3 key legislative changes for SMSF trustees

Christine St Anne  |  07/02/2014Text size  Decrease  Increase  |  

Christine St Anne: The SMSF Professionals' Association of Australia or SPAA will be holding its annual conference in February. Today, I'm joined by Graeme Colley to talk to us about some of the key issues on the association's agenda.

Graeme Colley: The rules which affect the Centrelink benefit rules and what that will mean going forward is that there will be a deemed demand just like ordinary savings or other investments that will be included in a person's income for assets and income tax purposes. So it's a big change from what it is at the moment.

So, from 1 July 2015 what we will see is that we won't be able to use the deductible amount as we can at the moment for new pensions from that time. So, I think the best lesson is to get into those types of pensions if you got a client in those circumstances prior to 1 July 2015 because there is certainly greater benefits coming out of that.

Well, I think in order to think about dividend washing and share of asset washing because in that ruling, the draft ruling that was recently brought out that's 2014/D1, it relates to a self-managed superannuation fund with purchased and sold shares within the one sort of very close transaction. And it's whether Part IVA will apply to that. And that's tax avoidance rules and so they're relatively complex and they have got an example in that draft ruling as to how that works.

I think they're much better. They're much equitable in the way in which they'll work, far better than the SIS legislation at the moment. I think we'll see the ATO less reluctant to impose penalty. So we'll see more penalties being around, therefore, trustees – it really muck things up. And I think we applaud those from SPAA's point of view. We think they're fairer and the way in which they'll be applied I am sure will be appropriate, in these circumstances, rather than the difficulties that the ATO has got at the moment.

Well, we've just about finished our draft of that and that should be to the government very soon. Now, my concerns are the e-commerce standards.

We want to see some things coming there about the roll-over benefits between superannuation funds and the proof of identity. We want to see the 10 per cent rule changed in some ways with concessional contributions, mainly because we think that's too complex and there's a bit of red tape around that. They're the main issues that we've got. There is also some administrative matters that we've got in a pre-budget submission that we'd like to see the government bring through.

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