All SMSF trustees need to continually keep up with changes to all relevant legislation and regulations that may effect their self managed super fund. Any SMSF Deed older than five years should be reviewed at a minimum.
Furthermore there have been recent developments in the last 12 months that you may need to consider when reviewing your SMSF Deed.
To help you decide whether your Deed (SMSF) should be updated, please review the table below:
|
Effective Date |
Item |
Implication |
| 1 July 2014 | Concessional contribution | For those aged 49 or more on 30 June 2014 Concessional contribution has been increased. |
| 1 July 2014 | Insurance cover | A valid condition of release must be satisfied for insured benefits to be paid. |
| 25 July 2013 | TR 2013/5 | ATO ruling TR/2011/D3 confirms a pension ceases on death (unless the pension is automatically reversionary) or if the minimum payment is not made in respect of a financial year. |
| 1 July 2013 | Concessional contribution cap | For those aged 59 or more on 30 June 2013. Concessional contribution cap is increased. |
| 1 July 2013 | Excess contributions tax | Taxed at a member’s marginal tax rate with a 15% offset provided. The limited system introduced on 1 July 2011 phased out. The member can request the fund release money to pay this tax. |
| 1 July 2013 | Investment strategy requires regular review | Trustees must undertake at least an annual review of their investment strategies and consider whether insurance in respect of their members should be effected. |
| 29 June 2013 | Extensions of pension following death | New tax regulations extend the pension exemption on death where a member dies with a pension but that pension is not automatically reversionary. The pension exemption can continue until death benefit has been paid out provided it is done so as soon as practicable. |
| 1 July 2012 | 15% surcharge | A new 15% tax imposed on certain concessional contributions for members with earnings exceeding $300,000 pa. The member can request the fund release money to pay this tax. |
| 21 March 2012 | SMSF trustee remuneration | Remuneration special rules recognise certain non trustee duties. |
| 1 July 2011 | Excess contributions tax | Concessional contributions refunds permitted for excess contributions below $10,000 for the first time offenders. |
| 1 July 2011 | TPD Insurance | Premiums only deductible for any occupation total and permanent disability insurance. Any additional amount for ‘own occupation’ is not deductible. |
| 1 May 2011 | TR 2011/D3 | ATO draft ruling on when a pension ceases. ATO consider a pension ceases on death unless the pension is automatically reversionary or if the minimum payment is not made in respect of a financial year. |
| 7 July 2010 | Permissible borrowing arrangements updated | Permissible borrowing arrangements are amended again, to address perceived shortcomings in the September 2007 provisions. Changes include the ability to refinance and acquire certain replacement assets. |
| 24 September 2007 | Permissible borrowing arrangements updated | Permissible borrowing arrangements are amended to allow funds to borrow on a limited recourse basis to acquire permitted assets (i.e., via instalment warrant-type arrangements). |
| 1 July 2007 | Terminal Medical Condition benefits | Legislation and regulations enacted in early 2008 to allow persons with a ‘Terminal Medical Condition’ to access their super as a lump sum tax-free. |
| 1 July 2007 | Substantial super reforms | Superannuation system major reforms proposed to take effect. |
| 1 July 2007 | New income streams | New account-based income stream (pension) and new transition to retirement income stream. |
| 10 May 2006 | Compulsory cashing abolished | Compulsory cashing rules are abolished, allowing members to accumulate indefinitely during their lifetime. |
| 10 May 2006 | Undeducted contributions | Undeducted contributions cap applies from 10 May 2006 to 30 June 2007 of $1 million and generally $150,000 p.a. thereafter. |
| 1 January 2006 | Contributions splitting | Members can split contributions received after December 2005 with their spouse. Only 85% of deductible contributions can be split. |
| 1 January 2006 | Allocated pension changes | New, longer life expectancy pension valuation factors (‘PVF’) apply to pensions commenced after December 2005. Pensions commenced prior to January 2006 continue to use the old PVF5. |
| 1 January 2006 | Market linked pension changes | The term of a pension commenced after December 2005 includes the option of the member’s 100th birthday less their age at commencement of the pension, e.g., if member is 65 they can choose a term of 35 years. The member may also choose the pension to be paid to the spouse’s100th anniversary. |
| 31 December 2005 | DBPs transitional relied ceased | SMSFs can no longer commence DBPs. From 12 May 2004 to 31 December 2005, SMSFs were required to satisfy certain criteria before a DBP could commence. |
| 1 July 2005 | Non – commutable pensions introduced | Members can now access a non-commutable allocated or market-linked pension on attaining preservation age. Older deeds may need to be amended to ensure eligible members can access these pensions. |
| September 2004 | Market linked pensions | This new type of pension was introduced with unique features. |
| Mid – 2004 | Gainful employment rules eased | Persons under 65 do not need to satisfy the gainful employment test. |
| Mid – 2004 | Changes in the rules relating to when benefits paid | New test for when a benefit must be paid or commenced. Certain deeds needed updating to ensure compliance. |
| 12 May 2004 | Restrictions placed upon DBPs | Members of SMSFs now cannot be paid DBPs unless certain transitional rules are satisfied. |
| October 2003 | Pro-rating rules for pension | Pensions commencing after September 2003 have new minimum pro-rating rules. |
| Mid-2003 | PDSs introduced | Upon certain events, a PDS might have to now be issued to members. |
| 1 July 2003 | Governments co-contributions introduced | Government co-contributions made to the fund. Many deeds only contemplated employer and member contributions. |
| 1 July 2002 | Greater flexibility with regards to contributions and compulsory cashing introduced. | Certain deeds needed updating to ensure compliance and to ensure internal roll-over provisions could be utilised. |
| Mid-2001 | Internal roll-overs of super pensions now treated as ETPs and taken into account to RBL purposes | Certain deeds needed updating to ensure compliance and to ensure internal roll-over provisions could be utilised. |
| Mid – 2000 | ATO replaced APRA as the regulator of SMSFs | Certain deeds needed updating to ensure compliance. |
| 8 October 1999 | Section 17A introduced, which includes the member/trustee rules | The member/trustee structure of all SMSFs needed to be reviewed in order to ensure that s 17A was not being breached — some deeds required updating in order to ensure compliance. |
| 31 May 1999 | BDBNs introduced | Previously, SMSF trustees had a discretionary power as to whether and to whom to pay a member’s benefit upon death — all deeds needed to be updated to allow members to now make BDBNs to bind the trustee to pay their benefit to nominated person(s). |
To obtain an instruction sheet to update your SMSF Deed please click here.
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