By Christian Pakpahan, Lawyer and Daniel Butler, Director, DBA Lawyers We outline below the key superannuation changes announced in the Federal Budget 2018 on 8 May 2018. Some of the proposed changes will have a substantial impact on SMSFs if they are finalised as law. Nomination of superannuation guarantee (‘SG’) for certain employees with multiple [read more]
By: Philippa Briglia, Lawyer ([email protected]) and Daniel Butler, Director ([email protected]), DBA Lawyers An issue that advisers may not be aware of as we head towards the end of financial year ending 30 June 2018 is the tax treatment of certain pension payments made in relation to capped defined benefit income streams (‘CDBISs’). Tax agents and [read more]
By David Oon ([email protected]), Senior Associate, DBA Lawyers The consequences of an SMSF failing the residency rules can be automatic non-complying status. This will broadly mean the entire amount of the SMSF’s assets, less non-concessional contributions, are taxed at 45% in the year of non-compliance (47% during temporary budget repair levy financial years of 2014-15, [read more]
By William Fettes ([email protected]), Senior Associate, DBA Lawyers The starting point at general law is that legal title to fund assets must generally be held in name of the current trustees of the fund. However, this is not always possible, eg, where an SMSF trustee is unable to hold legal title, and title is instead [read more]
Bryce Figot ([email protected]), Special Counsel, DBA Lawyers Earlier this month, the ATO released Self Managed Superannuation Fund Regulator’s Bulletin SMSFRB 2018/1. It contains some of the most important information available on the use of reserves for SMSFs. However, there is a vital question regarding contribution reserving that SMSFRB 2018/1 gives rise to. The question is [read more]
Joseph Cheung, Lawyer and Daniel Butler, Director, DBA Lawyers The Australian Taxation Office (‘ATO’) has issued SMSF Regulator’s Bulletin SMSFRB 2018/1 ‘The use of reserves by self-managed superannuation funds’. This is the most comprehensive material ever released by the ATO on the use of reserves by self managed superannuation funds (‘SMSFs’). This article highlights the [read more]
Joseph Cheung, Lawyer, William Fettes, Senior Associate, and Daniel Butler, Director, DBA Lawyers The total superannuation balance (‘TSB’) is one of the most important new concepts introduced as part of the major superannuation reforms that broadly came into effect on 1 July 2017. Many superannuation obligations and rights depend on a member’s TSB: broadly the total [read more]
By Christian Pakpahan ([email protected]), Lawyer and Bryce Figot ([email protected]), Special Counsel, DBA Lawyers The new transfer balance cap regime can make succession planning tricky. A member may desire to make their pensions reversionary upon death. However, there may be situations where receiving these reversionary pensions would cause the beneficiary to exceed their transfer balance cap. [read more]
Joseph Cheung, Lawyer and Daniel Butler, Director, DBA Lawyers Contributions made in excess of an individual’s concessional contributions (‘CC’) cap can give rise to extra tax payable and a liability to excess CC (‘ECC’) charge for the individual. This article highlights how the ECC charge operates. Note that the law in this area is complex [read more]
By: Philippa Briglia, Lawyer and Daniel Butler, Director, DBA Lawyers The mid-2017 superannuation reforms have had a profound impact on market linked pensions (‘MLPs’). While most of the planning should have already been implemented, there is still some opportunity to review and potentially restructure clients with MLPs. We briefly examine below the treatment of an MLP [read more]
