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Categories | Taxation

SMSFs, LRBAs and NALI

SMSFs, LRBAs and NALI

By on 17/02/2021 in DBA News, Investments, Limited recourse borrowing arrangements, SMSF compliance, SMSF strategy, Taxation, Trustee education

Overview When dealing with limited recourse borrowing arrangements (LRBAs), it is important to understand the consequences that may arise where the LRBA is not implemented and maintained on a proper basis. This is especially so in the case of a self managed superannuation fund (SMSF) undertaking a related party LRBA. The terms and conditions of [read more]

The proportioning rule is key to many super strategies

The proportioning rule is key to many super strategies

By on 01/12/2020 in Audit, Contributions, Investments, Pensions, SMSF compliance, SMSF strategy, Taxation, Trustee education

Introduction The proportioning rule is used to calculate the tax free and taxable components of a superannuation benefit. Having a sound understanding of this rule is key to many super strategies. Overview –– proportioning rule The proportioning rule provides that the tax free and taxable components of a superannuation benefit are taken to be paid [read more]

Why should you order trusts from DBA Lawyers?

Why should you order trusts from DBA Lawyers?

By on 27/11/2020 in Investments, SMSF strategy, Succession planning, Taxation, Trustee education

While DBA is recognised as Australia’s leading SMSF law firm, it is also well known for it’s great depth of tax and trusts expertise. DBA Lawyers offers an excellent discretionary trust deed that is easy to read, provides great flexibility and reflects the latest legislative changes. Also included is a detailed memo, trustee resolutions, covering [read more]

PS LA 2020/3 — how the ATO applies administrative penalties on SMSF trustees/directors

PS LA 2020/3 — how the ATO applies administrative penalties on SMSF trustees/directors

By on 02/11/2020 in Announcements, ATO, Audit, Taxation, Trustee education

Introduction The ATO recently published Law Administration Practice Statement PS LA 2020/3 to guide ATO staff on how to apply administrative penalties. This provides the methodology on how ATO case officers make determinations on imposing and remitting penalties for contraventions under s 166 of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’). The ATO’s view is [read more]

An important reminder on excess contributions: Purcell and Commissioner of Taxation [2020] AATA 4235

An important reminder on excess contributions: Purcell and Commissioner of Taxation [2020] AATA 4235

By on 02/11/2020 in ATO, Contributions, Taxation, Trustee education

The recent AAT decision of Purcell and Commissioner of Taxation [2020] AATA 4235 serves as an important reminder when making superannuation contributions. Facts For the full decision, see http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/AATA//2020/4235.html. A summary of the fact is as follows. The AAT indicated that during the financial year ended 30 June 2018, Mrs Purcell had a non-concessional contributions [read more]

SMSF Trustee Compliance Kit

SMSF Trustee Compliance Kit

By on 05/10/2020 in SMSF compliance, SMSF strategy, Succession planning, Taxation, Trustee education

The DBA Lawyers’ Trustee Compliance Kit (‘TC Kit’) provides practical guidance for SMSF trustees on the procedural requirements of decision recording. The TC Kit provides excellent guidance on how SMSF trustees should comply with their decision making and recording of trustee decisions under the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’) and the Superannuation Industry (Supervision) [read more]

PCG 2020/6 & recap on timing of contributions

PCG 2020/6 & recap on timing of contributions

By on 30/09/2020 in Announcements, ATO, Contributions, Taxation

The ATO recently released Practical Compliance Guideline PCG 2020/6. The guideline considers the timing of income tax deductions for superannuation contributions made through the Small Business Superannuation Clearing House (‘SBSCH’) and the ATO’s compliance approach. However, it is also a timely reminder on when to make contributions more generally. Background to PCG 2020/6 The ATO’s [read more]

Six member SMSFs –– the pros and cons

Six member SMSFs –– the pros and cons

By on 28/09/2020 in Announcements, ATO, Federal Budget, Investments, SMSF compliance, SMSF deeds, SMSF strategy, Statistics, Succession planning, Taxation, Trustee education

Overview The prospect of six member SMSFs has moved a step further when the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 (‘Bill’) was recently introduced into Parliament. If the Bill is finalised as law in November, the increase to the maximum allowable number of members for an SMSF could commence as early as 1 [read more]

Managing TBC & minimising excess transfer balance tax

Managing TBC & excess transfer balance tax

By on 07/09/2020 in ATO, Pensions, SMSF compliance, SMSF strategy, Succession planning, Taxation

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. This article covers account-style pensions such [read more]