The new form includes a specific section for SMSFs, which should reduce some of the confusion by trustees when filling out the standard choice form and they are asked for details not applicable to their SMSF.
Industry Super Australia says that new research “shows the age at which you retire age could boil down to the type of super fund you are a member of”. The report, by the McKell Institute, compares performance over the period 1987 to 2013 and finds that “an Australian could have… Read More »Industry Super uses new research to argue against retail funds
ASIC has imposed penalties on two SMSF administrators for ‘false or misleading’ statements, Esuperfund and Your Super Accountant. Esuperfund ASIC imposed a total of $ 30,600 in penalties on SMSF administrator Esuperfund for “false or misleading online advertising”. The three penalties, each for $10,200, relate to statements on the Esuperfund website during… Read More »ASIC fines SMSF administrators for misleading statements
Titled Financial performance of Australia’s superannuation products, the report was recently released by the Financial Services Council.
According to the report “Australia’s system appears to be ‘middle of the pack’” compared to overseas pension systems. The analysis included twelve pension systems worldwide and found that “Australia has the third highest returns”.
John Brogden, CEO of the Financial Services Council, has announced that the FSC is going to begin work on a national retirement income policy.
“We must embrace the opportunity and lead the debate on taking superannuation from a world class accumulation scheme to the world’s best retirement system”, said Mr Brogden.
He went on to say that the superannuation system must not only provide an income in retirement to “a majority of Australians”, it must also take “intergenerational pressure off the budget”. If the super system fails to achieve these goals the “system and policy has failed”.
The FSC plans to work with “our members, business leaders, community organisations and others” to develop a policy, called the “National Retirement Outcomes Policy”.
Previously the ATO had revealed that in March 2014 3,000 letters had been sent to taxpayers who the ATO suspected of being involved in a dividend washing arrangement. Of these 3,000 original letters approximately 1,300 have “responded by coming forward to make voluntary amendments under which the franking benefits obtained from dividend washing transactions have been removed from their tax returns”.
Now the ATO will be sending letters to 500 of these taxpayers who did not respond to the first letter, along with letters to a further 1,500 based on “updated data analysis” by the ATO. These letters will “ask those taxpayers to self-amend their tax returns in order to reverse franking benefits they may have obtained from dividend washing transactions”.
According to ASFA, in the forth quarter of 2013/14 the cost of a ‘comfortable retirement’ rose 0.5%, to $58,128 per year. To fund this would require a superannuation balance of around $510,000 for a couple and $430,000 for singles, based on ASFAs calculations.
To arrive at these figures ASFA has assumed that people “do not retire before qualifying for the Age Pension” and that they will receive at least a part Age Pension.
A large portion of the increase in the cost of retirement was due to the rising costs of medical and hospital services, “which occurred mainly as a result of the increases in private health fund premiums effective from 1 April 2014” said ASFA.
The Government has issued a ‘statement of expectations’ to many of the regulatory bodies, including the ATO, ASIC and APRA. These statements outline “the Government’s expectations about the role and responsibilities” of the regulatory bodies.
While acknowledging that the regulatory bodies need to act “independently and objectively”, the Government expects that they will “take into account the Government’s broad policy framework, including its deregulation agenda”.
This includes the expectation the bodies will “look for opportunities to reduce compliance costs for business and the community” to contribute to the Government’s $1 billion “red and green tape reduction target”. They are also expected to make a “major contribution to the deregulation agenda and help to boost productivity”.
ASIC has altered its stance on when it will consider an SMSF to be a wholesale investor. The issue of when a client is a retail or wholesale investor has been unclear for some years. Which is an important distinction given it determines the level of consumer protections, disclosure and… Read More »ASIC alters stance on when an SMSF is a wholesale investor
One of the reasons people with SMSFs may be choosing to have individual trustees over corporate trustees is the annual ASIC fees. Private companies have to pay ASIC an annual review fee of $ 243 for the 2014/15 financial year, excluding the potential late fees. This fee applies to a… Read More »SMSFs can save $198 each year in ASIC annual review fees