Part 4: Other Pathways to Wholesale Investor Status
Additional Pathways to Wholesale Investor Status SMSFs may still achieve wholesale classification through legitimate alternatives: · $500,000 investment: Making a single investment above this threshold can qualify you as wholesale under section 761GA. · Sophisticated investor certificate: A licensed financial adviser, or investment advisor, may assess you as having sufficient financial experience to qualify, even […]
Part 3: Superannuation Fund’s Importance on Wholesale Investor Certificates
Special Rule for Superannuation Funds The Corporations Act includes a specific provision for superannuation funds. Where a SMSF receives an advice on a superannuation product, it is a retail client unless the superannuation fund has net assets of at least $10 million (s761G(6)) This $10 million rule caused confusion. In 2014, ASIC issued Media Release […]
Part 2: How to acquire a Wholesale Investor Certificate
There are several prerequisites to receive a Wholesale Investor Certificate. Wholesale Clients and the Corporations Act An SMSF can be a wholesale investor if it satisfies the tests under sections 708 and 761G of the Corporations Act, including: · Net assets of at least $2.5 million; or · Gross income of at least $250,000 per […]
Part 1: Is your SMSF a Wholesale Investor or not, and why it matters.
Is a wholesale investor certificate necessary? The wholesale investor rules apply only to financial products and financial services. This includes managed investment schemes, securities, superannuation products, and derivatives. These rules do not apply to direct investments in non-financial assets, such as residential or commercial real estate, collectables, crypto currency (sometimes) or personal business acquisitions. For […]
Managing Australian Death Taxes: Essential Insights for Estate Planning
A common misconception is that Australia has no inheritance tax. While that is technically true, it is not the case in practice. The death of a loved one almost always raises a raft of tax issues and triggers events that have a tax implication or trigger a tax event. As Perth tax accountants, tax planning […]
Everything you Need on the 50% Capital Gains Tax Discount
When it comes to capital gains tax, the 50% CGT tax discount is a powerful tool. The knowledge that you can potentially enjoy half of your profits tax-free is common among Perth tax accountants and business families, but it’s also a key advantage that can significantly impact your financial decisions and how you go about […]
New! Super Tax Changes Coming 1 July
As we approach the new financial year, exciting tax changes are on the horizon, offering Australians an opportunity to optimize their superannuation funds—whether they’re SMSF managed by a Perth tax advisor or APRA funds. Effective 1 July, the enhanced concessional super contribution tax limits will potentially help people increase their retirement and reduce their overall […]
Are SMSFs Better for Families in Business?
For the last few decades, many tax accountants around Perth have held the mantra that SMSFs are the “go-to” tax vehicle for family business owners. However, with a massive change in technology, taxation, legal and investment changes, the question remains—are SMSFs still worth it for family businesses in Perth, and where are SMSFs ever worth […]
What is the Tax Effect of a Capital-Protected Loan?
Most families in business around Perth are aware of the tax benefits of negative gearing in real estate. The tax law surrounding negatively geared share investments is almost the same and differs when looking at the tax effect of capital-protected loans. When Perth family businesses talk to their tax accountants about the tax benefit of […]
Navigating 50/50 Unit Trusts with SMSFs
The landscape of Self-Managed Super Funds (SMSFs) is continually evolving, and a growing trend involves investments in 50/50 unit trusts (or, more technically, an unrelated unit trust). In this structure, an SMSF holds a 50% interest in a unit trust, with another unrelated person holding the remaining 50%. The other unrelated party can be another […]