Nearly 4% of the $543 billion held in SMSF investments has been poured into residential real estate. Commercial real estate can boast of roughly three times this figure. When we talk of a cumulative figure in excess of $80 billion, there is a need to be diligent about tracking your investments.
Super News
New Standard for Super Payments Released
Come 1st of July 2014 and any employer with more than 20 employees under his belt will have to be really diligent in providing details of his superannuation contribution. SuperStream, also referred to as Data and Payment Standards, asks all the employers (passing the ’20 employee’ criterion) to pay super payments to their employees with the help of the government’s payment system.
Diversification Holds the Key For SMSF Investments
At a point in time when inflation is beyond the expected standards and interest rates are constantly dipping, it may not be wise to place a large fraction of SMSF money in cash. This, however, is exactly as the things are, writes Kate Cowling, in an article for the website Super Review.
Extremely concentrated SMSF portfolios may suffer due to lack of diversification and cash funds are only expected to trip owing to the combined effects of tax and inflation.
ETF seems to be the perfect risk-averse idea; given its ability to diversify SMSF investments.
You can read the original article here.
What is your take on Exchange Traded Funds (ETF)?
Have You Considered the Longevity Question?
People take the mortality equation in right earnest. They fear they may die prematurely and thus try ensuring in advance that everything falls in place when they are no more there. Quite surprisingly, many of us fail to explore the other spectrum of this assumption. What if we survive beyond our expectations? Have we adequately considered the longevity risk?
Tax Legislation 293 To Corner High-income Earners
An article on the website ato.gov.au talks about the Division 293 Tax Legislation. This is the one that proposes lesser super tax concessions for very high income earners (as subjective as the term remains). The 2012 Federal Budget took it upon itself to create a fair playing ground for high earners and average earners.
Crucial SMSF Compliance Mistakes
Based on the report of independent SMSF auditors, the Australian Taxation Office (ATO) furnishes a list of major compliance mistakes which SMSF trustees commit each year. It is a befitting exercise for a country that needs stringent regulation to govern about half a million SMSF funds in existence.
