There is no denying the merits of an SMSF enterprise. They offer typically greater control and flexibility over your investments. However, they are not easy to maintain and can ask for your time, money and knowledge. Further, prudential regulations do not apply to the SMSF sector and hence you will be in a vulnerable place if someone defrauds you.
Author: Alan Preston Archives
Govt Must Address Retirement Incentives
An article on the website SMSF Adviser argues that the income tax slab for employees above the age of 65 does not encourage them to work. On the contrary, it persuades them to leave employment and draw from their Super.
In a way it is awkward that you are not taxed for earning $100,000 if you are retired but have to pay a tax for the same if you are working. Taxpayers Australia feels that in regards to the senior population, it might be a good idea to offer a 15% deduction on taxes payable on salary. This may imply an effective 4% on the first bracket of tax and 17% on the secondary bracket.
You can read the original article here.
3 Stocks with High Franked Yield
Though there has been no reduction in the interest rates in the first week of June, the historically low interest rates imply that the share market might provide your excess capital a safe landing. The Dividend Franking system ensures that the returns posted by the small and big players are substantial and perhaps (tongue in cheek) more lucrative than the property market. This is arguable territory. After all, Australian real estate has provided nearly 12% of GDP (biggest contributor) in the year gone by.
SMSF Contributions of Bankrupt Estates under Radar
An article on Financial Review focuses on how the creditors may target the bankrupt estates that have money parked in Superannuation. It is true that the money parked in Super is exempt from being treated as bankrupt estate but the amount such a SMSF holder will receive in pension income will largely depend upon an income test. There is ample chance that a big part of the balance may go to the creditors.
Should Small-business Owners Invest in SMSF?
In an article for the website Financial Review, Bryan Ashenden discusses whether SMSF is the right vehicle for small-business owners. Ashenden commits along the line that small business owners having their own name on their business property should get their business registered in the name of their Super fund. It is notable that this is only permissible for commercial properties.
SMSF Traps to be Cleared by June 30
In an article for the website Financial Review, Sam Henderson talks about a few mistakes that SMSF trustees must sort out prior to June 30 if they do not want to fall within the radar of ATO’s scrutiny. It is noteworthy that while many SMSFs seek professional help for the management of their fund it is they who are responsible for any compliance breach.
