Superannuation Discussion Paper on Regulation and Governance issued by Assistant Treasuer [67]

The Assistant Treasurer on Thur 28.11.2013, released a discussion paper canvassing the issues of regulation, governance, enhanced transparency and improving competition in the selection process for default superannuation funds in modern awards. The paper, Better regulation and governance, enhanced transparency and improved competition in superannuation, forms part of the Coalition’s election policies aimed at restoring…

*TD 2013/22 – Excess superannuation contributions – use of suspense accounts and reserving strategies [66]

This Determination, released on Wed 13.11.2013, states that a contribution made to a complying superannuation fund in one financial year (year 1), but not allocated to a fund member until the subsequent financial year (year 2), is only included in the member’s “concessional contributions” for year 2 under s291-25(3) of the Income Tax Assessment Act…

ASIC Commissioner update on SMSF advice and disclosure requirements [65]

In a speech at the Institute of Public Accountants (IPA) 2013 National Congress on Fri 8.11.2013, ASIC Commissioner John Price provided an update on the consultation process for Consultation Paper 216 Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs (CP 216) released in September 2013 (see 2013 LTN 179 [4]). The Consultation Paper proposed specific…

ASIC warns real estate industry about recommending property investment through SMSFs without being appropriately licenced [64]

ASIC has warned the real estate industry that agents recommending investors use a self-managed superannuation fund (SMSF) to invest in property must ensure they are appropriately licensed to provide the advice. ASIC said it is working with the Real Estate Institute of Australia (REIA) to ensure that real estate agents understand their legal obligations. ASIC…

*SPAA calls for increase in concessional super contributions cap than the current $25k/$35k regime [63]

The SMSF Professionals’ Association of Australia (SPAA) has today [Mon 4.11.2013] called on the Coalition Government to increase the concessional contributions cap to enable Australians to achieve self-sufficiency in retirement. Currently, in 2013-14, a $35,000 concessional contributions cap applies for those who were 59 years or over on 30 June 2013 (instead of the general concessional cap…

*Australasian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd – decision that the director breached his duties in making super contribution being appealed [62]

Apparently the receivers and managers of Australasian Annuities Pty Ltd (in liq) have appealed against the decision of Almond J of the Victorian Supreme Court in Australasian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd [2013] VSC 543. The Court had found that the sole director of a family trust company had breached…

*Albrecht v FCT – Superannuation surcharge held constitutionally valid against WA police officers (police not important enough) [61]

In a test case, the Federal Court has upheld the constitutional validity of superannuation contributions surcharge tax assessments issued to commissioned officers of the WA police force (save for the Police Commissioner himself). The taxpayer, Mr Albrecht, was an Inspector in the WA police force from 1997 to 2006. He was a member of the…

*Parliamentary Trustee of the Parliamentary Contributory Superannuation Fund v FCT – Superannuation contributions surcharge constitutionally valid for Victorian MPs (but contributory fund) [60]

The Full Federal Court has upheld the constitutional validity of superannuation contributions surcharge tax assessments under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 in respect of the Parliamentary Contributory Superannuation Fund for members of the Victorian Parliament under the Parliamentary Salaries and Superannuation Act 1968 (Vic). The taxpayer claimed that the superannuation contributions surcharge…

*Ioppolo & Hesford v Conti – SMSF: surviving trustee not obliged to appoint executor of deceased member as a trustee and he distributed her death benefits to himself despite directions to the contrary in her will [59]

The Supreme Court of Western Australia has held that the surviving trustee of a self-managed superannuation fund (SMSF) was not obliged to appoint an executor of the deceased member [his late wife] as a trustee of the SMSF pursuant to s 17A(3)(a) of the Superannuation Industry (Supervision) Act 1993 (‘SIS Act’). Furthermore, the Court ruled that…

Low income superannuation contribution abolished and SGC increase to 12% deferred 2 years, with Bills to repeal the Mining Tax [58]

The Treasurer on Wed 13.11.2013, introduced into the House of Reps the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013. It proposes to repeal the Minerals Resource Rent Tax Act 2012, Minerals Resource Rent Tax (Imposition – Customs) Act 2012, Minerals Resource Rent Tax (Imposition – Excise) Act 2012, and the Minerals Resource…