The extension of the $50,000 contributions cap for self-managed superannuation fund (SMSF) trustees could affect the way people compile their 2011 financial statements when dealing with superannuation funds, an SMSF principal has said.
“A consultation paper was released on this issue back in March but there are still a lot of contentious areas, particularly with respect to the valuation of benefits to determine whether someone is under the $500,000 limit,” Cooper Partners Financial Services principal Jemma Sanderson told delegates at the Self-Managed Super Fund Professionals’ Association (SPAA) SMSF National Conference last week.
“It also could affect the way in which people are putting together their 2011 financial statements at the moment for super funds.”
The extension of the cap, which currently applies to people aged 50 and over, is due to be extended to apply to all investors from $25,000.
“If they’re [advisers] looking at clients wanting to be eligible for the 2013 year and it’s the 2011 financial statement that the valuation is based on, then they might look at allocating contributions appropriately between members,” she said.
“But because we don’t know how the legislation is going to fit and how certain amounts will and won’t be assessed, it’s quite difficult.
“The sooner that that comes out, the better in terms of people doing any planning that they need done beforehand, so that’s quite important.”
