Retirement
Moving abroad? Think about your SMSF’s residency rules
As more SMSFs make the shift overseas, it’s important that they consider residency rules and the opportunities in alternative structures, a technical expert has said.
Moving abroad? Think about your SMSF’s residency rules
As more SMSFs make the shift overseas, it’s important that they consider residency rules and the opportunities in alternative structures, a technical expert has said.
PwC director of private clients Liz Westover told delegates at the SMSF Association National Conference that she is seeing a lot of questions about the residency rules for super funds as society becomes increasingly globalised.
"Our practice is getting a lot of inquiries from people who are moving overseas and want to know about the residency of the fund," said Ms Westover.
"Clearly if you have an SMSF and do want to move overseas, there are some issues that you need to address. It might be time to look at alternative structures to an SMSF."
While Ms Westover said it is possible to put a power of attorney in place and other strategies, SMSFs still need to think about whether that's the right structure for them moving forward.
Cognitive decline is another area where SMSF practitioners need to look at winding up the fund, she said.
"Cognitive decline is a huge issue in superannuation, particularly with SMSFs," said Ms Westover.
Clients tend to be very reluctant to go and get a diagnosis of cognitive decline or dementia, she said, because of the consequences of doing so.
"Typically they'll lose their driver's licence straight away if they get a diagnosis of dementia, so they're not going to put their hand up and say I can't handle my SMSF anymore," she said.
Speaking to an audience of advisers, she said, "We need to start having those conversations with our clients much earlier to identify our exit strategies out of the SMSF. That might be an APRA fund, or it might be another tax structure that we can look at but we need to have those discussions with our clients now and start making decisions before they're not in the best frame of mind to be able to make those kinds of decisions about their financial wellbeing."
There will be a time for most SMSFs, Ms Westover said, where it's no longer the appropriate vehicle.
"Quite simply they might be getting older, they might want to do a lot more travel, they might have lost interest in the stock markets and so on, or they don't want an SMSF anymore," she said.
SMSF practitioners in these situations, Ms Westover said, will need to explore other options such as moving over to an APRA fund, or rolling over to a small APRA fund that can be an appropriate vehicle, depending on the underlying asset.
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). ...Read more
Self managed super fund
Nearly half of young Aussies now have an SMSF
A new survey has suggested that Gen Z are just as likely as Baby Boomers to have a self-managed super fund. ...Read more
Self managed super fund
SMSFs worth over $200k are competitive with APRA funds, research finds
SMSFs are competitive with APRA-regulated superannuation funds, new research has suggested. ...Read more
Self managed super fund
Experts say risks of a rushed DIY trust or SMSF overshadow the returns
Legal disputes are on the rise when it comes to trusts and self-managed super funds. ...Read more
Self managed super fund
SMSFs on the rise among Gen X and Z
Self-managed super funds have a lot to offer younger Australians looking for greater control over their financial future. ...Read more
Self managed super fund
Investing in property using an SMSF isn’t as simple as it seems
There are plenty of good reasons to invest in property via an SMSF, but it pays to do your homework. ...Read more
Self managed super fund
ASIC winds up companies behind SMSF scam
The corporate regulator has stepped in to wind up several companies that have scammed millions from SMSF investors. ...Read more
Self managed super fund
SMSFs are shunning direct shares in favour of property – but is this a good idea?
For several years, SMSFs allocation to direct shares has been in decline. This trend accelerated after COVID. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). ...Read more
Self managed super fund
Nearly half of young Aussies now have an SMSF
A new survey has suggested that Gen Z are just as likely as Baby Boomers to have a self-managed super fund. ...Read more
Self managed super fund
SMSFs worth over $200k are competitive with APRA funds, research finds
SMSFs are competitive with APRA-regulated superannuation funds, new research has suggested. ...Read more
Self managed super fund
Experts say risks of a rushed DIY trust or SMSF overshadow the returns
Legal disputes are on the rise when it comes to trusts and self-managed super funds. ...Read more
Self managed super fund
SMSFs on the rise among Gen X and Z
Self-managed super funds have a lot to offer younger Australians looking for greater control over their financial future. ...Read more
Self managed super fund
Investing in property using an SMSF isn’t as simple as it seems
There are plenty of good reasons to invest in property via an SMSF, but it pays to do your homework. ...Read more
Self managed super fund
ASIC winds up companies behind SMSF scam
The corporate regulator has stepped in to wind up several companies that have scammed millions from SMSF investors. ...Read more
Self managed super fund
SMSFs are shunning direct shares in favour of property – but is this a good idea?
For several years, SMSFs allocation to direct shares has been in decline. This trend accelerated after COVID. ...Read more
