Time is running out for SMSF trustees
Time is running out for self-managed superannuation fund (SMSF) trustees to ensure their funds comply with the new super rules before they take effect on 1 July, the SMSF Association has warned.
The SMSF Association chief executive, John Maroney, said there were five weeks to go until the end of the financial year and working closely with SMSF specialists would help trustees set up their SMSFs in the most efficient way.
“The introduction of the $1.6 million transfer balance cap is an issue where many trustees will require specialist advice about whether to remove any excess from their pension account, to retain any excess in the accumulation phase or even to rebalance super holdings between spouses,” he said.
“The removal of the tax-exempt status from earnings on fund investments for those using transition-to-retirement pensions is another change where specialist advice could prove invaluable to trustees.”
Maroney noted the complex capital gains tax (CGT) relief afforded to funds affected by the transfer balance cap and transition-to-retirement changes.
“The CGT relief rules allow funds to reset the cost base of assets affected by the law changes before the end of the financial year. This is a valuable but one-off opportunity for SMSF members to minimise the impact of the law changes on their retirement savings.”
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