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Managing TBC & minimising excess transfer balance tax

Managing TBC & minimising excess transfer balance tax

Overview This article focuses on managing a member’s transfer balance cap (‘TBC’) with a view to minimising excess transfer balance tax (‘ETB Tax’). We provide a brief background to assist members and SMSF trustees to better monitor transfer balance caps (‘TBC’) so they can avoid or minimise ETB Tax. We primarily cover account style pensions [read more]

The best time for an SMSF to make a voluntary disclosure to the ATO is now

The best time for an SMSF to make a voluntary disclosure to the ATO is now

Recently the ATO’s Acting Assistant Commissioner for Superannuation, Steve Keating, outlined the ATO’s current approach to dealing with SMSFs facing compliance issues and making voluntary disclosures. The ATO has recognised that many Australians are experiencing financial hardship as a result of the COVID-19 pandemic and therefore it is not pursuing its usual audit program. For [read more]

SG amnesty –– 7 September 2020 deadline

SG amnesty –– 7 September 2020 deadline

Background The Superannuation Guarantee (‘SG’) amnesty was introduced as law on 6 March 2020 by the Treasury Laws Amendment (Recovering Unpaid Superannuation) Act 2020 (Cth) and the deadline of 7 September 2020 is near. The amnesty enables ‘employers’ to rectify any shortfall and related amounts under the Superannuation Guarantee (Administration) Act 1992 (Cth) (‘SGAA’) for [read more]

Discretionary trusts & the foreign purchaser duty surcharge across Australia

Discretionary trusts & the foreign purchaser duty surcharge across Australia

Broadly, foreign purchaser duty surcharge of 7% to 8% applies on top of the normal duty impost (typically between 5% to 6%) where a discretionary trust acquires relevant real estate and the trust is deemed to be a ‘foreign trust’ in the relevant jurisdiction. For simplicity, we refer to ‘discretionary trusts with foreign beneficiaries’ that [read more]

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Market linked pensions –– timely action may be needed to avoid a hefty excess transfer balance tax assessment

SMSFs paying market linked pensions (‘MLPs’) should carefully review the potential impact of recent changes to the transfer balance cap (‘TBC’) rules where an MLP that commenced prior to 1 July 2017 was commuted or restructured on or after that date. The Treasury Laws Amendment (2019 Measures No. 3) Act 2019 (Cth) received royal assent [read more]

Discretionary trusts — NSW duty & land tax surcharges — act before 31 December 2020 or incur extra NSW tax

Discretionary trusts — NSW duty & land tax surcharges — act before 31 December 2020 or incur extra NSW tax

The changes In the past few years, various jurisdictions in Australia have introduced legislation to impose duty and land tax surcharges on foreign persons, trusts and companies that purchase or hold certain types of real estate. The State Revenue Legislation Further Amendment Bill 2020 (NSW), which became law on 24 June 2020, contains amendments relating [read more]

Why use pension documentation from DBA Lawyers

Why use pension documentation from DBA Lawyers

DBA Lawyers offers industry-leading pension documentation. In this article, I set out several key benefits of using pension documentation from DBA Lawyers. Our expert lawyers regularly review and revise our documents Our documents are regularly reviewed and revised to ensure they reflect the latest superannuation, tax and related practical and strategic developments. Each suite of [read more]

Recent change to the tax treatment of income from super in a testamentary trust

Recent change to the tax treatment of income from super in a testamentary trust

Overview The article focuses on the tax treatment of superannuation proceeds that are paid to a testamentary trusts and the interaction of div 6AA of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936’) which covers excepted trust income (‘ETI’). This is an important topic because unless a minor beneficiary is an excepted person or [read more]