Latest News

Hot Issues
spacer
Younger SMSF members
spacer
SMSF Specialist wanted
spacer
Aged Care
spacer
Crowd control
spacer
Philanthropy upswing
spacer
Market Update - 28th February 2014
spacer
SMSF investment process is broken, but a good financial planner can fix it
spacer
A behavioural barrier to successful saving
spacer
Spending of super lump sums
spacer
What the past can teach us about the current emerging turmoil
spacer
Spending control in a low-interest environment
spacer
Market Update - January 2014
spacer
The return of a resilient US
spacer
Putting financial literacy to the test.
spacer
No intention to retire
spacer
Outlook for Japan in 2014
spacer
Understanding Profit Metrics: Gross, Operating and Net Profits
Article archive
spacer
Quarter 1 January - March 2014
spacer
Quarter 4 October - December 2013
spacer
Quarter 3 July - September 2013
spacer
Quarter 2 April - June 2013
spacer
Quarter 1 January - March 2013
spacer
Quarter 4 October - December 2012
spacer
Quarter 3 July - September 2012
spacer
Quarter 2 April - June 2012
spacer
Quarter 1 January - March 2012
spacer
Quarter 4 October - December 2011
spacer
Quarter 3 July - September 2011
spacer
Quarter 2 April - June 2011
spacer
Quarter 1 January - March 2011
Quarter 3 of, 2011 archive
spacer
The Budgeting Tools /Calculators on our website have been upgraded.
spacer
Stosur plan an antidote for volatility
spacer
The best performing market over the past 10 years.
spacer
Why it takes courage to stand still
spacer
China buys US for a bargain
spacer
Market Updates - August / September 2011
spacer
Buckle up for a bumpy US recovery ride
spacer
SMSF Management
spacer
How the US debt downgrade impacts Australia
spacer
Mixing business and super
spacer
The tangled web of the Australian housing bubble
spacer
Market Updates - July / August 2011
spacer
Under your control
spacer
Improving your financial literacy is vital to your future ......
spacer
5 reasons you should care about Greece
spacer
The more things change ......  (the Carbon Tax)
spacer
Is the US already in a double dip recession?
spacer
Market Updates  -  June / July 2011
SMSF Management
Severe penalties can be imposed against trustees for failing to act appropriately. One of the prudential requirements of superannuation funds operations is that the fund is not used for personal purposes.

One such rule is that a loan to a member, or a withdrawal without any of the eligibility requirements being met, is prohibited.

In a recent case, the trustees were given a civil penalty of $15,000 for making a loan of $75,000 to a member who got into financial difficulties and "borrowed" from the self managed superannuation fund.

Whilst the borrowing may have solved the short term cash flow problem for the member, the message is clear, superannuation is for retirement benefits only and penalties can be quite significant.

Not only was the penalty imposed significant, but it was also less than the potential one of non-complying status, which would have imposed an even greater tax on the superannuation fund.

If the fund had been wound up by the trustees hoping to prevent this harsher penalty, the Tax Office have found a way around it.

Reference
ICAA March 2011 audio program
- Sole purpose test and civil penalty for SMSF contravention Olsen v Eddy (2001) FCA 13