Through ATO ID 2015/27 and ATO ID 2015/28 the ATO seem to have cemented their position in relation to the application of s 295-550 of the Income Tax Assessment Act 1997 (Cth) to related party limited recourse borrowing arrangements (‘LRBAs’). Importantly, the ATO has since confirmed that their approach to this issue in future private [read more]
A DBA Lawyers company offers many advantages that are not found anywhere else. These benefits are present for all companies, even if the company is not an SMSF trustee. New companies through DBA Lawyers are provided with our constitution at the outset and can enjoy all the benefits discussed here straight away. On the other [read more]
On Monday 10 November 2015, Daniel Butler, in his role as the chair of The Tax Institute’s National Superannuation Committee, attended a meeting of the Superannuation Industry Relationship Network (‘SIRN’) with representatives of the ATO and a range of industry stakeholders. ATO amnesty on non-commercial LRBAs At this meeting, the ATO confirmed that there is [read more]
A unit trust is a popular structure to hold property and other investments. This article examines numerous methods how an SMSF may invest in a unit trust and also covers a proposed tax change that will impact on the tax treatment of certain unit trusts once finalised as law. Many publicly offered managed investments fund [read more]
In an attempt to simplify the SG regime, and reduce the penalties associated with the SGC, the Government has introduced the draft Superannuation Guarantee Legislation Amendment (Simplification) Bill 2015, which if passed, will apply from 1 July 2016. This article will consider the key amendments proposed, and give some practical examples of the difficulties of [read more]
DBA Lawyers is pleased to announce that an existing self managed superannuation fund (‘SMSF’) with members over 55 years of age has been added to the recognised overseas pension scheme (‘ROPS’) list. Background Under UK law, an Australian superannuation fund must satisfy the requirements of a qualified recognised overseas pension scheme (‘QROPS’) to be able [read more]
I have recently presented many seminars around Australia on whether an accountant requires an Australian Financial Services Licence (‘Licence’) after 30 June 2016. The interest and feedback gathered from this round of seminars has been very insightful. While the actual number of limited Licences that have been issued to date by ASIC is still relatively [read more]
Proposed changes in the exposure draft Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015 (‘ED Bill’) will impact on the tax treatment of unit trusts that are currently taxed as companies under div 6C of the Income Tax Assessment Act 1936 (Cth) (‘ITAA 1936’). Currently, under div 6C, the 20% tracing [read more]
This topic has given rise to considerable debate since the ATO’s view on ARPs was finalised in TR 2013/5. Thus, I thought it would be worthwhile illustrating by way of case study how the law applies to this type of situation. Facts We will assume the following facts exist in relation to Rob and Mary: [read more]
Introduction Advisers should be aware that there have been recent changes that reduce flexibility in implementing different types of insurance in an SMSF context. From 1 July 2014 regulated superannuation funds can only provide insured benefits consistent with the following conditions of release (subject to certain ‘grandfathering relief’): death; terminal medical conditions (‘TMC’); permanent incapacity [read more]
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