Market valuations have emerged as a crucial area in the SMSF sector, particularly in light of regulatory changes and heightened ATO scrutiny. The looming spectre of Division 296 further complicates the landscape, particularly regarding the methodology used for valuations.

In this episode of the SMSF Adviser Podcast, host Aaron Dunn, chief executive of Smarter SMSF, is joined by industry stalwart Shelley Banton, head of technical for ASF Audits, to delve into the changing expectations for valuations and meeting the challenging compliance requirements.

Listen as they discuss:

• The complexity of market valuations, especially for assets that lack readily available market data.
• Concerns around private credit.
• Practical solutions that may support auditors.
• The shift in expectations for the auditing profession.

The updated rules on when a pension commences and ceases have created confusion in the SMSF sector. On this week’s episode of the SMSF Adviser podcast, hosts Aaron Dunn and Keith Ford delve into the intricacies of TR2013/5 with Tim Miller, head of education and technical for Smarter SMSF.

Miller explains how the revised ruling, which was updated in June 2024, primarily reflects changes from the super reforms introduced on 1 July 2017. He provides a fresh perspective on what needs to happen when a super income stream fails to meet the pension standards for a financial year, particularly with minimum pension requirements.

Listen as they discuss:

• How the consequences of failing to meet pension standards have become more stringent.
• The trust law aspect of pensions.
• The importance of understanding the minimum pension obligation and the consequences of failing to meet it.
• The retrospective application of these rules.
• The complexities surrounding TRIS.
• The time frame for losing ECPI beyond the traditional 12 months.

Australia is currently grappling with a complex web of regulatory reforms, which has left many advisers in a state of limbo. In this episode of the SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn discuss the pressing issue of financial advice reform.

One of the most troubling issues is in the advice sector, and after nearly three years since the Quality of Advice Review (QAR) report was delivered, the sector is still waiting for significant progress.

• Listen as Keith and Aaron discuss:
• The fragmented nature of the regulatory framework.
• The challenges in the requirement for an account number on fee consent forms.
• The government's focus on super, particularly in the retirement phase.
• Technical aspects of SMSF management, including deferred tax accounting.
• Recent actions by ASIC against SMSF auditors.

In the latest episode of the SMSF Adviser Show, hosts Keith Ford and Aaron Dunn break down some of the alternative methods to remove concessions for large super balances without resorting to taxing unrealised gains, with a range of options being delivered in recent weeks.

The IFPA put forward compulsory cashing, while Geoff Wilson and Wilson Asset Management offered up a progressive super surcharge model, with both looking to meet the government’s stated aim for Division 296 in a manner that leaves unrealised gains untouched.

Listen as they discuss:

• What is missing when the government talks about liquidity and diversity requirements for super funds that hold farmland.
• The spike in SMSF-related complaints to AFCA, largely on the back of major financial failures like United Global Capital.
• When Division 296 is likely to land back in parliament.

The increase of the transfer balance cap from $1.9 million to $2 million is not as simple to understand as it seems. In this SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn discuss the implications of the TBC rise implemented at the start of the new financial year with industry stalwart David Busoli.

While this shift appears straightforward, it brings complexities, particularly for existing pensioners, due to the intricacies of proportional indexation. Busoli explains how proportional indexation is a critical concept in understanding how the TBC affects individuals and how, for people just starting their pension phase, the indexation process presents several challenges.

Listen as they discuss:

• The necessity for accurate data to ensure proper management of transfer balance accounts.
• Broader implications of the TBC changes, including the impact on non-concessional contributions.
• The ongoing challenges within the SMSF sector, particularly in managing the intricacies of the transfer balance cap and ensuring accurate reporting.
• Division 7A and its implications for limited recourse borrowing arrangements within SMSFs.

It’s the start of a new financial year, but there are still many uncertainties in the SMSF world. In the latest episode of the SMSF Adviser Show, hosts Keith Ford and Aaron Dunn discuss the implications of the upcoming Division 296 legislation, which is set to impact individuals with superannuation balances over $3 million.

As the new financial year kicks off, there is a raft of other topics that SMSF professionals need to pay attention to and plan for the year ahead, and Aaron breaks down all of the areas that deserve a closer look.

Listen as they discuss:

• How a lack of certainty is impacting the sector.
• The continued pushback from a growing cohort of industry bodies.
• The rise in SG and its effect on contribution strategies.
• Timely reviews needed now of investment strategies and estate planning.

With just two weeks remaining until the financial year wraps up, getting an SMSF ready for tax time involves ensuring there is a smooth audit process.

In this episode of the SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn are joined by well-known industry auditor Deanne Firth, director of Tactical Super.

Firth offers some valuable insights and timely reminders for SMSF trustees and auditors to prioritise compliance and leverage available resources to streamline their processes.

Listen as they discuss:

• Obtaining the necessary evidence for valuations, especially concerning private and unlisted companies.
• The timing of audits and the importance of proactive engagement with clients.
• The challenges with valuing unlisted assets, particularly private companies with unique business models.
• The complexities of SMSFs investing in start-up ventures.
• Loans within SMSFs.
• Technology and AI in the SMSF sector.

As the end of the financial year approaches, SMSF professionals are gearing up to navigate the complexities of superannuation contributions and tax planning. In this episode of the SMSF Adviser Show, industry stalwart Liam Shorte, director of Sonas Wealth, explains the essential areas that advisers and accountants should address in the next three weeks to optimise super strategies for their clients.

Managing clients’ total super balance (TSB) effectively is right at the top of the list, with Shorte explaining the importance of having accurate information and why it’s not always a good idea to maximise unused contribution caps if there are any uncertainties around the exact figures.

Listen as they discuss:

• How to access accurate superannuation data through the ATO.
• How to ensure that 2024 financials are reported promptly.
• Contribution strategies for different age cohorts and how they can benefit future planning.
• The increasing problem of debt for those approaching 60.
• Extension of tax planning to age 75.