SMSF Strategies with Grant Abbott

Ten years ago Peter Costello introduced a revolution in superannuation – one that created confidence in superannuation and SMSFs. In the period of 18 months more than $100Bn had been contributed into super and the Golden Decade began. Ten years later Scott Morrison destroyed that confidence with retrospectivity that will confuse and disrupt superannuation and in particular SMSFs from today on. Everything has changed – NOW!

Who is the Super Treasurer?

The Turnbull Government Budget The Good – A Budget filled with seriously disruptive changes in terms of contributions, investments, estate planning, family law and of course SMSFs The Bad – Retrospective changes have never served anyone and always create backlash – think of the 1998 Budget with Unit Trusts and SMSFs and the 2016 Federal Election The Ugly – Paralysis and Confusion reigns as software needs to be upgraded, plans come crashing to a halt, BDBNs change so do reversionary pensions and the list goes on The Dumb – The changes only cause anger and with an election that disenfranchises the Governments greatest supporters

The Issues Estate Planning Reserves Complying Pensions NCCs Tax Free and Taxable Components TRIS post 30 June 2017 Family Law Health Care Cards - Grandfathering

Let’s go to the detail Budget Paper No 2 holds the big detail - The Real Detail Contributions for under 75s – no more work test for self or spouse contributions Personal deductible contributions are not mutually exclusive to employer contributions so can have pre-tax contributions from multiple sources. However excess concessional contributions come into play with a reduction in the cap to $25,000 – seriously low but rolling 5 year rule for under $500K a good thing And remember excess concessional are non-concessional so the idea of making excess concessional contributions needs to be watched

The Newest New Contributions Rules Three layers of contributions to consider when looking at concessional or what we know as deductible contributions Layer One: When the contributions hit the fund, they are concessional and taxable contributions Layer Two: Excess concessional contributions Layer Three: Excess non-concessional contributions – penalty taxes or the withdrawal method Now the lifetime cap – what and how is that going to be administered with a backdate to 1 July 2007

Grant’s Top Five NCC Burners Contribute for under 75s Related Party Loans Family Super – use to the full extent for a couple Sale of a Business – particularly the 15 year rule QROPs – for UK Retirees and Permanent Residents

Pension Disruption Transition to Retirement Income Streams designed to provide access to superannuation whilst working – all tax advantages are now withdrawn Exemption Pension Account – at 1 July 2017 only $1.6M can be localised in a pension account on that day – pooled v segregration now all important Pensions may continue but tax to change – the question is why pay out rather than accumulate if there are no tax advantages?? What is going to happen to all those plus size pension accounts over the next 15 months? Seriously retrospective, unfair and arbitrary

Segregated Accumulation Investments alongside Pensions Related Party geared Income ETF Holding Trust Gold, silver and other precious metals In house assets – motorbikes (lease) Off the plan Start up and pre-IPO Inflation linked bonds Capital losses Shares with franking credits Insurance bonds Call options Property with loan so no real income

LRBA – Do’s and Donts Standard commercial loans okay Related party lending – what are the safe and non-safe harbour rules How to build quickly and efficiently within the NowInfinity platform Advanced LRBA strategies

Estate Planning The SMSF Will – collation of BDBN, auto-reversionary and allocation of reserves and specific assets What does a SMSF Will look like in practice and what can be done When to use just BDBN and/or auto-reversionary particularly after the Budget And reserves?

And finally …. This is a great and important time to strategise Get on next months webinars – particularly presentations and case study and automation of SMSF corporate transactions Look into using NowInfinity platform and definitely Corporate Messenger