Trustee of a Self Managed Superannuation Fund? – Its time to consider your investment strategy

The past months have been full of changes to the superannuation laws that have affected the self managed super funds (funds) of many of our clients. However, a funds investment strategy is something that all of our super fund trustees should be mindful of. This year the LBW super team together with the super fund auditors are focusing on ensuring investment strategies are on file and current for each of our SMSF clients. c

The ATO states that a funds investment strategy should be in writing and outline investment objectives together with specifying the type of investments the fund can make. The ATO requires that the trustees of the fund review the investment strategy yearly to ensure it continues to reflect the purpose and circumstances of a fund and its members. c

The preparation and review of the fund’s investment strategy should consider the personal circumstances of all the fund members, including age and risk tolerance. When deciding which assets to invest in there must be a clear and obvious retirement purpose in the choices made. It is important for trustees to remember that the investment objectives they have set for their SMSF can be changed at any time.

On 9 May 2017, the Government announced an extension to the 2015-16 Budget measure providing an instant asset write-off provision for small business.

Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased between 7:30PM on 12 May 2015 and 30 June 2018.

This deduction can be used for each asset that costs less than $20,000, whether new or second-hand. You can claim the deduction through your tax return, in the year the asset was first used or installed ready for use.

The current 'lock out' laws for simplified depreciation rules will continue to be suspended until 30 June 2018.

Please contact your LBW representative if you require further information in relation to this item

This is a reminder for everyone to check prior to 30 June 2017:

Concessional Contribution - Check that you haven’t breached the $30,000 employer contributions limit (or $35,000 if you are over 50 years) if you have been salary sacrificing into super. If you do want to claim the amount contributed, ensure that the amount has been cleared and receipted by your super fund’s bank account by 30th June 2017; and

Pensions - If you are receiving a pension from your super fund, please make sure you take at least the minimum pension amount required by 30 June 2017. Note that if you do not take at least the minimum pension, your super fund will not receive the pension tax exemption and will pay 15% tax rather than 0%. If you are unsure about your pension payment amount for the current year please contact us.

Please note that internet transactions made on Friday 30 June 2017 will most likely not be counted for the current year as the transaction receipt will be dated 1 or 3 July 2017, not 30 June 2017. If you have a self managed super fund and you need to make a contribution or make a pension payment we suggest writing a cheque and giving it to yourselves or LBW to bank it for you. This will satisfy the rules.

If you would like further information on these rules please contact Simon Flowers, Matthew Grapsas or Cathy Walley on 5221 6111.