The recent Court of Appeal decision in Oliver Hume Property Funds (Broad Gully Rd) Diamond Creek Pty Ltd v Commissioner of State Revenue [2024] VSCA 175 (Oliver Hume) has highlighted potential implications for investors that invest in companies and/or unit trusts that invest in property. his article examines the Court of Appeal decision and implications [read more]
There are number of ways in which self managed superannuation funds (SMSFs) can receive non-arm’s length income (NALI). Part 2 of this 3-part series examines some of the oft overlooked NALI provisions, including dividend NALI found in s 295-550(2) and (3), non-fixed trust NALI found in s 295-550(4) and fixed trust entitlement NALI found in [read more]
Non-arm’s length income (NALI) remains a contentious topic for self managed superannuation funds (SMSFs). Part 1 of this 3-part series provides a history and overview of NALI as well as examining NALI under s 295-550(1) (Ordinary NALI) of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). Types of NALI Broadly, there are different types of [read more]
The ATO says that ‘it has become common within some parts of the superannuation industry for a person to pay an expense on behalf of a superannuation fund.’ In this article, we consider whether that can cause non-arm’s length income (NALI) and/or a contribution. How the situation might arise Consider a situation where a related [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 ensure they do not invoke unnecessary tax liabilities and avoid breaches of trust duties that could result in severe penalties. The ATO has released a checklist designed to assist with [read more]
A DBA company offers many advantages not found anywhere else. The DBA constitution is strategically drafted for all companies including where the company will trade in its own right, or where it acts as the trustee of an SMSF, discretionary trust or unit trust. New companies are provided with our constitution at the outset and [read more]
Under the DBA Lawyers’ company constitution, a director is empowered to nominate a successor director (SD) to be appointed as a director upon the occurrence of their loss of capacity or death (ie, a ‘trigger event’). Upon a trigger event, the nominated SD is automatically appointed as a director, provided they consent and either hold [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 identification and rectification of missing or deficient documentation concerning SMSFs, trusts, and companies are critical matters and expert input is essential. DBA Lawyers regularly handles assignments that involve thorough document trail reviews as well as confirmation and/or ratification of previous documents. We are one of the few firms who provide such remedial review services [read more]
The non-arm’s length income (NALI) provisions contained in s 295-550 of the Income Tax Assessment Act 1997 (ITAA 1997) continue to be a divisive topic, with recent non-arm’s length expense (NALE) changes providing some welcome relief while also highlighting the urgent need for further legislative change for specific NALI and the capital gains tax (CGT) [read more]
