A number of changes to superannuation legislation have recently come into force. We’ve summarised the key changes which could have an effect on you below.

 Investment strategy

Superannuation regulations now require trustees to regularly review their investment strategy – presumably a regular review would mean at least annually. As part of the review trustees must consider whether members have appropriate risk insurance coverage. This includes Life, Total & Permanent Disability (TPD) and Income Protection insurance. As an Australian Financial Services Licensee, William Buck Wealth Advisors can help you with the review of your investment strategy and assess your risk insurance needs. Please contact David Alcorn or Brad Hunt on 03 9824 8555 for further information

Separation of Fund assets

Trustees can now also be penalised if they fail to keep money or other assets of the fund separate from any money or assets held by the standard employer-sponsor or its associate as well as from any money or assets held by the trustee personally.  This was already an existing rule however the ATO has now introduced penalties.

Valuation of assets

There is now a requirement to value fund assets at market value when preparing financial statements for a self-managed super fund for the year 2012-13 and any later years.  Valuing fund assets at market value has been the ATO’s preference for a number of years. However, only now it has made its way into the superannuation legislation.  The ATO have released a valuation guidelines for self-managed superannuation funds.

Disclaimer: The contents of this article are in the nature of general comments only, and are not to be used, relied or acted upon with seeking further professional advice.  William Buck accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice.  Liability limited by a scheme approved under Professional Standards Legislation