SMSF Alert: May 2015

Liam Shorte and Richard Livingston highlight the key developments affecting self-managed super fund trustees over the past month.

Key Points

  • Major parties make pre-Budget announcements
  • Limited recourse borrowing agreements
  • Taxpayer Alert on franking credits
  • Tax Office determination on life insurance policies and buy-sell agreements

With the May Budget approaching and the Tax Office focusing closely on transactions being implemented through SMSFs, it’s been a busy month. Here’s the latest news:

Pre-Budget announcements

In the lead up to Budget night (12 May) both major parties have raised superannuation as an issue.

‘sole purpose test’ and also section 65 of the SIS Act (financial assistance to members).

As a result of this decision, we expect many super members who’ve entered into these types of arrangements will have to terminate them, to avoid ongoing breaches of the SIS Act.

Action point: If you’ve entered into a buy-sell agreement or arrangements similar to the one described we recommend seeking professional advice immediately.

Other developments and reading material

Members may also be interested in the following:

  1. Tax Office webinars: Superstream for employers – The Tax Office is running a series of webinars for employers on the new Superstream data standards to help them prepare for the upcoming 1 July deadline.
     
  2. Australia: The years of living dangerously – An article by Lazard’s Australian equities team on the risks posed by Australia’s housing market and banking sector.
     
  3. The beginning of the end? Last week’s rout in global bond markets – A blog post by Morphic Asset Management on recent rises in global bond yields.
     
  4. Platinum market update: April 2015 – The latest market update from Platinum Asset Management, highlighting areas where they have concerns and where they see opportunities.

Liam and Richard are founders of Eviser.

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