Samples of Legislative Change

Here is just a sample of legislative changes in the past 10 years that affecting SMSFs and must be sanctioned under the SMSF's trust deed to optimize wealth creation, retirement benefits and succession planning:

• 2014 - Concessional contributions cap increased for some members; Excess concessional contributions tax changes; Trustees permitted to repay some excess contributions; Range of insured benefits restricted.
• 2013 - Eligible members permitted to effectively have some excess concessional contributions refunded; Trustees required to consider insurance for members as part of the fund's investment strategy; Trustees required to keep fund assets separate from other assets; Trustees required to value fund assets at market value; New rules for trustees when disposing of assets to related parties.
• 2012 - Pension standards changed; Minimum payment amounts for account-based and allocated pensions reduced; Investment restrictions re collectables and personal use assets; Tax deduction for terminal medical condition insurance premiums; New rules re the tax deductible portion of premiums for total and permanent disability insurance; Recognition of orders for forfeiture of superannuation benefits; Recognition of appropriate trust deed clauses preventing payments to the fund from giving rise to excess contributions tax; Recognition of appropriate trust deed clauses allowing a member to count a contribution in one year against the contribution cap for the next year and claim a tax deduction in the current year; SGC contributions required for employees aged over 70; Changes to allow the parent or guardian of a child member to act as director of the trustee in place of the child; Changes to allow the fund to remunerate trustees and trustee directors in some cases.
• 2011 - Expanded auditor eligibility; Lost member payment requirements; Updated pension standards; Capital and revenue loss rollovers permitted; Increased restrictions for limited recourse borrowings; Minimum payment amounts for account-based pensions reduced; Transitional relief for deduction of total and permanent disability insurance premiums.
• 2010 - Unclaimed Money payment requirements; Temporary resident benefit restrictions; Lost member and family law reporting requirements; Recognition of de facto relationships.
• 2009 - Anti-discrimination provisions re death benefits; Benefit release for former temporary residents; Super contributions from First Home Saver's Accounts.
• 2008 - Super Fund borrowings permitted; New pension standards; Benefit release on terminal medical condition.
• 2007 - Reasonable benefit limits abolished; Greater benefit flexibility; New pre-tax and post-tax contribution limits; Penalty tax on excess contributions; Account based pensions introduced.
• 2006 - Relaxation of allocated pension, Benefit payment and contribution eligibility.
• 2005 - Contribution splitting between spouses.
• 2004 - Preservation changes: Government co-contributions for low income learners; Contribution eligibility relaxed; Dependant definition expanded; Market-Linked pensions introduced; Defined benefit pensions restricted; Improvements to complying pensions.