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New ATO guidance on restructured market linked pensions

The ATO has recently updated its guidance on how the transfer balance cap (TBC) rules apply where a market linked pension (MLP) that was in place prior to 1 July 2017 has been commuted or restructured on or after that date. We examine below the ATO’s current approach (see CRT Alerts 007/2022 and 010/2022) to [read more]

Street Sign the Direction Way to Pleasant versus Nasty

NALE & NALI = NASTY as a 120% tax rate can apply to contributions

Overview Many believe super is tax effective. However, Australia has the highest tax rate in the world on retirement savings in certain situations. This article focuses on the potential impact of the non-arm’s length income (NALI) and non-arm’s length expenditure (NALE) provisions found in s 295-550 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997) [read more]

SMSFs doing property development

SMSFs doing property development may be hit with GST

The recent case of Ian Mark Collins & Mieneke Mianno Collins ATF The Collins Retirement Fund and Commissioner of Taxation [2022] AATA 628 is an important reminder for advisers about the application of the goods and services tax (GST) laws to self managed superannuation funds. This case also raises previously untested issues concerning the extent [read more]

Nali-Nale

The latest news on NALI & NALE

As we draw to the end of FY2022 it is important for advisers to be aware of the changes to the Commissioner’s application of the non-arm’s length income (NALI) provisions. PCG 2020/5 In light of the Commissioner’s general expense nexus view causing controversy within the industry (both with large APRA funds and SMSFs), the Commissioner [read more]

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Tasmania introducing foreign person land tax and duty changes

Overview The Tasmanian Government has recently introduced legislation to impose a Foreign Investor Land Tax Surcharge, a commitment from the 2021 state election. There has also been legislation introduced that would amend the Foreign Investor Duty Surcharge for Tasmania. This article acts as a brief simplified overview as there are complexities that must be considered [read more]

new-pension-laws

New pension laws just made!

On Monday 4 April 2022 the Government made new laws impacting pensions (see the Treasury Laws Amendment (Allowing Commutation of Certain Income Streams) Regulations 2022 (Cth)). Those in particular with legacy pensions should pay close attention! Over 200 years ago, on 7 March 1795, English newspaper The Hull Advertiser announced that ‘[t]he licence to wear hair [read more]

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Exiting certain legacy pensions — new strategic opportunity!

New laws provide a strategic opportunity for exiting certain legacy pensions. We will cover this opportunity in great detail in a webinar to be held at 12 noon (AEST) Thursday 28 April 2022. Those who can’t attend can watch a recorded version. To register visit https://attendee.gotowebinar.com/register/3108445138265877264 In this article we detail the preliminary ‘ins and [read more]

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New choice simplifies ECPI claims via the unsegregated or actuarial method

On 10 February 2022, the Federal Parliament passed Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 (Bill) which contains an important measure impacting how SMSFs can claim exempt current pension income (ECPI). In broad terms, the ECPI changes in the Bill improve the ability of fund trustees to [read more]

Contribution Rules

Recent changes to contributions rules

The Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 (Bill) recently passed both houses of Parliament and only awaits Royal Assent. The key superannuation measures in this Bill are: Removal of the $450 monthly income threshold for superannuation guarantee (SG) obligations. Increasing the amount eligible for release under [read more]