What is the Superannuation Industry Supervision Act 1993?

What is the Superannuation Industry Supervision Act 1993?

The SIS Act currently enables the trustee of a superannuation fund or approved deposit fund regulated by APRA to apply for financial assistance under Part 23. Therefore, all members of a SMSF (in their capacity as trustees) are responsible for the prudent operation of the fund and its investment strategy.

What is sis legislation?

Australia has the fifth-largest pool of retirement savings in the world. These retirement savings are held within the superannuation system, which is largely governed by the Superannuation Industry (Supervision) Act (the SIS Act). Superannuation is highly regulated.

Is a SMSF regulated by the Superannuation Industry Supervision Act 1993?

As a type of superannuation fund, SMSFs’ overriding legislation is the Superannuation Industry (Supervision) Act 1993 – also known as the SIS Act. SMSFs must also pay tax as there are many sections of the Income Tax Assessment Act 1997 (ITAA ’97) that apply only to super funds.

What is a Part 8 associate?

A Part 8 associate of an individual (whether or not the individual is in the capacity of trustee) includes, but is not limited to: a relative of the individual. other members of the SMSF. if the member is a partner in a partnership, other partners in the partnership and the partnership itself.

What is the sole purpose test?

What is the sole purpose test? The sole purpose test sets the primary and ancillary purposes for which a superannuation fund must be operated, namely to provide benefits to, or in relation to, members after their retirement, on reaching retirement age, or on their death.

Who is classified as a Dependant according to the SIS Act?

subject to subsection (1A). “dependant” , in relation to a person, includes the spouse of the person, any child of the person and any person with whom the person has an interdependency relationship.

Is a SMSF regulated by the SIS Act?

The laws are set by the Australian government and self-managed super funds are regulated by the following government agencies: Australian Taxation Office (ATO) – The ATO administers the tax system and manages the SMSF as per the SIS Act.

What is a regulated super fund?

ATO Regulated SMSF all members are trustees or directors of the trustee company. there are no trustees or directors who are not members. there are no members who are employees of other members (unless they are relatives) no trustee of the fund receives any remuneration for their services as trustee.

What is a self-managed super fund?

A self-managed super fund (SMSF) is a private super fund that you manage yourself. SMSFs are different to industry and retail super funds. When you manage your own super, you put the money you would normally put in a retail or industry super fund into your own SMSF.

Is a cousin a related party SMSF?

You may think that cousins and former spouses are included in the definition of a related party somewhere under the superannuation law. In fact, they are. Cousins and former spouses are included in the section which outlines who an individual can establish an SMSF with.

Can a SMSF invest in a unit trust?

The SMSF can invest in a geared unit trust, as long as the trust is not considered a related party. A related party is normally where more than 50% of the entity is owned or controlled.

What happens if you breach the sole purpose test?

The sole purpose test was the fifth biggest source of contraventions by type. Failing the sole purpose test can lead to: An SMSF losing its concessional tax treatment (meaning the fund may need to pay additional tax on its superannuation contributions and investment earnings)