Categories | DBA News

Exposure draft regulations in relation to SMSF trustees making, holding and realising investments involving collectables and personal use assets (‘Collectables’) were released by the Government in late May 2011. The draft provisions will form part of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (‘SISR’). Please note that the draft regulations have not yet been passed [read more]

The 2011–12 budget includes more good news for the superannuation industry. Most importantly there is no real bad news. The key proposals are outlined below, however their full details will only be clear when the proposals are finally passed as law. Excess contributions tax (‘ECT’) The budget has introduced relief for eligible individuals who have [read more]

There has been recent debate in SMSF circles regarding BDBNs and auto-reversionary pensions. This debate arises in the following situation. A BDBN may prescribe that a member’s benefits are to be paid to their legal personal representative (estate). Conversely, that member may also be receiving an auto-reversionary pension which specifies that the benefits should continue [read more]

The ATO’s view that a holding trust is not a bare trust has given rise to numerous concerns and places doubt on the associated tax principles. This article focuses on the ATO’s view and what this means for SMSFs. We also consider the related in-house asset (‘IHA’) issues. ATO view — we have a trust [read more]

BDBNs are a useful tool for SMSF members to direct who is to receive their death benefit. We discuss below some key current issues relating to BDBNs. Key issues BDBNs are binding on the trustee SMSF trustees must follow their SMSF deed. Typically, an SMSF deed empowers a trustee to pay a death benefit to [read more]

This month’s version of DBA News focuses mainly on two recent decisions regarding superannuation. Firstly, ZDDD v Commissioner of Taxation highlights the importance of rectifying a contravention of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’). Similarly, Johnson v Commissioner of Taxation highlights the importance for members and advisers to be diligent with paperwork. ZDDD [read more]

As we are now over the half way mark for this financial year, this edition of DBA News outlines a number of important issues that SMSFs should focus on leading up to 30 June 2011. Contributions Concessional contributions (‘CC’)/Non-concessional contributions (‘NCC’) CCs are generally contributions which are included in the assessable income of the SMSF. [read more]

A pension may be made ‘reversionary’ to certain dependants (eg, a spouse or child under 25 years). A reversionary pension may have certain advantages compared to a non-reversionary pension. This article focuses on the key features of reversionary pensions and highlights some planning tips and traps. Making a pension reversionary The documents establishing a pension [read more]

This news outlines some of practical tips and traps related to investing in both related and unrelated unit trusts. Can further units be acquired in a pre-1999 unit trust? If the trust is related (eg, greater than 50% owned) then the 5% in-house asset (‘IHA’) limit applies. We generally recommend that SMSFs should keep this [read more]

Introduction The new SMSF borrowing rules introduced with effect from 7 July 2010 raised a number of queries. The ATO has recently responded to these which are summarised below. Loans for real estate with multiple titles Many apartments comprise more than one title (eg, the apartment and car park may each have a separate title). [read more]