QUARTER II 2025 | ISSUE 050 | THE PREMIER SELF-MANAGED SUPER MAGAZINE
the merchant case a watershed moment
FEATURE
STRATEGY
COMPLIANCE
STRATEGY
The Merchant case The broad implications
TSB management Increased significance
Pension payment standards The new rules
Trustee structures A critical choice
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COLUMNS Investing | 20 The merits of greater fixed-income exposure.
Investing | 24 Different approaches to accessing ESG themes.
Strategy | 28 The increasing importance of total super balance management.
Compliance | 32
the merchant case a watershed moment
Failing to make minimum pension payments.
Strategy | 36 Trustee structure choice.
Compliance | 40 Illegal early access versus loans to members.
Compliance | 44 Maintaining professional discipline.
Compliance | 48 A UK pension transfer development.
Strategy | 52 How to include cryptocurrency in an SMSF.
Compliance | 56 The machinations of changing fund trustees.
Compliance | 60 Residential property investment parameters.
WIPEOUT THE MERCHANT CASE A WATERSHED MOMENT Cover story | 12
FEATURE Financial abuse | 16
REGULARS What’s on | 3 News | 4 News in brief | 5 SMSFA | 6 CPA | 7 IFPA | 8 CAANZ | 9 IPA | 10 Regulation round-up | 11 Super events | 64
The misuse of SMSFs.
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FROM THE EDITOR DARIN TYSON-CHAN INAUGURAL SMSF ASSOCIATION TRADE MEDIA JOURNALIST OF THE YEAR
Who knows what to believe Just when we thought the proposed Division 296 tax was just about dead and buried, it’s back larger than life after the federal election result that materialised on 3 May. And what probably caught everybody by surprise was the result in the upper house, which now means the returned Labor government only needs the support of the Greens to get the bill to bring the new tax in passed. And this is concerning considering the Greens are continuing to push for the threshold of the impost to be lowered to $2 million, albeit they are in favour of including an indexation lever should this demand be met. So basically your guess is as good as mine as to how this will all play out. Treasurer Jim Chalmers has been resolute, saying the government has not changed its position with regard to the policy, meaning the implementation of a $3 million threshold with no indexation applied to it and a tax calculated on unrealised capital gains. But can we really believe this? This is exactly the same message that emanated from Prime Minister Anthony Albanese in his government’s first term about the Stage 3 tax cuts and we all know when they were finally implemented there were significant changes made to the measure. Also, other statements the Treasurer has made about the proposal can only be considered as bald-faced lies and he has been called out by many industry bodies on them. The most staggering one being that no alternative calculation methods for the tax were put forward during the consultation period.
To this end, as far back as July last year the SMSF Association proposed using the 90-day bank bill rate as a proxy for actual taxable earnings in the measure instead of the method in the bill whereby a person’s opening total super balance in a particular financial year is subtracted from their closing balance with a few adjustments, incorporating the taxing of unrealised capital gains. Adding to my scepticism with regard to what the end result will be is Chalmers’ seeming lack of understanding of how the tax works. When announcing the deferral measure that would apply to members, such as the Prime Minister, in defined benefit arrangements, the Treasurer said this allowance was made because it would not be fair to make a person in this situation pay a liability before they were able to access their superannuation money. The fact is the Division 296 tax is one that is levied on the individual. It means the person who has to pay this tax can either pay it personally or via their super fund. As such, there would be nothing stopping an individual in a defined benefit fund paying it from their own pocket. This detail basically means there is no need to introduce the ability to defer the payment of this tax for one particular cohort. Doesn’t Chalmers know this? None of the points above give me any confidence this policy will be amended for the better and in fact we could see changes based on political grounds making it even worse. Your guess is as good as mine how it will work out in the end, but my glass is definitely half empty.
Editor Darin Tyson-Chan darin.tyson-chan@bmarkmedia.com.au Senior journalist Jason Spits Journalist Penny Pryor Sub-editor Taras Misko Head of events and corporate partnerships Cynthia O’Young c.oyoung@bmarkmedia.com.au Publisher Benchmark Media info@bmarkmedia.com.au Design and production AJRM Design Services
2 selfmanagedsuper
WHAT’S ON Institute of Financial Professionals Australia/The Auditors Institute Inquiries: 1800 203 123 or email: info@ifpa.com.au
The Super Playbook 2025 NSW 04 July 2025 Hyatt Regency Sydney 161 Sussex Street, Sydney
DBA Lawyers Inquiries: dba@dbanetwork.com.au
SMSF Online Updates 11 July 2025 Webinar 12.00pm-1.30pm AEST 8 August 2025 Webinar 12.00pm-1.30pm AEST 5 September 2025 Webinar 12.00pm-1.30pm AEST
Heffron Inquiries: 1300 433 376 or events@heffron.com.au
Super in 60 22 July 2025 Webinar 2.00pm-3.00pm AEST
SMSF Clinic 29 July 2025 Webinar 1.30pm-2.30pm AEST
Super Intensive Day 2025 VIC 27 August 2025 Rydges Melbourne 186 Exhibition Street, Melbourne
QLD 2 September 2025 Rydges South Bank Brisbane 9 Glenelg Street, South Brisbane
NSW 10 September 2025 Rydges North Sydney 54 McLaren Street, North Sydney
To have an upcoming event featured on the What’s On page, please contact darin.tyson-chan@bmarkmedia.com.au.
Accurium
The Auditors Institute
Inquiries: 1800 203 123 or enquiries@accurium.com.au
Inquiries: (02) 8315 7796
Practitioners Edge 2025 VIC 29 July 2025 Rydges Melbourne 186 Exhibition Street, Melbourne
NSW 31 July 2025 Four Seasons Hotel Sydney 199 George Street, Sydney
QLD 6 August 2025 Hotel Grand Chancellor Brisbane 23 Leichhardt Street, Spring Hill
Who controls the SMSF when a member dies? 9 July 2025 Webinar 2.00pm-3.15pm AEST
Dealing with super death benefits 23 July 2025 Webinar 2.00pm-3.15pm AEST
SMSF residency 13 August 2025 Webinar 2.00pm-3.15pm AEST
SMSFs and family law: navigating the split 27 August 2025 Webinar 2.00pm-3.15pm AEST
SMSF Association Inquiries: events@smsfassociation.com
SMSF Association Technical Summit 2025 6–7 August 2025 Sydney Masonic Centre 66 Goulburn Street, Sydney
Superannuation and Estate Planning 12 August 2025 Webinar 1.00pm-2.00pm AEST
Technical session 16 August 2025 Webinar 1.00pm-2.00pm AEST
Institute of Financial Professionals Australia Inquiries: 1800 203 123 or email info@ifpa.com.au
Super Discussion Group 12 August 2025 Webinar 12.00pm-2.00pm AEST
NSW 12 August 2025 Karstens Level 1, 111 Harrington Street, Sydney 6.00pm-8.00pm AEST
VIC 14 August 2025 The Veneto Club 119 Bulleen Road, Bulleen 6.00pm-8.00pm AEST
Super Quarterly Update 4 September 2025 Webinar 12.30pm-1.30pm AEST
SMSF Trustee Empowerment Day 2025 Inquiries: Vicky Zhao (02) 8973 3315 or events@bmarkmedia.com.au
NSW 16 September 2025 Sydney Masonic Centre 66 Goulburn Street, Sydney
VIC 18 September 2025 Melbourne Convention and Exhibition Centre 2 Clarendon Street, South Wharf
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