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Separate SMSFs for collectables

Published on 01 Apr 19 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

As part of the superannuation reforms which came into effect on 1 July 2017, self-managed superannuation funds (SMSFs) with at least one member in receipt of a retirement phase income stream, with a total superannuation balance over $1.6m, are no longer able to use the segregated method to calculate exempt current pension income (ECPI). One strategy which emerged to counter this restriction involved achieving a “quasi segregation” via separate SMSFs. The Australian Taxation Offi ce (ATO) has expressed the view that this will only be acceptable in limited circumstances and where the aim is not to manipulate taxation outcomes. This article examines the holding of “collectables” by an SMSF as a circumstance where a separate SMSF might be strategically useful as well as acceptable from an ATO point of view.

Author profiles

Stephen Lawrence
Stephen is a Chartered Accountant.
Current at 1 April 2017
Click here to expand/collapse more articles by Stephen Lawrence.
Michael Bennett
Michael is a Barrister with Seven Wentworth Chambers.
Current at 01 July 2011
Click here to expand/collapse more articles by Michael Bennett.

 

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