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Two AAT decisions on what constitutes business real property

Two recent AAT decisions shed important light on what constitutes business real property: Allzams Trust and Commissioner of Taxation [2021] AATA 2767 and Allen and Commissioner of Taxation [2021] AATA 2768. Both cases involved a disappointed taxpayer seeking a review by the Administrative Appeals Tribunal of a decision of the Commissioner of Taxation. These decisions [read more]

Business man pointing to transparent board with text: Valuation

Coronica v FCT — latest Tribunal decision provides important tips regarding valuations and related party acquisitions

Earlier today the Administrative Appeals Tribunal (Tribunal) handed its decision in Coronica and Commissioner of Taxation (Taxation) [2021] AATA 745. It resulted in the Commissioner’s decision to make an SMSF non-complying being affirmed. The decision is lengthy (103 pages) and covers many interesting issues. In this article, we focus on one particular issue: valuation of [read more]

Hand In Hand Between Project Contractors And Customers Due To Ne

Many building and similar contracts place SMSFs at risk

Overview SMSFs appear to have a great appetite for investing in real estate and becoming involved with making improvements to property and, in some cases, property development. However, while SMSFs frequently invest in property, many do not carefully review and negotiate their building and similar contracts to delete or exclude provisions which may result in [read more]

Law Concept - Open Law Book With A Wooden Judges Gavel On Table

G v G (No. 2) [2020] NSWSC 818 — implications for fiduciaries dealing with super

The recent New South Wales Supreme Court decision of G v G (No. 2) [2020] NSWSC 818 (G v G) provides important guidance on the limitations that apply to trustees and managers of protected estates in dealing with superannuation investments, including in relation to making super contributions and binding death benefit nominations (‘BDBNs’). In this [read more]

SMSFs, LRBAs and NALI

Related party LRBA variations and PCG 2016/5

What is PCG 2016/5? Advisers would be well aware of the ATO’s ‘safe harbour’ regarding the application of non-arm’s length income (NALI) to related party limited recourse borrowing arrangements (LRBAs). Broadly, the ATO’s Practical Compliance Guideline PCG 2016/5 (Guideline) sets out ‘safe harbour’ terms on which SMSF trustees may structure their LRBAs which the ATO [read more]

SMSFs, LRBAs and NALI

SMSFs, LRBAs and NALI

Overview When dealing with limited recourse borrowing arrangements (LRBAs), it is important to understand the consequences that may arise where the LRBA is not implemented and maintained on a proper basis. This is especially so in the case of a self managed superannuation fund (SMSF) undertaking a related party LRBA. The terms and conditions of [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]

Why should you order trusts from DBA Lawyers?

Why should you order trusts from DBA Lawyers?

While DBA is recognised as Australia’s leading SMSF law firm, it is also well known for it’s great depth of tax and trusts expertise. DBA Lawyers offers an excellent discretionary trust deed that is easy to read, provides great flexibility and reflects the latest legislative changes. Also included is a detailed memo, trustee resolutions, covering [read more]

Investment segregation in an SMSF explained

Investment segregation in an SMSF explained

When advisers hear the word ‘segregation’ in an SMSF context, they typically think of segregation for tax purposes. Broadly, this type of segregation involves calculating a fund’s exempt current pension income exemption for a financial year under the segregated method, with any capital gains (or losses) in respect of ‘segregated current pension assets’ being disregarded. [read more]

Six member SMSFs –– the pros and cons

Six member SMSFs –– the pros and cons

Overview The prospect of six member SMSFs has moved a step further when the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 (‘Bill’) was recently introduced into Parliament. If the Bill is finalised as law in November, the increase to the maximum allowable number of members for an SMSF could commence as early as 1 [read more]