ATO data analysis has revealed that over 16,500 self managed
superannuation funds (SMSFs) have reported assets as having the same value for three consecutive years. With many of these assets
residential or commercial Australian property, you can forgive the ATO for being incredulous.
For trustees of SMSFs, where asset values are consistently reported at the same value, it’s likely your SMSF will be
flagged for closer scrutiny by the ATO.
The value of assets in your SMSF impacts on member balances and by default, can impact the amount you can contribute, ability to segregate
assets for exempt current pension income, the work test exemption and access to catch-up concessional contributions. And, as we move closer
to the implementation of the Division 296 $3m superannuation tax, valuations will be very important for anyone with a member balance close
to or in excess of $3m.
If the asset is an in-house asset, for example a related unit trust, then an accurate valuation is essential to ensure the fund remains
within the 5% in-house asset limit. If the value of in-house assets rises above 5% of total assets, the asset/s need to be sold to bring the
limit back below 5%.
Connect with our financial advisers for seamless SMSF lending solutions.
LIVE EVENT
3rd May 2024
Welcome to Mornington Peninsula's original pop-up pre-loved market with a difference. Fashion For A Cause is a not-for-profit
fundraiser event. Grab a fashion bargain or unique piece, wine with friends, bid on silent auction items, all to raise funds for Clothes
4U.Inc. All proceeds from the event including stall sales, ticket sales and clothing purchases on the night will be
double-dollar-matched and donated to Clothes 4U Inc.
The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of SMSFs.
The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of SMSFs.
It’s important that generational succession is managed as closely and diligently.