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SMSFs –– the CGT withholding regime on property transfers is far broader than many think

Most people by now may be aware of the non-resident capital gains tax withholding obligations (Withholding Regime), which arise for vendors disposing of certain taxable property. Broadly, the Withholding Regime was introduced to allow the Federal Government to obtain tax in respect of foreign vendors. However, the Withholding Regime applies to most transfers of real [read more]

LRBAs — current tips and traps

Non-arm’s length income – A history and overview

Non-arm’s length income (NALI) has recently become one of the hottest and most contentious topics in the superannuation industry that impacts both large APRA and self managed superannuation funds (SMSFs). This is largely due to the finalisation of the ATO’s Law Companion Ruling LCR 2021/2, which outlines the ATO’s view of the application of the [read more]

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SMSF denied complying status – recent AAT decision

The recent AAT decision in Driscoll and Commissioner of Taxation [2021] AATA 3892 has important implications that all SMSF professionals (and trustees) should be aware of. We explore the facts, the implications and the lessons learnt from this case in this article. Facts On 23 January 2009, the Driscoll Superannuation Fund (Fund) was established. Mr Driscoll [read more]

NALI –– unit trusts and draft LCR 2019/D3

SMSFs, employee share schemes & NALI

Acquiring shares under an employee share scheme (ESS) via your self managed superannuation fund (SMSF) may appear attractive but greater uncertainty has arisen following the ATO’s recent ruling, LCR 2021/2, on the application of the non-arm’s length income (NALI) rules to such a transaction. This ruling focuses on NALI arising from the non-arm’s length expenditure [read more]

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LCR 2021/2 — discounts to SMSFs invoke NALI

The ATO’s ruling, Law Companion Ruling LCR 2021/2, outlines the application of the ATO’s view on the non-arm’s length expenditure (NALE) provisions, and clarifies when and where an outgoing, expenditure or loss can constitute non-arm’s length income (NALI). The ATO’s view is that, where an expense is incurred by a fund that is less than [read more]

LRBAs — current tips and traps

What’s the dividing line between NALI and a contribution?

The ATO issued its comprehensive ruling, TR 2010/1, on what constitutes a contribution to a superannuation fund in February 2010. A revised draft for consultation of TR 2010/1-DC (DC) was issued on 28 July 2021 reflecting changes as a consequence of the ATO’s views provided in Law Companion Ruling (LCR) 2021/2. LCR 2021/2 confirmed the [read more]

NALI –– unit trusts and draft LCR 2019/D3

SMSFs with units in unit trusts and NALI –– review and action may be needed

There are a considerable number of SMSFs that invest in private unit trusts. These unit trusts may include pre-99 unit trusts, unrelated unit trusts and non-geared unit trusts (under div 13.3A of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR)). The ATO’s Law Companion Ruling 2021/2 (LCR 2021/2) outlines, among other things, the ATO’s view [read more]

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SMSF seminars for CPA Australia

Bryce Figot is excited to soon be presenting a series of three and half hour seminars for CPA Australia in various locations in regional Victoria. They should be great seminars. These seminars will cover and explore: latest cases; legislation; regulatory developments; and other tips and traps. To register, or for more information, visit: For Traralgon (Tuesday [read more]

NALI –– unit trusts and draft LCR 2019/D3

SMSFs with units in unit trusts and NALI –– review and action may be needed

Introduction There are a considerable number of SMSFs that invest in private unit trusts. These unit trusts may include pre-99 unit trusts, unrelated unit trusts and non-geared unit trusts (under div 13.3A of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR)). The ATO’s draft Law Companion Ruling 2019/D3 (Draft LCR) outlines, among other things, the [read more]