Hot Issues
spacer
Tools for budgeting, cash flow, Super and more ….
spacer
Statistics show SMSFs not just for the rich
spacer
SMSFs lose thousands in property, investment scams
spacer
The good, bad, and potentially ugly for SMSFs
spacer
What politicians use to tell you how Australia is going.
spacer
Estate planning in the new environment
spacer
ATO issues alert on super, tax scams
spacer
SMSFs: Our 'hardest' jobs
spacer
ASIC issues alert over big gaps in SMSF trustee knowledge
spacer
Super savings gap for women stuck at 30%
spacer
Statistics for all Australians
spacer
Super set to play bigger retirement role
spacer
Why SMSFs want estate-planning advice
spacer
The power of financial role models
spacer
Assess your retirement financial resources
spacer
Cryptocurrency audits tipped to increase this EOFY
spacer
Time to check your risk exposure?
spacer
Some general interest stats on SMSFs
spacer
Check trust deed to protect super in estate planning
spacer
Survey reveals strong opposition to retirement system changes
spacer
Australia by numbers – Update
spacer
Federal Budget 2018 – Overview
spacer
Your Budget
spacer
4 components of our 2018 Federal Budget
spacer
Tools to help you manage your financial position are available on our site.
spacer
New rules capture SMSFs trading big with cryptocurrency
spacer
Common EOFY slip-ups flagged for SMSFs
Downsizing requires holistic tax planning

For many it's more than just issues to do with Superannuation.

       

 

Advisers and their SMSF clients need to be mindful of some of the wider tax planning implications of the federal government’s downsizing measure, according to a specialist industry lawyer.

DBA Lawyers director Daniel Butler said the measure will require advisers to consider tax planning measures outside of superannuation, including the impact of the potential loss of franking credits. 

In addition, Butler revealed he had noticed a reduction in clients opting for structures outside of super.

“Everything went into super because that was where everything was destined to go and was more efficient,” he said at the law firm’s recent SMSF Strategy Seminar in Sydney.

“But now with all these caps, we’ll be back to some of the old planning. 

“Clients again will have that family trust or they’ll have the corporate beneficiary, and there’s more tax advice to that.”

He again reminded advisers the major downside to contributing the proceeds of the downsizing measure to super would be the impact on members’ Centrelink entitlements, mainly the age pension.

Regardless of the value of the member’s family home, it remains outside of the assets test, he warned.

“Once you attain pension age, super is assets tested and has the deemed rate of return. So it [the downsizing measure] really isn’t that wise for some people because they’re going to burn their Centrelink entitlement,” he said.

“But for people who have never had the opportunity of getting Centrelink, it’s one of those opportunities you may want to think about.”

The measure presented an opportunity for clients with low superannuation balances to boost their super by selling the family home, however, the initiative may not be permanent as Butler believes Labor does not support it and will likely scrap it if it wins the next election.

 

 


By Malavika Santhebennur
​22 March 2018
www.smsmagazine.com.au

Pattinson Financial Services Pty Ltd ABN 17 121 851 376 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd
ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

Tel: +61 2 8850 6888 | Fax: +61 2 8850 6407 | Toll Free 1300 466 637 | PO Box 6253 Baulkham Hills BC NSW 2153

site By PlannerWeb