Legislative Changes for Personal Super Contributions

---

There have been a number of important legislative changes regarding personal super contributions that have come into effect from July 1^st, 2017. As an advisor or administrator, keeping up to date with these changes allows you to provide the best services possible to your clients and ensure they are getting the most from their self-managed funds.

Claiming ECPI

---

ECPI Changes

As per the ATO website “From 1 July 2017, funds won't be able to claim ECPI for the earnings from assets supporting a Transition to Retirement Income Stream (TRIS). These earnings will be taxed at 15%. This will apply to all TRIS regardless of the date the TRIS commenced.

You can claim the tax exemption in your SMSF annual return once your SMSF begins paying 'super income stream benefits' (commonly referred to as pensions). However, your SMSF is not automatically entitled to the exemption. To claim the exemption in the SMSF annual return, there are steps you must take prior to starting payment of the super income stream benefit, such as ensuring all the SMSF’s assets are re-valued to their current market value.”

CGT Relief - Latest News

---

The purpose of the CGT relief provisions is to provide SMSF’s temporary relief from some capital gains that can arise simply by complying with the transfer balance cap, or the TRIS reforms. It allows trustees of SMSF’s to reset an asset’s cost base to its market value prior to the 1^st July 2017.

Advisors are also encouraged to review SMSF’s that were in pension made during the 2017 financial year, especially self managed funds worth more than $1.6 million in super, but keep in mind, some funds with member balances below $1.6 million may also be entitled to CGT relief.

The Five SMSF Property Borrowing Risks

---

It’s likely that some of your clients are looking to borrow through their SMSF in order to purchase an investment property. It’s a fantastic option for some people who simply don’t have the means to purchase an investment property any other way but there are also risks involved in doing so. Financial planners and accountants should always guide clients and help ensure the decision is right for them, based on their individual circumstances.