Cash allocations of SMSFs have reached record low proportions, reports Multiport SMSF Investment Patterns Survey. The cash holdings, reportedly, are being curtailed in favour of seeking the overseas market; higher returns in international equities being the major lure. Tim McArthur reports for the website The Motley Fool.
In the event of breaching the SIS Act pertaining to loan to members, SMSF trustees can face exorbitant fines going up to $220,000. One such fine of $50,000 was handed down by the Federal court to a couple who were corporate trustees of a fund.
While there is no substitute for face-to-face contact, Super fund members may soon wake up to an alternative. Yes, in not too distant a future, fund members may begin to receive automated financial advice in “bite-sized chunks”.
With continued advancement of artificial intelligence (AI), complete automation of SMSF audits clearly looks like a possibility, reports Katarina Taurian in an article for the SMSF Adviser. SMSFs, owing to their basic transaction structure can gain more from such automation. Of course, all this if machine learning and AI keeps improving!
Lately, there has been a lot of loose talk about SMSFs and how they are a used as a vehicle to avoid tax. Unfortunately, those talking about the issue are either way too ignorant or have their vested interests. Some are just using this avalanche of brickbats to vent their angst; after all, the SMSF wave hit the aspirations of many industry funds hard. So, all things said, is there any truth in the allegations? Are SMSFS not paying enough tax? Let us find out what an article on the Australian Financial Review has to say.
An article on the website Super Review talks about a lifetime caps that could come to replace the annual concessional contributions ceiling. This way, individuals would be able to make greater contributions at the closing stages of their working lives without fearing penalties.
Piggybacking on strong performances in properties and listed shares, median growth funds have exhibited a hike of 2.2% through the months of July and August. Scott Hodder, in an article for the website Investor Daily, suggests that the good performance can be put down to the investment strategy of the growth funds.
The SMSF industry runs without prudential regulation and this is the reason why annual independent audits become crucial to the cause of their goodwill amongst investors. After all, it is important to figure out whether SMSF deserves its tax concessional status. SMSF auditors assigned for the job know the importance of their task and give peace of mind to both; the trustees and the government.