SMSF Deed of Variation

What's Included

When you order a SMSF Deed of Variation through abnaustralia.com.au you receive the following documentation:

• a high-quality SMSF trust deed prepared and reviewed by our legal partners;
• Certificate of Compliance for roll-over of member benefits, sometimes called the Rollover application letter;
• generic investment strategy (a specific investment strategy can be created using the SMSF Investment Strategy product).
• Consents for the Trustees, or directors of the corporate Trustee;
• Minutes to set up the SMSF and set its investment strategy;
• Applications, beneficiary notices and TFN notices for the SMSF members;
• ATO trustee declaration form;
• Written confirmation of ABN registration (optional extra) received direct from the Australian Business Register; and
• Printing, binding, and delivery option available.

Latest Reforms

Keeping up with the Law - the latest superannuation changes for 2017/2018

Changes to the superannuation system announced by the Government in the May 2016 Budget and implemented on 1 July 2017 were designed to improve Australia’s super system in a number of ways, once again affecting the way in which SMSFs operate - and represent another instance of when SMSF Trustees should ensure their Trust Deeds are up to date. Importantly, if any of your client's trust deeds were established prior to 1 July 2017 there is a risk they are missing out on financial opportunities, and at worst may be in breach of the Law. This could result in additional tax and financial penalties, succession issues, and a range of other disputes.

Key elements of superannuation fund changes for 2017/2018 include:

• Introduction of a $1.6 million transfer balance cap
• Annual concessional (before-tax) contributions cap reduced to $25,000
• Expansion of tax-deductible super contributions to all Australians
• Annual non-concessional (after-tax) contributions cap reduced to $100,000
• Increase in income threshold for spouse superannuation contributions tax offset to $37,000 (and $40,000)
• Low Income Superannuation Tax Offset replaces LISC
• Removal of tax exemption for transition-to-retirement pensions (TRIPs)
• Tax hike for more Australians: 30% tax on concessional (before-tax) super contributions
• Preservation age now at least 57 years
• Age Pension increases to at least 65.5 years
• SMSF trustees face bigger penalties from 2017/2018 year
• Introduction of First Home Super Saver Scheme
• Removal of option to treat a pension payment as a lump sum payment, for tax purposes
• Removal of anti-detriment provisions
• Extension of tax exemption for other types of retirement products
• Non-super change: Delivery of personal income tax cuts
• Proposed introduction of non-financial superannuation changes

The adoption of a modern and well-prepared SMSF Trust Deed as available through ABNAustralia.com.au will provide clients with the necessary provisions required by SMSF Trustees in meeting the requirements of the 2017 Reforms.

Keeping up with the latest industry innovations

In addition to legislative changes, continual innovation in superannuation has tended to ‘age’ SMSF Trust Deeds which have not kept up-to-date. There have been a myriad of tax determinations, rulings, court cases & ATO guidance on a range of issues resulting in new strategies developed and changes in best practice which require an up to date SMSF trust deed to protect your interests and get the most from your SMSF

Some of the areas in which older Deeds can cause difficulties for Trustees and Members include: 

• the unnecessary linking of a Binding Death Benefit Nomination with the requirements in the SIS Legislation for non SMSFs, effectively making the nomination lapse after three years, unless renewed;
• no indication as to whether a Binding Death Benefit Nomination will be non-lapsing – industry consensus is that the trust deed should specifically state that a Nomination will not lapse, if that is the intention of the member, because of the passage of time;
• The ability for the SMSF Trustee to borrow in Limited Recourse Arrangements;
• the provision of appropriate powers for the payment of income streams, given that many trust deeds do not provide for an account based pension, even though it has been the predominant pension paid by an SMSF since 2007;
• incorporating safeguards, such as a Member Benefit Guardian, to protect a member’s interests in the event of their incapacity or death; and
• the removal of unnecessary parties to the deed. Those parties include roles which have become irrelevant over time, such as the Principal, Principal Employer (and other employer roles), Founder and similar positions.
• In many instances, when attempting to vary an SMSF trust deed, or change the trustee of an SMSF, the power to do so rests with one of those ‘unnecessary parties’ referred to above. A significant complication arises when it is discovered that the party, which is often a company, has been deregistered because it was no longer required, and is therefore not in a position to attend to the role assigned to it under the trust deed. The removal of those unnecessary parties is one of the reasons why trustees should update their SMSF deed sooner rather than later.

One matter which can be attended to, sooner rather than later, is the variation of the trust deed of the SMSF so as to provide all of the necessary provisions required by trustees, not only in meeting the requirements of the Superannuation Reform provisions, but also adopting the innovations made within the SMSF industry over the years.

The adoption of a modern and well-prepared SMSF Trust Deed as available through ABNAUstralia.com.au will provide clients with the necessary provisions to ensure they are taking advantage of industry best practice. 

Our Promise

Our team has been providing affordable business registration and legal document services since 1976. Our longevity reflects our reputation for the best customer service in the business, underpinned by our commitment to effective documentation and attention to detail.

In order to ensure you and your clients are protected against legal risks, it is important that your trust deed documentation is reviewed and prepared by an actually qualified lawyer with experience in this area. This is exactly what you get when you order through abnaustralia.com.au. Not only do our lawyers ensure your documentation complies with the appropriate legislative and tax office requirements, they also ensure your documents are maintained in line with the latest industry innovations.

Our goal is to partner with accounting and professional firms who understand the value of an informed business registration and legal document provider. Why not try ordering your next deed of variation online with us at ABNAustralia.com.au and experience for yourself the difference in service that our existing customers have come to expect.

What our clients say

PDF Forms

Deed of Variation (Superannuation Fund) Order Form (PDF)