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SMSFs and how the CGT rules work when a pension is in play - Part 1

Big and costly issues can arise for failing to pay the minimum pension before 30 June

By on 12/10/2022 in ATO, SMSF cases & decisions, SMSF compliance, SMSF strategy, Taxation, Trustee education

Introduction When an SMSF member is in pension phase they have numerous  advantages such as the fund obtaining an income tax exemption for exempt current pension income (ECPI) where no tax is payable on income and capital gains to the extent the fund’s assets are funding a pension in retirement phase. However, the relevant rules [read more]

Employee-or-contractor-Payroll-Tax-considerations-Part-3

Employee or contractor — Payroll Tax considerations — Part 3

By on 30/09/2022 in ATO, SMSF cases & decisions, SMSF compliance, SMSF strategy, Taxation, Trustee education

Overview Payroll tax is a tax imposed by each state and territory in Australia where the employer’s taxable wages (including any employer superannuation contributions and assessable ‘fringe’ benefits) exceeds the relevant threshold for the period. Payroll tax is levied on wages paid by an employer to an employee and also covers certain payments to contractors. In [read more]

Transferring-overseas-super-or-pension-savings-to-Australia

Transferring overseas super/pension savings to Australia

By on 30/09/2022 in ATO, Investments, Taxation, Trustee education

Overview With an increasing number of overseas countries opening up and the trends moving towards greater global mobility, it is becoming more common for advisers to be asked ‘Can I transfer my overseas super/pension savings to Australia?’. The answer to this question is complex and unless carefully managed can result in unexpected taxes and penalties. [read more]

Woman-Is-Calculating-Annual-Ta-min

Important lessons from the AAT: Goulopoulos and Commissioner of Taxation

By on 30/08/2022 in ATO, SMSF compliance, Taxation, Trustee education

The recent decision of Goulopoulos and Commissioner of Taxation [2022] AATA 2540 (9 August 2022) highlights a number of important warnings for those playing in the SMSF space either as advisers or trustees/directors of trustees. This article summarises the key facts to this case and describes five key warnings. Facts Mr Goulopoulos (Applicant) and his [read more]

Part-1-Should-an-SMSF-have-a-unitholders-agreement

Many unit trust deeds need varying especially if an SMSF is involved

By on 30/08/2022 in ATO, Investments, SMSF strategy, Taxation, Trustee education

Introduction Unit trusts are a common investment structure and can provide a simple way for parties to co-invest in property or business together. In particular, investing via a unit trust is a popular way for SMSFs to invest in real estate including to develop property. While the terms of a unit trust deed typically cover [read more]

sds

New ATO guidance on restructured market linked pensions

By on 29/07/2022 in Announcements, ATO, Pensions, SMSF compliance, SMSF strategy, Succession planning, Taxation

The ATO has recently updated its guidance on how the transfer balance cap (TBC) rules apply where a market linked pension (MLP) that was in place prior to 1 July 2017 has been commuted or restructured on or after that date. We examine below the ATO’s current approach (see CRT Alerts 007/2022 and 010/2022) to [read more]

Street Sign the Direction Way to Pleasant versus Nasty

NALE & NALI = NASTY as a 120% tax rate can apply to contributions

By on 26/07/2022 in ATO, Contributions, SMSF compliance, Taxation, Trustee education

Overview Many believe super is tax effective. However, Australia has the highest tax rate in the world on retirement savings in certain situations. This article focuses on the potential impact of the non-arm’s length income (NALI) and non-arm’s length expenditure (NALE) provisions found in s 295-550 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997) [read more]

SMSFs doing property development

SMSFs doing property development may be hit with GST

By on 14/07/2022 in ATO, Investments, SMSF cases & decisions, SMSF compliance, SMSF strategy, Taxation, Trustee education

The recent case of Ian Mark Collins & Mieneke Mianno Collins ATF The Collins Retirement Fund and Commissioner of Taxation [2022] AATA 628 is an important reminder for advisers about the application of the goods and services tax (GST) laws to self managed superannuation funds. This case also raises previously untested issues concerning the extent [read more]

Nali-Nale

The latest news on NALI & NALE

By on 15/06/2022 in ATO, SMSF compliance, SMSF strategy, Taxation

As we draw to the end of FY2022 it is important for advisers to be aware of the changes to the Commissioner’s application of the non-arm’s length income (NALI) provisions. PCG 2020/5 In light of the Commissioner’s general expense nexus view causing controversy within the industry (both with large APRA funds and SMSFs), the Commissioner [read more]

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Employee or contractor –– High Court focus on contract v. multi-factors –– Part 2

By on 19/05/2022 in ATO, SMSF cases & decisions, SMSF compliance, SMSF strategy, Trustee education

The law in relation to who is an employee or independent contractor has developed over many years both here in Australia and overseas. Several recent Australian High Court decisions provide greater clarity on this distinction which we discuss below. Employee v contractor ­­– PAYG & SG – Part 1 Note that this is the second [read more]