As you may be aware, the law governing superannuation in general, and Self Managed Superannuation Funds in particular, is regularly evolving.
Supernova continuously monitors the changes that occur in self managed superannuation to ensure you are kept up to date with the latest changes, and we believe now is a good time to have the trust deed updated to include the most up to date provisions.
If your clients trust deeds pre-date 2007 then there is a very high likelihood that they may not be compliant or may restrict the members from taking advantage of new products, strategies or arrangements.
Here are just a few of the hundreds of changes introduced in the last few years
older deeds may lack in a number of areas that could include:
• The ability to internally ‘roll back’ pensions to the accumulation phase;
• Segregation of assets between accumulation and pension phases;
• Powers and instructions to the trustee regarding the inability to accept contributions in certain circumstances;
• The ability to refund contributions that should not have been accepted; and
• Power to the trustee to pay the various taxes that may be levied, such as the excess transfer balance tax, excess non-concessional contributions tax and similar penalties introduced under the superannuation reform legislation.
Older deeds may not be allowed under the rules to provide innovative options to members now considered standard. These could include:
• Option to have a Binding death benefit nomination / non-lapsing.
• The ability to pay certain types of income streams- in particular account-based pensions, the predominant pension since 2007;
• The Ability of the fund to Borrow under LRBA
Attached is a table that outlines recent legislative changes, tax office rulings and strategic innovations that have brought us to this decision.
Unless you want to read every paragraph of every deed to see if it complies we suggest you update the deeds now
We can arrange to have all your clients deeds updated in bulk for a low fixed fee per fund giving you peace of mind that