SMSF essentials course - Changelog December 2024

The following changes have been made to module 2 and 3 within the SMSF essentials course - these changes reflect part of the repositioning of content to align with our SMSF foundations course, along with various additions and amendments to the superannuation laws at December 2024:

M3 Contributions Rules moved to M2 Contribution Rules
M2 Investment Rules moved to M3 Investment Rules

Module 2

Section	Changes required
Module Overview	Updated reference to Module 2
Learning outcomes of the Module	Replaced existing LOs with more detailed version
2.1 - Introduction	Renumbered section Introduction from 3.1 to 2.1
2.1.1 - ATO Ruling TR 2010/1	NEW SUBSECTION - Inserted new subsection 2.1.1 - ATO Ruling TR 2010/1 to introduce the ATO ruling as a key document
2.1.2 - What is a contribution?	Renumbered section ‘What is a contribution?’ from 3.2 to 2.1.2
2.2 - How is a contribution made?	Renumbered section ‘How is a contribution made?’ from 3.3. To 2.2 Includes renumbering subsection ‘Monies transferred’ to 2.2.1 Includes renumbering subsection ‘In-specie contributions to 2.2.2 Includes renumbering subsection ‘Increasing the value of an existing asset’ to 2.2.3 Includes renumbering subsection ‘Third party expense payments’ to 2.2.4 Includes renumbering subsection ‘Payment of debt by guarantor’ to 2.2.5 Includes renumbering subsection ‘Forgiveness of debt by lender’ to 2.2.6
2.2.2 - In-specie contributions	Changed reference to Investment Rules Module from Module 2 to Module 3
2.3 - Eligibility to make contributions	Renumbered section ‘Eligibility to make contributions’ from 3.4 To 2.3 Includes renumbering subsection ‘Employer contributions’ to 2.3.1 Hyperlink reference changed from 3.6 to 2.5 for work test NEW SUBSECTION - inserted new subsection 2.3.2 ‘Member contributions’
2.3.2 - Member contributions	NEW SUBSECTION - inserted new subsection under 2.3 to distinguish between employer contributions and member contributions
Activity 1 - Employer Contributions	Scenario 1 updated to reflect change in SG from 11% to 11.5%
2.4 - Total Superannuation Balance	Renumbered section ‘Total Superannuation Balance’ from 3.5 To 2.4 Includes renumbering subsection ‘Defining a member’s total superannuation balance’ to 2.4.1 Includes renumbering subsection ‘Accumulation Phase Value (APV)’ to 2.4.2 Includes renumbering subsection ‘Retirement Phase Value (RPV)’ to 2.4.3 Text and Table updated to reflect indexation of Non-concessional cap to $120,000 from 1 July 2024 resulting in changes to thresholds
2.4.1 - Defining a member’s total superannuation balance	Added a NOTE to reference the Government’s plan to amend the definition of total superannuation balance to remove links to transfer balance cap - subject to passage of legislation
2.4.2 - Accumulation Phase Value (APV)	Example - Hugh’s age changed from 59 to 60 and date changed from 30 June 2023 to 30 June 2024
2.4.3 - Retirement Phase Value (RPV)	Example - calculation of James’ total superannuation is changed from 30 June 2023 to 30 June 2024
2.5 - Work Test	Renumbered section ‘Work Test’ from 3.6 To 2.5 Includes renumbering subsection ‘How removing the work test affects an individual’ to 2.5.1 Includes renumbering subsection ‘How removing the work test affects super funds’ to 2.5.2 Includes renumbering subsection ‘What is gainful employment?’ to 2.5.3 Includes renumbering subsection ‘Work Test Exemption’ to 2.5.4 Hyperlink reference changed from 3.6.3 to 2.5.3
2.5.1 - How removing the work test affects an individual	Hyperlink reference changed from 3.13 to 2.15
2.5.4 - Work Test Exemption	Example of Geoff updated to current year
Activity 2	Scenario 4 (Jiang) updated to current year example
2.6 - Timing of contributions	Renumbered section ‘Timing of contributions’ from 3.7 To 2.6 Includes renumbering subsection ‘In-specie contributions’ to 2.6.1 Includes renumbering subsection ‘Contributions made via ATO Small Business Super Clearing House (SBSCH)’ to 2.6.2
2.6.1 - In-specie contributions	Section has been reworded to expand on when an in-specie contribution is made. Text distinguishes between asset transfers and assets purchased via contract NOTE has been added about the release by the ATO of Draft Ruling TR 2010/1 that reflects how the ATO view in-specie contributions in the post NALE environment
2.7 - Concessional Contributions	Renumbered section ‘Concessional contributions’ from 3.8 To 2.7 Table updated to include cap for 2024-25 Text made more generic regarding indexation Example updated SG indexation to 11.5% increase tax payable on higher contribution increase cap space Section revamped - removed SG, unused carry-forward, contribution splitting to their own sections and integrated tax into section NEW SUBSECTION - inserted new subsection 2.7.3 ‘Personal deductible contributions and section 290-170 notice requirements’
2.7.1 - Tax treatment of concessional contributions	Renumbered from 3.9 to 2.7.1
2.7.2 - No-TFN contributions tax	Renumbered from 3.11 to 2.7.2
2.7.3 - Personal deductible contributions and section 290-170 notice requirements	NEW SUBSECTION - inserted new subsection under 2.7 outlining the notice requirements for a member claiming a personal tax deduction, subject to satisfying the work test requirements
2.8 - SG Contributions	Renumbered from 3.8.1 to 2.8
2.8.1 - Maximum contribution base	Renumbered from 3.8.2 to 2.8.1 Table updated to include MCB for 2024-25
2.8.2 - SG opt out for high income earners with multiple employers	Renumbered from 3.8.3 to 2.8.2
2.9 - Unused concessional cap carry-forward	Renumbered from 3.8.4 to 2.9 Example is updated to consider contributions in 2024-25 year Example is updated to exclude the unused contribution from 2018-19
2.10 - Contribution splitting	Renumbered from 3.8.5 to 2.10 Includes renumbering subsection ‘who can split?’ to 2.10.1 Includes renumbering subsection ‘What contributions can you split’ to 2.10.2 Includes renumbering subsection ‘How much can be split’ to 2.10.3 Includes renumbering subsection ‘Trustee’s decision on member’s application’ to 2.10.4 Includes renumbering subsection ‘Tax and other consequences of contributions splitting’ to 2.10.5 Updated contributions splitting example
2.11 - Contribution & reserve amounts	NEW SECTION - inserted new section under 2.11 ‘Contribution & reserve amounts’ Section introduces existing sections that deal with both contribution reserving (renumbered to 2.11.1) and allocations from a reserve (renumbered to 2.11.2)
2.11.1 - Contribution reserves	Renumbered from 3.8.6 to 2.11.1 Minor re-write of the section to flow better
2.11.2 - Allocations from a reserve	Renumbered from 3.8.7 to 2.11.2 Section re-written to include new Income Tax Regulations that apply from 7 December Indicates pre 7 December rules Indicate post 7 December rules Includes a link to the NEW regulations
2.12 - Excess concessional contributions	Renumbered from 3.12 to 2.13 Example updated to reflect Stage 3 tax cuts MTR change from 32% to 30%
2.13 - Division 293 Tax	Renumbered from 3.10 to 2.12 Includes renumbering subsection ‘Income’’ to 2.13.1 Includes renumbering subsection ‘Contributions’ to 2.13.2 Updated example to make it more current
2.14 - Non-concessional contributions	Renumbered section ‘Non-concessional contributions’ from 3.13 to 2.14 Includes renumbering subsection ‘What counts as a non-concessional contribution?’’ to 2.14.1 Table updated to include cap for 2024-25 Change to reflect NCC = 4 x concessional cap of $30,000 All references to bring-forward moved to new section 2.15
2.14.1 - What counts as a non-concessional contribution?	Subsection renumbered from 3.13.3 to 2.14.1 Table column ‘Excluded as NCC…” updated to include structured settlement contributions and COVID-19 recontributions
2.15 - NCCs & bring-forward provisions	NEW SECTION - inserted new section ‘NCCs & bring-forward provisions’ Text was previously incorporated into NCC section but have made it stand alone Table updated to reflect indexation of cap and impact that has on bring-forward thresholds Example of Jane updated to enable her to bring-forward $240,000 with a lower TSB threshold
2.15.1 - Additional contributions during bring-forward period	Renumbered subsection from 3.13.1 to 2.15.1 Updated amount from $110,000 to $120,000 Example (James) updated to reflect increased cap Example (Mary) minor changes
2.15.2 - NCC indexation and bring-forward periods	Renumbered subsection from 3.13.2 to 2.15.2 Example wording updated to present tense, all other elements of example remain the same.
Activity 3 - NCC & bring-forward	Both scenarios updated to reflect changes to years
2.16 - Excess non-concessional contributions	Renumbered section ‘Excess non-concessional contributions’ from 3.14 to 2.16 Includes renumbering subsection ‘What happens if you exceed your non-concessional cap?’’ to 2.16.1 Includes numbering subsection ‘Associated earnings’ to 2.16.2 Includes renumbering subsection ‘Returning contributions’ to 2.16.3
2.16.2 - Associated earnings	Updated table to include associated earnings rate for 2023/24
2.17 - Downsizer contributions	NEW SECTION - inserted a new section ‘Downsizer contributions’ Inserted renamed subsection ‘Eligibility requirements’ Inserted new subsection ‘How to make a downsizer contribution’ Inserted new subsection ‘Impact of an invalid contribution Section expands material within course on downsizer contributions
2.17.1 - Eligibility requirements	NEW SUBSECTION - inserted a new subsection ‘Eligibility requirements’ under Section 2.17 Subsection was previously subsection 3.15.1 ‘Downsizer contributions under Section 3.15 ‘Other types of contributions’ - ‘Downsizer contributions’ Subsection expands previous content including addition of: Downsizer example Table of historical eligibility age
2.17.2 - How to make a downsizer contribution	NEW SUBSECTION - inserted a new subsection ‘How to make a downsizer contribution’ into Section 2.17 Explains how downsizer contributions can be made including election Provides example of in-specie downsizer contribution
2.17.3 - Impact of an invalid contribution	NEW SUBSECTION - inserted a new subsection ‘Impact of an invalid contribution’ into Section 2.17 Explains how invalid downsizer contributions will count towards NCC cap
2.18 - CGT Cap contributions	NEW SECTION - inserted a new section ‘CGT Cap contributions’ Provides details of making a contribution following the sale of a small business asset Inserted new subsection ‘CGT Small Business Concessions Inserted new subsection ‘15-year exemption’ Inserted new subsection ‘retirement exemption’
2.18.1 - CGT Small Business Concessions	NEW SUBSECTION - inserted a new subsection ‘CGT Small Business Concessions’ under Section 2.18 Subsection provides introduction to the four (4) small business CGT concessions Subsection introduces the concept of ‘Active Asset’ Subsection outlines the order which small business concessions are applied
2.18.2 - 15-year exemption	NEW SUBSECTION - inserted a new subsection ‘15-year exemption’ into Section 2.18 Explains how the 15-year exemption and the CGT cap can be applied to the proceeds from the sale of small business assets held at least 15 years Introduces the CGT cap threshold
2.18.3 - Retirement exemption	NEW SUBSECTION - inserted a new subsection ‘Retirement exemption’ into Section 2.17 Explains how retirement exemption relates to assets that have not been held for 15 years but are otherwise eligible for small business concessions Explains that the retirement exemption is subject to a lifetime limit and is available on the gain (not proceeds)
2.19 - Government contributions & incentives	NEW SECTION - inserted a new section ‘Government contributions & incentives’ Section provides details of common Government contributions and incentives that can be received by members of an SMSF Inserted new subsection ‘Government co-contributions’ Inserted new subsection ‘Low Income Super Tax Offset (LISTO) contribution’ Inserted new subsection ‘Tax offset for spouse contributions Provides details of making a contribution following the sale of a small business asset
2.19.1 - Government co-contributions	NEW SUBSECTION - inserted a new subsection ‘Government co-contributions’ under Section 2.19 Introduces the concept and links to the Government’s co-contribution system
2.19.2 - Low Income Super Tax Offset (LISTO) contribution	NEW SUBSECTION - inserted a new subsection ‘Low Income Super Tax Offset (LISTO) contribution’ into Section 2.19 Introduces the concept of the Government’s Low Income Super Tax Offset (LISTO) contribution
2.19.3 - Tax offset for spouse contributions	NEW SUBSECTION - inserted a new subsection ‘Tax offset for spouse contributions’ into Section 2.19 Introduces the concept of the Government’s Tax offset for spouse contributions including eligibility requirements
2.20 - Other types of contributions	Renumbered section ‘Other types of contributions’ from 3.15 to 2.20 Removes the table that used to be in this section and replaces it with 4 brief subsections introducing other types of contributions that haven’t been mentioned elsewhere in detail but have been referenced within the module Inserted new subsection 2.20.1 ‘Payments for personal injury/structured settlement payments Inserted new subsection 2.20.2 ‘Child super contributions’ Inserted new subsection 2.20.3 ‘Transfers from foreign super funds’’ Inserted new subsection 2.20.4 ‘COVID-19 recontributions’
2.20.1 - Payments for personal injury/structured settlement payments	NEW SUBSECTION - inserted a new subsection ‘Payments for personal injury/structured settlement payments’ under Section 2.20 Introduces the rules around making contributions linked to payments for personal injury/structured settlement payments
2.20.2 - Child super contributions	NEW SUBSECTION - inserted a new subsection ‘Child super contributions’ into Section 2.20 Introduces the rules around making a contribution on behalf of a child
2.20.3 - Transfer from foreign super funds	NEW SUBSECTION - inserted a new subsection ‘Transfer from foreign super funds’ into Section 2.20 Introduces the concept around transferring benefits from an overseas fund
2.20.4 - COVID-19 recontribution	NEW SUBSECTION - inserted a new subsection ‘COVID-19 recontribution’ into Section 2.20 Introduces the rules around the recontribution of money withdrawn under the compassionate grounds condition of release introduced during the COVID pandemic.
2.21 - What contributions are assessable?	Renumbered from 3.16 to 2.21 Table expanded to include structured settlement/personal injury contributions and COVID-19 recontribution amounts as non-assessable contributions
Activity Answers	Activity 1 & 3 scenarios & answers updated to reflect changes made to text