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red cherry

Preservation rules — a little known quirk and how to use it for clients to cherry pick

A little known quirk in the preservation rules can have important implications for clients. This article explains how the quirk arises, and then how to use it to advantage clients. In a nutshell the quirk allows trustees of super funds to ‘cherry pick’ whether to fund pensions from unrestricted non-preserved benefits or preserved benefits. Legislative [read more]

TD-2013-22-and-ID-2012-16

TD 2013/22 & ID 2012/16: ATO confirms that each contribution made to a reserve requires an objection

By Daniel Butler, Director, and Bryce Figot, Director, both of DBA Lawyers The ATO has confirmed that contribution reserving is a viable strategy. The ATO has issued an interpretative decision (‘ID’) ATO ID 2012/16 relating to contribution reserving up to 30 June 2013 and a tax determination (‘TD’) TD 2013/22 in respect of contributions made [read more]

Small People - Stands Out

ATO ID 2014/7 — latest from ATO on keeping SMSF assets separate

Australian Taxation Office Interpretative Decision ATO ID 2014/7 provides the latest on the rules regarding keeping SMSF assets separate. It suggests the position is very strict. However, a deeper technical analysis reveals there might often be some ‘flexibility’. This article concludes that the critical practical implication is that each SMSF should have a sole purpose [read more]

ATO ID 2014-2 and pensions deceased estate

ATO ID 2014/2 and pensions to a deceased estate?

Some advisers may have previously recommended that there are opportunities to continue paying a pension following a member’s death to their deceased estate. However, ATO ID 2014/2 provides a real hurdle to this strategy! (Note that this has been a somewhat busy time for the ATO and interpretative decisions regarding pensions. The ATO also recently [read more]

International issues facing SMSFs today

International issues facing SMSFs today

This article outlines some of the key international issues facing SMSFs today and addresses the practical skills necessary to ensure that these matters are handled effectively. SMSF residency SMSFs are generally not appropriate for people who spend extended time overseas. Such funds can easily lose their complying status and suffer significant tax penalties. Residency requirements [read more]

SMSF derivatives

How can SMSFs invest in derivatives?

A question that is periodically posed to advisers is the ability of SMSF trustees to invest using derivatives. There is some uncertainty as to the answer. This article seeks to provide guidance. Need for a derivatives risk statement Firstly, there is a misconception that should be addressed — the misconception that all SMSF trustees holding [read more]