Practical Challenges Affecting SMSFs – 5 program video webinar series

available for viewing online by mid October.

THE PROGRAMS

Program 1: Understanding New Contribution Rules - A Strategic Approach

Recent changes from 1^st July 2019 and changes from 1^st July 2020 can impact retirement savings. Understanding their full impact is the subject of this session, including:

• Understanding recent contribution rule changes – an overview

• Catch up pre-tax concessional contributions – the ins and outs

• Operation of the new work test exemption and what is work

• Making voluntary contributions without meeting the work test

• Operation of non-concessional contributions cap bring forward rule

• Increase in age limit for spouse contributions

• Timing of contributions – how has this changed under the new rules?

• Consideration of caps when making contributions

• Downsizer contributions – the what and how of these

• Contribution planning strategies – factors to consider

Program 2: Coronavirus and SMSFs: Keeping Ahead of the Changes

As the economic effects of COVID-19 continue to be felt across the country, the regulatory landscape for SMSFs has also changed. This session examines the impact of COVID-19 measures on your clients and the tips and traps you need to consider. It covers:

• $10k early access

• Minimum pension changes

• Related party rent adjustments, be them discounts, deferrals, or rent holidays – are they reasonable, and fair?

• Related party LRBA terms being modified to allow the fund to reduce repayments – are they reasonable and fair?

• Will they still permit the fund to remain in the safe harbour or not?

• Market volatility, decreased value of assets and the investment strategy

• Impact on in-house asset levels

• LRBAs – loan repayment deferrals

• The ATO’s position

Program 3: Exempt Current Pension Income - Trips and Traps to Watch

A number of compliance issues arise in the calculation and tax treatment of exempt current pension income. This session looks at the key issues, including:

• What are the elements of ECPI?

• The importance of valuing SMSF assets at market value

• Methods of calculating ECPI

• Do you need an actuarial certificate when calculating ECPI?

• Dealing with tax losses

• Treatment of expenses when fund has ECPI

• What happens with capital gains and losses?

• Exclusion of non-arm’s length income and assessable contributions

• Completing the ECPI annual return

• Claiming ECPI when pensioner dies

• Case studies – segregated and unsegregated assets

Program 4: Death Benefits: BDBNs or Retain Trustee Discretion?

The choice between trustee discretion and a death benefit nomination requires careful consideration. There are many factors to consider, not least of which are complex estate planning matters. This session looks at key issues, including:

• Understanding limitations of BDBNs – pros and cons explained

• Is removing trustee discretion the right thing to do? – benefits of retaining discretion

• Can an enduring power of attorney make a BDBN?

• Can a BDBN override a reversionary pension arrangement?

• Can you get payments made under a BDBN back?

• Risks with incorrectly completed BDBNs

• Issues arising on marriage breakdown – the importance of planning

• Are estate planning considerations key to retaining trustee discretion?

• Exercising trustee discretion in good faith – a vital requirement

• Case update

Program 5: Managing an SMSF with the Auditor in Mind

In a post-Baumgartner landscape, all SMSFs should be managed with the auditor in mind. This practical session examines how the playing field has changed since Baumgartner, and what advisers should be doing now to ensure your funds pass the muster. It covers:

• Managing an SMSF with the auditor in mind – an overview

• Have the trustees done everything they need to do throughout the year?

• Ensuring all minutes are in place

• Demonstrating consideration of investment strategy

• Problem areas and hot spots from an auditor’s perspective