Limited recourse borrowing arrangements – questions and answers

This document provides general information about our current views on issues that trustees of self-managed super funds (SMSFs) may need to take into account when considering entering into a limited recourse borrowing arrangement (LRBA). It also provides guidance regarding the application of the Superannuation Industry (Supervision) Act 1993 (SISA), and related super rules to such arrangements.

This document does not deal with tax issues other than general references when discussing the application of the super law.

For more information click here for ATO link

AS per ATO  :

SMSF auditors

The super laws require that SMSFs have their accounts, statements and compliance audited each year. The fund’s trustees are responsible for appointing you and must provide you with all the documents you need to do the audit.

As an SMSF auditor, it is your role to carry out a financial and compliance audit of the fund’s operation.

You must audit funds in accordance with super law and regulations and various codes of practice.

Your audit provides an opinion on the status of the fund, including your professional assessment of its compliance. You need to report your findings (in writing) to the trustees, using the form we provide, highlighting any financial and compliance issues.

for further information please following the link:

https://www.ato.gov.au/Super/Super-professionals/SMSF-auditors/

In June 2014, we ran a free webinar program about our SMSF compliance approach from 2014, and the new compliance treatments for SMSF trustees which will come into effect on 1 July 2014.

In the webinar, we discussed determinants for the compliance treatments and included case studies. The new compliance treatments include:

• education directions
• rectification directions
• administrative penalties.

WatchWebinar – new compliance treatments for SMSFs

End of watch

This video runs for 48 minutes and 48 seconds. Alternatively, you can read the Transcript.End of further information

For answers to questions raised during the webinars, see Your questions answered.

for more info please follow ATO link here

From 1 July 2014, trustees of an SMSF cannot provide an insured benefit in relation to a member of the fund unless the insured event is consistent with one of the following conditions of release of a member’s super benefits:

• death
• terminal medical condition
• permanent incapacity (causing the member to permanently cease working)
• temporary incapacity (causing the member to temporarily cease working).

An insured event covered by a trauma insurance benefit (which covers conditions such as cancer, stroke, and heart attack) is not consistent with any of the above conditions of release.

SMSFs that provided a trauma insurance benefit to a member who joined the fund before 1 July 2014, and was covered before that date, are allowed to continue to provide that benefit to the member after that date. A member cannot change the type of trauma insurance cover they had before 1 July 2014; however, they can increase or decrease the level of their existing cover from that date.

For more info please follow ATO link here.

From 1 July 2014, self-managed superannuation fund (SMSF) trustees are required to receive both electronic messages and payment when employers make contributions using the SuperStream data and payment standard.

Find out moreSMSFs – the SuperStream standard for contributions

End of find out more

If you are an SMSF trustee, you will need an electronic service address (alias) to be able to receive data messages associated with employer contributions sent using SuperStream. The electronic service address (alias) is used to identify where contribution messages for your SMSF are to be sent. You need to provide this to your employer.

To help you register and obtain an electronic service address, we have published two registers of SuperStream messaging providers:

• The first register includes providers whose services are open to all SMSF trustees.
• The second register lists providers whose services are restricted to existing SMSF clients.

The register includes details about where to find more information about the service providers. Click on the provider’s name in the register to go to their website, or use the phone number or email address in the last column to get in touch with the provider.

Related party employer are exempt – not required to register.

There are two different trustee structures for a self-managed super fund (SMSF).

They are:

• Individual trustees, where each member of the fund is a trustee.
• A corporate trustee, where each member of the fund is a director of the trustee company.

The following table outlines some of the issues relevant to each structure:

for more information please follow ATO link here

SMSF supervisory levy fact sheet

Up to 1 July 2013, the SMSF supervisory levy is payable for the financial year to which the self-managed super fund annual return (SAR) relates.

From 1 July 2013, the levy will be payable for the financial year in which the annual return is due – for example when you lodge your 2014-15 annual return, you will pay the levy for 2015-16 financial year. This is consistent with the rules for Australian Prudential Regulation Authority (APRA) regulated funds.

In order to bring collections forward, transitional provisions apply to the levy for the 2013-14 financial year so that it is payable in two instalments and collected upon lodgment of the 2013 SAR and the 2014 SAR.

The annual SMSF levy will also increase from $191 in 2012–13 to $259 from 2013–14. The levy will still be collected when the SAR is lodged.

How much will I have to pay per financial year?

The following table provides a summary of payments per financial year for existing and ongoing funds.

To read more click here.

Applying for an ABN for Self-Managed Super Fund

The ATO has issued a fact sheet setting out how superannuation entities should apply for an ABN (NAT 2944). The fact sheet also contains the instructions for completing the application, with funds able to apply for an ABN either via the Australian Business Register at abr.gov.au, or by ordering a paper copy online or ringing 1300 720 092.