Your superannuation benefits do not automatically form part of your estate. Your legal personal representative (e.g. the executor of your will) acts on your behalf as trustee of the fund and has control and responsibility for the payment of death benefits. Your death benefit nominations cannot be legally challenged.
No restrictions on personal or employer contributions if you are under age 65. If you are between 65 and 75 your must meet the work test: at least 40 hours in a 30 day period. If you are over 75 you can only have employer contributions which relate to certified agreements or industrial awards.
From 1 July 2007
Age Concessional (Tax
Deductible) Non-Concessional (Undeducted)
Under 50 $50,000 $150,000 or $450,000 over a 3 year period
Over 50 $100,000 (until 30 June 2012)
65 to 75 $150,000
These amounts will be indexed but only increased in $5,000 amounts.
Assets you own personally typically cannot be transferred to your SMSF.
There are 3 exceptions to these rules :
Business Real Property
Listed Shares
Widely-held Unit Trusts (e.g. Managed Funds)
When you establish an income stream, all the income used to fund your payments such as interest, dividends and rental income become tax free. If you leave your SMSF account in accumulation phase, all the income will be taxed at 15%. This would cost your fund thousands of dollars in unnecessary tax.
Your superannuation is made up of a taxable component and a tax free component. The tax free component is tax free whoever it is paid to. The taxable component is only tax free to 'financial dependents' such as your spouse or children under 18. If the taxable component is paid to a non-financial dependent, such as adult children, they will be taxed at 15% plus Medicare. Please come and see us about ways to reduce or eliminate tax on death benefits.
The investments available depend on 3 things: Investment Strategy, Trust Deed and Superannuation Laws. Typical investments include shares, property, and managed funds. Non-typical investments include artwork, wine and even antiques. Please seek advice from us prior to purchasing any unusual investments for your SMSF.
An SMSF cannot borrow however it can utilize certain geared investments such as installment warrants - provided the investment strategy and trust deed allows it.
Typically $200,000 or more to make the administration costs comparable with the percentage in fees you would be paying in a retail or industry fund. You effectively are paying for having full control over where your superannuation monies are invested.
Virtually all deeds drafted prior to 2007 (and some after!) do not take into account the Simpler Super reforms. We review all our clients' deed on an annual basis and arrange an upgrade when necessary.
You get what you pay for! Our deeds are drafted by the foremost expert on SMSF's in Australia. Please read our free report "The $99 trust deed exposed".
We always recommend a special purpose SMSF trustee company to be the trustee of your fund. To see why, please read our free report: "Individual or Company Trustees?"
IPS Super
IPS Super