RSM Australia

Self-managed superannuation

Due to the ageing population in Australia the Government has focused its retirement policies towards self-funding retirement. Significant incentives are provided in order to encourage people to save towards their retirement, with the incentives predominantly delivered through taxation concessions.

Self-managed superannuation funds (SMSFs) are an appealing option for business owners and individuals who want to control their superannuation assets.

Self-managed superannuation literally means just that – you in the drivers seat, controlling the course of your retirement benefits. There are many benefits to setting up your own SMSF, including:

  • family wealth strategies
  • greater control over investments
  • accumulate your wealth in a tax-effective environment
  • flexible access to benefits in retirement

We can help you every step of the way in setting up and maintaining your super with our full-range of SMSF services.

As you would expect, our specialist advisors provide compliance services for trustees, such as the preparation of financial statements, audit and taxation returns. We also offer comprehensive technical and financial solutions for clients seeking to maximise wealth from their self-managed funds, such as family wealth strategies for current and future generations or income streams in retirement.

Downsizer Contributions - your choice of super fund matters

You’re thinking about moving home and expect to have some remaining funds after the move. You know about the downsizer contribution rule, you’ve read a few articles and you’re ready to go. Before you go any further, here's a few questions you might not have thought about.
Downsizer Contributions

Downsizer Contributions impact on the Age Pension

By making downsizer contributions, it’s important to be aware of the impact this may have on your Centrelink entitlements such as the age pension or for self-funded retirees, the benefits under the Commonwealth Seniors Health Card (CSHC).

Understanding the new and improved downsizer contributions rules

A variety of factors come into play when determining if you should downsize the family home.

Superannuation Legislation for High Income Earners

The Government has passed superannuation legislation for high income earners (with income exceeding $263,157 per annum) which allows employees with more than one job to choose not to have the 9.5% superannuation guarantee paid by all their employers.

Superannuation & the federal election – change is on the horizon

With a federal election just weeks away and party campaigning in full swing, what changes to superannuation may be on the horizon? Coalition Win: Unscathed Superannuation

Not super to keep on meddling

No wonder people aren’t engaged with their superannuation and don’t pay attention. For young people like myself there are most likely going to be another 100 rule changes before we can access our superannuation and here comes another set of proposed changes.

Insurance matters, so hang on to those superannuation accounts

About 28 million superannuation accounts for 25 million Australians look to be way too many, and seemingly justifies a Federal Government campaign to forcibly consolidate funds.

Super members and trustees - are you ready for 30 June 2018?

With the new financial year almost upon us, are you ready for it?  Self-managed superannuation fund (SMSF) trustees have some critical reporting dates coming up. The first of these occurs on 30 June 2018 and thereafter quarterly reporting kicks in. 

Consolidating super - don't blow up your insurance!

There’s growing concern around the fees associated with managing super, with many failing to see the wood from the trees when it comes to the difference between fund management fees and insurance premiums.

Young Australians beware of the impact of super without insurance

Most Australians breathed a sigh of relief in the 2018 Budget that few changes were made to super. The government did however place some focus on limiting the amount of superannuation being eroded by fees.

The Power of Farmland in Superannuation

Acquiring, farmland inside a Self Managed Superannuation Fund (SMSF) that can then be leased to a related party is popular strategies for farmers to help build their wealth for retirement. Make this a stress free transaction by considering the following issues: Arms-length transaction requirements

Fundamentals of Financial Success | Pillar 4 – Engage with your Super

As discussed in part one to three of the series The Six Fundamentals of a Strong Financial Plan, it's important to remember that there are always going to be events that are happening locally or internationally that will impact financial markets.

Farm Succession - How to Generate Income When Retiring From Your Farm

One question I am often asked by my farming clients when considering farm succession is...

Downsizer contributions

The 2017 federal budget was a quiet one for superannuation with no substantial reforms or tinkering with the system. One reform announced was the ability for amounts to be contributed to superannuation over and above the current limits where individuals are downsizing their primary residence. 

Superannuation contribution opportunities and traps

The first issue to be aware of is the reduction in super contribution limits that start from 1 July 2017.

Choosing capital gains tax relief

A key component of the Fairer Super reforms is the ability for superannuation funds impacted by the reforms to revalue their assets to their current market value for taxation purposes.

Transfer balance cap reporting

The introduction of the $1.6m cap on pension accounts will result in additional reporting requirements to the ATO by SMSF trustees.  All SMSF’s that are paying retirement pensions to their members will be required to report these to the ATO, even if the total balance of the members pension is less than $1.6m.

Superannuation - there can be traps for the unwary

In the lead up to 30 June no doubt cash flows and taxation projections were a focus for many SME owners.  One of your plans could have been to contribute a sum of cash into superannuation and claim a tax deduction. 

Self Employed - Boost Your GESB Super with PAYG from the WA State Government

If you are a former employee of the WA State Government and now earn your living through your own business, you’ve probably been enjoying some of the pay-offs of the contributions rules afforded to you as a result of being a member of the GESB West State Super Fund.

Impending Superannuation Changes

On the eve of the new financial year let’s take a look back on some of the key Superannuation Changes that will begin to affect people from 1st of July 2017. In some cases, you’ll need to take action well before then.

How much money do I need to start a self-managed super fund (SMSF)?

  The decision to take control of your superannuation is not a simple one, with many factors to take into account, such as the minimum balance required.

Last chance for self-employed to maximise super contributions to GESB

If you’re a doctor, engineer or teacher who has previously worked for the West Australian State Government, you may be aware of the changes to superannuation that will significantly impact one of the best retirement strategies available to you since John Howard’s $1m boom.

Concerned about super changes and wonder if you can still retire early?

With all the changes to superannuation and Centrelink that have taken place it’s understandable that Australians are concerned about being able to access their retirement nest egg when they want to. Recently I read the following question in a financial publication that really intrigued me:

Superannuation Changes - Your questions and our answers | Part 2

Following on from Part one of Superannuation Changes -  Your questions and our answers, below we explore some other key questions regarding Capital Gains Tax Relief, Estate Planning and Contribution Issues.  

Superannuation Changes - Your questions and our answers | Part 1

Below we explore some of the most common questions our team has been asked about the upcoming changes. Part one hones in on concerns around the Transfer Balance Caps.Part Two examines other key areas.

How the upcoming superannuation changes will impact you

Superannuation changes, which take effect on 1 July could have a massive impact on workers, particularly the wealthy, and many may end up paying more tax. The news is not all bad for Australians, and there are some opportunities to make smart financial decisions now that will put you in the driver's seat for your retirement.

Managed Funds vs. Direct Shares | Part 2

“I have a DIY (Do it yourself) fund, why should I use ‘managed’ funds?”

New superannuation legislation – where do you stand?

Government releases more superannuation legislation

Managed Funds vs. Direct Shares | Part 1

I have a DIY (Do it yourself) fund, why should I use ‘managed’ funds?

Choosing a Corporate or Individual Trustee

When establishing an SMSF the members have a critical decision to make. Do they set it up as individual trustees or as a company appointed as a corporate trustee, with the members being directors of the company? We explore what to remember when making this decision.

SMEs eye the ABCs of SMSFs in retirement

Much of the whopping 25 percent jump in the uptake of bank debt recorded within our thinkBIG survey 2016, may be attributed to an increasing number of SME’s buying their own premises.

Case study: Oz Trees

Mark Prascevic, owner of Oz Trees in Colac, Victoria, has experienced the highs and lows of owning and operating a native plant business.

Are you SuperStream compliant?

The SuperStream standard is part of the government’s Super Reform package.  It will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation.

Budget 2016 for Superannuation

The Government took a hard, and potentially unpopular line on superannuation tax concessions in the 2016/17 Budget, with changes including:

Superstream

The government has introduced legislation surrounding the method of payment for superannuation contributions. This legislation is called “SuperStream” and applies to employers, employees and superannuation funds (i.e. self-managed superannuation funds). Self-Managed Superannuation Funds 

End of financial year - four months to go

The season has changed to autumn and it is four short months to the end of the financial year. The press is constantly talking about tax reform, what is in, what is out, what is being considered.

Tax-free super under age 60?

There has been some media coverage recently about a tax savings strategy for those aged 56 to 59. We’re taking a cautious approach.

Superannuation – a due date that cannot be negotiated

To the surprise of many employers, missed, or late, superannuation payments can have significant financial and administrative consequences for the business.

Managing change at board and executive level

RSM recently held a lunch featuring a panel including Paula Dwyer, Professor Judith Sloan and Fiona McGauchie with Catherine Walter as MC to discuss how to manage change at board and executive level. This is a synopsis of the event.

Investment vehicles minimise taxes

Your choice of investment structure can save you a lot on taxes. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding property individually or in joint names.

Tax and your investment property

When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names.

Tax and your investment property

When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names.

Superannuation rules flux drive SME owners to SMSFs

Superannuation continues to be an area of political discussion and potential change. While investment returns are generally good, the system’s unpredictability undermines people’s confidence.

2015 year-end superannuation action

Contribution planning For concessional contributions such as employer, salary sacrificed or personal deducted contributions, the cap has been indexed and therefore increases in the 2015 year. For individuals under 50 years of age, the concessional contribution cap is $30,000 whilst those over 50 are able to contribute up to $35,000.

Preservation age and building retirement savings

Commonly people see their retirement as the time to access their superannuation balances. However, when you can access your super benefits actually depends on your preservation age, which currently stands at age 55. This will be changing with regulations pushing the preservation age up to 60 for people born after 1st of July 1964.

Take care with aged care

The older generation has worked hard and are often frugal by nature. Not surprisingly they have exhibited a strong tendency to save for later life. Travel and comfortable living are often the main goals and after this the costs of retirement tend to diminish.

Aged care, how much could it cost?

These days when people move into an aged care home they must pay a basic daily fee of $47.49. They may also be required to pay a means tested daily care fee based on assets and income, an accommodation payment and fees for extra optional services.

2015-16 budget for superannuation

Contrary to the announcements made by the Labor Party in April, the government confirmed in the Federal Budget that no tax changes will be made to superannuation this year.

What aged care means

We know there is high probability of entering aged care in later life. Quite likely, due to ill health at that time we will be unable to cope with all the decisions and forms required at that time. Making sure we have nominated somebody as our trusted financial power of attorney, long before that event, will make the process so much easier.

Answer could be multiple SMSFs

I am often asked the question, can or should my adult children be members of my self-managed superannuation fund (SMSF)? In practice there is no hard and fast rule when it comes to including children.

Tax reform 2015 – a background

The Abbott Federal Liberal-National Party Coalition Government was elected in September 2013 on a platform of 'economic repair' which included promises to conduct two related white paper processes leading into the next federal election: a white paper on tax reform, and a white paper on the reform of Australia’s Federation.

Clarify death taxes

We know that if superannuation passes to our spouse or children under 18 on our death, there is no tax to pay. On the other hand, some or all of our superannuation benefits will be taxed at either 15% or 17% when it passes to an independent adult child.

Super is so much more

Yes, we have had our self-managed superannuation fund for a number of years. Our accountant looks after the tax each year, we sign a few papers, pay a few invoices and generally everything is pretty straight forward.

Tips and traps with super

You have worked hard and accumulated a decent amount in your self-managed superannuation fund. Besides holding a cash component to pay the bills and your minimum annual pension, you have also built up other assets for your retirement.

Reduce tax on your super

Investing your hard earned monies into superannuation can have one serious sting in the tail. Put simply, your non-dependent children will pay 17% on the taxable portion of your superannuation benefits when you die. The aim with any tax impost is to reduce it as much as possible, whilst complying with the laws of the day.

How to combat super death tax

Many years ago we had death taxes, otherwise known as probate duty. This tax was imposed by both State and Federal governments with gift duties thrown in just to make sure you did not die with no assets and avoid paying probate duty. Because farmers are asset rich and income poor, death duties were seen to be very unfair.

This article has been prepared by RSM Financial Services Australia Pty Ltd ABN 22 009 176 354, AFS Licence No. 238282.

As everyone's circumstances are different and this article doesn't take into account your personal situation, it is important that you consider the above in light of your financial situation, needs and objectives, and seek financial advice before implementing a strategy.
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