SMSFs are required under the SIS Operating Standards (SIS Regulation 4.09, under SIS Act 31(1)) to ‘formulate, review regularly and give effect’ an Investment Strategy. Under s34 of the SIS Act contravening the Operating Standards can result in a fine of 100 penalty units, currently $ 17,000.
Under the Regulations the Investment Strategy must consider at least the following (para-phrased):
- Risk and Return
- Liquidity and Solvency
- Insurance cover for members
When the Simpler Super reforms (the Tax Laws Amendment (Simplified Superannuation) Act 2007) were brought in a $ 50,000 Concessional Contributions cap was introduced. This amount was supposed to be indexed annually to the increase in AWOTE (Average Weekly Ordinary Time Earnings) in $ 5,000 increments rounded down. However the 2014/15 year will be the first in which the Concessional Cap will be indexed:
There are many different tests in Superannuation based on age, from the contribution caps to the work test, but when is the age measured for these tests?
The purpose of the ATO Supervisory Levy is to collect revenue to offset the costs of the ATOs role as regulator of SMSFs. As a result the amount of the levy has been trending upwards in recent years. Additionally the levy is currently being transitioned from being collected for the prior year to a pre-payment for the following year – resulting in a spike in the amount payable in one year, as shown in the following graph:
Why did the total value of Collectables held by SMSFs drop so much in 2012?
The graph below, based on the most recent available ATO statistics, shows the age range of all SMSF members as at June 2013.
As of the 18th of March 2014 the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 received Royal Assent, which gives the ATO new powers in it’s role as regulator of SMSFs to:
- Issue Rectification Directions
- Issue Education Directions
- Issue Administrative Penalties
These new powers will apply from 1 July 2014. The act also sets penalties for Early Access Scheme promoters, which will apply from the date of Royal Assent, among other non-superannuation tax changes.
How did SMSFs invest in 2013?
Some graphs of the most recent SMSF statistics collected by the ATO
Posted a new page which lists current and recent Treasury consultations relating to SMSFs and Superannuation: Consultations Tracker.
Can also be found under the Tools menu.
Plan to update this regularly and as needed, but is updated based on the Treasury website.