QUARTER I 2024 | ISSUE 045 | THE PREMIER SELF-MANAGED SUPER MAGAZINE
FEATURE
STRATEGY
COMPLIANCE
STRATEGY
Trustee disqualifications Driving factors
Div 296 tax Impact modelling
In-house assets Compliance requirements
Super alternatives Optimal HNW outcomes
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21 MAY | MELBOURNE
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28 MAY | BRISBANE
SMSF PROFESSIONALS DAY 2024 Speakers
Mark Ellem Head of Education (SMSF) Accurium
Lee-Ann Hayes Head of Education (Tax) Accurium
Melanie Dunn Principal Accurium
Anthony Cullen Senior SMSF Educator Accurium
Matthew Richardson SMSF Manager Accurium
Event MC Darin Tyson-Chan Founder and Publisher selfmanagedsuper
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COLUMNS Investing | 20 The best emerging market economies.
Investing | 24 Merger and acquisition activity set to increase.
Strategy | 26 Modelling the impact of the Division 296 tax.
Compliance | 30 The rules regarding in-house assets.
Strategy | 34 How to make contributions deliver optimal outcomes.
Compliance | 38 How to calculate the Division 296 tax liability.
Strategy | 42 Assessing the options for high net worth clients.
Compliance | 46 Contributions cap indexation.
Strategy | 50 Managing super splitting.
Compliance | 54 Temporary incapacity cover inside an SMSF.
Compliance | 58 Holding a farm as a fund asset.
Strategy | 62
A WORRYING TREND THE RISE IN TRUSTEE DISQUALIFCATIONS Cover story | 12
FEATURE The role of superannuation in retirement | 16 Changes recommended.
Tax benefit maximisation.
Compliance | 66 The merit of staff discount policies.
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 | 68 Last word | 70 QUARTER I 2024 1
FROM THE EDITOR DARIN TYSON-CHAN INAUGURAL SMSF ASSOCIATION TRADE MEDIA JOURNALIST OF THE YEAR
Couldn’t care less The SMSF Association National Conference has not been a happy stomping ground for Assistant Treasurer and Minister for Financial Services Stephen Jones and it would appear he may have completely given up on the experience. It began when he presented as shadow minister for financial services before the last election. At the time, I had never heard of Jones, but I noted he committed several fundamental errors when he spoke. Firstly, he rattled off a series of sector statistics – a pointless exercise seeing all of the delegates would already have been across that information, but secondly, some of the data he quoted was actually wrong. Surely if you are going to do something like this, at least check your numbers are correct. Next came last year’s train wreck when he incorporated the beehive conference theme into his speech. Not entirely his fault, but it was perceived the government regards superannuation as a honey pot it just can’t wait to get its hands on. So this year he decided not to attend the event and instead recorded a short video for delegates. Predictably the message was not groundbreaking or noteworthy in any way, shape or form. And the delegates certainly sent a message to Canberra that unfortunately he didn’t get to see. Just as the video began, attendees started heading for the exits immediately, much like when a football team is consigned to a defeat and supporters want to get a jump on the traffic out of the ground. It is something I have never witnessed before in the 17 consecutive years I have been attending the conference.
Worse still, he now has the dubious honour of being one of the few superannuation ministers, if the not the only one, to have not attended the conference in person. A bad look indicating in many people’s eyes he just couldn’t care less about SMSFs. The signs of indifference to the sector, and probably the industry as a whole, have been emphasised also with the error, which the legislation for the proposed Division 296 tax. The bill contains an anomaly I have reported on whereby a person who dies on 30 June is caught by the measure while someone who dies on any other day of the year is exempt. This is clearly a drafting error, which the SMSF Association pointed out in its first submission regarding this policy, and it has made more than one. However, the bill still has not been amended to correct this quirk. It led association chief executive Peter Burgess to question whether any of the politicians actually read any of the industry feedback they receive. Getting back to the conference, in contrast shadow treasurer Angus Taylor did show up and presented in person and this made a difference just in terms of that perceived care factor. Don’t get me wrong, he didn’t say anything we didn’t expect, but at least he was there. And none of us are swallowing his criticism of the government without question as the coalition is not averse to poor policy either, dare I mention the transfer balance cap. But Taylor’s presence exacerbated the perception Jones is not really prepared to even engage with the SMSF space, let alone seriously listen to it, and that spells trouble for all of us.
Editor Darin Tyson-Chan darin.tyson-chan@bmarkmedia.com.au Senior journalist Jason Spits Journalist Todd Wills Sub-editor Taras Misko Sales and marketing sales@bmarkmedia.com.au Publisher Benchmark Media info@bmarkmedia.com.au Design and production AJRM Design Services
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WHAT’S ON
SMSF Professionals Day 2024 Inquiries: Vicky Zhao (02) 8973 3315 or email events@bmarkmedia.com.au
To have an upcoming event featured on the What’s On page, please contact darin.tyson-chan@bmarkmedia.com.au.
SMSF live Q&A – June
Heffron
6 June 2024 Webinar 2.00pm-3.00pm AEST
Inquiries: 1300 Heffron
SMSF Clinic
VIC
The Auditors Institute
21 May 2024 Rendezvous Hotel Melbourne 328 Flinders Street, Melbourne
Inquiries: (02) 8315 7796
NSW
Auditing the release of benefit payments
23 May 2024 Rydges Sydney Central 28 Albion Street, Surry Hills
9 April 2024 Webinar 1.00pm-2.00pm AEST
QLD
Homing in on downsizer contributions
28 May 2024 Hotel Grand Chancellor Brisbane 23 Leichhardt Street, Spring Hill
Accurium Inquiries: 1800 203 123 or email enquiries@accurium.com.au
Mastering SMSF property taxation 3 April 2024 Webinar 2.00pm-3.00pm AEST
ECPI war stories 4 April 2024 Webinar 2.00pm-3.00pm AEST
Critical audit issues for SMSF property investments 10 April 2024 Webinar 2.00pm-3.00pm AEST
Steering clear of legal issues for SMSF real estate 17 April 2024 Webinar 2.00pm-3.00pm AEST
SMSF hot topics 4 June 2024 Webinar 2.00pm-3.00pm AEST
23 April 2024 Webinar 1.00pm-2.00pm AEST
Payment of death and disability benefits 7 May 2024 Webinar 1.00pm-2.00pm AEST
23 April 2024 Webinar 1.30pm-2.30pm AEST
2024 Post Budget Webinar 15 May 2024 Webinar 3.00pm-4.00pm AEST
Quarterly Technical Webinar 30 May 2024 Webinar Accountants 11:00am-12:30pm AEST Advisers 1:30pm-3:00pm AEST
Windups – Tips and Traps 6 June 2024 Webinar 11:30am-1:00pm AEST
When the ATO audits an SMSF auditor
Institute of Financial Professionals Australia
21 May 2024 Webinar 1.00pm-2.00pm AEST
Inquiries: 1800 203 123 or email info@ifpa.com.au
Regulatory changes in SMSF auditing
2024 Super Quarterly Update
4 June 2024 Webinar 1.00pm-2.00pm AEST
6 June 2024 Webinar 12:30pm-1:30pm AEST
DBA Lawyers Inquiries: dba@dbanetwork.com.au
SMSF Online Updates 12 April 2024 12.00pm-1.30pm AEST 10 May 2024 12.00pm-1.30pm AEST 7 June 2024 12.00pm-1.30pm AEST QUARTER I 2024 3