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nil interest SMSF loan

New ATO materials suggest non-arm’s length LRBAs = huge tax bill!

Recent ATO materials suggest non-arm’s length limited recourse borrowing arrangements will give rise to huge tax problems. More specifically, the materials suggest income derived can be non-arm’s length income (ie, taxed at 45%) where the LRBA favours the SMSF. This could come as a shock as many have incorrectly said the ATO has previously ‘green [read more]


DBA Lawyers in Asset magazine — The tax trap for super death benefits paid to a deceased estate

This article originally appeared in the March 2014 edition of Asset Magazine (Financial Review). If superannuation death benefits are paid to the estate, a quirk in the law can mean higher tax and increased administration costs. Advisers are well-placed to add value by alerting clients and lawyers to this possible tax trap. Where does a [read more]

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 & 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]