Inquiries regarding the implications of an SMSF wind-up were among the most frequently asked questions the BT Technical Services team fielded from advisers during the September quarter.
One topic of interest in particular has been the moving of assets from an SMSF to a public offer fund, to which BT pointed out this can be undertaken for most listed assets via an in-specie transfer.
BT technical consultant Tim Howard noted advisers asking about this topic might have clients facing several different scenarios steering them toward an SMSF wind-up.
“SMSFs may need to be wound up for many reasons, such as a relationship breakdown, and it’s good for trustees to be across the exit strategy and potential costs involved as their circumstances change,” Howard said.
The BT Technical Services team has also seen a rise in advisers seeking assistance in the monitoring of client total super balances and the applicable thresholds for their eligibility to use the non-concessional contribution (NCC) bring-forward rules.
“The calculation can be complicated. Advisers are asking questions on calculations more frequently, especially since the work test no longer applies for these types of contributions. They are confirming the ins and outs and using tools such as our handy NCC calculator,” Howard shared.
Concessional contribution strategies have also been top of mind among advisers with a significant number of questions focusing on the carry-forward rules pertaining to the unused element of an individual’s cap.
To this end, BT suggested it would be prudent for advisers to remind clients the ability to carry forward unused concessional contributions caps only applies for members with a total super balance below $500,000 and the amount is only available for a five-year period.
That means if a person has an unused concessional contribution cap amount from the 2019 financial year they must use it before the end of the current financial year.