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NALI – is the ATO’s net too wide?

NALI – is the ATO’s net too wide?

By on 01/12/2019 in ATO, Taxation

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]

NALI –– warning –– draft LCR 2019/D3

NALI –– warning –– draft LCR 2019/D3

By on 29/11/2019 in ATO, Taxation

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]

Salary sacrifice amounts and SG changes

Salary sacrifice amounts and SG changes

By on 28/11/2019 in Announcements, ATO, Contributions, Investments, Taxation

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 (2019 Tax Integrity and Other Measures No. 1) Act 2019 (Cth) (‘Act’), which [read more]

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ATO auditing SMSF auditors: a warning to advisers

By on 26/11/2019 in ATO, Audit, SMSF compliance, Trustee education

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]

Investment strategies –– what SMSF trustees must do

Investment strategies –– what SMSF trustees must do

By on 30/09/2019 in ATO, Audit, Investments, Licensing, SMSF compliance, SMSF deeds, SMSF strategy, Trustee education

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]

Is the superannuation guarantee system in need of an urgent overhaul

Is the superannuation guarantee system in need of an urgent overhaul?

By on 19/08/2019 in ATO, Contributions, SMSF compliance, SMSF strategy, Taxation, Trustee education

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]

Penalty-interest-and-TR-20192-in-the-context-of-SMSFs-with-LRBAs

Penalty interest and TR 2019/2 in the context of SMSFs with LRBAs

By on 05/08/2019 in ATO, Limited recourse borrowing arrangements, Taxation

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]

Who-can-provide-taxation-advice

Who can provide taxation advice?

By on 16/07/2019 in ATO, Licensing, Pensions, SMSF compliance, Taxation, Trustee education

Daniel Butler ([email protected]), Director, DBA Lawyers This article examines who is authorised to provide taxation advice in view of the limitations in the Corporations Act 2001 (Cth) (‘CA’) on advisers relating to who can provide financial product advice. Broadly, there are a number of exemptions in the CA and Corporations Regulations 2001 (Cth) (‘CA Regs’) [read more]

Reversionary-pension-vs-BDBN-which-outcome-is-preferred

Reversionary pension vs BDBN: which outcome is preferred?

By on 04/07/2019 in ATO, Pensions, SMSF deeds, SMSF strategy, Succession planning, Trustee education

Daniel Butler ([email protected]), Director and Bryce Figot ([email protected]), Special Counsel, DBA Lawyers Imagine a conflict between pension documentation and a binding death benefit nomination (‘BDBN’) in a self managed superannuation fund (‘SMSF’) context. For example, the pension documentation states that the pension is reversionary to the surviving spouse; however, the BDBN states that the death benefits [read more]

Money bag with the word Payroll and calculator. Payroll is the sum total of all compensation a business must pay to its employees for a set period of time or on a given date. Taxes. Management

Single touch payroll— are SMSFs covered?

By on 26/06/2019 in Announcements, ATO, Pensions, SMSF compliance, SMSF strategy, Taxation, Trustee education

By Daniel Butler, Director ([email protected]), DBA Lawyers What is Single Touch Payroll? The Single Touch Payroll (‘STP’) regime was introduced to provide the ATO with real time information on employer PAYG and superannuation obligations. It also provides employees with greater transparency of their salary and reportable superannuation and fringe benefit entitlements. From 1 July 2019, all employers, [read more]