Daniel Butler ([email protected]), Director, DBA Lawyers When self managed superannuation funds (‘SMSFs’) borrow to acquire real property, one of the common mistakes is not having the deposit paid from the bank account of the SMSF trustee. This article highlights the importance of the deposit being paid the SMSF’s bank account and identifies some possible rectification [read more]
By: Daniel Butler, Director ([email protected]), DBA Lawyers Most people by now may be aware of the non-resident capital gains tax withholding (‘Withholding Regime’), which applies to vendors disposing of certain taxable property. Broadly, the Withholding Regime was introduced to allow the Australian government to obtain tax in respect of foreign vendors. However, the Withholding Regime [read more]
Daniel Butler, Director and William Fettes, Senior Associate, DBA Lawyers An individual’s total superannuation balance (‘TSB’) determines many of their superannuation rights and entitlements, such as eligibility to contribute after-tax amounts into superannuation without an excess arising. Accordingly, there is a strong incentive for individuals to carefully monitor their TSB over time, particularly towards the [read more]
By Daniel Butler, Director, DBA Lawyers Introduction A common question we get asked when a client’s self managed superannuation fund (‘SMSF’) is undertaking a limited recourse borrowing arrangements (‘LRBA’) is whether there needs to be a separate bare trustee (usually a company) for each bare trust. The short answer is no. However, it is helpful [read more]
Some may think that property development in an SMSF contravenes superannuation law. However, that is overstating the position. There is no blanket ban on property development in SMSFs. Rather, like many investments an SMSF can make, the key to compliance is on how the investment occurs. Extreme caution should be exercised before and during, since [read more]
Co-Author Bryce Figot, Special Counsel, DBA Lawyers Treasury recently released some potentially game-changing exposure draft legislation in relation to limited recourse borrowing arrangements (‘LRBAs’) and their interaction with the transfer balance cap and total superannuation balance provisions. These are significant changes for Fund trustees considering entering into an LRBA in the future. Importantly, the amendments [read more]
By: Daniel Butler, Director and Philippa Briglia, Lawyer, DBA Lawyers The ATO recently released PCG 2016/5 frequently asked questions, which serves as a handy reminder of the 31 January 2017 deadline. Following the release of PCG 2016/5 in April 2016, the ATO initially required each SMSF trustee with a non-bank limited recourse borrowing arrangement (‘LRBAs’) [read more]
By: Daniel Butler, Director and Rebecca James, Special Counsel Overview of TD 2016/16 The Australian Taxation Office (‘ATO’) released Taxation Determination TD 2016/16 — Income tax: will the ordinary or statutory income of a self-managed superannuation fund be non-arm’s length income under subsection 295-550(1) of the Income Tax Assessment Act 1997 (ITAA 1997) when the parties to [read more]
On Friday 14 October 2016, Treasury released the third tranche of draft legislation to implement the announcements in the Federal Budget. The principal component of this tranche was the new non-concessional contribution rules. Hidden in the legislation is a very important concession. I envisage that advisers will only need to apply it a handful of times [read more]
ATO extends the deadline to 31 January 2017 The ATO extension to 31 January 2017 is most welcome to alleviate the concerns that many SMSFs are facing in view of the need to act swiftly to clean up related party and non-bank limited recourse borrowing arrangements (‘LRBA’). Many SMSFs in particular have had to look [read more]
