March 2016 Edition

In this edition:

Welcome

Change in legal structure - New small business CGT rollover relief

SMSF Trustees cautioned over spike in SMSF cash allocations

Main residence exemption when you own two homes - six month rule

SMSF compliance: Insured "lifestyle" assets under data mining microscope

The ATO statistics for the end of the quarter ended December 2015 indicate that cash and term deposits has risen from the September 2015 results of $154.5 billion to $155.4 billion.

Ben Bucknell who is chief executive of OnMarket BookBuilds said cash assets now represent 26 per cent of all SMSF assets. Bucknell believes the data showed too many SMSF's are investing into assets they know rather than into a more diverse range of equities which "over the long term help to grow wealth at a much faster rate than cash", this could be harmful to long-term wealth creation for SMSF's. He also mentioned that SMSFs continue to have a home bias with Australian shareholdings jumping 6.3 per cent to $178.4 billion at 31 December 2015, up from $167.9 billion at the end of the 30 September 2015 quarter.

According to Bucknell: "A greater exposure to a more varied group of companies, including those listing on the ASX and high-growth, small-cap companies would help to build wealth more effectively over time."



If you would like to discuss your SMSF investments or any other investment matter please contact GCC Financial Planning.