The first leg of the SMSF Adviser Technical Strategy Day was a successful day filled with key insights from industry professionals in areas including the proposed $3 million super tax; the impact of government changes on non-arm’s length income; death benefits and payout strategies; strategies for contribution planning amid changes in caps and tax rates; discussion on the potential inclusion of SMSFs in the retirement income covenant, and more.
Speakers included Aaron Dunn, CEO and co-founder of Smarter SMSF, Daniel Butler, director at DBA Lawyers, Julie Steed, senior technical services manager at MLC TechConnect, Lauren Ryan, business development manager at Thinktank Property Finance, and many more.
The day kicked off with a session from Dunn, where he set the stage for the slate of speakers and delved into a number of topics that would be expanded upon throughout the day, including the never-ending saga of division 296 and the changes to the non-arm’s length income (NALI) and expense (NALE) rules.
He also covered legacy pension commutations, changes to “pension bible” TR 2013/5, and market valuation requirements for SMSFs.
Deloitte partner Liz Westover went deeper into the $3 million super tax, breaking down how to calculate the tax liability for clients under the rules if they were to pass as currently drafted.
She also gave practical examples and ways to explain the rules to clients, stressing the importance of considering options and client wishes, but not acting until there is a greater degree of certainty.
Daniel Butler, director of DBA Lawyers, explained the complexity that still exists within the NALE/I rules and the need to understand the grey area. When is an expense general versus specific, capital versus revenue, or acquisition versus post-acquisition? And what counts as a recurrent expense?
He made the case that given the rules are so confusing for even the most experienced in the space, there is a dire need for further fixes.
Cooper Grace Ward partner Scott Hay-Bartlem looked at the death benefits space, breaking down how a trust deed can have a significant impact on a death benefit and all of the considerations that need to be taken into account when attempting to withdraw super to avoid tax.
Simon Ho, CFO and head of SMSF strategy at principal partner Coinstash, provided insight into the factors that advisers need to understand when SMSF clients invest in cryptocurrency and how to choose an investment platform that complies with SMSF regulations.
Smarter SMSF technical and education manager Tim Miller looked into the rules around contributions to super and the different strategies that can be utilised to maximise the benefit for an SMSF member.
Explaining how the retirement income covenant could impact SMSF space, Julie Steed said the sector is well ahead of the curve in providing income for members in retirement, but there are still some indirect positives that could come from the RIC.
Lauren Ryan from Thinktank and Michael Watson of La Trobe Financial provided insight into the private credit market and how financial advisers can cut through the noise and ensure the best outcome for SMSF clients engaging in the space.
Finally, Advisers Digest founder Peter Johnson gave a lively presentation on SMSF strategies for older clients and considerations around pensions, contributions, and tax planning.
Tickets are almost sold out for the upcoming SMSF Adviser Technical Strategy Day in Melbourne taking place next week on 22 October at the Rydges Hotel. If you would like to join us in Melbourne or Sydney, click here.
