QUARTER III | ISSUE 047 | THE PREMIER SELF-MANAGED SUPER MAGAZINE
CURRENT HURDLES CONFRONTING
2024 smsf roundtable
FEATURE
COMPLIANCE
STRATEGY
COMPLIANCE
SMSF roundtable Significant issues considered
New tax ruling Minimum pensions
Disability benefits Best tax results
Asset valuations Correct approach
COLUMNS Investing | 28 Outlook for markets.
Investing | 32 Benefits of high-yield bonds.
Compliance | 36 New tax ruling regarding pensions.
Strategy | 39 Time for a complete fund review.
Compliance | 42 Getting asset valuations right.
Strategy | 46 Optimising disability benefits tax position.
Compliance | 50 NALI issue still requiring attention.
CURRENT HURDLES
CONFRONTING
2024 smsf roundtable
Strategy | 54 Estate planning involving blended families.
Compliance | 58 Related-party loan complexity.
Strategy | 61 When bigger is not always better.
Compliance | 64 Revisiting a landmark estate planning case.
Compliance | 66 SMSFs and the Design and Distribution Regime.
REGULARS 2024 SMSF ROUNDTABLE INDUSTRY DISCUSSES CURRENT SECTOR HURDLES Cover story | 12
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 | 70 QUARTER III 2024 1
FROM THE EDITOR DARIN TYSON-CHAN INAUGURAL SMSF ASSOCIATION TRADE MEDIA JOURNALIST OF THE YEAR
Reflections on a political career It was announced this month Bill Shorten would be stepping down from his position as a member of the House of Representatives. A decision like this often prompts reflections on the individual’s career so I thought I’d join this chorus. However, unlike the platitude-only assessments this habit usually triggers, I’m going to throw a few brickbats as well as bouquets I feel the Member for Maribyrnong has earned. His role is significant as he was the first financial services minister and politician with whom I had direct contact when I began covering the SMSF sector. Let’s start with some of his less glorious moments. I first encountered Shorten at a Selfmanaged Independent Superannuation Funds Association event where he was outlining the government’s position on SMSFs and speaking alongside his Liberal Party counterpart, Mathias Cormann. I remember noting never before seeing a politician with such poor body language during a presentation. Why? Because for a lot of the time he was at the lectern, and especially when he was taking delegate questions, he had his chin resting in the palm of his hand as if to reflect on the chore of having to be there. Next came his appearance at the SMSF Association National Conference, I think in 2011, held in Brisbane that year. Of course, the media was told he would be attending and addressing conference attendees shortly after the formal sessions had ended for the day. As such, all journalists in attendance were prepared for his appearance to see if he would reveal any nuggets of policy information. But alas his arrival was delayed, delayed and then delayed again. By the time he got to the event, the networking function was well underway – hardly an ideal situation for a politician to engage with their audience. 2 selfmanagedsuper
His speech took on further farcical proportions as he had to deliver it on what could be described as a maintenance walkway above the exhibition hall. Proof of how badly the exercise unfolded was evidenced by the reaction of some of the delegates. The function had a casino theme and a good number of practitioners were playing blackjack and just continued on with their games throughout Shorten’s speech. I suppose if you treat an audience with perceived disrespect, you’ll get it back in spades. Now to the positive side and really one initiative in particular of which the current government should sit up and take note. While in office, Shorten introduced the limited licensing regime for accountants wanting to provide restricted financial advice. Now we all know the initiative didn’t work out, but I don’t think poor execution should prevent us from recognising the spirit of what he was trying to achieve. I remember when the policy was announced, Shorten claimed it would mean an additional 10,000 accountants would be in a position to provide financial advice – a good result if achievable, I thought. Fast forward to the current day and we’re seeing shrinking adviser numbers and the implementation of the Quality of Advice Review recommendations. I’m of the firm belief accountants are the critical element to release more advisers into the industry and enable the delivery of advice to more Australians. But the review has categorically ignored the important role these professionals can play here. It would have been nice if the review had taken a leaf out of Shorten’s book to enable greater industry participation from the accounting community. In encouraging this approach, originally, I think the Member for Maribyrnong should be applauded in the assessment of his parliamentary achievements.
Editor Darin Tyson-Chan darin.tyson-chan@bmarkmedia.com.au Senior journalist Jason Spits Journalist Todd Wills 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 Graphic Design Services
WHAT’S ON
To have an upcoming event featured on the What’s On page, please contact darin.tyson-chan@bmarkmedia.com.au.
Accurium
Auditors Institute
SuperGuardian
Inquiries: 1800 203 123 or email enquiries@accurium.com.au
Inquiries: (02) 8315 7796 or email awan@ awan@auditorsinstitute.com.au
Inquiries: 1300 787 576
Incorporating estate planning into our practice
Sole purpose testing in SMSFs
9 October 2024 Webinar 3.00pm–4.15pm AEDT
TRIS strategies and pitfalls 23 October 2024 Webinar 2.00pm-3.00pm AEDT
CPI and fund deductions 26 October 2024 Webinar 2.00pm–3.00pm AEDT
SMSF hot topics 26 November 2024 Webinar 2.00pm–3.00pm AEDT
SMSF live Q&A 28 November 2024 Webinar 2.00pm–3.00pm AEDT
DBA Lawyers Inquiries: dba@dbanetwork.com.au
SMSF online updates 4 October 2024 12.00pm–1.30pm AEDT 8 November 2024 12.00pm–1.30pm AEDT
15 October 2024 Webinar 1.00pm–2.00pm AEDT
Auditors Day VIC 8 November 2024 Crowne Plaza Melbourne 1–5 Spencer Street, Melbourne
Update on the ATO SMSF compliance 26 November 2024 Webinar 1.00pm–2.00pm AEDT
Heffron Inquiries: 1300 433 376 or email events@heffron.com.au
Super in 60 17 October 2024 Webinar 2.00pm–3.00pm AEDT
2024 year-end accountants & auditors update 21 October 2024 Webinar 11.30am–1.00pm AEDT
SMSF clinic 12 November 2024 Webinar 1.30pm–2.30pm AEDT
SMSF expenses under the microscope 12 October 2024 Webinar 12.30pm–1.30pm AEDT
Institute of Financial Professionals Australia Inquiries: 1800 203 123 or email info@ifpa.com.au
Has your client really retired? 3 October 2024 Webinar 12.30pm–1.30pm AEDT
2024 super quarterly update 5 December 2024 Webinar 12.30pm–1.30pm AEDT
SMSF industry update – legislation, policy and trends 3 December 2024 Webinar 11:00am–12:00pm AEDT
National Conference 2025 VIC 19–21 February 2025 Melbourne Convention and Exhibition Centre 1 Convention Centre Place, Melbourne
The Tax Institute Inquiries: 1300 829 338
National Superannuation Conference NSW 31 October–1 November 2024 Crown Sydney 1 Barangaroo Ave, Sydney
SMSF Association Inquiries: events@smsfassociation.com
In practice webinar series 15 October 2024 Webinar 12.00pm–1.00pm AEDT 19 November 2024 Webinar 12:00pm–1:00pm AEDT
QUARTER III 2024 3