My wife and myself have a CSHC which we have had for a number of years and have not had to reapply for it on an annual basis. We both salary sacrifice which brings us under the 80k limit. I am 72 and my wife 69 years of age. Reading your article it is not clear on whether to add back salary sacrifice or to base our eligibility on our combined taxable incomes as per the tax returns. Also I understand that we must move from the accumulation phase of SMSF to allocated pension phase if we are to avoid having the pension included in the future CSHC eligibility income test.

We would like to replace the personal trustees of our SMSF with a corporate trustee. However we are told that all the SF assets would have to reflect this change in ownership. Managed funds and shares would have to be sold/redeemed and repurchased and term deposits terminated early. Is this correct ?

If so, this would result in considerable costs from fees and penalties. Are there any measures available to mitigate the situation ? Is there allowance for a delay in the change of the ownership name of the assets when the trustee is changed?

Thank you for your assistance,

CL.