The 30th June 2011 is only a few days away. Here are some things you might want to consider ASAP:-
1. Contribute to Super - you may be entitled to a tax deduction of up to $25,000 if under 50 years old or up to $50,000 if over 50.
2. Government Super Co-Contribution - you may be entitled to a government co-contribution of up to $1,000 if you contribute to super before 30 June.
3. Private Hospital Cover - you may want to take out Private Hospital Cover to avoid the Medicare Levy Surcharge. This surcharge kicks in at $77,000 for singles and $154,000 for couples and is calculated at 1% of taxable income.
4. Need to reduce your taxable income? Prepay expenses such as Income Protection Insurance premium (not paid through super), Interest on Investment Loans, Rent, Memberships and Subscriptions.
5. Change in business trading? Has your business changed dramatically in the last 12 months? You may want to see your accountant prior to 30 June to review your current business structure and tax effectiveness.
6. Sold An Asset or a Business? Capital Gains Tax may apply but there are options to reduce or defer capital gains tax (CGT) - see your accountant before 30 June to make sure that any potential CGT liability is as low as possible
Showing posts with label Self Managed Super. Show all posts
Showing posts with label Self Managed Super. Show all posts
Thursday, June 23, 2011
Wednesday, April 20, 2011
SMSF left out in Trio Compensation
Last week it was announced that up to $55million in financial assistance would be provided to some 5300 victims of the Trio Capital (Astarra) fraud case. Victims who invested in one of four managed super funds through Trio will receive 100% of their super contributions, less any fees & taxes paid, plus a nominal rate of return.
Great News.
But not for all.
This compensation is limited to those who invested directly into Astarra Superannuation Plan, Astarra Personal Pension Plan, MyRetirement plan and Employers' Federation Plan. It doesn't include those who invested in Astarra/Trio products via a Self Managed Super Fund (SMSF).
For those who have lost out in SMSF it is implied that the trustee properly review and understand the products in which it invests, ie that they make informed decisions.
In reality most people who setup a SMSF have an advisor or 2 - one for taxation and one for financial planning. The trustee seeks advice in much the same way as someone who has a retail super fund. And yet for compensation purposes they are treated differently.
Say in the case of a South Australian based dealer that directed hundreds of clients to invest in Astarra, the recommendations clients received were the same...Astarra, Astarra and Astarra. If a dealer who holds a financial services licence can't pick a fraudster how can a trustee? And what does a trustee have available to them (that a dealer absolutely does) to undertake such examinations and research of fund manager credentials?
The key here is a trustee should consider diversification as top of their agenda.
But did the trustees of SMSF invested in Trio believe they were diversified?
In the case of a particular SA dealer, they purported that the Astarra product was diversified as it contained up to 14 fund managers. The problem was, not all the funds were being managed by these 14 reputable fund managers. In particular, the Astarra Strategic Fund was being defrauded. And what's worse, all of the funds within the Astarra platform had an exposure to the strategic fund, thus they have all suffered to a greater or lesser extent.
ASIC is continuing their investigations of dealer groups who recommended Astarra - let's hope that the trustees of SMSF who have lost all or part of their retirement money on advice to invest in Astarra get compensated this way. Is it not negligent that the dealer didn't perform adequate due diligence? And have they been fraudulent in enticing you to take advice (for which you've paid them) and not disclose their personal financial arrangements (undisclosed loans).
I'm looking forward to the disgraced fund manager Shawn Richard (AKA coffee boy) time in court again next month for sentencing....16 months on from when ASIC first put a freeze on Trio, there is still not trace of the missing $115 million.
Great News.
But not for all.
This compensation is limited to those who invested directly into Astarra Superannuation Plan, Astarra Personal Pension Plan, MyRetirement plan and Employers' Federation Plan. It doesn't include those who invested in Astarra/Trio products via a Self Managed Super Fund (SMSF).
For those who have lost out in SMSF it is implied that the trustee properly review and understand the products in which it invests, ie that they make informed decisions.
In reality most people who setup a SMSF have an advisor or 2 - one for taxation and one for financial planning. The trustee seeks advice in much the same way as someone who has a retail super fund. And yet for compensation purposes they are treated differently.
Say in the case of a South Australian based dealer that directed hundreds of clients to invest in Astarra, the recommendations clients received were the same...Astarra, Astarra and Astarra. If a dealer who holds a financial services licence can't pick a fraudster how can a trustee? And what does a trustee have available to them (that a dealer absolutely does) to undertake such examinations and research of fund manager credentials?
The key here is a trustee should consider diversification as top of their agenda.
But did the trustees of SMSF invested in Trio believe they were diversified?
In the case of a particular SA dealer, they purported that the Astarra product was diversified as it contained up to 14 fund managers. The problem was, not all the funds were being managed by these 14 reputable fund managers. In particular, the Astarra Strategic Fund was being defrauded. And what's worse, all of the funds within the Astarra platform had an exposure to the strategic fund, thus they have all suffered to a greater or lesser extent.
ASIC is continuing their investigations of dealer groups who recommended Astarra - let's hope that the trustees of SMSF who have lost all or part of their retirement money on advice to invest in Astarra get compensated this way. Is it not negligent that the dealer didn't perform adequate due diligence? And have they been fraudulent in enticing you to take advice (for which you've paid them) and not disclose their personal financial arrangements (undisclosed loans).
I'm looking forward to the disgraced fund manager Shawn Richard (AKA coffee boy) time in court again next month for sentencing....16 months on from when ASIC first put a freeze on Trio, there is still not trace of the missing $115 million.
Monday, January 17, 2011
Self Managed Super - no compensation safety net
The well documented case of Trio Capital (Astarra Funds Management) in Sydney papers brings home another interesting issue - as highlighted in an excellent article today by Stuart Washington in the Sydney Morning Herald.
Self Managed Super Funds (SMSF) - a desirable avenue for retirement funds for Aussies (cost effective and giving more flexibility) and a rapidly increasing sector representing at least 1/3 of Australian superannuation monies - are not currently included in the government's compensation scheme.
The government compensation scheme allows for compensation to be paid to investors in a registered super fund in the case if fraud. SMSF are not registered super funds and thus are excluded.
What this means then is that for those investors who have a SMSF, under the current rules, they will not receive anything if the fund manager steals their money (as is the case in Trio). How is this fair?
Retail or wholesale super funds and SMSF function is the same - to provide retirement funds to individuals. Let's hope the government reviews this regulation and makes changes to include those affected by the Trio debacle.
Read Stuart's article here
Self Managed Super Funds (SMSF) - a desirable avenue for retirement funds for Aussies (cost effective and giving more flexibility) and a rapidly increasing sector representing at least 1/3 of Australian superannuation monies - are not currently included in the government's compensation scheme.
The government compensation scheme allows for compensation to be paid to investors in a registered super fund in the case if fraud. SMSF are not registered super funds and thus are excluded.
What this means then is that for those investors who have a SMSF, under the current rules, they will not receive anything if the fund manager steals their money (as is the case in Trio). How is this fair?
Retail or wholesale super funds and SMSF function is the same - to provide retirement funds to individuals. Let's hope the government reviews this regulation and makes changes to include those affected by the Trio debacle.
Read Stuart's article here
Monday, November 8, 2010
This Week's Term Deposit Rates
%pa (paid at maturity)
5.50 - 90 Days
6.10 - 180 Days
6.05 - 1 Year
6.50 - 3 Years*
7.00 - 5 Years*
* interest paid annually
5.50 - 90 Days
6.10 - 180 Days
6.05 - 1 Year
6.50 - 3 Years*
7.00 - 5 Years*
* interest paid annually
Friday, November 5, 2010
Monday, November 1, 2010
Term Deposit Rates
Term Deposit Rates avaiable through Willoughbys, week commencing 1st November
%pa (paid at maturity)
5.50 - 90 Days
6.10 - 180 Days
6.05 - 1 Year
6.50 - 3 Years
7.00 - 5 Years
%pa (paid at maturity)
5.50 - 90 Days
6.10 - 180 Days
6.05 - 1 Year
6.50 - 3 Years
7.00 - 5 Years
Thursday, October 14, 2010
Superannuation & Relationship Breakdowns
Did you know that important changes to the Family Law Act 1975 commenced in March 2009 to allow splitting of superannuation for de facto couples. Previously, only married couples were able to split superannuation, meaning that in the case of de facto couples, if one partner had more super than the other, they had to keep their super and perhaps give the other partner more of other assets.
De facto couples, including same sex couples, can now split superannuation by transferring part of one partner's superannuation entitlements into the other partner's superannuation fund. This change now provides for more flexibility in property settlements.
De facto couples, including same sex couples, can now split superannuation by transferring part of one partner's superannuation entitlements into the other partner's superannuation fund. This change now provides for more flexibility in property settlements.
Friday, September 24, 2010
Why Self Managed Super
With the recent global financial crisis and superannuation taking a battering, more people are turning to Self Managed Super Fund (SMSF).
A SMSF is simply a superannuation fund that is controlled and operated by the members of the fund, who are also required to be trustees.
This 'control' ultimately allows the member to decide how and where their money is invested. This is particularly desirable at present where more people are turning to property rather than shares and managed funds. Choosing where to invest your money coupled with the ability to borrow under certain structures provides a very attractive alternative to the retail super funds.
SMSFs also give members control over their death benefits.
And of course there are also the tax benefits of having a SMSF. Not only can a SMSF structure be useful in the minimisation of individual tax, it allows trustees to develop and implement investment strategies aimed at minimising the after-tax return of the fund. And once in pension phase there are further tax advantages.
A SMSF isn't however, for everyone. There is a minimum amount of funds required to be rolled into the SMSF for it to be cost effective. There are also ongoing trustee obligations.
If you would like more information regarding Self Managed Super Funds please email me at sarah.willoughby@willoughbys.com.au
Please note the above is not advice. If you are considering setting up a Self Managed Super Fund you should seek advice from an accountant and financial planner.
A SMSF is simply a superannuation fund that is controlled and operated by the members of the fund, who are also required to be trustees.
This 'control' ultimately allows the member to decide how and where their money is invested. This is particularly desirable at present where more people are turning to property rather than shares and managed funds. Choosing where to invest your money coupled with the ability to borrow under certain structures provides a very attractive alternative to the retail super funds.
SMSFs also give members control over their death benefits.
And of course there are also the tax benefits of having a SMSF. Not only can a SMSF structure be useful in the minimisation of individual tax, it allows trustees to develop and implement investment strategies aimed at minimising the after-tax return of the fund. And once in pension phase there are further tax advantages.
A SMSF isn't however, for everyone. There is a minimum amount of funds required to be rolled into the SMSF for it to be cost effective. There are also ongoing trustee obligations.
If you would like more information regarding Self Managed Super Funds please email me at sarah.willoughby@willoughbys.com.au
Please note the above is not advice. If you are considering setting up a Self Managed Super Fund you should seek advice from an accountant and financial planner.
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