In this episode of SMSF Insider, host Troy discusses the complexities surrounding Division 296 and its implications for self-managed super funds (SMSFs). He emphasizes the importance of transferring assets outside of superannuation, such as into family trusts or insurance bonds, to avoid the negative impacts of Division 296. Troy explains how Division 296 is calculated based on the fund's asset value as of June 30 each year, illustrating with an example of a fund growing from $3.1 million to $3.5 million. The episode aims to help listeners understand tax planning strategies and how to manage their SMSFs effectively to achieve financial independence. Tune in for valuable insights and expert advice on navigating the world of SMSFs.

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Please note: The information provided in this recording is for coaching and educational purposes only. It should not be considered personal financial advice. Everyone’s situation is different, so before acting on any of the content discussed, please seek independent financial advice tailored to your specific circumstances.

Timestamps:

00:00:00 - 00:00:00: Introduction

00:00:52 - Understanding the Calculation of Division 296

00:02:27 - Valuing Direct vs. Unlisted Assets

00:03:53 - Tax Planning Strategies for SMSFs

00:04:14 - Valuing Unlisted Assets in Industry Funds

00:05:06 - Timing Contributions to Navigate Division 296

00:06:01 - Alternative Investment Options Beyond Super