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new-pension-laws

New pension laws just made!

On Monday 4 April 2022 the Government made new laws impacting pensions (see the Treasury Laws Amendment (Allowing Commutation of Certain Income Streams) Regulations 2022 (Cth)). Those in particular with legacy pensions should pay close attention! Over 200 years ago, on 7 March 1795, English newspaper The Hull Advertiser announced that ‘[t]he licence to wear hair [read more]

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Exiting certain legacy pensions — new strategic opportunity!

New laws provide a strategic opportunity for exiting certain legacy pensions. We will cover this opportunity in great detail in a webinar to be held at 12 noon (AEST) Thursday 28 April 2022. Those who can’t attend can watch a recorded version. To register visit https://attendee.gotowebinar.com/register/3108445138265877264 In this article we detail the preliminary ‘ins and [read more]

Contribution Rules

Recent changes to contributions rules

The Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 (Bill) recently passed both houses of Parliament and only awaits Royal Assent. The key superannuation measures in this Bill are: Removal of the $450 monthly income threshold for superannuation guarantee (SG) obligations. Increasing the amount eligible for release under [read more]

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SMSFs –– substantial uncertainty with NALI impact on employee share schemes

Acquiring shares under an employee share scheme (ESS) via your self managed superannuation fund (SMSF) may appear attractive but substantial 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. [read more]

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Employee or independent contractor –– PAYG & SG –– part 1

The law in Australia in relation to who is an employee or independent contractor has been developed over many years. There have been a number of important recent developments in this field that require employers and those engaging contractors to review their operations and make sure they are compliant and not at risk. The law [read more]

LRBAs — current tips and traps

Non-arm’s length income – A history and overview

Non-arm’s length income (NALI) has recently become one of the hottest and most contentious topics in the superannuation industry that impacts both large APRA and self managed superannuation funds (SMSFs). This is largely due to the finalisation of the ATO’s Law Companion Ruling LCR 2021/2, which outlines the ATO’s view of the application of the [read more]

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]

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]

The proportioning rule is key to many super strategies

The proportioning rule is key to many super strategies

Introduction The proportioning rule is used to calculate the tax free and taxable components of a superannuation benefit. Having a sound understanding of this rule is key to many super strategies. Overview –– proportioning rule The proportioning rule provides that the tax free and taxable components of a superannuation benefit are taken to be paid [read more]