Monthly Archives: May 2012

ATO clarifies borrowing issues around single acquirable asset for SMSFs

Confusion under borrowing issues has meant the Australian Tax Office has clarified what is meant by a ‘single acquirable asset’ and what constitutes repair or maintenance of an asset, according to the SMSF Professionals’ Association of Australia. The release of … Continue reading

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SIS Act wording is a possible concern for income protection cover

Self-managed superannuation fund (SMSF) trustees looking to take out income protection insurance inside their funds need to be mindful of the wording contained in the Superannuation Industry Supervision (SIS) Act if they are to avoid a counterproductive outcome, an insurance … Continue reading

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High Earners over $300K will pay 30% tax in Super, less incentive to contribute?

Another budget, another round of changes to the super system. Last week the government announced it would: Levy an extra 15 per cent on concessional contributions for people earning $300,000 or more; Defer for two years new concessional contribution caps … Continue reading

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Warning – undiversified SMSFs with one asset could face being sued by beneficiaries

Self-managed superannuation fund (SMSF) trustees run the risk of being sued when undiversified SMSFs have one asset. If a fund is invested in only one asset or class of assets, beneficiaries can claim it prevented a higher return. “Though trustees did … Continue reading

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Property – concerns for SMSF – lumpy asset could be a problem

Feedback from over 600 financial planning, accounting and legal firms across Australia has confirmed that SMSF trustees are completely overlooking what will happen to a so-called ‘lumpy’ asset such as a geared property if a fund member dies. One consequence … Continue reading

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MASTER CLASS – Interest Cover as a company financial ratio measure – what it is, how to calculate why it matters Pt 2

What is it: INTEREST COVER The interest cover ratio, (also known as interest cover or times interest earned) is a measure of how well a company can meet its interest-payment obligations. Working example: The interest cover ratio formula is: Interest Cover = … Continue reading

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