There is no time to waste! In fact, Morrows Private Wealth is calling on you to consider the following matters of importance for any Self-Managed Superannuation Fund (SMSF):
- Needing to upgrade your SMSF’s deed in light of recent legislative amendments announced in the 2016 Budget;
- Ensuring any instructions made by you with regard to how your death benefits held within your SMSF are to be paid is compliant with recent case law; and
- The importance of having a corporate trustee.
There are wide-ranging changes to superannuation rules which recently became law and largely take effect from 1 July 2017, including:
- Introducing a cap of $1.6 million on the total amount that can be transferred into ‘retirement phase’ accounts, such as account-based pensions;
- Reducing the before-tax (concessional) contributions cap to $25,000 per year regardless of age; and
- Reducing the after-tax (non-concessional) contributions cap to $100,000 per year for those with superannuation balances below $1.6 million, with a 3 year bring forward rule available for individuals under age 65.
Morrows Private Wealth has the view that a failure to vary the Trust Deed to take account of these legislative changes has the potential to adversely impact a member’s superannuation benefits. Also, that it is essential that your SMSF’s deed is upgraded if you want your SMSF to be able to take advantage of the latest strategies that have been developed following the recent changes.
Experts also agree that in addition to the new rules, there are reasons to update now, including recent innovations in SMSF trust deed drafting, cases on binding nominations and conflicts of interest as well as substantial guidance from the ATO on a range of superannuation issues.
To find a better way forward, contact our MPW team today