What's New?
Informative Links
Here are some links to other web sites that we have found to be interesting. Please note that we cannot control the content of these other sites, and are not responsible for their content. We do find the information valuable and interesting.
Certain borrowings by self managed superannuation funds
ATO Taxpayer Alert 2008/5
The ATO has issued a tax payer alert warning trustees to be cautious about entering into certain limited recourse borrowings to acquire assets for their SMSFs.
This Taxpayer alert is concerned with arrangements under which the trustee of a SMSF enters into certain limited-recourse borrowings, which may not meet the conditions in subsection 67(4A) and/or breach other provisions of the SIS Act, as well as related superannuation rules.
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?DocID=TPA/TA20085/NAT/ATO/00001
Installment warrants and super funds - ATO questions and answers
Trustees should always consider the quality of the investment they are making and whether the fund can meet all of the future obligations under the arrangement.
For more information, please click here:
http://www.ato.gov.au/super/content.asp?doc=/content/00132054.htm
Self Managed Superannuation Fund Determination
SMSFD 2008/2: When calculating the market value ration of in-house assets for the purposes of section 75 of SIS Act 1993 is it permissible for a self managed superannuation fund to value its assets at historical cost (purchase price)?
No, for the purposes of determining the market value ratio of a self managed superannuation funds in-house assets under section 75, trustees must value all of the SMSF's assets, including for example, shares in a related company or units in a related trust, at market value.
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?docid=SFD/SMSFD20082/NAT/ATO/00001
Draft Self Managed Superannuation Fund Ruling
SMSFR 2008/D2 SMSF: the application of subsection 66(1) of the SIS Act 1993 to contributions of assets to a SMSF by a related party of that fund.
This draft Ruling explains how subsection 66(1) of the SIS Act 1993 applies to contributions of assets to a SMSF by a related party of that fund.
Subsection 66(1) prohibits a trustee or investment manager from intentionally acquiring assets from a related party of the SMSF. However, subsection 66(2) and 66(2A) provide for exceptions to this prohibition. If an exception applies to the acquisition of an asset a trustee or investment manager can acquire the asset form a related party without contravening subsection 66(1).
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?docid=DSF/SMSFR2008D2/NAT/ATO/00001
Calculation of super guarantee is changing from 1 July
From 1 July 2008 ordinary time earnings (OTE), as defined in the Superannuation Guarantee (Administration) Act 1992 (SGAA), must be used to calculate superannuation guarantee (SG) contributions for employees.
Under the current law, employers calculate their SG contributions based on different earnings bases, depending on whether they were contributing for their employees before or after 21 August 1991.
OTE as defined in section 6(1) of SGAA is generally what an employee earns for ordinary hours of work including over-award payment, shift loading or commissions. It excludes such things as overtime.
Most employees have OTE as their earnings base, however some have other earnings bases that may be contained in:
• An industrial award
• An existing agreement they have with their employer
• A fund's trust deed, or
• A Commonwealth, state or territory law.
For more information, please click here:
http://www.ato.gov.au/superprofessionals/content.asp?doc=/content/00129243.htm
Access to super for the terminally ill
An ATO document on the most frequently asked questions about the proposed legislation relating to the taxation of superannuation lump sum payments to the terminally ill.
For more information, please click here:
http://www.ato.gov.au/superprofessionals/content.asp?doc=/content/00108369.htm
AFSA media release 7 April 2008 - Retirement living cost continue to rise
National figures released today for the Westpac ASFA Retirement Standard show that the costs for a couple living comfortably in retirement increased by 0.6 per cent in the December quarter 2007.
As a result, a couple living comfortably in retirement need to spend $48,962 annually, while those seeking a "modest" retirement lifestyle require $26,531.
For more information, please click here:
http://www.superannuation.asn.au/mr080407/default.aspx
New Social Security Rates
effective 20 March - 30 June 2008
A Guide to Australian Government Payments, please click here:
http://www.centrelink.gov.au/internet/internet.nsf/filestores/co029_0803/$file/co029_0803en.pdf
Disclaimer
The information contained in this update is for general information and does not constitute advice. The information is general only and does not take into account any particular investors needs, circumstances, financial circumstances or preferences. It is a guide only and based on legislation current as at April 2008. We believe the information contained in this update has been obtained from reliable sources but we cannot be responsible for any errors, omission or inaccuracies. Before relying on this information you will need to obtain professional advice.
Informative Links
Here are some links to other web sites that we have found to be interesting. Please note that we cannot control the content of these other sites, and are not responsible for their content. We do find the information valuable and interesting.
Certain borrowings by self managed superannuation funds
ATO Taxpayer Alert 2008/5
The ATO has issued a tax payer alert warning trustees to be cautious about entering into certain limited recourse borrowings to acquire assets for their SMSFs.
This Taxpayer alert is concerned with arrangements under which the trustee of a SMSF enters into certain limited-recourse borrowings, which may not meet the conditions in subsection 67(4A) and/or breach other provisions of the SIS Act, as well as related superannuation rules.
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?DocID=TPA/TA20085/NAT/ATO/00001
Installment warrants and super funds - ATO questions and answers
Trustees should always consider the quality of the investment they are making and whether the fund can meet all of the future obligations under the arrangement.
For more information, please click here:
http://www.ato.gov.au/super/content.asp?doc=/content/00132054.htm
Self Managed Superannuation Fund Determination
SMSFD 2008/2: When calculating the market value ration of in-house assets for the purposes of section 75 of SIS Act 1993 is it permissible for a self managed superannuation fund to value its assets at historical cost (purchase price)?
No, for the purposes of determining the market value ratio of a self managed superannuation funds in-house assets under section 75, trustees must value all of the SMSF's assets, including for example, shares in a related company or units in a related trust, at market value.
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?docid=SFD/SMSFD20082/NAT/ATO/00001
Draft Self Managed Superannuation Fund Ruling
SMSFR 2008/D2 SMSF: the application of subsection 66(1) of the SIS Act 1993 to contributions of assets to a SMSF by a related party of that fund.
This draft Ruling explains how subsection 66(1) of the SIS Act 1993 applies to contributions of assets to a SMSF by a related party of that fund.
Subsection 66(1) prohibits a trustee or investment manager from intentionally acquiring assets from a related party of the SMSF. However, subsection 66(2) and 66(2A) provide for exceptions to this prohibition. If an exception applies to the acquisition of an asset a trustee or investment manager can acquire the asset form a related party without contravening subsection 66(1).
For more information, please click here:
http://law.ato.gov.au/atolaw/view.htm?docid=DSF/SMSFR2008D2/NAT/ATO/00001
Calculation of super guarantee is changing from 1 July
From 1 July 2008 ordinary time earnings (OTE), as defined in the Superannuation Guarantee (Administration) Act 1992 (SGAA), must be used to calculate superannuation guarantee (SG) contributions for employees.
Under the current law, employers calculate their SG contributions based on different earnings bases, depending on whether they were contributing for their employees before or after 21 August 1991.
OTE as defined in section 6(1) of SGAA is generally what an employee earns for ordinary hours of work including over-award payment, shift loading or commissions. It excludes such things as overtime.
Most employees have OTE as their earnings base, however some have other earnings bases that may be contained in:
• An industrial award
• An existing agreement they have with their employer
• A fund's trust deed, or
• A Commonwealth, state or territory law.
For more information, please click here:
http://www.ato.gov.au/superprofessionals/content.asp?doc=/content/00129243.htm
Access to super for the terminally ill
An ATO document on the most frequently asked questions about the proposed legislation relating to the taxation of superannuation lump sum payments to the terminally ill.
For more information, please click here:
http://www.ato.gov.au/superprofessionals/content.asp?doc=/content/00108369.htm
AFSA media release 7 April 2008 - Retirement living cost continue to rise
National figures released today for the Westpac ASFA Retirement Standard show that the costs for a couple living comfortably in retirement increased by 0.6 per cent in the December quarter 2007.
As a result, a couple living comfortably in retirement need to spend $48,962 annually, while those seeking a "modest" retirement lifestyle require $26,531.
For more information, please click here:
http://www.superannuation.asn.au/mr080407/default.aspx
New Social Security Rates
effective 20 March - 30 June 2008
A Guide to Australian Government Payments, please click here:
http://www.centrelink.gov.au/internet/internet.nsf/filestores/co029_0803/$file/co029_0803en.pdf
Disclaimer
The information contained in this update is for general information and does not constitute advice. The information is general only and does not take into account any particular investors needs, circumstances, financial circumstances or preferences. It is a guide only and based on legislation current as at April 2008. We believe the information contained in this update has been obtained from reliable sources but we cannot be responsible for any errors, omission or inaccuracies. Before relying on this information you will need to obtain professional advice.
