Suite 8 / 260 Auburn Road, Hawthorn 3122
Phone: 03 9214 4100
Fax: 03 9818 6008
enquiries@trumpetfinancial.com.au
 
 
eWombat Search
  LATEST FINANCIAL NEWS
 
Hot Issues
SMSFs: Our 'hardest' jobs
ASIC issues alert over big gaps in SMSF trustee knowledge
Super savings gap for women stuck at 30%
Statistics for all Australians
Super set to play bigger retirement role
Why SMSFs want estate-planning advice
The power of financial role models
Assess your retirement financial resources
Cryptocurrency audits tipped to increase this EOFY
Time to check your risk exposure?
Some general interest stats on SMSFs
Check trust deed to protect super in estate planning
Survey reveals strong opposition to retirement system changes
Australia by numbers – Update
Federal Budget 2018 – Overview
Your Budget
4 components of our 2018 Federal Budget
Tools to help you manage your financial position are available on our site.
New rules capture SMSFs trading big with cryptocurrency
Common EOFY slip-ups flagged for SMSFs
Beware residency rules if moving overseas
99 pct of SMSFs missing global opportunities
How to plan for a better retirement
Australia by numbers - Update
Determine your retirement goals
ATO issues update on cryptocurrency compliance traps
How likely is a global trade war?
Articles archive
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Downsizing requires holistic tax planning

For many it's more than just issues to do with Superannuation.



       


 


Advisers and their SMSF clients need to be mindful of some of the wider tax planning implications of the federal government’s downsizing measure, according to a specialist industry lawyer.


DBA Lawyers director Daniel Butler said the measure will require advisers to consider tax planning measures outside of superannuation, including the impact of the potential loss of franking credits. 


In addition, Butler revealed he had noticed a reduction in clients opting for structures outside of super.


“Everything went into super because that was where everything was destined to go and was more efficient,” he said at the law firm’s recent SMSF Strategy Seminar in Sydney.


“But now with all these caps, we’ll be back to some of the old planning. 


“Clients again will have that family trust or they’ll have the corporate beneficiary, and there’s more tax advice to that.”


He again reminded advisers the major downside to contributing the proceeds of the downsizing measure to super would be the impact on members’ Centrelink entitlements, mainly the age pension.


Regardless of the value of the member’s family home, it remains outside of the assets test, he warned.


“Once you attain pension age, super is assets tested and has the deemed rate of return. So it [the downsizing measure] really isn’t that wise for some people because they’re going to burn their Centrelink entitlement,” he said.


“But for people who have never had the opportunity of getting Centrelink, it’s one of those opportunities you may want to think about.”


The measure presented an opportunity for clients with low superannuation balances to boost their super by selling the family home, however, the initiative may not be permanent as Butler believes Labor does not support it and will likely scrap it if it wins the next election.


 


 



By Malavika Santhebennur
​22 March 2018
www.smsmagazine.com.au




7th-April-2018
Trumpet Financial Pty Ltd ABN 11 443 516 384 Corporate Authorised Representative (No 327756) of Aon Hewitt Financial Advice Limited AFSL 239183 ABN 13 091 225 642
Registered Address: Level 33  201 Kent Street, Sydney NSW 2000 | Sitemap | Disclaimer | Privacy Policy | About Aon Hewitt Positioning