BCS Direction News
The recent Super System Review recommended, in conjunction with its recommendation on SMSF auditor registration, that the Australian Securities and Investments Commission (ASIC) should develop approved auditor independence standards that SMSF auditors must meet as part of their ongoing registration requirements.
Read the following issues paper released by the ATO SMSF Working Group for more information:
The Government announced that it will implement registration for SMSF approved auditors. The Australian Securities and Investments Commission (ASIC) will be the registration body and will be responsible for determining the eligibility, competency and independence requirements for registration. The Australian Taxation Office (ATO) will be responsible for policing the requirements and reporting any contraventions to ASIC for action.
Read the following issues paper for more information:
New standards now apply to SMSFs that make new investments in collectables and personal use assets. The standards will ensure these investments do not give rise to a current day benefit for SMSF trustees so that such investments are made for genuine retirement purposes.
This measure will apply to all new investments in collectables and personal use assets from 1 July 2011 and all existing holdings must comply with these regulations or be disposed of by 1 July 2016. For more information, refer to:
Self-managed super funds investing in collectables and personal use assets
The ATO publish regular statistical reports for the self managed super fund (SMSFs) market.
The following table consists of details of the number of SMSFs that were established and wound up during each financial year:
| JUNE-06 | JUNE-07 | JUNE-08 | JUNE-09 | |
| Establishments | 24,191 | 44,584 | 32,498 | 28,995 |
| Wind Ups | 4,923 | 3,862 | 4,558 | 2,310 |
| Total number of SMSFs | 314,971 | 355,693 | 383,633 | 410,318 |
| Total members of SMSFs | 604,333 | 680,154 | 721,469 | 772,299 |
This table contains estimates of the amount of assets held by SMSFs for each type of asset listed on the SMSF income tax and regulatory return for the financial years ended 30 June 04 - 07:
| JUNE-04 | JUNE-05 | JUNE-06 | JUNE-07 | |
| Life Insurance Policies ($m) | 344 | 293 | 279 | 274 |
| Other Managed Investments ($m) | 7,882 | 10,100 | 13,717 | 19,932 |
| Overseas Assets ($m) | 853 | 1,067 | 1,525 | 2,303 |
| Real Property ($m) | 15,481 | 18,797 | 22,649 | 35,197 |
| Other Property ($m) | 630 | 741 | 842 | 1,005 |
| Listed Shares & Equities ($m) | 41,048 | 53,566 | 70,811 | 112,043 |
| Unlisted Shares & Equities ($m) | 2,045 | 2,888 | 3,634 | 5,040 |
| Public Trustss ($m) | 13,981 | 18,029 | 23,499 | 33,752 |
| Other Trusts ($m) | 13,947 | 16,789 | 19,655 | 24,243 |
| Cash, Debt Securities & Term Deposits ($m) | 30,452 | 37,319 | 46,024 | 82,167 |
| Loans ($m) | 1,245 | 1,387 | 1,483 | 1,744 |
| Other ($m) | 3,258 | 4,450 | 5,813 | 8,713 |
| Total Direct Assets ($m) | 123,301 | 155,032 | 195,934 | 306,207 |
| TOTAL ASSETS ($m) | 131,526 | 165,452 | 209,930 | 326,413 |
The following estimates relate to the amount of assets held by the SMSFs for each type of investment listed in the SMSF annual return for June 2008 and preceeding quarters. This is a very interesting table due the recent global economic financial crisis.
| JUNE-08 | SEPT-08 | DEC-08 | MAR-09 | JUN-09 | |
| Listed Trusts ($m) | 25,392 | 24,263 | 22,453 | 22,677 | 25,118 |
| Unlisted Trusts ($m) | 28,709 | 27,432 | 25,385 | 25,639 | 28,399 |
| Insurance POlicy ($m) | 245 | 248 | 252 | 258 | 264 |
| Other Managed Investments ($m) | 19,211 | 18,701 | 16,979 | 16,890 | 17,288 |
| Cash and Term Deposits ($m) | 87,065 | 89,737 | 92,576 | 96,071 | 100,159 |
| Debt Securities ($m) | 2,179 | 2,246 | 2,317 | 2,404 | 2,506 |
| Loans ($m) | 1,947 | 1,998 | 2,026 | 2,070 | 2,129 |
| Listed Shares ($m) | 106,883 | 97,256 | 81,145 | 81,243 | 92,327 |
| Unlisted Shares ($m) | 3,664 | 3,759 | 3,811 | 3,896 | 4,006 |
| Derivatives and Instalment Warrants ($m) | 395 | 408 | 421 | 436 | 455 |
| Non-residential Real Property ($m) | 30,510 | 30,545 | 31,047 | 31,630 | 34,125 |
| Residential Real Property ($m) | 10,758 | 11,036 | 11,189 | 11,437 | 11,762 |
| Artwork, Collectibles, metal or Jewels | 397 | 407 | 413 | 422 | 434 |
| Other Assets ($m) | 10,035 | 10,295 | 10,438 | 10,669 | 10,972 |
| Overseas Shares ($m) | 763 | 694 | 579 | 580 | 659 |
| Overseas Non-residential Real Property ($m) | 47 | 43 | 36 | 36 | 41 |
| Overseas Residential Real Property ($m) | 85 | 77 | 64 | 64 | 73 |
| Overseas Managed Investments ($m) | 294 | 267 | 223 | 223 | 254 |
| Other Overseas Assets ($m) | 1,522 | 1,385 | 1,155 | 1,157 | 1,314 |
| TOTAL AUSTRALIAN AND OVERSEAS ASSETS ($m) | 330,100 | 320,797 | 302,508 | 307,803 | 332,286 |
Further statistical data can be found at:
Self-managed super fund statistical report - June 2009
Please contact us to arrange a no obligation meeting and let us show you why you need to outsource to BCS – the super audit specialists.
1. In a recent Taxpayer Alert [2009/8], the Tax Office has warned against arrangements currently being promoted whereby the promoter advertises the sale of a pre 1999 SMSF which has control of a related unit trust.
2. The promoters of these arrangements claim that any investments made by the SMSF into the related trust prior to the end of the transitional period of 30 June 2009 will not be included as in-house assets.
3. In-house assets are limited to a maximum of 5% of the market value of the fund's assets. The law was amended in 1999 to extend the definition of in-house assets to include an investment in a related trust, subject to transitional provisions.
4. The Tax Office has advised that the transitional provisions only apply in specific circumstances and hence the arrangements being promoted may not satisfy the transitional rules.
5. Trustees of SMSF's that are in fact subject to the transitional rules are urged to review the fund's investments and ensure that their SMSF's will remain compliant after the transitional period ends on 30 June 2009.
6. Taxpayers who are willing to provide information about people or companies who may be promoting such arrangements should call the tax practitioner integrity service on 1800 639 745.
7. Click here to access the detailed Taxpayer Alert or visit the ATO website at http://www.ato.gov.au.
