NEWS

When disposing of property from an SMSF when members are in pension phase, if it’s in-specie it has to be a lump sum payment, a leading adviser said. Peter Johnson, director of Advisers Digest, said the payment has to be lump sum because pension payments can’t be made in specie and have to be cash. “Why can we make a lump sum in specie, but not a pension? Because under the definition of a lump sum in the SIS regulations, it says a lump sum includes an asset, but when we talk

Investing in a partnership has different rules and requirements than investing in a trust or company, a leading SMSF educator said. Anthony Cullen, senior SMSF educator for Accurium, said a partnership is not a separate legal entity, so partners are all jointly investing in a particular asset, or might be running a business together. “We do need to separate between a general law partnership, where there’s actually a business partnership going on, and a tax law partnership whe

Proceeds from the sale of small business using the 15-year CGT small business exemption is not a rollover to a superannuation fund, but rather a contribution. Mark Ellem, head of education at Accurium, said as a contribution it then has to have trustee acceptance before it is allowed into the fund.  Ellem said this is often a mistake small business owners make and can be exacerbated if the member of the fund is over 75.  He gave an example of Cynthia, who has run her own busi