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iCare Super
Self Managed Super Fund Administrator
Self Managed Super Fund Administrator


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Certain arrangements to acquire property by SMSF contravene super law

ATO has recently issued Taxypayer Alert TA 2012/7 that describes certain arrangements entered into by self-managed super funds (SMSFs) to acquire property which do not comply with super law.
SMSF trustees and advisers need to exercise care when investing in property. It is important to ensure any arrangements entered into by an SMSF to invest in property are properly implemented, particularly those involving limited recourse borrowing arrangements (LRBA) or the use of a related unit trust.
Property investments using LRBA
Subject to limited exceptions, trustees of SMSFs are prohibited from borrowing money. An SMSF is not prohibited from borrowing money, or maintaining a borrowing of money, providing the arrangement entered into satisfies the conditions contained in the superannuation laws. Different conditions apply for arrangements entered between 25 September 2007 and 6 July 2010 inclusive and arrangements entered into on or after 7 July 2010. Some of the requirements of this exception are that the investment is made through a holding trust and not held directly by the SMSF trustee; and the investment is in a single acquirable asset. These arrangements are commonly referred to as LRBA.
Property investments using related unit trust
Subject to limited exceptions, the trustee or investment manager of an SMSF is prohibited from intentionally acquiring assets from a related party. One exception is where the asset is an investment in or loan to a related party, commonly referred to as an ‘in-house asset’. However the total market value of the SMSF’s in-house assets must not at any time exceed 5% of the total market value of the fund’s assets. Where in-house assets for an SMSF exceed the 5% limit, the trustee needs to rectify the breach, usually within 12 months.
An SMSF’s investment in a related unit trust is excluded from the definition of an in-house asset where the unit trust complies with the regulatory requirements contained in Div 13.3A of the Superannuation Industry (Supervision) Regulations 1994 (SISR). Therefore, such investments are excluded from the calculation of the 5% limit. Furthermore, the general prohibition on SMSFs acquiring assets from a related party does not apply where the SMSF’s investment is in a unit trust which complies with those requirements.
Contravention of these conditions may result in the SMSF becoming a non-complying superannuation fund for tax purposes.
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If you are a former temporary resident, you can claim the super benefits you accumulated while working in Australia. To claim the Departing Australia Superannuation Payment (DASP) you must have visited on an eligible temporary resident visa (which has expired or been cancelled), and permanently departed Australia.
You can apply online, at no cost, 24 hours a day, seven days a week. Applications take approximately 30 minutes to complete.
In most cases, payments will be subject to a withholding tax.
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The latest self-managed superannuation funds (SMSFs) statistical report is updated to December 2011. It includes the  information on the SMSF population, asset allocation and quarterly establishment rates.

-In December 2011, there were 458,561 SMSFs in Australia.

-On average, there are about 30,000 new SMSF established every year – 80 new SMSFs set up every day!

-The largest number of new SMSFs were established in New South Wales ( about 34%) and Victoria (about 31%).

- Most members of SMSF aged from 45 to 64 (about 60%)

- 50% of SMSFs have total assets from $200k to $1m. Interestingly there are more 12% of SMSFs with assets less than 100k
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Roll over a Term Allocated Pension (TAP) from industry fund to a SMSF

It is very important to examine when the Term Allocated Pension commenced because the Asset- test exemption (ATE) may apply.
-         Term Allocated Pension (TAP) purchased prior to 20 September 2004 are eligible for a 100% asset test exemption
-         TAP purchased from 20 September 2004 to 19 September 2007 are eligible for a 50% asset test exemption.
-         TAP purchased from 20 September 2007 will not receive an asset test exemption.
Our procedure will be the following:
- Set up a SMSF for you - free set up with individual trustees.
- Ensure the trust deed for your SMSF allows a TAP to be commenced.
- Assist you complete a withdrawal form with the existing super provider requesting a rollover.
- Rollover completed after the existing super provider sends a cheque and the rollover paperwork to iCare Super.
- iCare Super prepare  documents for you to commence/establish a new pension that meets the terms of an AET TAP
- iCare Super prepare  a Centrelink Schedule and provide this to you. You inform Centrelink that they have rolled out of your existing AET TAP and providing Centrelink with the schedule you put together.
- Centrelink then delete the old pension from their system and load  up the new pension, making sure that it has the same AET.
Should you have more questions, contact iCare Super today.
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Refund of Excess Contributions for SMSFs

As announced in the 2011/2012 Federal Budget, the Government proposed to introduce a one-off reprieve for taxpayers who exceed their concessional contribution cap.This reprieve will be in the form of the taxpayer requesting a refund of up to $10,000 of an excess concessional contribution, whereby the amount refunded would be taxed at their marginal tax rate.
Applies to contributions made from 1 July 2011;
- Available where excess concessional contributions are $10,000 or less for the year;
- Available only in the first year the individual has excess concessional contributions of $10,000 or less;
-  In eligible year, taxpayer will have the option of receiving refund of excess amount or have excess contributions in the normal way;
If taxpayer elects to receive a refund:
-  Amount refunded will be included in taxpayer’s assessable income and taxed at
marginal tax rate – the ATO will amend the taxpayer’s personal tax return;
- Super fund will be required to refund 85% of the amount directly to the ATO (85%
takes into consideration the contributions tax);
- ATO will then refund to the taxpayer, after deducting the personal tax payable. The
15% contributions tax is taken into consideration with respect to the amount of tax
payable by the individual and the refund due;
- If the taxpayer does not elect to use the provision, they will be unable to use it in any future years;
- If the taxpayer has any unused $10,000, the amount does not carry forward to future years;
If the taxpayer’s excess is greater than $10,000:
- They are ineligible to utilise the refund in that year (even up to $10,000);
- They will be ineligible for the refund in any future years;
- The taxpayer is unable to elect to receive a refund of part of the excess contributions – all or nothing;
- Taxpayer must lodge their income tax return within 12 months from the end of the relevant financial year of the contribution to be eligible (or such longer period as the Commissioner allows).
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Condition of release – the cessation of an employment arrangement for a SMSF member aged 60 to 64!

Where a member of SMSF, aged 60 to 64, is in two or more employment arrangements at the same time, the cessation of one of the employment arrangements is the condition of release in respect of all preserved superannuation benefits accumulated up until that time.
The occurrence of the condition of release in these circumstances will not enable the cashing of any preserved or restricted non-preserved superannuationbenefits which accrue AFTER the condition of release has occurred. A member will not be able to cash those benefits until a fresh condition of release occurs.
If a member aged 60 to 64 commences a new employment arrangement after satisfying a condition of release, such as retirement from a previous employment arrangement at or after age 60, benefits in respect of the new employment will remain preserved until a further condition of release is satisfied.
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SMSF Free set up and low fixed monthly administration fee by  iCare Super
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Launch of the iCare Super Google+ Page!
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