SuperConcepts executive manager – SMSF technical and private wealth Graeme Colley says this guidance from the ATO is expected to outline the minutes and resolutions that can be put in place to allow SMSF trustees who won’t know what their balance on 30 June is to comply with the legislation.
Mr Colley said most super members and SMSF trustees will not know their balance now or what it’s going to look like on 30 June and whether it will be above the $1.6 million cap.
“There are a whole range of things where the value isn’t really known at the 30th of June until they have a look at all the records, once they get the information in,” he said.
This is especially the case for SMSFs, with some trustees invested in artworks and other collectables, private unit trusts and private companies.
“Now, you might think, ‘Well, they’ve got the $170,000 [leeway] there’, but often with some people they may not know the value of a particular investment,” Mr Colley said.
For example, with a property, there may be a $100,000 difference with some east coast capital city properties.
“They may be well over that [$1.6 million] once they get the valuation in for the property as of the 30th of June,” Mr Colley said.
“The ATO is going to bring out something which will talk about things you can put in place prior to the 30th of June which will mean you still comply with the legislation and then after that time, bring your balance down to the $1.6 million.”
Imagine a world where the Treasurer actually liased with the ATO before huge Superannuation legislation changes let alone with industry. #dreaming #collateralDamage
This government are running round like headless chooks. O’Dwyer and her cronys have absolutely no idea of the technical minefield they have created and the mistrust they are making of superannuation.
The government can’t even confirm exactly how they are treating their own CSS pension.
What can you do if one of the assets is over $1700000 and all the other are about $1000000 each
A decision whether to retain the assets in super or transfer them out is needed. Segregation is no longer available where any member has more than $1.6m in super, so if the amount over $1.6m is left in the SMSF, future tax (on the accumulation assets income) will be calculated on an actuarial basis.