Investing thoughts

[sprintcyclist]

This is not quite an investing thought, but well merits posting


'Opportunity is missed by most people because it is dressed in overalls and looks like work.'

[billy the kid]

Thought Id resurrect this thread as Ive been talking to a mate recently about one of the government clusterfucks....
ie….smsf….(self managed super funds)…….
Apparently my mate decided, based on "expert financial advice" that he would start a self managed super fund.
Needless to say, the tax office is now chasing him for non compliance and non payment of their annual "fees"
What a farce...
Taxpayers all over Australia are given permission to do their own tax returns which from time to time, Id imagine
would include monies earnt from share trading which attract capital gains tax...if they happen to be involved in this....
These people are not experts in the field of share trading...they do it for one reason or another...but are
trusted by the ato to declare their "profits" on their tax return...
BUT....if you run a smsf….guess what...you have to pay yearly fees to the ato around 800 bucks a year
for the privilege of running your own super fund....(which may involve share trading) and guess what...you
have to have your fund audited every year and pay some accountant an arm and a leg to have it audited...
AND if you don't do all this...whether your fund is in profit or not......you can be sued by the ato's debt collectors
and fined by the ato for non compliance.....
What a fucking scam...………...

[Black Orchid]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

[sprintcyclist]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

Yes, it has to be audited annually.
Sort of just like any business or individual

SMSF are ....... not my goal. That money is too important for me to manage.
Leave it to the professionals. Really, they will do a better job than me.

[Bobby]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

I'm surprised that it's only $800 per annum for auditing.
I have heard of much higher auditing fees.

[Black Orchid]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

I'm surprised that it's only $800 per annum for auditing.
I have heard of much higher auditing fees.

The way I read it is you pay the ATO $800 just for the privilege of handling your own super and the auditing is separate.

[Bobby]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

I'm surprised that it's only $800 per annum for auditing.
I have heard of much higher auditing fees.

The way I read it is you pay the ATO $800 just for the privilege of handling your own super and the auditing is separate.

Hi BO,
The trouble with superannuation is that there
is always someone in the background pilfering your money -
and of course they do it with a license from the Govt.

[billy the kid]

If you pay tax on your share dividends, why the hell should you pay the ATO $800 per year just because you manage your own SMSF and for no other reason than that? I didn't know that and it's ridiculous.

I also did not know that it had to be audited EVERY year.

Highway robbery.

I'm surprised that it's only $800 per annum for auditing.
I have heard of much higher auditing fees.

The way I read it is you pay the ATO $800 just for the privilege of handling your own super and the auditing is separate.

Correct. The ato fee is paid yearly to them. The obligation to have the smsf audited is on the individual, and the yearly audit
by the accountant includes the accountant preparing and lodging a tax return for the smsf.
The whole thing is a prime example of incompetently drafted legislation which was enacted to ensure that the individual doesn't use the smsf for his personal benefit, and withdraw from the fund for personal expenditure....
Of course, if the individual purchases for example a valuable coin collection, how is that audited...
Does the individual trot out the coin collection for the accountant to view...how does the individual
prove that the coin collection is his...how is the security of the valuable coin collection guaranteed
whilst it is being audited...what if the individual chose to buy precious metals...does he have to produce his
purchase to the accountant to view...who provides security for the precious metal whilst it is "in transit"
from storage to the accountant.....
AND whilst the "investment" exists, the individual still has to pay ato fees and auditing fees whilst the
fund exists...even though it may not be turning a profit.....because of the "poor skills" of the individual
to turn a profit.....
A government scam which is just one big clusterfuck.....
And the public is encouraged to get into a smsf…..its just one big con...
And of course if you don't comply with the auditing requirements...the ato impose fines in the thousands for non compliance......

[Black Orchid]

I can swallow the audits but I can't swallow the ATO charging an annual "supervisory levy".

I think 3 yearly audits would be adequate ...

In the 2018/2019 Federal Budget the government proposed that from 1 July 2019, the annual SMSF auditing requirement be changed to once every three years for SMSFs with a history of good record-keeping and compliance. This proposed change has been widely criticised across the SMSF industry (not just by SMSF auditors), and also by SMSF trustees.

https://www.superguide.com.au/smsfs/sms ... ottom_line

[billy the kid]

Not sure if the audit is required once every three years...but he did say that the tax return was required for the smsf
every year...might be done in 3 at a time clumps...
Still cant see why the average Joe Blow without a smsf who trades shares is permitted to simply declare his capital
gains (if any) in his personal tax return (without being audited etc).....which is what an individual may well be doing with his smsf….
BUT the guy with the smsf has to have his share trading audited and pay an ato yearly fee.....
They are both doing the same thing...…???
So why does the government encourage everyone to create their own smsf….
I would imagine there would be thousands of non compliant smsf in Australia....all being chased for
fines and fees owing to the ato…..
But then again...whats new....the peasants being conned by the lords and barons......nothing changes.....