SMSFs

The federal government is seeking feedback on proposed changes to rules aimed at preventing non-arm’s-length transactions by superannuation funds, in a bid to address concern that SMSFs and smaller funds that breach the provisions could be disproportionately penalised.

Litigation involving estate planning and superannuation is ramping up, with major impacts on self-managed super funds, and in particular trustee obligations. Cooper Grace Ward partner Hayley Mitchell discusses key case law SMSF trustees should be sure to know about.

The regulator’s recent removal of a controversial $500,000 minimum-balance guidance for self-managed superannuation funds provides an opportunity to re-engage with lower-balance funds that have been steered away from SMSFs, the SMSF Association says.

Higher rates and the cost of living, on top of global events, have contributed to increased Fear Of Running Out across the country. Yet the level of concern may be relatively unfounded, AMP reports.

Borrowing to invest in property within an SMSF vehicle has merit, which is why so many people have done it. But there are risks in placing such a lumpy asset in a restrictive environment that all investors should be aware of.

By holding ground in areas such as quality of life, material well-being, finances and health while other countries fell back, Australia moved up two spots to 5th on the latest Natixis Global Retirement Index.

There are a range of factors that will determine the fees a member will pay. The difference could have a dramatic effect on the final balance of a retiree’s nest egg.

In 2016 the number of SMSFs with at least 90 per cent of assets in a single investment class was 30.7 per cent. In the latest annual release that number has improved only marginally to 27.7 per cent.

The establishment of SMSFs is increasing at a record pace, but the growth is coming from a whole new area.

The review will consider “the consequences of time lags between regulatory action and cost allocation”, the terms of reference states.

Super fund members have been “spared the worst,” while the outperformance of the top ten funds was generated by active management and chunky allocations to private markets.

The term “hold on for dear life” came to explain the events of 2020 and 2021, as did “buy the dip.” For those beginning investing for the first time, their experience couldn’t have been more positive. Every fall in the market was followed by another rally, and the prevailing view was that markets always go up if your holding period is long enough.