What does diversification in investment means? It refers to the process of allocating savings to help reduce the exposure to one particular asset, asset class or risk. Diversification can help to reduce the risk or volatility associated with the investment portfolio. To simplify it, diversification helps...
Imputation credits or Franking Credits are a type of tax credit that allows Australian Companies to pass on tax paid at the company level to shareholders. Franking credits can be used to reduce income tax paid on dividends or potentially be received as a tax...
A trustee can be anyone who is over 18 years old provided they are not under a legal disability or are a disqualified person. How can an individual or a company becomes a disqualified person? Here are the following conditions that applies to become a disqualified person. Individual convicted...
Excess transfer balance occurs when the amount you transfer into retirement phase exceeds your transfer balance cap. This is the sum of the amount that exceeds your transfer balance cap and the earnings on the excess amount. The ATO has started issuing excess transfer balance (ETB)...
In just a year after announcing that they will tighten the loan requirements, Westpac announced that effective 31 July 2018, it would no longer offer property loan to SMSFs for both residential and commercial properties. Also, Westpac’s subsidiary, St. George announced that it will withdraw its SMSF loan...
One of the common reasons for starting an SMSF is having an access to a broader range of investments. You can invest in shares, cash & term deposits, property and cryptocurrencies through self-managed super fund. You can also hold alternative assets, such as antiques and artwork. Shares Through...
The SMSF generally pays a death benefit to a dependant or other beneficiary of the deceased when a self-managed super fund (SMSF) member dies and should be done as soon as possible after the member's death. The death benefit can be paid as a lump sum...
The Australian Taxation Office (ATO) is the regulator of Self-Managed Super Funds (SMSFs). Its primary focus is to encourage SMSF trustees to comply with super laws. ATO has different range of treatments available to deal with non-complying SMSFS on the super laws. It is indeed...
A non-resident fund is a non-complying fund. The residency of the fund should be maintained otherwise, the highest marginal tax rate of 47 per cent will be imposed to its taxable income this year and the next two income years. Taxable income in the year following...
Lending money to members of the fund and their relatives is strictly prohibited in the Superannuation laws. Providing financial assistance to members and their relatives is not allowed and Trustees must understand this. The reason is that close nature of the parties involved can mean the...