In the last edition of our newsletter, we wrote a brief article – SMSF Insight: Key Superannuation Tax Issues. This article was a summary of the key superannuation points which Mark Williams, Managing Director and Marius Hui, Client Director/ Head of Operations spoke about at the, “Atkinson Vinden Lawyers CPD Training Event on Superannuation and Estates – Key Tax Issues.”
We wanted to share these seven key superannuation tax issues which we believe are important to consider when reviewing your SMSF.
- Sale of business, shares/ units, business premises – always consider small business CGT concessions
- Downsizer contribution— From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home. Your downsizer contribution is not a non-concessional contribution and will not count towards your contributions caps. The downsizer contribution will count towards your transfer balance cap, currently set at $1.6 million. This cap applies when you move your super savings into retirement phase. You can only make downsizing contributions for the sale of one home. You can’t access it again for the sale of a second home. Downsizer contributions are not tax deductible and will be taken into account for determining eligibility for the age pension.
- Pensions – all things being equal – reversionary is the preferred option
- SMSF acquiring business premises from member – consider small business CGT concessions, potential stamp duty exemption
- Limited recourse borrowing arrangement (LRBA) – process is key, avoid double stamp duty
- Binding Death Benefit Nominations – work with us and your financial adviser
- Consider realising capital gains whilst in pension mode and paying out benefits before death