From July 2021 changes to the Australian Accounting Standards (AAS) have meant that many SMSFs and trusts (including discretionary and unit trusts) are required to prepare general purpose financial statements that comply with AAS. Importantly, SMSFs and trusts are impacted by the changed standards where: The SMSF or trust deed or other document requires the [read more]
A recent AAT decision illustrates the sorts of evidence that might be necessary in order for an SMSF to not have non-arm’s length income (NALI). Accordingly, advisers working with SMSFs should pay close attention to this decision and the evidence that an SMSF should collect and retain. The decision is BPFN and Commissioner of Taxation [read more]
SMSF trustees must only pay expenses that belong to the fund’s activities. They should not pay expenses for anyone else. Conversely, SMSF trustees and members must not pay an invoice (outside of the fund) if the expense is properly payable by the fund. Moreover, some invoices need to be split between the SMSF and another [read more]
The Federal Court of Australia held that a self managed superannuation fund (SMSF) could recover the amount of an Australian Financial Complains Authority (AFCA) determination relating to a compensation claim against a financial adviser for an investment loss. This article focuses on SMSF trustees rights to complain and seek compensation via AFCA for inappropriate financial [read more]
The issue of a lost deed can create uncertainty and complications within a trust, including a superannuation fund. When critical documents are lost, the effects can be far-reaching and cause legal and administrative complexities. Over the past four months, six important judgements have significantly evolved the law on lost deeds, providing greater certainty for trustees. [read more]
Introduction Consider this important question: an SMSF member is married to a second spouse. The member and his second spouse are the two trustees of the SMSF. The member wishes to make a valid binding death benefit nomination (BDBN). The member however does not want to tell his second spouse about the BDBN. Does the [read more]
All is not ‘lost’ if a company’s constitution cannot be located. There are several methods to address the situation. The most appropriate method will depend on several factors including what evidence can be located. Where to start looking Naturally, exhaustive searches should be undertaken of current and prior advisers (including accountants, financial planners and lawyers), [read more]
Overview The ability to comply with a trust deed and to confidently determine the terms of a trust is a fundamental and integral part of a trustee’s duties; yet, many trustees lose their trust deeds. Recent case law has shed light on the options available when a trust deed is lost. The implications of a [read more]
There is a provision in the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR) that on its face appears to allow a person of any age to receive their preserved benefits. More specifically, item 108 of sch 1 to the SISR appears to provide that even preserved benefits may be paid to a superannuation fund member [read more]
The Full Court of the Federal Court of Australia (Court) recently handed a judgment regarding how the superannuation guarantee (SG) legislation applies to certain contractors: Jamsek v ZG Operations Australia Pty Ltd (No 3) [2023] FCAFC 48 (Jamsek). This case has important implications for businesses that engage individuals where the payment is wholly or principally [read more]
