Pension Drawdown Relief for Retirees

Treasurer Wayne Swan and Senator Nick Sherry, Minister for Superannuation and Corporate Law, announced relief from minimum account-based pension draw down requirements.

The measure responds to concerns that meeting the minimum draw down amount in 2008/09 will mean having to sell investments assets and realise losses in a depressed market.

"The Government recognises that the significant downturn in global financial markets has had a negative effect on retirees' superannuation capital in account-based pensions," the Treasurer said.

"In response to these legitimate concerns, the Government will suspend the minimum drawdown requirement for account-based pensions for the second half of 2008-09," Minister Sherry said.

"This will occur through a 50 per cent reduction in the minimum payment amount for 2008/09," Minister Sherry said.

The temporary relief also addresses the concern that the minimum draw down requirement was set based on asset values as at 1 July 2008, when equity values were higher.

For those people who have already taken half of the current minimum payment for 2008-09, the annual nature of the minimum payment rules means that a further payment will not be required until the end of the 2009-10 year.

"The Government will continue to closely monitor market conditions and examine options for a longer term solution to this issue following the Australia's Future Tax System Review," the Treasurer said.

Currently, it is a requirement that minimum payments be made from a superannuation account-based pension at least annually. Minimum payments are determined by age and the value of the account balance as at 1 July each year. The minimum annual payment rule is designed so that retirees draw down on their superannuation capital over their retirement. This rule recognises that superannuation is designed as a retirement savings vehicle with substantial tax concessions.

The temporary suspension of the minimum payment requirement will apply to account based annuities and pensions (payable since 1 July, 2007); allocated annuities and pensions (pre-dating the Better Super changes); account-based and allocated pensions payable from Retirement Savings Accounts, and market-linked (term allocated) annuities and pensions.

Source article: here
CANBERRA
18 February, 2009

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New Service Functionality

Your Portfolio Online recently completed its testing for multicurrency asset portfolio management. This functionality will be rolled out and available for clients as off April 2009.

A surcharge will apply to have assets managed using this service and you run a Non-AUD Bank account. If you simply buy or sell foreign assets and settle in Australian Dollars via your local bank and your income is being credited directly to your nominated Australia Bank account, no further charges will apply.

Our website will be updated shortly with this surcharge and all those clients affected will be notified.

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Your Portfolio Online & Desktop Tutorial

Many of you use our online portal via Your Portfolio Online to monitor and manage your portfolios. Even though the navigation of this system is fairly simple, we recognise that it can be a challenge for some. Shortly we will be releasing a training video that can be streamed and viewed online.

The video will be very similar to the present Desktop promo. CLICK HERE.

Many users have also downloaded and are using the FREE desktop application. Remember all Your Super Admin clients get access to this application free of charge. Please contact our office for details on how to download this software. Contact Us.

To help users get the most out of this system as well we expect the release of an on-line manual which will assist in understanding what the software does and what the data means. The way it will work is that it will be inside the application and will give the option of doing word searches and will give definitions of the particular query. This is due to be released early March.

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Super Reporting and Lodgement Dates

February 28th

• Income tax return for non-taxable large/medium business super funds as per latest year lodged.
• Income tax return for new registrant (taxable and non-taxable) self-managed super funds (SMSFs) (SMSF annual return). Payment (if required) is also due on this date.
• Income tax return for new registrant large/medium business super funds. Payment (if required) is also due on this date.
• Superannuation guarantee charge statement – quarterly for quarter 2, (1 Oct – 31 Dec) 2008–09
• If required contributions were not made by the due date. The super guarantee charge is not tax deductible.
• Income tax return lodgement and payment due date for self-preparing entities which were not due at an earlier date.

March 31st

• Income tax return for super funds with total income in excess of $2 million in latest year lodged
• Excluding large/medium business taxpayers. Payment (if required) is also due on this date.

May 15th

• Income tax return or SMSF annual return
• Due date for all super funds and tax agents clients not allocated to other categories (refer to 31 Oct, 15 Jan, 28 Feb, 31 Mar).
• Fund income tax return not required earlier and not eligible for the 5 June lodgement concession date.
• Payment (if required) is also due on this date.
• Super contributions surcharge and termination payments surcharge assessments issued.

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SMSF loans – What do I need to do?

It’s been 12 months since we first informed you about the enactment of law allowing borrowing within a SMSF under very specific and strict rules.

Please see this article for further reading.

Due to increased enquiries in this area we thought it would be timely to reiterate some of the key points again. In summary, borrowing it must comply with the requirements of the SIS Act (s67 (4A));

• You are allowed to borrow as long as you meet the following conditions:
• You have a right but not an obligation to purchase an asset under an instalment warrant by paying instalments.
• If you default on a loan payment or decide to walk away from the loan, the lender can only recover an outstanding amount via that particular asset (or any replacement). For example, they might repossess or dispose of the asset. The lender can not recover money through the fund’s other assets.
• The fund would normally be able to invest in the asset (or any replacement). Existing investment restrictions, such as those on in-house assets and acquiring certain assets from a related party of the fund still apply.

We will be releasing a new page on our website discussing this product and the rules that apply in more detail over the coming months. We have also recently engaged a referral partner to cater for our clients requests. A direct enquiry link will be available on this page along with the ability to submit the required data.

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What info do I need to supply for SMSF Loan?

To get a firm idea of what you can borrow for a Self Managed Super Fund Loan you will need the following;

• Actual purchase price?
• Postcode of proposed property?
• Rental income of proposed property?
• Expected depreciation of proposed property?
• Expected employer contributions pa to your fund?
• Expected employee contributions pa to your fund?
• 2 years financials for company/entities, individual & SMSF (if a new SMSF we need evidence of prior contributions to Superannuation) Much of this can be provide by Your Super Admin
• Brief on proposed purchase, preferably copy of contract with rental estimates/ledgers etc

It can take longer to get SMSF Loans approved so please take that into consideration in your negotiations.

If you have any queries relating to this product immediately please refer all enquiries to our office. CONTACT US.

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For further information contact Your Super Admin Pty Ltd

Copyright © 2007 Your Super Admin Pty Ltd

Disclaimer: The material contained in this publication is in the nature of general comment and information only and neither purports nor is intended to be advice on any particular matter. Readers should not act or rely upon any matter or information contained in or implied by this publication without taking appropriate professional advice.