Hello again and big news on the Division 296 front with the Government announcing changes to the proposed legislation.
This is a tremendous result for Peter Burgess, SMSF Association CEO, and the team who have diligently campaigned for changes to the proposal, particularly the taxing of unrealised gains and the non-indexation of the $3M threshold, both of which have been dropped from the revised proposal. It seems our article in August regarding Div 296 not passing was on the mark.
Had the Div 296 debate gone the other way, there may not have been an immediate impact on SMSFs. However, over time, without indexation, younger members and trustees could have been affected as their super balances grew through compounding.
While there is still work to do around Div 296, there is a much clearer pathway ahead which will allow us to focus more on investing, our investments and our SMSF portfolios.
So, with this in mind, if investing is a journey, how do you travel that journey?
There are many ways to describe types of investors.
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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.