Super reforms: SMSF trustees need to understand these fundamental changes

The implementation of recent changes to the rules on superannuation is mostly going to plan, with the odd divergence here and there for legislative tweaks, and SMSF trustees need to keep up to speed in order to not get on the wrong side of the regulator.

Keystone changes
As SMSF trustees will be aware, the reforms include:

  • the new transfer balance cap
  • transitional CGT relief measures
  • changes to the TRIS regime.

The transitional CGT relief provisions, which are necessary for trustees to comply with the new transfer balance cap, as well as the new conditions that are to apply to transition to retirement income streams (TRISs), need to be understood thoroughly.

The transfer balance cap itself has been the subject of angst for SMSF trustees for months, so a review of the state of legislation is an ongoing knowledge requirement.

Real-time reporting
Along with the new transfer balance, the ATO has indicated that more “events-based” reporting will be required for it to adequately deal with the evolving SMSF regime.

The ATO advises that due to practical implications for SMSF members there are several events that SMSFs will need to report to the ATO on an events basis for the purpose of the transfer balance cap.

Housing related measures
There are also a couple of housing related pieces of draft legislation going through the process of becoming law, which trustees may also need to get their heads around. One is known as the First Home Super Saver Scheme, where first home savers who make voluntary contributions would be able to withdraw those contributions (with concessional tax treatment), and an amount of associated earnings, for the purposes of buying their first homes.

The other measure relates to near-retirees being able to downsize their main residence and make a non-concessional contribution from the proceeds that will not count towards the usual caps or restrictions on voluntary contributions.

Your chance to update
Tax & Super Australia is hosting a series of regular superannuation updates, but the next scheduled session is aimed at bringing SMSF trustees up to speed on all of the above issues.

The presenter Gabriela Rusu, principal of independent SMSF service provider Gabriela Rusu Superannuation Services, is going to go over the fine print of these new measures.

Gabriela is a superannuation specialist, with a focus on providing technical and compliance support on SMSFs to accountants, auditors, financial advisers and SMSF trustees. Gabriela has extensive experience and knowledge having worked in the superannuation industry since 2000.

In July 2013, Gabriela established her own business, focused on SMSFs. She holds a Graduate Diploma in Economics, a Diploma in Financial Services (Financial Planning) and is an SMSF Specialist Adviser (SSA) accredited by the SMSF Association, which is recognised as the peak body for professional advisers and the leading association within the SMSF industry in Australia.


Webinar: Superannuation quarterly update, 2017 session 3

When: Wednesday, 13 September 2017

Recorded webinar now available. See here for details.

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