In today’s increasingly globalised world, it is not uncommon for many family groups (ie, fund members and their children) to have overseas-based investments, working/living arrangements and other entanglements over their lifetime. Accordingly, it is not surprising that in recent years DBA Lawyers has seen an increase in the number of matters we provide assistance on [read more]
There is a little known rule that can have huge implications for SMSFs, particularly when it comes to reversionary pensions. This article provides the crucial ‘must know’ details. What is a ‘reversionary pension’? The ATO describes a reversionary pension as follows, without actually using the term ‘reversionary’ (Taxation Ruling TR 2013/5 [29]): A superannuation income [read more]
Overview Draft Law Companion Ruling LCR 2019/D3 (‘LCR’) covers the ATO views on how the amendments to s 295-550 (of the Income Tax Assessment Act 1997 (Cth)) operate where parties to a scheme do not deal with each other at arm’s length and an SMSF incurs non-arm’s length expenditure in gaining or producing assessable income. Broadly, [read more]
Overview Recently the ATO released draft Law Companion Ruling 2019/D3 (‘LCR’) on the newly passed non-arm’s length income (‘NALI’) amendments to s 295-550 of the Income Tax Assessment Act 1997 (Cth) (‘ITAA 1997’). One key criticism of the draft LCR is the breadth of the ATO’s view in relation to the ‘nexus’ that is required between [read more]
Overview Draft Law Companion Ruling LCR 2019/D3 contains a very draconic application of the newly amended non-arm’s length income (‘NALI’) and expenditure (‘NALE’) provisions in ss 295-550(1)(b) and 295-550(1)(c) of the Income Tax Assessment Act 1997 (Cth) (‘ITAA 1997’). Advisers must be aware of this application. However, it should be noted that there is considerable opposition [read more]
By William Fettes ([email protected]), Senior Associate, and Daniel Butler ([email protected]) Director, DBA Lawyers From 1 January 2020 employers will also be required to provide superannuation guarantee (‘SG’) support on the amount of employee salary sacrificed contributions under salary sacrifice arrangements (‘SSA’). This article examines this change that was recently made by the Treasury Laws Amendment [read more]
By Daniel Butler, Director ([email protected]), DBA Lawyers Overview The ATO has recently updated its approved SMSF auditor checklist. This checklist sets certain minimum expectations of auditors and is used by the ATO when reviewing an auditor’s competency. This checklist can be found at https://www.ato.gov.au/assets/0/104/2244/2335/9c29ecc7-c31a-4253-b1ae-9fecbb45d252.pdf. The professional obligations of SMSF auditors are contained in Part 16 [read more]
Daniel Butler, Director ([email protected]), and Bryce Figot, Special Counsel ([email protected]), DBA Lawyers This article provides some background and some key points to SMSF investment strategies. What is an investment strategy? An investment strategy is a plan for making, holding and realising assets consistent with the investment objectives adopted by an SMSF trustee. An investment strategy [read more]
By Daniel Butler, Director ([email protected]), DBA Lawyers Employers are required to make the minimum superannuation guarantee (‘SG’) contribution for each employee to avoid a shortfall under the Superannuation Guarantee (Administration) Act 1992 (Cth) (‘SGAA’). This appears to be a simplistic rule. If an employer does not provide the minimum SG contribution, significant penalties apply. The real issue [read more]
Daniel Butler ([email protected]), Director, DBA Lawyers Taxation Ruling TR 2019/2 Income tax: whether penalty interest is deductible provides the Australian Taxation Office’s (‘ATO’s’) view on the deductibility of penalty interest. It replaces Taxation Ruling TR 93/7W Income tax: whether penalty interest payments are deductible, which has been withdrawn. This article highlights the relevance of TR 2019/2 for self managed superannuation [read more]
