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financial penalty

ATO compliance action penalties for SMSFs

By on 01/03/2018 in ATO, Audit, Investments, SMSF compliance, SMSF deeds, SMSF strategy, Trustee education

By Daniel Butler, Director, DBA Lawyers This article looks at the actions and penalties the ATO can impose on trustees of self managed superannuation funds (‘SMSF’). In 2014, a new regime added the following compliance powers to the ATO’s arsenal: Education directions Rectification directions Administrative penalties In addition to the above, the ATO has the [read more]

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Check your market linked pension strategy!

By on 06/02/2018 in ATO, Audit, Pensions, SMSF strategy, Succession planning, Taxation

By: Daniel Butler, Director ([email protected]), DBA Lawyers The mid-2017 superannuation reforms have had a profound impact on market linked pensions (‘MLPs’). While most of the planning should have already been implemented, there is still some opportunity to review and potentially restructure clients with MLPs. We briefly examine below the treatment of an MLP depending on whether [read more]

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The latest on TRISs: are you in retirement phase?

By on 06/02/2018 in ATO, Pensions, SMSF compliance, SMSF strategy, Succession planning

By William Fettes, Senior Associate, Daniel Butler, Director, DBA Lawyers The rules that govern when exempt income arises in relation to the earnings on assets supporting transition to retirement income streams (‘TRISs’) were substantially changed with effect from 1 July 2017. Advisers and SMSF trustees should be aware that there are now two types of [read more]

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SMSFs must tread carefully when dealing with employee share schemes interests

By on 12/01/2018 in ATO, Contributions, Investments, SMSF compliance, SMSF deeds, SMSF strategy, Taxation, Trustee education

By Daniel Butler, Director, DBA Lawyers Acquiring shares via an employee share scheme (‘ESS’) in an self managed superannuation fund (‘SMSF’) can appear attractive but SMSF trustees have to be careful of the in house asset and the related party acquisition rules. Broadly, a company can via an ESS provide employees the opportunity to acquire [read more]

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Spousal contributions and contributions split

By on 23/11/2017 in ATO, Contributions, Investments, SMSF deeds, SMSF strategy, Taxation, Trustee education

By Daniel Butler, Director, DBA Lawyers, and William Fettes, Senior Associate, DBA Lawyers Introduction There are a few different ways that individuals can contribute money into superannuation for the benefit of their spouse. Taking advantage of these contribution options can help spouses achieve parity in relation to their respective super account balances over time and [read more]

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Payments above ABP minimum — Reasons to prospectively document a strategy ASAP

By on 24/10/2017 in ATO, Licensing, Pensions, SMSF compliance, SMSF strategy, Statistics, Trustee education

Daniel Butler, Director and  Bryce Figot, Special Counsel, DBA Lawyers  Payments above the account-based pension (‘ABP’) minimum annual payment have the potential to become a trap. The June 2017 SMSF Benchmark Report by Class Super states that ‘the average SMSF pensioner withdraws about $74,000 annually on their pension over a series of 12 transactions and [read more]

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Is maintaining a second SMSF a Part IVA risk?

By on 15/09/2017 in ATO, SMSF compliance, SMSF strategy, Succession planning, Taxation, Trustee education

Daniel Butler, Director, DBA Lawyers This article examines the query of whether having a second or, indeed even more than two, self managed superannuation funds (‘SMSFs’) would give rise to a Part IVA (of the Income Tax Assessment Act 1936 (Cth) (‘ITAA36’)) risk. Please note that this article is not intended to be a technical [read more]

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The new age TRIS –– tips and traps

By on 30/08/2017 in ATO, Federal Budget, Pensions, SMSF compliance, SMSF strategy, Succession planning, Taxation, Trustee education

Daniel Butler, Director, DBA Lawyers The transition to retirement income stream (‘TRIS’) entered a new era on 1 July 2017 where most members will want their TRIS to enter retirement phase as soon as possible to gain access to an earnings tax exemption. A new law has provided a roadmap for this TRIS reclassification, but [read more]

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Managing flexi pensions post 1 July 2017

By on 14/08/2017 in ATO, Federal Budget, Pensions, SMSF strategy, Succession planning, Taxation

Overview This article considers the impact of the transfers balance cap provisions on flexi pensions, being pensions that comply with reg 1.06(6) of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (‘SISR’). Importantly, flexi pensions do not fall within the definition of a capped defined benefit income stream for the purposes of the transfer balance cap provisions. [read more]

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Important trap: Payments above ABP minimum

By on 07/08/2017 in ATO, Pensions, SMSF compliance, SMSF strategy

By Daniel Butler, Director and Bryce Figot, Special Counsel, DBA Lawyers The new transfer balance cap causes a trap for SMSF pensioners who receive payments above the account-based pension (‘ABP’) minimum annual payment. For these pensioners, the capital supporting the pension(s) is reduced by the amount of the pension payments(s), including the amounts above the ABP [read more]