Patane Accounting Pty Ltd is a CPA Practice
The transition to retirement income pension is quite straight forward, however whether there are clear benefits depends on an individual’s personal circumstances. When an individual starts the transition to retirement income pension (TRIP) once they reach preservation age and are still working, they receive an income stream from their SMSF. Their existing account balance in…
Adjusting your super fund strategy so you can have a more active role in managing your retirement savings can often result in a number of rewards and benefits. However, it is important for those who opt to take more control of their super fund’s asset allocation to consider aspects in the long-term, rather than react…
Super splitting is a sensible, simple and strategic way of dividing contributions, managing the transition into retirement and maximising income. It involves transferring concessional or tax deductible contributions from the account of a fund member to their partner. It is particularly beneficial where there is a reasonable age gap of around five years or more,…
An individual’s superannuation is typically one of their biggest assets along with their home. So while it is natural to start thinking about how you can boost your superannuation balance leading up to retirement, putting in the effort well before then can make a big difference to your retirement lifestyle. Below are four simple ideas…
Applying the segregated pension method for an SMSF can result in cash-flow issues caused by the division of earnings and expenses. While the decision to segregate assets in an SMSF into pension and accumulation mode may be due to tax purposes, there are still a range of important issues to consider. Bank accounts are usually…
Signing a binding death nomination can help your beneficiaries make the most of tax savings in super. A binding death nomination compels your super fund’s trustees to direct your super to the chosen dependent beneficiary upon your death. It also means your beneficiaries can receive any assets within the tax-effective structure of super. This is…
When a marriage or de facto relationship breaks down, any property can be divided between the parties. Under the Family Law Act 1975, superannuation is also treated the same way. Parties must enter a superannuation agreement or obtain a court order to allow the splitting of their superannuation. A spouse may seek a court order…
Recent family disputes over superannuation death benefits carry an important warning to current SMSF trustees. The disputes have highlighted the need for trustees to have appropriate and binding death-benefit directions planned while members are still alive, in order to reduce the risk of a dispute arising. When there are clear death-benefit directions, surviving trustees have…
The Government recently made changes to excess non-concessional contributions, bringing the treatment of excess non-concessional contributions into line with the treatment of excess concessional contributions. The changes eliminate double taxation, where individuals were being taxed at the top marginal tax rate even though they paid income tax on contributions prior to making contributions to their fund.…
Self-managed super funds and related parties must transact on arm’s length terms. This ensures that both parties are acting in their own self-interest and will not succumb to any pressure from the other party. The true market value of an asset should always be reflected in the purchase and sale price of assets. Members need…
