The Productivity Commission has concerns about SMSFs with less than $1 million, blaming higher costs for poor net returns. In its draft report about the efficiency and competitiveness of the superannuation system the Productivity Commission raises concerns about the returns and costs of smaller SMSFs. One of the draft findings of the Commission is that… Continue reading Productivity Commission has concerns about sub $1 million SMSFs
Accountants are the most likely source of a recommendation to set up an SMSF, but it is unclear how this will be the impacted the removal of the accountants’ exemption and new licencing regime. Joint research released by the SMSF Association and CommBank found that accountants have played a “key role” in decisions to set up… Continue reading Accountants most likely to recommend SMSFs, but future unclear, research finds
Contributions to SMSFs in the September 2016 quarter were the lowest since 2007, according to the latest SuperConcepts SMSF Investment Patterns Survey. “The average level of contributions for the quarter was at its lowest level since commencement of the survey in 2007 and continued the trend we saw in the June 2016 quarter. This was… Continue reading Contributions to SMSFs lowest since 2007, likely due to cap changes
Over a third of SMSF trustees think their fund makes more money for their accountant than it does for themselves, according to a survey commissioned by an industry super fund.
The ATO is using risk models to target SMSF compliance activities, including the use of new powers such as the education and rectification directions.
A survey of SMSFs has found that contraventions of the borrowing rules have almost doubled in 2013/14, from 12.5% of contraventions to 23.3%. The survey found that the percentage of funds with reportable contraventions remained relatively stable at 5% in 2013/14, down from 5.3% in 2012/13. The increase in SMSF borrowing contraventions was offset by a decrease in… Continue reading SMSF borrowing contraventions almost double, survey finds
Recent ATO statistics show Australians are increasingly choosing individual trustees for SMSFs over corporate trustees. Only 7.65% of SMSFs registered in the 2013/14 year were registered with a corporate trustee, compared to 92.35% for individual trustees. This is more than a 2% decline from 2012/13, when 9.66% of SMSFs were established with corporate trustees. The ATO… Continue reading Trend against corporate trustees for SMSFs continues
The ATO discusses if a commutation of an account based pension counts against the minimum pension payment amount in the SMSF determination, SMSFD 2013/2: Self Managed Superannuation Funds: does a payment made as a result of a commutation of an account based pension count towards the minimum annual amount required to be paid under paragraph 1.06(9A)(a)… Continue reading SMSFD 2013/2: commutations & minimum pension payments
Research has found that Australians are “more likely to be engaged and satisfied” with SMSFs than other superannuation funds. The 2014/15 Superannuation Benchmarking Study by Engaged Marketing measured the ‘Net Promoter Score’ of large super fund brands and SMSFs. It found large super funds scored an average of -29%. This means that these funds, on average,… Continue reading Australians more satisfied with SMSFs than large super funds
ASIC, through the Federal Court in Victoria, has succeeded in banning a foreign exchange business and its former director from conducting a financial services business for four years. The business, Monarch FX Group Pty Ltd, was found to have executed foreign exchange trades without instruction and recommend the setting up of SMSFs, without holding appropriate… Continue reading Monarch FX banned for advising clients to set up SMSFs