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Our advisers and experts love to answer questions on anything to do with superannuation, SMSF compliance, tax, markets and investment strategy.


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Max Newnham Answered by Max Newnham 20hrs ago

Tax and deeming rules

We have $200,000 invested with Ubank returning 2.8 per cent pa based on depositing $200 PM. We are self funded retirees, invested in vanbetmen as well. I read in the weekend press, that the deeming rates for bank investments is 3.8 per cent. Does mean our investment with Ubank returning 2.8 per cent will be taxed at earnings of 3.8 per cent?

Max Newnham Answered by Max Newnham 21hrs ago

Divorce, assets and the pension

My husband and I are self funded retirees about to divorce. Our assets are simple. We have our family home which is in my name. He has an amount of money in his super fund, which happens to be equal to the value of our home. We would like to divide our assets equally. He is over 65 and I am 50. The easy thing to do is I take the house, he takes the money in the super fund. However if we reverse the arrangement i.e. he takes the house and I take the money, it means he can then claim the Centrelink Age Pension, and I will have an income to live on with the SMSF assets that he will transfer to me as part of the settlement. Financially, does that sound like a reasonable plan? Would the Centrelink Age Pension gifting rules allow that? I am not sure whether the transfer of his super fund money to me as part of our divorce settlement would be deemed as 'gifting'. Would stamp duty be payable with the change in ownership of our family home?

Max Newnham Answered by Max Newnham 1wk ago

Claiming medical rebates

Could you please clarify which financial year is the last year to be able to claim the ATO's medical rebate for Aged Care expenses? The ATO's site is most unclear by using the term "until 2018-19". Does that mean that it is available to be claimed for the coming financial year or does it mean the the rebate ends at the end of this financial year 20178-18? Thanks in advance Caz

Tony Kaye Answered by Tony Kaye 1wk ago

Living off the pension

I (couple) am in my 70s we own our own house and have well over $2 million in a SMSF. We are getting tired of all the complication and uncertainties of being self funded and I'm starting to think what if we just shut the SMSF down, sold our house and bought a house using all our cash bar $300k. Could we then claim the full government pension, as $50k per annum cash is plenty for us to live on in our situation, especially if it meant getting the health care card as well.

Max Newnham Answered by Max Newnham 1wk ago

Defined benefits and the balance cap

At the June 30, 2017 I had an SMSF in transition to retirement pension phase worth approximately $900,000. As of January 2018 I commenced a capped Defined Benefit Pension of approximately $1000 per week. How will my 'transfer balance cap' of $1.6M be calculated from what date? What happens to any 'capital growth' that occurred in my SMSF from 30/06/2017 to the date my 'transfer balance cap' is calculated? How is the CPI increase in the DB pension treated for the 'balance cap’?

Max Newnham Answered by Max Newnham 1wk ago

Superannuation time frames

I am aged 66 and sold a business/building, having owned it for 17 years to work part time in another none related job. I will receive the 15 year CGT exemption. I am working over 40 hours per month. I have over 1.6 million in my super . I understand I can still put the money into my accumulation part of my super. Is there a time frame it has to be put into the super after the sale of the property?

Max Newnham Answered by Max Newnham 1wk ago

SMSFs and discretionary trusts

This question is in relation to the planning considerations for an investment combination of an SMSF and discretionary trust. Under the hypothetical situation where a couple could potentially accumulate $2.6 million by retirement at age 65, would it be better to target $1.6 million for the SMSF and $1 million for the trust?

Max Newnham Answered by Max Newnham 1wk ago

SMSF reserves and account-based pensions

If a reserve in a SMSF is used to commence an account-based pension for a member, how is it treated for the concessional contribution cap, and will it be taxable if the concessional contribution cap is exceeded?

Max Newnham Answered by Max Newnham 1wk ago

Excess pension funds and tax

I have a SMSF that was valued at around $2.2m at 30th June 2017. I deliberately kept the value of the shares within the SMSF to less than $1.6m on the understanding that I would allocate these to a pension fund and the remaining (cash only) to an accumulation fund. My logic was to put the highest risk/reward assets into the lowest taxing environment. I am currently employed but it is highly likely that I will be retired before the end of June 2018. I want to understand my obligations and the rules around the pension fund going forward. Am I required to withdraw the minimum % P.A from the $1.6m and the excess if I am retired? How is the $1.6m treated should I be fortunate enough to find that the value increases over the fiscal year even after withdrawing any money I am required to? How is the excess treated from a tax standpoint? I understand that, should I not retire this financial year, super contributions by my employer will go to the accumulation fund. Is this correct?

Max Newnham Answered by Max Newnham 1wk ago

Reversionary pensions: SMSFs vs APRA funds

Having just returned from overseas for a family bereavement it got me thinking about what the effect would be of the death of one of a couple who are both have allocated pensions where each has named the other as the reversionary beneficiary. Specific thought are: - to what extent does the reversionary have to managed the pension account of the deceased member (e.g. make investment switches, change pension amounts and make lump sum withdrawals); - would the reversionary be able to merge the two pension accounts (to save administration fees in an APRA fund). I'm guessing not it will involve a commutation of the reversionary pension into an accumulation account before taking steps to merge with the surviving partners account. - I suppose that the pension cap (which would be a combined $3.2 million) with both partners alive would be reduced to $1.6 million for the single partner - and and excess would need to be withdrawn from one or other of the partners pension accounts. Is there any real difference in these circumstances between a SMSF and an APRA fund.

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