A FREE
QUARTER IV | ISSUE 048 | THE PREMIER SELF-MANAGED SUPER MAGAZINE
PASS THE LEGACY PENSION AMNESTY
FEATURE
STRATEGY
COMPLIANCE
STRATEGY
Legacy pensions A way out
Risk cover Death benefit implications
Property holdings Legal considerations
Withdrawals All key factors
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SMSF PROFESSIONALS DAY 2025 SMSF Professionals Day 2025 is back for another year. Join us for a comprehensive day of superannuation insights and strategies to build, preserve, and access your retirement wealth. We’ll kick off with an update on the latest superannuation changes, including any super related implications from the Federal election and any announcements out of a Federal Budget. Our expert-led sessions will delve into maximising tax concessions, optimising contributions within the rules, and accessing your super to make the most of your retirement savings. The day concludes with an engaging Q&A session.
Sydney: Thursday 22 May Melbourne: Tuesday 27 May
Brisbane: Thursday 29 May Online: Tuesday 3 June
“The SMSF Professionals Day is always my favourite event in the year. ”
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COLUMNS
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PASS THE LEGACY PENSION AMNESTY
Investing | 20 Markets forecast post US election.
Investing | 24 Infrastructure tailwinds.
Strategy | 28 Death benefit implications of insurance.
Compliance | 32 Factors involved with property holdings.
Strategy | 36 The larger picture for drawdowns.
Compliance | 40 Tax implications of carried-forward concessional caps.
Strategy | 44 New dimensions of having multiple pensions.
Compliance | 47 Preparing for the Division 296 tax.
Strategy | 50 Ensuring death benefits are distributed properly.
Strategy | 54 The benefits of having a successor director.
Strategy | 58 Issues to consider when planning for the future.
REGULARS
A FREE PASS THE AMNESTY FOR LEGACY PENSIONS Cover story | 12
What’s on | 3 News | 4 News in brief | 5 SMSFA | 6 CPA | 7 IFPA | 8 CAANZ | 9 IPA | 10 Regulation round-up | 11 Super events | 62
QUARTER IV 2024 1
FROM THE EDITOR DARIN TYSON-CHAN INAUGURAL SMSF ASSOCIATION TRADE MEDIA JOURNALIST OF THE YEAR
Two early Christmas gifts For most of my life I have been a pragmatist, which pretty much means from an early age I stopped believing in Santa Claus. But two positive developments to come out of Canberra in the final days before the politicians took their end-of-year leave have had me reflect on my Grinch-like stance. The first of these was confirmation the bill for the proposed Division 296 tax had not received passage through the upper house. This result has certainly spawned a ripple of optimism among sector stakeholders, with SMSF Association chief executive Peter Burgess suggesting the $3 million soft cap has now been reduced to a “zombie measure”. While we don’t want to get ahead of ourselves, and that is why the positive sentiment is only a ripple and not a wave or tsunami, I think Peter is correct. That’s because in recent months the measure has met firmer resistance across both houses than I think Financial Services Minister Stephen Jones anticipated. To this end, the penny dropped with certain elected officials as to how much damage could be done to both the tax system and the general public if the ideology of taxing unrealised gains was implemented. This impasse would be difficult to fix without a redraft of the piece of legislation – a scenario this government has seemed averse to from the outset. The next question then is if the Albanese government would be willing to include this policy as part of its election platform after declaring it would not touch superannuation the last time we hit the polling booths. I predict it would not have the appetite to do so.
And then finally you’d have to wonder if the Member for Whitlam would have the courage to reintroduce the bill if Labor was re-elected. Again, this is highly doubtful as even the most optimistic ALP members admit the best-case scenario it has to hang on to power would be through minority government and that means the Greens would have the balance of power. Of course, it’s the Greens who offered to support the Division 296 bill on the condition the threshold included was lowered to $2 million and a ban on limited recourse borrowing arrangements would be brought to bear. I’m positive Stephen Jones would not be prepared to go that far to get this policy through so I think it’s sayonara to this measure. The other gift was confirmation the fiveyear amnesty to allow individuals to exit legacy pensions has now officially been put in place. Many quarters of the SMSF industry felt this initiative might be dead in the water once the Division 296 bill was not passed as the two measures were so closely linked due to total super balance calculation methodologies. But Capital Hill showed a good degree of common sense and treated the legacy pension relief as a completely separate matter and to that I say bravo. While some detail is yet to be revealed, such as the social security implications, it is a long overdue solution to eliminate structures from the superannuation system that are no longer fit for purpose and problematic in so many ways. So the sector got two early Christmas presents and in my view they’re better than two front teeth.
Editor Darin Tyson-Chan darin.tyson-chan@bmarkmedia.com.au Senior journalist Jason Spits Journalist Todd Wills Sub-editor Taras Misko Head of events and corporate partnerships Cynthia O’Young c.oyoung@bmarkmedia.com.au Publisher Benchmark Media info@bmarkmedia.com.au Design and production AJRM Graphic Design Services
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WHAT’S ON
Accurium Inquiries: 1800 203 123 or email enquiries@accurium.com.au
TBAR, TBC, TSB – be prepared for 2025 22 & 29 January 2025 Webinar 2.00pm–3.15pm AEDT
Transfer balance account reporting – get it right 22 January 2025 Webinar 2.00pm–3.15pm AEDT
Maximising opportunities under the transfer balance cap 29 January 2025 Webinar 2.00pm–3.15pm AEDT
Setting up an SMSF for success 5 February 2025 Webinar
2.00pm–3.15pm AEDT Unlocking SMSF opportunities with business real property 12 February 2025 Webinar 2.00pm–3.15pm AEDT
Unwinding SMSF wind-ups
To have an upcoming event featured on the What’s On page, please contact darin.tyson-chan@bmarkmedia.com.au.
Institute of Financial Professionals Australia Inquiries: (03) 8851 4555 or email info@ifpa.com.au
Inquiries: dba@dbanetwork.com.au
SMSF Online Updates
Holistic estate planning in 2025
14 February 2025 Webinar 12.00pm–1.30pm AEDT
6 February 2025 Webinar 12.30pm–1.30pm AEDT
21 March 2025 Webinar 12.00pm–1.30pm AEDT
11 February 2025 Webinar 12.00pm–2.00pm AEDT
NSW 11 February 2025 Karstens Level 1, 111 Harrington Street, Sydney
VIC 13 February 2025 The Veneto Club 119 Bulleen Road, Bulleen
2025 Annual Conference 4 April 2025 Grand Hyatt Hotel Melbourne 123 Collins Street, Melbourne
SMSF Professionals Day 2025 Inquiries: (02) 8973 3315 or email events@bmarkmedia.com.au
NSW 22 May 2025 Sydney Masonic Centre 66 Goulburn Street, Sydney
VIC
Super Discussion Group
Heffron Inquiries: 1300 433 376 or email events@heffron.com.au
Quarterly Technical Webinar 27 February 2025 Webinar 1.30pm–3.00pm AEDT
SMSF Clinic
27 May 2025 Melbourne Convention and Exhibition Centre 1 Convention Centre Place, South Wharf
QLD 29 May 2025 Pullman Brisbane King George Square Corner Ann & Roma Streets, Brisbane
5 March 2025 Webinar 1.30pm–2.30pm AEDT
Super in 60 13 March 2025 Webinar 2.00pm–3.00pm AEDT
Death Benefits Masterclass
SMSF Association
5 March 2025 Webinar
Inquiries: events@smsfassociation.com
2.00pm–3.15pm AEDT Maximising super contributions – post-tax opportunities
SMSFA National Conference 2025
12 March 2025 Webinar 2.00pm–3.15pm AEDT
DBA Lawyers
19-21 February 2025 Melbourne Convention and Exhibition Centre 1 Convention Centre Place, South Wharf
20 March 2025 Webinar 12.00pm–4.30pm AEDT
2025 Post-Budget Webinar 26 March 2025 Webinar 3.00pm–4.00pm AEDT
Unlock the full potential of tax-effective contributions 19 March 2025 Webinar
2.00pm–3.15pm AEDT
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