Chartered Accountants Superannuation Bulletin 08/03

Welcome to this edition of the Chartered Accountants Superannuation Bulletin. What follows is a brief update on current superannuation issues aimed at assisting practitioners.

Issue No 03 /2008 7 March 2008 1. News and Media Releases 2. ATO Updates 3. Lobbying and Advocacy 4. Superannuation Funds and Warrants 5. Changes to Certificates of Public Practice 6. SMSF Conference 7. Training and Development

Super Co-contributions Pass The $1 Billion Mark

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, today announced the government has now paid over $1 billion in superannuation co-contributions this financial year.

Peak Superannuation Advisory Group Established

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced the establishment of a Superannuation Advisory Group.

25 February 2008

How many superannuation interests does a member of a superannuation fund have in their fund?

Read the Commissioner's view as to what constitutes a superannuation interest in relation to the different kinds of superannuation fund.

26 February 2008

In-house assets and transitional rules

This explains what an in-house asset is, the transitional rules that apply to certain assets owned before 11 August 1999 and the changes that will apply after 30 June 2009

6 March 2008

Valuation factors for defined benefit interests

This explains what a defined benefit interest is and how to calculate the value of a defined benefit interest at a certain time using the income stream and lump sum valuation factors.

The Institute is meeting this week with Senator the Hon Sherry Minister for Superannuation and Corporate law on Thursday, 13 March 2008. This is an opportunity for the Institute to outline in further detail a range of issues relating to superannuation that the Institute had previously forwarded to the Minister.

The Institute was invited and attended the recently announced Financial Services Working Group. The Working Group's mandate is to determine the best possible approach to delivering short, comparable financial product disclosure documents and to determine an appropriate regulatory framework that facilitates the provision of financial advice in relation to the important decisions that investors make with regard to their superannuation. To ensure the best possible outcomes, the Working Group will carry out its work in consultation with industry and consumer groups. The Government is encouraging stakeholders to engage in this process and is accordingly taking steps to initiate this process as soon as possible.

Should members have comment and feedback on the issues outlined for the Financial Services Working Group please forward them through to Financial Services

Recent legislative amendments have allowed a number of forms of non-recourse borrowing, including instalment warrants. An article on superannuation funds and warrants has been placed on the Institute’s website for members information to explain and detail the types of non-recourse borrowing and the different warrants available.

A case study has also been prepared to consider how a superannuation fund can acquire property from an unrelated party by using an instalment warrant, and the potential tax consequences of that instalment warrant.

Changes to Certificates of Public Practice (CPPs) will mean a reduction in administrative red tape for many members. However, some members who did not previously require a CPP will now have to apply for one. Members can use this interactive guide to find out how the changes affect them.

The changes will be effective from 1 July 2008.

Over 200 people attended the Institute's SMSF Conference at the Darling Harbour Convention Centre on Friday, 22 February 2008.

Speaking at the conference, Acting Deputy Commissioner of Superannuation at the Australian Taxation Office, Mr Ian Read told delegates that the responsibilities for those setting up and managing SMSFs have never been more important.

The conference featured exceptional presenters, speaking on a number of topics including investment and borrowing strategies, estate planning, second generation SMSFs, in-house assets and grandfathering provisions. The Conference highlighted the role Chartered Accountants have in the SMSF market and the important responsibility as ‘trusted adviser’ they have with their clients.

For those that missed the conference a DVD will be available to purchase through the Institute website in the near future. Also on the website is a list of future superannuation and SMSF conferences and training days hosted by the Institute.

Disclaimers

This is an initiative of, and has been prepared by the Technical Standards Team of the Institute of Chartered Accountants in Australia. While every effort has been made to ensure the accuracy of the information contained therein, neither the Institute nor its employees shall be liable on any grounds whatsoever in respect of decisions or actions taken as a result of using this publication. The information provided is a general guide only and should not be used, relied on or treated as a substitute for specific professional advice or referral to the relevant specific standard.

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