Accounting firms that set up and manage complex tax structures, such as family discretionary trusts (FTs), unit trusts and self managed superannuation funds (SMSFs), should be aware of the relevant clauses of their PI policy. The ATO’s renewed focus on certain tax issues relating to these structures, including non-arm’s length income (NALI), Division 7A loans, [read more]
As the end of financial year (EoFY) approaches, trustees and their advisers need to be aware of their trust obligations to ensure ongoing compliance and to manage tax liabilities. The ATO has released a list of tips designed to assist with this process, which can be found here. We cover the key parts of the [read more]
Yesterday, the High Court handed down its decision in FCT v Bendel [2026] HCA 18. FCT v Bendel [2026] HCA 18 represents the ATO’s appeal of a 2025 decision of the Federal Court of Australia (Full Court) of the same name. Last year, we considered the impact of the 2025 decision. Accordingly, now, we want [read more]
SMSF super splits, the tips and traps – Part 2 This is the second article in our series examining key technical issues that arise in SMSF superannuation splits following a relationship breakdown. Part 1 focused on the compliance and procedural requirements under Division 7A.2 of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR) and the Family [read more]
SMSF super splits, the tips and traps – Part 1 This article is the first part in a series that covers some of the key tips and traps of SMSF super splits following a relationship breakdown. Superannuation interests, particularly in SMSFs, require careful handling in family law settlements. Although court orders and binding financial agreements [read more]
The ATO is increasing its scrutiny of family discretionary trusts (FTs) to ensure compliance with the family trust election (FTE) and interposed entity election (IEE) provisions in Schedule 2F of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936). Quite a number of these reviews are linked to the ATO’s ‘Next 5,000 private groups’ program [read more]
Introduction The proportioning rule provides that the tax free and taxable components of a superannuation benefit are deemed to be paid in the same proportion as the tax free and taxable components of the member’s superannuation interest. This rule is contained in s 307-125 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). This [read more]
Recent changes to Queensland trust law allows for trusts to vest up to 125 years after the commencement date of the trust, including a discretionary trust, testamentary trust and unit trust. The extended vesting date should be reflected in new trust deeds while a variation to extend the vesting date of an existing trust deed [read more]
This article provides important background context on why SMSF trustees may wish to consider using the ATO’s early engagement and voluntary disclosure service to notify the ATO regarding contraventions of the Superannuation Industry (Supervision) Act 1993 (SISA) or Superannuation Industry (Supervision) Regulations 1994 (SISR). As outlined in this article, there can be significant advantages to [read more]
The streaming of different types of income in a discretionary trust to different beneficiaries is a common strategy to optimise the tax outcome for beneficiaries (eg, to maximise the value of franking credits and the general 50% CGT discount). Many advisers assume that any deed will allow for streaming, however, this is not always the [read more]
