Super News
In this issue we discuss the topical subject of lost super as it is likely that super funds will be forced to pay this money to the federal government if people do not claim this money in a relevant time period.
As the tax return season is in full swing we discuss the issues arising from audits of self managed superannuation funds and this is another issue attracting the government attention.
In addition we remind you that the contribution limits changed from 1 July 2009 and ask you to check with your employer and fund how much is being contributed particularly if you are using salary sacrifice and transition to retirement strategies as the aim is to ensure contribution caps are not exceeded and penalty tax of 31.5% paid on excess concessional contributions.
Lost Super
Many people have lost or missing super. Claiming your lost money is an important step in taking control of providing for your financial future.
The ATO keeps a list of names of people who have been reported by their super funds as lost called the Lost Members Register (LMR). The register includes the details of lost members for accounts with:
· Superfunds
· Approved deposit funds
· Eligible rollover funds; and
· Retirement savings account (RSA) providers.
Superseeker is a tool that will look for your lost super in real time and instantly provide you with possible matches. SuperSeeker searches the LMR and other records to find possible matches for your lost super. It is a free service available 24 hours a day, seven days a week.
You can access SuperSeeker:
· Online using the superseeker tool, or
· By phoning 13 28 65 and following the prompts.
To use SuperSeeker you will need to provide your name, date of birth, and tax file number (TFN). If SuperSeeker finds a possible match, it will give you the name and contact details of the super provider who may have your lost super. You can then contact the super provider to give them your new contact details and talk about what to do with your lost super.
If you wish to transfer the whole balance of your lost super account to another fund, use the Request to transfer whole balance of superannuation benefits between funds portability form.
Audit Issues
At Macquarie Partners we audit self managed superannuation funds for compliance issues and the main areas of concern arising are:
1. Old Superfund deeds are not updated or executed properly.
2. Investments are not held in the name of the trustees.
3. Fund bank accounts being overdrawn which is not allowed.
4. Temporary loans to members or associates which is not allowed.
5. Income amounts owing by associated unit trusts which have not been paid on an annual basis.
6. Not all members are trustees or directors of the trustee company which is a critical requirement.
7. Pension funds not paying the minimum required pension each year.
Despite these issues arising occasionally we find trustees are trying to operate their funds within the legal requirements. We are able to help to ensure monies are invested wisely and risks are minimal.
If you have any concerns about your fund please contact your client adviser as we are here to help you.
