note that for small holdings the transfer fee might be more than the brokerage and any spread you might suffer.

Remember, if you’re unsure, seek personal advice before acting.

Other recent developments

You may also be interested in the following:

  1. SMSF statistical overview: 2012/13 – In January the Tax Office released the fifth edition of their annual statistical overview of the SMSF sector.
     
  2. ASFA retirement standard for older Australians – The Association of Super Funds of Australia (ASFA), which publishes the ASFA Retirement Standard benchmark, has recently released a new standard which provides insights into the spending patterns of retirees aged over 90.
     
  3. Australian life tables 2010–12 – The Australian Government Actuaryrecently released updated life expectancy tables for the three years centred on the 2011 census.
     
  4. Tax Office case study on improvements to LRBA assets – The Tax Office recently added a new case study to its website looking at some of the issues arising when a commercial property, subject to a limited recourse borrowing arrangement (LRBA), is improved.

Liam and Richard are founders of Eviser.

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