Join me for the SMSF Quarterly Wrap webinar

Join me for the next SMSF Quarterly Wrap webinar, where in this one hour session I will be discussing at the latest technical and regulatory issues impacting self managed super funds.

The last quarter has been another busy one for SMSFs with changes announced from the Mid-Year Economic & Fiscal Outlook (MYEFO), in particular around the continuation of tax exemption after the death of a member.  In addition, there have been a range of ATO interpretative decisions, recent cases impacting SMSFs and details of the technical issues of the September 2012 ATO National Tax Liaison Group (NTLG) Super technical sub-group meeting “hot off the press”.

SPAA CPD points are available for members, with 1-2 CPD points typically available for these webinars.

Find out more and register here


WEBINAR: SMSF Quarterly Wrap

Keep up-to-date with the latest technical and regulatory issues impacting self-managed super funds with the “SMSF Quarterly Wrap”.

The last three months has seen a range of important information or changes impacting SMSFs including:

  • The ATO releasing their compliance program and key target areas for SMSFs;
  • new requirements for SMSF trustees from 1 July 2012 with the Stronger Super reforms, including some important delays;
  • the latest ATO interpretative decisions impacting reserves, fund tax deductions and much more…
  • recent case-law, including non-arms’ length income and an excess contribution win for the taxpayer over the ATO! and
  • ATO NTLG technical issues, including 0% interest rates with SMSF limited recourse borrowing arrangements

Find out more about this session and how you can register.

PS.  Don’t forgot about joining me for the Top10 SMSF strategies FREE webinar this Thursday!!

Launching the Top10 SMSF strategies for 2012-13

I’m pleased to announce the launch of my Top10 SMSF strategies for 2012-13 webinar to be held at 11am AEST, Thursday, 23 August 2012.  With more than 410 attendees to last year’s session, this is the most anticipated SMSF webinar for 2012!!

In addition to the webinar, all attendees will receive a free copy of the Top10 SMSF strategies eBook, which will be available in flip-book for the first time, allowing for users to read on PC, iPad, iPhone and android devices.  Last year’s eBook had more than 1,000 downloads, with this year’s book providing more than 70 pages of content on each strategy, their the key issues and considerations when implementing.

This year’s Top 10 includes a diverse range of strategies across the entire life-cycle of SMSFs – from contributions, to investing including using borrowings, running pensions, reserves and estate planning.  This year sees a growing emphasis to pension strategies as more baby-boomers move into draw-down phase in their SMSFs.  There are however some fantastic strategy opportunities right across the superannuation spectrum for both accumulators and retirees.

Find out more and register

Numbers are strictly limited. 

I look forward to you joining me for this session.


Proudly supported by the following sponsors:


ATO releases interpretative decision on allocation of June contributions

The ATO has released ATO ID 2012/16 which addresses the timing issue of when a concessional contribution is made on behalf of a member in one financial year but is allocated in the following financial year for the purposes of the contribution caps.

Until the release of this ATOID, the industry has been relying on minutes from the ATO NTLG Superannuation Technical Sub-Group dating back to June 2009 regarding the Commissioner’s interpretation of calculating a member’s concessional contributions under section 292-25 of the Income Tax Assessment Act 1997 (ITAA 1997).  This strategy to effectively ‘park’ concessional and/or non-concessional contributions made in June has become popular to:

  • manage potential excess contributions problems; or
  • use as a strategy to transfer assets into a fund where the value may be greater than the cap but can be amortised over two financial years (e.g. business real property transfer)

ATO ID 2012/16 confirms that an amount made in June is not counted as a concessional contribution in the financial year it is made, but the year it is allocated.  Importantly the deduction for the taxpayer is available in the year the contribution is made.  In addition, the concessional contribution is subject to contributions tax in the year the payment is made.  The allocation of the contribution for member reporting purposes is reported in the following financial year.

Can a member ‘double dip’ on the concesssional contribution limit?

Yes they can.  The taxpayer (assume under 50) could have $25,000 concessional contributions made during the year, then make an additional $25,000 in June, enabling a $50k tax deduction.  $25k is allocated to the member in the current financial year, with the $25k in June taxed within the fund, but the allocation not occurring until the following financial year (before 28 July).  For those over 50, the timing of notices can be very important in particular if members are commencing a pension.  Furthermore, you need to be conscious amounts to be held over for the 2012/13 year with the transitional period of the contribution caps ceasing.   You may also need to determine whether the member’s account balance is under $500,000 to see whether an income to be allocation in the following year can be $25k or $50k.

Does it need to be a Contribution’s reserve?

No, interestingly in both the ATOID and NTLG minutes the ATO make reference to the amount being temporarily held within a ‘holding account’ or suspense account.  There is no requirement for a reserve to be created to hold the contribution.  It would be fair to say that the ATO aren’t too fond of the word “reserve’ and their use within the SMSF environment.  You may see many deeds referencing the use of a reserve to hold the contribution.  Therefore, whilst not preferred by the ATO, you still need to remember that the fund must comply with the requirements of its governing rules (trust deed).

With the ‘once-off’ refund of Excess contribution for concessional contributions available for the current financial year, we now have a couple of mechanisms to assist in dealing with potential excess contribution problems.  There are also opportunities to use this strategy to reduce the impact of large capital gains from the disposal of assets through having two bites of a contribution limit in the one financial year.

As they say…. it is all in the timing!!

View ATO ID 2012/16 here

(C) The SMSF Academy 2012
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