Superannuation Discussion + market volatility

[CaptJCool]

This probably has the best approach to investing

Capture upside hopefully turbocharging it
Avoid downside

How we invest

Our investment purpose is to provide comfortable retirement outcomes for you and your family.

www.csc.gov.au

Of course with international shares you have 3 potential incomes
Dividends
Capital gains on sale share price
Foreign exchange gains

Voila 7-8% pa
However the volatility of year to year performance is reality
Unlike the political posturing over avoiding any recession which is part and parcel of normal

 

[andye]

A question
What are the practicalities of paying an SMSF tax bill to ATO? Won't apply to me until next Feb

Do you draw down the sum from the SMSF and then pay via normal channels?
Or
Do you need to pay ATO directly from the SMSF

I realise there are all sorts of rules around SMSF payments so if the former is it allowed to use a CC, processor etc once you have an approved drawdown? (The ATO site does seem to indicate you can pay by CC)

 

[lakeman]

A question
What are the practicalities of paying an SMSF tax bill to ATO? Won't apply to me until next Feb

Do you draw down the sum from the SMSF and then pay via normal channels?
Or
Do you need to pay ATO directly from the SMSF

I realise there are all sorts of rules around SMSF payments so if the former is it allowed to use a CC, processor etc once you have an approved drawdown? (The ATO site does seem to indicate you can pay by CC)

My understanding is that paying any bills for an SMSF privately is a big no no and can lead to losing tax deductibility for contributions and other complications.
My yearly documents and emails from the ato reinforce that position.
If the tax bill is a div293 which is raised in the taxpayers name ,then you can elect to pay it yourself and hence get the benefit of paying and getting some rewards..

 

[andye]

My understanding is that paying any bills for an SMSF privately is a big no no and can lead to losing tax deductibility for contributions and other complications.
My yearly documents and emails from the ato reinforce that position.
If the tax bill is a div293 which is raised in the taxpayers name ,then you can elect to pay it yourself and hence get the benefit of paying and getting some rewards..

May I ask how you do pay the bill?

 

[lakeman]

May I ask how you do pay the bill?

The trustee should pay the bill from its funds.
For example I ,as trustee , operate a CDIA attached to my SMSFs share account and can use bill pay or direct transfer.(edited for spelling and clarity)

 

[andye]

The trustee should pay the bill from its funds.
For example I ,as trustee , operate a CDIA attached to my SMSFs share account and can use bill pay or direct transfer.(edited for spelling and clarity)

Thanks. Exactly the answer I was looking (though maybe not hoping) for

Ours will be ser up with Macquarie and I shouldn't need to do until Feb 2026

 

[lakeman]

Thanks. Exactly the answer I was looking (though maybe not hoping) for

Ours will be ser up with Macquarie and I shouldn't need to do until Feb 2026

Running an SMSF publication now available | Australian Taxation Office

This publication completes the suite of lifecycle publications which includes Starting an SMSF and Winding up an SMSF.

www.ato.gov.au

This should be useful