DIY Super Manual (paper)

Paper and Electronic Versions

The DIY Superannuation Manual comes in two versions, paper and electronic.

About the Manual

Written in plain English with plenty of examples, tips and warnings, this is an excellent resource for both the taxpayer running their own fund or the professional who may be operating funds for their clients (see sample below).

Covers:

• Advantages/disadvantages of a DIY Superannuation fund
• Strategies for DIY Superannuation funds
• Tax issues (including GST and preparing a BAS/IAS)
• Superannuation Contributions Surcharge
• Reasonable Benefit Limits
• Accessing superannuation benefits
• A sample superannuation fund
• and much more . . .

With the frequent changes to the DIY Superannuation rules, we strongly recommend that you also subscribe to the DIY Super Manual quarterly update service.

A Sample from the Manual

Managing a superannuation fund

6.200 Borrowing
Borrowing by any superannuation entity is generally prohibited, except for short-term cashflow purposes (s 67 of the SIS Act). Borrowing is limited to 10% of the fund’s assets, and the period of borrowing is limited to a maximum of:

• 90 days: if a payment to a beneficiary could not be made with borrowing, and thepayment was required to be made to comply:
  • with the governing rules, or
  • by law;
• 7 days: due to unforeseen circumstances when the investment decision was made, tosettle certain financial instrument acquisitions listed in s 67(3)(a) of the SIS Act,including bonds, debentures, shares, units and various contracts;
• 90 days: if a payment of superannuation contributions tax (surcharge) cannot otherwisebe made due to lack of readily available funds.

6.250 Loans to members and their relatives prohibited
Loans (or other financial assistance) cannot be made to a member or a member’s relative,(s.65 of the SIS Act). A relative in relation to a person, means:
a) the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendantor adopted child of that person, or of his or her spouse; and

b) the spouse of any person specified in a).

A loan involves the lending of money and creation of a debt or obligation to repay thatmoney. Whilst ‘financial assistance’ is not defined, this restriction means that the trusteeof a regulated superannuation fund could not allow the fund’s assets to be used:

• as security for the benefit of a member or a member s relative;
• to release an obligation owed by a member; or
• to give a guarantee for borrowings of a member or a member’s relative.