Question 1

Advise the trustees on the following scenario? (12.5 marks)

Issue 1

Janet, Paul, William, Tran, Chen and Hugui propose to become members of Prosperous SMSF. They each are employed and have the following salaries (not including super guarantee)

	Salary (no SG)
Janet	$82,300.00
Paul	$87,500.00
William	$110,750.00
Tran	$145,863.00
Chen	$201,400.00
Hugui	$191,236.00

Assume the SG rate is 11% and the max concessional is $27,500 for the 2023-2024 year.No more than 6 members in SMSFs.

Issue 1

What is the maximum amount each member could contribute in Concessional contributions this year (assuming no available concessional rollovers)? (1/2 mark each correct answer)

Name	Concessional amount
Janet
Paul
William
Tran
Chen
Hugui

Issue 2(3 marks)

Let's say the members agree to establish a corporate trustee and establish the Prosperous Fund, advise Chen on what needs to be done to establish the Prosperous Fund. Complete the blanks below.

Sign a ___________ deed

Set up a __________

Appoint a ___________

Issue 3(2 marks)

Paul contributed $20,000 in concessional contributions this year. Please comment?

Issue 4(2 marks)

Hugui wants his friend, Bob, to become a member of the Prosperous SMSF. All members are keen to welcome Bob. Please comment?

Issue 5(2.5 marks)

Advise the members on the advantages and disadvantages of appointing a corporate trustee?