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There’s only a few months to go before 30 June and now is the ideal time for those managing Self-managed Super Funds (SMSF) to review their financial position and start planning for the new year. We suggest you consider your year-end planning strategies now. Call Wakefield Partners to make an appointment to review your fund. 1. Be aware of what your super fund can claim as a deduction. This may include ongoing portfolio management, accounting and administration fees. Insurance premiums purchased through your SMSF. This highlights one of the benefits of having your Personal Insurance purchased through your SMSF. This is in contrast to purchasing insurance directly where the you are the policy owner. Personal Insurance premiums other than Income Protection Insurance are not generally deductible to the individual. We can advise you on the appropriate cover for yourself and the other members of your SMSF. 2. Review Your Investment Strategy Is your SMSF in line with its investment strategy? Do you have a written strategy? With the recovery seen in investment markets over the last 12 months you may need to review your asset allocation. We can provide a strategy that will make your auditor smile! 3. Are you drawing a pension from your SMSF? We suggest you start thinking about your income levels for 2010/11 now. Does your SMSF you have sufficient liquidity to cover pension liabilities? Keep in mind the government has not announced any continuation of the “Minimum Pension Relief for Self-Funded Retirees”, and as it stands now it will return to the “normal” minimum levels from 1 July 2010. For example for a person aged between 55 and 64, the Minimum Pension Drawdown will return to 4% per annum up from the current 2%. 4. Reporting Existing SMSFs are required to have their tax returns lodged with the ATO by a registered tax agent by mid-May. Is your SMSF on target to meet this deadline? *An existing fund is a fund commenced prior to 1 July 2009 and has lodged previous returns. Do you have any concerns or questions regarding your SMSF? Then call in to have a talk with us. Normal 0 false false false EN-AU X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;}
Last week I was chatting to a client who is a recent convert to self managed super. Mid way through our conversation he laughed and said to me; "You know, every time I see those Industry Super ads on the TV I feel sorry for the poor members. I don't have to waste my money advertising my fund!" It was a different slant, but unfortunately very true. Recent APRA statistics illustrate the astounding growth in SMSFs to the point where they now account for over 31% of total assets in superannuation. This has largely been achieved by "average" people electing to set up self managed super funds, rather than as a result of advertising campaigns or compulsion. There is serious money in SMSFs. Total assets are more than $386 billion with an average fund balance of $919,000. With around 1,630 being set up each month the growth is set to continue. For those who do not have a SMSF, the key takeaway is that now they are very mainstream, "common garden" in fact. A wide range of people have come to appreciate the benefits of self managed super, namely control and transparency. Also, when things become popular, competition invariably forces costs down and that is what we have seen with SMSFs. If you are looking for more information on SMSFs go to Self Managed Super. Better still, talk to us. We have many clients who enjoy the benefits of self managed super and our advisers can provide the right advice to get you started.
Was it too generous? Too good to be true? The previous $1,500 handout was a big incentive for people to make contributions to super. For the 2009/10 tax year the government payment will reduce to a maximum of $1,000. Eligibility is based on assessable income (plus reportable fringe benefits). Income threshold for full $1,000 govt co-contribution $31,920 p.a. Maximum income threshold (when payment cuts out) $61,920 p.a. (Payments reduce by 3.33 cents for each additional dollar over $31,920) Remember that since the 1st July 2007, self employed persons who earn 10% or more of their total income from carrying on a business may be eligible for co-contribution.