SMSF Upgrades

Is your SMSF deed compliant?

There have been extensive changes in superannuation over the past 10 years and in order to maximise the benefits of superannuation it is important to ensure your SMSF deed are up-to-date with latest legislation.

The most significant changes in superannuation legislation was with the introduction of the Simpler Super reforms in July 2007 which changed vital areas such as contributions and contribution splitting, employment of members in the fund and tax advantages through transition to retirement arrangements and pensions. As a result, virtually all SMSFs established prior to 1 July 2007 require upgrading to take full advantage of these changes, as funds established prior to this date which have not been upgraded are potentially paying additional and unnecessary tax or are not capitalising on the benefits introduced through the Simpler Super reforms.

The benefits of the current superannuation legislation are many and affect how a SMSF is treated in terms of tax and contributions. Therefore if a SMSF deed has not been upgraded the chances are that the members may be missing out on significant benefits, such as:

• Making contributions up to age 65, without the need to meet the work test;
• Having the ability to make contributions up to age 75;
• Members aged 55 or more accessing benefits prior to retirement (known as transition to retirement);
• Members aged 60 or more commencing a tax free, flexible account based pension in retirement to complement their lifestyle;
• Having the ability for the fund to borrow so as to fast track super savings growth;
• Adding non-working members, such as the spouse or children;
• Having the ability to make contributions on behalf of children;
• Splitting super contributions with a spouse; and
• Having the ability to leave accumulated superannuation for the next generation.

To maximise advantages, superannuation deeds need to comply with current legislation.

The advantages of upgrading with Reckon Docs, is that any future updates are done as replacement rules simply from a click of a button. To find out more click here.