Self Managed Super Fund deed – fully updated for the 2017 Budget
Our Self Managed Super Fund deed complies with the 15 main changes to SMSF Deeds. This is under the 2017 Budget:
1. Internally ‘rollback’ pensions to accumulation
2. Segregate assets between accumulation and pension phases
3. Reject contributions
4. Refund contributions;
5. Deal with excess transfer balance tax and excess non-concessional contributions
6. Allow income streams and Account Based Pension (grandfathered)
7. Specify guardians for incapacity and death
8. Identify the Power of Attorney when living overseas for more than 2 years
9. Resettle pensions with flexible timing without mingling with accumulation account
10. Allow reversionary beneficiary nominations
11. Provide for CGT relief
12. Deal with segregated and unsegregated assets
13. Cease or keep Transition to Retirement Income Streams
14. Calculate member balances, across different funds
15. Calculate internal pension rollbacks to accumulation
These are all required to give maximum flexibility to your accountant and adviser.
What is a Self Managed Super Fund deed?
A Self Managed Super Fund Deed holds your retirement money. This is called superannuation. The SMSF gives you greater control.
The Australian government provides generous tax concessions from operating a ‘compliant’ self-managed superannuation fund. You comply if:
- your fund has a maximum of 4 members. You can have 1, 2, 3 or 4 members.
- each member is a trustee. Each trustee is a member.
- Instead of having all the members, as trustees, you can have a company. This is called a corporate trustee. Each member must be a director of the company. Only members can be directors.
- You can not have someone you employ as a member with you. This is unless they are related to you.
- The trustee is a volunteer. You can’t take fees for performing the job of trustee.
- All members and trustees should be Australian residents, otherwise, you face complexity.
Complies with new TRIS rules
The treatment of transition to retirement income streams and limited recourse borrowing arrangements passed on 15 June 2017: Treasury Laws Amendment (Fair & Sustainable Superannuation) Bill 2016. The 2016 Budget affects those with a TRIS or about to enter into an LRBA.
The 2016 Budget affect all TRISs from 1 July 2017. This is because the TRIS is no longer able to benefit from the exempt current pension income status. This is on the earnings supporting a TRIS.
If a pension started as a TRIS, the ECPI exemption never applies. This is even where the pensioner subsequently satisfied a condition of release with no cashing restrictions.
Our Self Managed Super Fund deed fully complies with the new rules.
Self Managed Super Fund complies with the latest Auditing Standards
Self-Managed Super Funds are audited every financial year. The auditor relies on Auditing and Assurance Standards Board’s (AUASB) Standards.
The new Standard identifies, clarifies and summarises the existing responsibilities which approved self-managed superannuation fund (SMSF) auditors use when conducting SMSF audit engagements. It also provides guidance to the auditor on matters which the auditor considers when planning, conducting and reporting on the financial and compliance engagement of an SMSF audit.
The 106-page standard is called the Guidance Statement GS 009 Auditing Self-Managed Superannuation Funds (GS 009).
The appendices to GS 009 includes an example engagement and representation letter, illustrative trust deed checklists and financial audit procedures, and illustrative examples of threats to the auditor’s independence.
Legal Consolidated’s Self-Managed Superannuation Deed is updated to fully comply with the Standard. Because you are building your SMSF at our website you also receive a signed letter on our law firm’s letterhead to confirm compliance with the Standard.
To update your SMSF Deed see here.
Because we are a law firm, you also retain Legal Professional Privilege, a law firm’s PI insurance and legal advice.
Telephone us as you build the SMSF. We can help you answer the questions.
Adjunct Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
National taxation and superannuation law firm
Mobile: 0477 796 959
Direct: 08 6389 0400
National: 1800 141 612