In our last issue, we considered some of the changes that will take effect in the 2024-25 FY (contribution caps) as well as what will remain unchanged (amounts that can be held in tax-free portion of our super balances). We also touched on the proposed Div 296 legislation that seeks to add an additional tax of 15% to balances over $3 million.
I recently attended the SMSF Association’s Technical Summit in Sydney where approximately 250 SMSF professionals attended in-person with a further 100 or so joining the two-day conference virtually, online live from around Australia. Div 296 was a hot topic.
While, for many SMSF members and trustees, the idea of having a problem with a potential 15% additional tax on super balances over $3 million may not be a consideration, there may be real impacts for more than expected if the legislation were to be introduced as proposed.
Here are some of the points I picked up on from the Summit discussions on Div 296.
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Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.
Ian Irvine - Guest Contributor
Ian has been a keen investor for over 40 years and can draw on his experiences from both investing on his own behalf and also having worked in financial services for more than 30 years. Over this time, he has seen many changes that impact investors’ attitudes to in what and how they invest.
He started his career in what is now referred to as fast moving consumer goods (FMCG) or grocery, working for an Australian margarine manufacturer. In 1986, he was recruited to Westpac around the time of deregulation of the sector, where he spent 10 years before taking a role at AMP and then with ASX for 14 years up to the end of 2017. He continues to be involved with ASX; working on their educational programs.
In 1996, he and his wife established their own SMSF and again the experience and lessons learned regarding managing an SMSF over the years have provided him with many insights and ideas. He enjoys sharing these with others where these are helpful and always suggest that if an investor or SMSF trustee is unsure, that they should seek appropriate advice from a licenced professional.
Ian holds a B. Com (UNSW), and lives in Sydney and enjoys travelling to and meeting investors and SMSF trustee at the educational events with which he has involvement with from time to time.