Advanced search

Top Navigation

Categories | ATO

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]

Street Sign the Direction Way to Pleasant versus Nasty

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]

image

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]

NALI –– unit trusts and draft LCR 2019/D3

SMSFs – can all income be NALI?

Overview Broadly, SMSF trustees may assume that, in any related party dealing, NALI will apply unless they can prove otherwise given the ATO may issue an assessment and place the burden on the SMSF trustee to prove that it is excessive. One key criticism of the draft Law Companion Ruling 2019/D3 (the draft LCR) is [read more]

Civil penalty orders imposed on SMSF trustees

Civil penalty orders imposed on SMSF trustees

This article considers a number of civil penalty orders that have been imposed by the courts on trustees of SMSFs that contravened the civil penalty provisions under s 193 of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’). Background Substantial penalties can be imposed for contravening the following: the sole purpose test; lending or providing financial [read more]

PS LA 2020/3 — how the ATO applies administrative penalties on SMSF trustees/directors

PS LA 2020/3 — how the ATO applies administrative penalties on SMSF trustees/directors

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]