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Deed change tipped to help prevent unwanted taxes

bill of tax 345x216
Miranda Brownlee
22 February 2017 — 1 minute read

SMSF practitioners have been urged to consider implementing resolutions in their client’s trust deed to help reduce the risk of any adverse tax consequences arising from excess amounts.

SuperConcepts general manager of technical services and education Peter Burgess says many SMSF trustees are unsure of the exact amount they are going to exceed the $1.6 million threshold by, because their balances will not be determined till after 30 June.

“There’s some confusion around ‘Well, I don’t know what my account balance is. I don’t know if I’m going to be in excess of the $1.6 million threshold’,” Mr Burgess said.


“In our view, we think it’s prudent for trustees to put in place a resolution now, or at least by the 30th of June, that says that any excess amount over the $1.6 million threshold at 30 June will be transferred to the accumulation phase.”

Mr Burgess suggested that this could be a resolution or trustee minute which states that in the event that there’s any excess above the $1.6 million, it will be transferred to the accumulation phase.

“We’re seeking some clarification as to whether this will be acceptable [but] we can’t see any reason why it wouldn’t be,” he said.

“This is an action they can be taking right now and it makes the process a little easier.”

Mr Burgess said if an SMSF trustee intends to cash out the excess instead, the SMSF practitioner and client will need to take action and withdraw that amount before 1 July 2017.

Miranda Brownlee

Miranda Brownlee

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: [email protected]momentummedia.com.au
Deed change tipped to help prevent unwanted taxes
bill of tax 345x216
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