SMSF News

If you are considering expanding your fund, you will need to consider things such as what your fund’s trust deed allows, the structure of your fund and its reporting requirements.

Some State and Territory laws restrict the number of trustees a trust can have. Because an SMSF is a type of trust, your fund may be impacted by these restrictions. To avoid this issue, you can set up your SMSF with a corporate trustee and each member as a Director of the corporate trustee.

It is important to seek professional advice and check State or Territory law restrictions before registering or expanding your fund.

The Australian Taxation Office (ATO) are currently implementing the necessary system changes to enable SMSFs to add members five and six to their fund through the Australian Business Register (ABR). They recommend you wait until the ABR is updated before you register or update your fund with more than four members.

If this is not possible, an interim solution will be available from 1 July 2021 and can be used to add a fifth or sixth member.

MINIMUM SUPERANNUATION DRAWDOWN RATES

The Government has announced an extension of the temporary reduction in superannuation minimum drawdown rates for a further year until 30 June 2022.

As part of the response to the coronavirus pandemic, the Government responded immediately and reduced the superannuation minimum drawdown rates by 50 per cent for the 2019-2020 and 2020-2021 income years, ending on 30 June 2021.

The announcement extends that reduction to the 2021-2022 income year and continues to make life easier for retirees by giving them more flexibility and choice in their retirement.

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are still having a negative effect on the account balance of their superannuation pension.