Is your Self Managed Super Fund compliant?
Self Managed Superannuation Compliance: You, the trustee of your Self Managed Super fund are responsible to ensure that your fund remains compliant with the law - in respect of the terms of your trust deed and acting in accordance with the law.
“Non-compliant funds are taxed at a penalty rate of 47% as opposed to 15% on compliant funds.” Courier Mail, May 29, 2006 (p33)
The Australian Taxation Office (ATO) web page is a rich source of resources about compliance issues and what is currently being targeted by the ATO. For example, just type, “Self Managed Super” into the Search box.
“It is important to mention some recent significant changes which affect self managed superannuation funds – Transition to Retirement and Splitting of Contributions. Both measures give more choices to SMSF members and trustees may need to take care to ensure that the fund’s trust deed is up to date in the event that members wish to take advantage of these new options, or other measures, such as the Superannuation Co-contribution.”
Michael D’Ascenzo, Commissioner of Taxation, National SPAA Conference, Wednesday, 1 March 2006, Sydney. ATO Web Site
Update your Self Managed Superannuation Deed today and then keep it up to date.
Keeping your Self Managed Super Fund up to date
Self Managed Superannuation: The recent budget announcements will see continued growth in this sector.
Self Managed Super is not set and forget. Your management as trustee of the fund must be active and informed.
One of the biggest challenges for trustees has been to keep their Deeds up to date with the rapidly changing law in the Superannuation arena.
We now offer an online update solution to this problem and you go on a mail out list to be advised when there have been changes made to the law which require and update to your Super Deed. Only $99.00. Update Your Self Managed Super Fund.
Additionally don’t forget to have an “Investment Strategy” documented, reviewed and updated annually. Place a copy in your Super file.
More Superannuation resources:
eCommerce - Tips and Traps (part 1)
e-Commerce according to all the statistics continues to gain momentum with the online market worth more and more. Through our experience in operating in this sector and advising many clients we offer this list of tips and traps:
Trap 1 - charge-back risk
If a customer frequently uses someone else’s credit card the real card owner will obviously tell their bank that they didn’t authorise the transaction. The Bank will then take the money back from you - charge back.
Tip to avoid charge-backs - try and use a payment gateway where the gateway provided takes the charge back risk (e.g. at www.onlinelegal.com.au this is a major reason that we use ANZ eGate).
Trap 2 - unclear refund and return policies
A money back guarantee often works well on the web. However we have found that it only works well with some limitations.
Tip for money back guarantee. Make it limited in time. It is fair enough that a customer decides within a limited time about whether the product they have purchased is what they expected. Make sure that the obligation to return the goods in the same condition in which they were supplied is clear and who bears the cost and risk of that return. The obligation to make the refund should only arise after the goods have been returned.
Trap 3 - attempt to exclude all warranties
Quite simply, clauses in terms and conditions that essentially say that “we are not liable for anything” don’t work.
Tip for effectively limiting liability - have your lawyer check this part of your terms and conditions if nothing else.
Trap 4 - unmet expectations
Don’t over promise. A wise man once said to me, “Under promise and over deliver.”
Tip for managing unmet expectations. Be realistic in descriptions of goods and delivery times.
Dunn & Bradstreet - Companies with a history of legal action eight times more likely to fail
Dunn & Bradstreet: reports this in its latest Corporate Health Watch Report.
This adds extra weight to doing some checking about a company’s history of legal actions before:
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Entering a major transaction with the company
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Making an investment decision in that company
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Extending Credit to a company
Here are some tools to help you:
1. A Dunn & Bradstreet Commercial Bureau Report (for less than $30.00) can be ordered online from www.onlinelegal.com.au giving details of court actions, summons and judgements made over the last 5 years (with some limitations on NSW information)
2. This report should be bundled with a Current Company Extract of ASIC data (for less than $40.00) for details of whether the Company is subject to external insolvent administration and more. A Company Search can again be ordered online from www.onlinelegal.com.au.
Results of searches from www.onlinelegal.com.au are usually available within 1-2 working hours.
3. When (not if) you find yourselves in dispute, work hard early to reach an agreed settlement and then document that agreement in a binding manner with a Settling Your Debt Dispute LawPack.