From 1 July 2022, the eligibility age for the beneficiary of the downsizer contribution was reduced from age 65 to 60. Now the Government has proposed that the eligibility age for the beneficiary of the downsizer contribution be further reduced from the current age 60 to age 55.
superannuation
Superannuation and testamentary trusts
You may be aware that toward the end of 2021, in a private ruling, the ATO confirmed the tax payable in respect of a gift of superannuation to a member’s estate where that super is to be held in a testamentary discretionary trust.
Questions over adding children to your SMSF
From 1 July 2022, employers will need to pay super for their employees who are under 18 years old if they work more than 30 hours in a week.
Work test changes for superannuation
The Federal Government would like us to work longer. The longer we work the less likely we are to claim our aged pension entitlements and the longer our superannuation will last.
Accidental vesting of an SMSF
In essence a self-managed superannuation fund is a special form of trust and satisfies general trust law as the assets of the fund are held on trust by a trustee to provide retirement or death benefits for its members, with those members being the beneficiaries.
Paying your super to the grandchildren
Clients regularly ask whether when they die, they can give their superannuation to their grandchildren. The short answer is “no”. Superannuation death benefits can only be paid directly from your fund to your estate, your spouse, your children, people with whom you are in an interdependent relationship, or your financial dependents.
What are COVID-19 re-contributions?
COVID-19 re-contributions are superannuation contributions which are a return to the superannuation system of a COVID-19 release amount. They are new personal superannuation contributions which have been identified by you as being COVID-19 re-contributions.
Actuarial certificate requirements burden reduced slightly
The compliance and cost burden for SMSFs which are entirely in retirement phase during a financial year may now be reduced as they will no longer be required to obtain an actuarial certificate to determine their “exempt current pension income”.