Introduction The ATO recently published Law Administration Practice Statement PS LA 2020/3 to guide ATO staff on how to apply administrative penalties. This provides the methodology on how ATO case officers make determinations on imposing and remitting penalties for contraventions under s 166 of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’). The ATO’s view is [read more]
Deeds are vital to the SMSF industry. Most SMSFs will be established by deed. Subsequent variations to the deed/governing rules of an SMSF, as well as a range of other documents, will typically be contained in a deed. Accordingly, it is vital that SMSF advisers know what is required for a document to be a [read more]
The ATO recently released Practical Compliance Guideline PCG 2020/6. The guideline considers the timing of income tax deductions for superannuation contributions made through the Small Business Superannuation Clearing House (‘SBSCH’) and the ATO’s compliance approach. However, it is also a timely reminder on when to make contributions more generally. Background to PCG 2020/6 The ATO’s [read more]
Overview The prospect of six member SMSFs has moved a step further when the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 (‘Bill’) was recently introduced into Parliament. If the Bill is finalised as law in November, the increase to the maximum allowable number of members for an SMSF could commence as early as 1 [read more]
Recently the ATO’s Acting Assistant Commissioner for Superannuation, Steve Keating, outlined the ATO’s current approach to dealing with SMSFs facing compliance issues and making voluntary disclosures. The ATO has recognised that many Australians are experiencing financial hardship as a result of the COVID-19 pandemic and therefore it is not pursuing its usual audit program. For [read more]
Broadly, foreign purchaser duty surcharge of 7% to 8% applies on top of the normal duty impost (typically between 5% to 6%) where a discretionary trust acquires relevant real estate and the trust is deemed to be a ‘foreign trust’ in the relevant jurisdiction. For simplicity, we refer to ‘discretionary trusts with foreign beneficiaries’ that [read more]
On 3 August 2020 the ATO released draft legislative instrument Self Managed Superannuation Funds (COVID-19 Rental income deferrals – In-house Asset Exclusion) Determination 2020 for industry consultation. The determination is intended to protect SMSF trustees from adverse compliance problems under the in-house asset rules where, due to COVID-19, a rent deferral arrangement has been put [read more]
The changes In the past few years, various jurisdictions in Australia have introduced legislation to impose duty and land tax surcharges on foreign persons, trusts and companies that purchase or hold certain types of real estate. The State Revenue Legislation Further Amendment Bill 2020 (NSW), which became law on 24 June 2020, contains amendments relating [read more]
On 1 July 2020, DBA Lawyers will make available the latest version of our SMSF governing rules for all Annual Update Service subscribers. In addition to covering all relevant legal changes (including superannuation law, case law and ATO materials), the latest version of our SMSF governing rules includes many value-added features such as new COVID-19 [read more]
The long-standing position at common law has been the formality that a deed must be written on parchment, vellum or paper. Accordingly, it has been widely accepted that a deed cannot be made electronically. The first key change to this position was in 2018 when the New South Wales (‘NSW’) government amended the Conveyancing Act [read more]
