Category: Summary Archives

An article on the website Professional Planner says that the SMSFs have put in a large volume of their funds into Australian cash investments despite a dip in the interest rates. This has been at the expense of ignoring foreign assets which had come into their own due to the depreciating Aussie dollar. The move may prove costly.

In the second Quarter, SMSFs have put in only about 1% in overseas shares whereas they have invested $862 million cumulatively in overseas property and offshore managed investments. Both these figures are disheartening.

The SMSFs are not diversifying in overseas assets too well and this is creating problems of two types. First, they are losing out on great returns which the overseas investments may provide and second, they are missing out on maximising the depreciation of the Aussie dollar.

You can read the original article here.

An article on the website DIY Super Online talks about a mental agility test which could prove a great help in deciding whether a trustee is fit enough to keep performing his role.

Joanne Earl, an NSW psychologist, has prepared a computer-based exam for the SMSF trustees which can be taken yearly. This can categorically tell whether the trustees are still fit (which, surprisingly, many trustees are even in their eighties) or have developed conditions including, but not limited to, senile dementia, Alzheimer’s, or Parkinson’s.

In such cases, trustees can read the writing on the wall and forego control before they can hurt the financial solidarity of their SMSFs; something that they themselves nurtured over years.

You can read the original article here.

Sally Patten writes a piece for the Business Day section of the Sydney Morning Herald wherein she says that the chief banks of Australia could settle on selling their wealth arm to tackle low returns on equities and extract the best out of the fast growing SMSF sector.

The insurance and investment platforms procured in the first years of the new millennia have proved rather unsatisfactory vehicles of wealth creation and the major banks do not mind departing to the fresher pasture of SMSF.

The NAB, ANZ and CBA are surely mulling over the idea.

You can read the original article here.

An article on the Professional Planner talks about the reluctance of SMSF owners when it comes to more taxes on Superannuation. They feel that taxation should primarily be aimed to provide a smooth retirement savings system for Australian investors.

SMSF owners are not too keen on the possible recommendations that the Tax White Paper might make. It believes that imposition of more tax and restricting the size of accounts can’t be the answer to any problem.

You can read the original article here.

A national awards program has been launched in June that will let property investors select their favourite SMSF practitioner. The idea is to felicitate those practitioners who iron out the process of investment and make all its steps smooth; the steps may include selecting a buyer’s agent to undertake property negotiation, selecting an accountant for engaging in tax efficiency and developing a powerful portfolio. An article on SMSF Adviser Online reports.

This, above all, is an opportunity for SMSF practitioners to get closer to their clients and procure feedback from them.

You can read their original article here.

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.