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Written by: Graeme Colley / 24 September 2021

Superannuation and particular, SMSF in Australia has undergone some major changes in the last 12 months. By the end of 2018, the Australian Government will have rolled out the greatest changes in superannuation in the last 30 years.

SMSF’s account for $676 billion in assets spread over 600,000 funds. The number of SMSF’s is growing on average by 30,000 per year and continue to be a vibrant part of the superannuation sector.

In this article, we will highlight the major changes, however, we recommend that you book an SMSF review ASAP. With any changes, how you are affected will depend on your individual situation. We are SMSF experts and can help you navigate this maze.

Overview of Changes and what can you expect

  • Super is still attractive, but it’s becoming harder to access and save for
  • Estate Planning will become increasingly more relevant
  • Additional non-super retirement planning and investment options
  • Review and renew binding super death benefit nominations
  • More reversionary pensions
  • New powers of attorney
  • Shifting of life insurance

Non-Super Retirement Planning

To date retirement planning was focused on superannuation and how it can be best utilised; however, in light of the recent changes, non-super retirement planning strategies are emerging. This is due to the new lower limit on how much you can contribute to super, while access to your super savings is being pushed back when many want to retire earlier.

Estate Planning

Superannuation has always been an integral part of estate planning. However, planning your estate, especially for business owners, now holds more importance to ensure your investments and retirement is secure.

Additional investments that previously were funnelled into your SMSF require a new strategy. For some, this could be a family trust or insurance bonds, as we are seeing multiple investment structures becoming the new norm.

Super Scheme Smart and SMSF Reporting Changes

Under the Super Scheme Smart project, the ATO is targeting SMSF’s that are using strategies to actively avoid tax by channelling money into their SMSF. Coupled with this, from 1 July 2018 SMSF’s will be required to report quarterly and potentially monthly for all TBC (Total Balance Cap) events. To ensure that reporting requirements are met and no deadline missed, it’s recommended that SMSF’s have automatic data feeds set up with their banks to enable the collection of data.

How the Changes Will Impact You

Without knowing your individual situation, we can’t accurately predict how these changes will affect your retirement and SMSF.  We strongly recommend that you contact us to ensure that you are making the best decisions for you, your family and your superannuation.

Call our office today on 07 5527 1112 or send an email.