The SMSF Experts with Shelley Banton

In this episode of the SMSF Experts Podcast, Shelley breaks down the often-overlooked issue of underpaying a pension in self-managed super funds. While it may seem minor, failing to meet pension payment requirements can lead to serious compliance and financial consequences.To help unpack this complex topic, Shelley is joined by Peter Crump, Senior Consultant in Private Wealth at BDO Adelaide. With over 35 years of experience advising the SMSF sector and high-net-worth clients, Peter brings deep insight into the evolving regulatory landscape and the significant changes recently introduced around pension underpayments.Together, they explore the rules that govern pensions, why even small errors matter, and what trustees need to do to stay compliant in light of the new rules. [03:45] – What is a Pension in an SMSF?[06:00] – Minimum Pension Standards & Why They Matter[08:00] – Consequences of Underpayment[10:30] – Taxable vs Tax-Free Components[12:00] – Are Payments Still Valid if You Miss the Minimum?[13:45] – Why Underpayments Happen[15:15] – Direct Debits & Best Practices[17:00] – ATO Relief: The 1/12 Rule[20:00] – ATO Discretion & Trustee Mistakes[23:00] – Upcoming Rule Changes in 2025[26:30] – Timing & Repercussions of the New Rules[30:00] – Backdating & Legal Risks[32:00] – Auto-Correction Clauses: Useful or Risky?[35:00] – Administrative Challenges for Accountants[38:30] – Software, Tagging & Reporting[40:00] – ATO's Motivation for the Change Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In this episode of THE SMSF Experts, Shelley is joined by Bryce Figot, special counsel at DBA Lawyers, to discuss the significant impact of case law on SMSF trustees and compliance obligations. With over 21 years of experience in tax and superannuation, Bryce shares insights on landmark cases like Hill v. Zuda, Katz v. Grossman, and the consequences for SMSF professionals and auditors. Shelley and Bryce dive into how these legal precedents have shaped best practices, estate planning, and the nuances of trustee responsibilities within the SMSF industry. (01:16 The Fascination with Self-Managed Super Funds(02:20 Championing SMSF Auditors(04:15 Case Law Impact on SMSFs: Hill vs. Zuda(11:52 Katz vs. Grossman: Trustee Discretion and Family Disputes(21:02 Aussiegolfa vs. Commissioner of Taxation(21:43 The Sole Purpose Test and In-House Asset Rules(25:42 Penalties and Compliance in SMSFs(30:16 Auditors' Responsibilities and Landmark Cases(34:34 The Melissa Caddick Case and Settlement Insights Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In this episode of the SMSF Experts, Shelley sits down with Caroline Bowler, CEO of BTC Markets, to explore the controversial yet fascinating role of cryptocurrency in SMSFs. With over 17 years of experience in financial services and a deep expertise in blockchain and digital assets, Caroline shares valuable insights on whether crypto qualifies as a complying SMSF asset. They delve into regulatory challenges, investment strategies, and the broader impact of digital assets on the industry. (00:31) Diving into Cryptocurrency(02:25) Understanding Blockchain and Bitcoin(03:42) The Evolution of Money and Value(04:52) Bitcoin's Global Relevance(07:55) Real-World Applications of Crypto(10:54) Tokenisation and the Future of Digital Assets(21:29) Regulatory Challenges and Scams(26:54) Building a Regulatory Framework for Crypto(27:52) Impact of Global Regulations on Crypto Prices(28:41) Australia's Need to Catch Up in Crypto Regulation(30:23) Challenges and Opportunities in Crypto Investment(35:24) Understanding Crypto Wallets and Security(39:46) Risks of Complex Crypto Products for Trustees(45:15) The Potential of NFTs Beyond Digital Art Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In this first episode of the new 2025 series, Shelley delves into the critical issue of elder protection within SMSFs. With alarming statistics from the AIFS National Elder Abuse Study revealing significant incidents of elder and financial abuse, the episode highlights the urgency of safeguarding elder SMSF members. Special guest Louise Biti, Director of Aged Care Steps and a seasoned expert with over 25 years in the industry, shares her invaluable insights and strategies to address these pressing challenges.(00:30) Understanding Elder Abuse in SMSFs(01:01) Meet Louise Biti: Aged Care Expert(03:32) Personal Insights on Retirement Planning(04:47) Challenges of Navigating Aged Care for Parents(06:42) The Role of Advisors in Aged Care Planning(11:59) Red Flags and Cognitive Aging(17:14) Elder Abuse in SMSFs: Risks and Realities(23:31) Inheritance Impatience: A Form of Elder Abuse(25:47) Supported vs. Substituted Decision Making(26:46) Role of Enduring Power of Attorney(27:24) Handling Subjective Decisions(28:36) Supporting Decision Making(29:24) Dealing with Elder Abuse(31:04) Understanding EPOAs(33:16) Appointing an EPOA(36:31) Joint EPOAs: Pros and Cons(38:24) New Aged Care Act and Financial Implications(42:31) Importance of Professional Advice(44:35) Real-Life Elder Care Scenarios  Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In this episode, we explore the ins and outs of in-house assets within self-managed super funds. Lyn Formica, Head of Education and Content at Heffron SMSF Solutions, joins Shelley to explain the regulations, benefits, and risks involved in helping SMSF trustees make informed decisions. With over 30 years of experience providing technical advice to SMSF professionals, Lynn offers valuable insights into managing these assets effectively.(03:31) Understanding In-House Assets(05:29) Exceptions to In-House Assets(06:39) Challenges with Overseas Assets(08:16) Market Valuations and In-House Assets(11:43) Related Parties and In-House Assets(14:32) Trustee Responsibilities for In-House Assets(21:13) Understanding Trust Legislation and Tainting(22:11) Timing and Compliance with ATO Rules(22:56) Dealing with NALI Provisions and Exiting Investments(24:40) Navigating Trustee Changes and Death Benefits(27:02) Section 85: Anti-Avoidance Provisions(34:01) Advising Clients on In-House Assets(39:58) War Stories and Real-Life Examples  Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In today's episode of The SMSF Experts, we're looking into the essential strategies and insights needed to manage a successful Self-Managed Super Fund. From foundational principles to advanced techniques for tax efficiency and investment diversification, we cover key areas that can make a big impact on your SMSF journey. Joining us is Liam Short, Managing Director of Sonas Wealth. With over 30 years of experience in financial services, Liam is renowned for his practical, holistic approach to helping people take control of their wealth. (01:36) The Evolution of Financial Planning(04:03) Setting Up Your First SMSF: Key Advice(05:30) Understanding SMSF Returns and Risks(07:31) The Importance of an Exit Strategy(11:43) Current Trends in SMSF Investments(17:34) Common Mistakes and How to Avoid Them(21:34) The Importance of Trustee Compliance(21:57) Creating an Investment Portfolio for SMSF Clients(24:13) The Role of Education in Early Super Contributions(26:57) Regularly Reviewing and Updating Investment Strategies(33:33) Navigating the New Division 296 Tax(36:03) Family Dynamics in SMSF Management(39:34) Interest Rates and Investment Strategies Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In this episode, we're deep-diving into the 2024 Annual Benchmark Report from Class Super. The report provides a comprehensive look at the SMSF landscape, highlighting what's working, where improvements are needed, and offering actionable insights for the future.Joining Shelley are two industry heavyweights: Tim Steele, CEO of Class, and Kate Anderson, General Manager of Operations, who bring over 50 years of expertise in financial services to the table. Shelley, Tim and Kate break down the data together and discuss what it all means for SMSF professionals and trustees.(00:22) Overview of the 2024 Annual Benchmark Report(03:17) Discussion on Non-Concessional Contributions(07:46) Engaging Younger SMSF Members(14:07) Addressing the Gender Gap in Superannuation(21:08) Pension Phase Insights and Retirement Strategies(24:50) Understanding Pension Start Delays(25:20) Fear of Running Out of Money in Retirement(26:32) Legacy and Spending in Retirement(27:45) Division 296 and Its Implications(28:45) Impact of Division 296 on Property Investments(31:22) Indexation and Future Tax Implications(35:29) The Role of Financial Advice in Retirement(42:23) Technological Advancements in SMSF Management Follow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In today's episode, we're unpacking the arm's length rules and examining their significance in the SMSF world and their effect on compliance. Joining us to provide expert guidance is Mary Simmons, Head of Technical at the SMSF Association.(02:56) Understanding Arm's Length Rules(03:24) Section 109 Explained(08:38) Real Bargaining and Arm's Length Transactions(11:00) Practical Examples and ATO Guidelines(21:02) Loans and Related Party Transactions(35:59) Documentation and Compliance TipsFollow Shelley: linkedin.com/in/shelley-banton-0a903a17For more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In Episode 17 of The SMSF Experts, Shelley is joined by Clinton Jackson, a partner at Cooper Grace Ward Lawyers, to discuss the complexities of trust deeds in SMSFs. Shelley and Clinton discuss the importance of having a tailored and flexible trust deed and share practical tips and strategies for ensuring the trust deed is up to date.(03:49) Understanding Trust Deeds: The Good, Bad, and Ugly(08:38) The Importance of Corporate Trustees(10:48) Challenges in Signing and Witnessing Deeds(17:22) Updating Trust Deeds: When and Why(20:27) Principal Employer Sponsors: Legacy Issues and Solutions(25:26) Case Studies: Trust Deed Disasters and Resolutions(29:51) Dealing with Trustee DisputesFollow Shelley: LinkedinFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In episode 16 of The SMSF Experts, Shelley is joined by Fraser Jack, founder of the Cyber Collective, as they explore the growing threat of cybercrime targeting the SMSF industry. Shelley and Fraser discuss the alarming techniques cyber criminals use, such as deception, harassment, and hacking, and the importance of protecting client data. (03:53) - How do you stay in front of Cybercrime?(05:39) - They aren't scams, they are crimes.(08:56) - How should firms respond to ransoms?(10:54) - Have you seen a ransom payment gone wrong?(13:45) - What is the likelihood of a data breach within the SMSF industry?(22:01) - How do you mitigate the remote working risk?(27:14) - Responsibilities and Legal Implications(32:32) - The Human Cost of Cyber Scams(34:36) - Ai and the Future of Cybersecurity(38:58) - What's the best or worst scam you've seen?Follow Shelley: linkedin.com/in/shelley-banton-0a903a17Follow Fraser: linkedin.com/in/fraserjack123Cyber Collective Website: thecybercollective.com.auFor more episodes and to sign up for the ASF Audits newsletter, please visit asfaudits.com.au

In episode 15 of The SMSF Experts, we tackle the latest development in superannuation: the new $3 million super tax. Although this measure is not law yet, it has already sent shockwaves through the SMSF industry for two major reasons: the tax will be applied to both realised and unrealised gains, and it must be paid personally by the member. To help us understand the implications of this change, we're joined by Julie Steed, Senior Technical Services Manager at Insignia Financial.

Episode 14 of SMSF Experts explores ethics within the SMSF industry. We dissect the implications of moral awareness that can lead to self-interest and provide practical strategies for ethical decision-making faced by SMSF professionals. Join us as Nidal Danoun, Principal Director of Prosperity Financial Services, offers his expert insights into ethical thinking.

In this episode of The SMSF Experts, we explore what real business property is. Understanding what qualifies as business real property is crucial because it is one of the exceptions to the in-house asset and related party acquisition rules. Helping Shelley work through the business real property maze is Craig Day, head of technical services from Colonial First State.

In this episode of SMSF Experts, we delve into unlocking SMSF benefits amidst increased scrutiny from the ATO regarding illegal early releases. Shelley is joined by Liz Westover, a partner and national SMSF leader at Deloitte, to shed light on the dos and don'ts of meeting the conditions of release for accessing funds in an SMSF.

Episode 11 of the SMSF Experts discusses the limited circumstances under which an SMSF is permitted to borrow. The episode explores the complexities in determining what constitutes a borrowing, particularly in the absence of a definition in the SIS legislation. Aaron Dunn, the CEO and co-founder of Smarter SMSF, joins the program to provide insights into the technical and practical aspects of borrowing in the SMSF sector.

In this episode of The SMSF Experts, Shelley and Jemma Sanderson, Director of Cooper Partners Financial Services, shed light on the rules and challenges surrounding related party transactions in SMSFs. They discuss who is a related party, how to invest in related parties and partnerships, and the common compliance pitfalls to avoid. This is a must-listen episode for SMSF professionals who want to ensure they comply with the related party rules.

In this episode, we delve into the ever-evolving landscape of Artificial Intelligence and its profound influence on SMSFs. As AI continues to advance, it's crucial to grasp how SMSF management and its potential impact on performance are set to transform. Joining us in this episode is Jeevan Tokhi, the Head of Product at BGL Corporate Solutions, overseeing Simple Fund 360, Simple Invest 360, and SmartDocs 360, who will help us gain a deeper understanding of the AI-driven future of SMSFs.

Shelley invites National Partner, Superannuation & SMSF at Carbon Group Poonam Di Iorio onto the podcast to discuss the challenges of running a successful SMSF Administration firm.

We know that family would never argue about a deceased member's super balance, but the sad reality is that case law is littered with those who have. Unfortunately, it can divide the family in half all because mum or dad's intentions weren't clearly articulated. On this episode of the SMSF Experts, we talk to the SMSF guru of estate planning, Scott Hay-Bartlem, to discuss how the quality of a fund's documentation can be the difference between following a member's wishes or having to get the lawyers involved.

Shelley teams up with Peter Burgess, the CEO of the SMSF Association, for an in-depth exploration of the recent developments in the SMSF industry. They delve into the latest releases from the ATO and decipher their practical implications.

There are a lot of ways to maximise super contributions. In Episode 5 of The SMSF Experts, Shelley is joined by Tim Miller, the Technical and Education Manager at Smarter SMSF, to discuss strategies and super contributions rules to help avoid paying additional tax.

Pension practicalities are an SMSF minefield. Whilst there are specific rules that apply to pensions, SIS remains silent on some areas meaning it can be open to interpretation. In today's episode, Meg Heffron, Managing Director of Heffron SMSF Solutions, joins Shelley to make sense of it all.

The SMSF industry has encountered a steep technology curve with no signs of slowing down. In this episode Shelley and Jo Hurley, GM of Growth at Class, discuss what we can look forward to, when it will happen and what sort of risks we take when the regulators can't keep up with the commercial reality of technology.

Shelley is joined by Mark Ellem, Head of Education at Accurium, to discuss the murky area of market valuations, share issues they see in practice, tell a few war stories and shed light on the key problems when valuing assets at market value in SMSFs.

Shelley and Superannuation and Financial Services Leader Tony Negline discuss what's affecting the SMSF industry today. Where are we going? And will we be able to get enough into super to retire comfortably?