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Categories | Taxation

LRBAs — current tips and traps

LRBAs — current tips and traps

By on 25/10/2019 in Investments, Limited recourse borrowing arrangements, SMSF compliance, Taxation, Trustee education

By William Fettes, Senior Associate ([email protected]), DBA Lawyers The limited recourse borrowing arrangement (‘LRBA’) lending market has undergone a significant shift in recent years, with most first-tier bank lenders withdrawing their LRBA offerings for purchasers of residential property. As a result, several smaller second-tier lenders have emerged to fill the void created by the departure [read more]

LRBA Wind Up Documentation

LRBA Wind Up Documentation

By on 15/10/2019 in Investments, Limited recourse borrowing arrangements, SMSF compliance, Taxation, Trustee education

By Daniel Butler, Director ([email protected]), DBA Lawyers When winding up a limited recourse borrowing arrangement (‘LRBA’), appropriate documentation is required. Broadly, an SMSF trustee has the right to acquire legal ownership of an LRBA asset (ie, from the relevant custodian/bare trustee) after the loan is fully repaid. Refer to s 67A(1)(c) of the Superannuation Industry (Supervision) Act [read more]

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SMSF Succession Planning Day (Face-To-Face)

By on 02/10/2019 in Announcements, SMSF compliance, SMSF strategy, Succession planning, Taxation

On Wednesday 20 November 2019 DBA Network is holding a special, once-off SMSF Succession Planning Day (face-to-face). It will provide a practical, step-by-step guide on how to ensure that a member’s SMSF benefits are appropriately dealt with upon their incapacity or death. It is designed for financial planners, accountants, auditors, SMSF administrators and lawyers who want [read more]

The $1.6 million transfer balance cap revisited

The $1.6 million transfer balance cap revisited

By on 24/09/2019 in Pensions, SMSF compliance, SMSF strategy, Taxation, Trustee education

By William Fettes ([email protected]), Senior Associate Introduction The $1.6 million transfer balance cap (‘TBC’) imposes a limit on the total amount that a fund member can transfer into an exempt (retirement phase) pension. The TBC was introduced with effect from 1 July 2017 with the intention of making the tax concessions in superannuation more sustainable [read more]

Reversionary pension v BDBN: which one wins?

Reversionary pension v BDBN: which one wins?

By on 22/08/2019 in SMSF compliance, SMSF deeds, SMSF strategy, Succession planning, Taxation, Trustee education

By Bryce Figot, Special Counsel, DBA Lawyers and Daniel Butler, Director There is a misconception that reversionary pension documentation will always apply before a binding death benefit nomination. If the SMSF deed is silent on the question, it can be entirely possible at times that the binding death benefit nomination (‘BDBN’) will apply before any [read more]

Is the superannuation guarantee system in need of an urgent overhaul

Is the superannuation guarantee system in need of an urgent overhaul?

By on 19/08/2019 in ATO, Contributions, SMSF compliance, SMSF strategy, Taxation, Trustee education

By Daniel Butler, Director ([email protected]), DBA Lawyers Employers are required to make the minimum superannuation guarantee (‘SG’) contribution for each employee to avoid a shortfall under the Superannuation Guarantee (Administration) Act 1992 (Cth) (‘SGAA’). This appears to be a simplistic rule. If an employer does not provide the minimum SG contribution, significant penalties apply. The real issue [read more]

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Penalty interest and TR 2019/2 in the context of SMSFs with LRBAs

By on 05/08/2019 in ATO, Limited recourse borrowing arrangements, Taxation

Daniel Butler ([email protected]), Director, DBA Lawyers Taxation Ruling TR 2019/2 Income tax: whether penalty interest is deductible provides the Australian Taxation Office’s (‘ATO’s’) view on the deductibility of penalty interest. It replaces Taxation Ruling TR 93/7W Income tax: whether penalty interest payments are deductible, which has been withdrawn. This article highlights the relevance of TR 2019/2 for self managed superannuation [read more]

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Victorian SMSF duty on transfers in kind

By on 31/07/2019 in SMSF deeds, Taxation, Trustee education

Shaun Backhaus, Lawyer ([email protected]) and Daniel Butler, Director ([email protected]), DBA Lawyers Many advisers are aware of the potential duty exemption available under s 41A of the Duties Act 2000 (Vic) where dutiable property such as real estate is transferred to a member of an SMSF in respect of their interest in the fund. This potential exemption may also apply [read more]

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Do foreign purchaser duty surcharges apply to SMSFs?

By on 22/07/2019 in SMSF deeds, Taxation, Trustee education

Shaun Backhaus, Lawyer ([email protected]) and Daniel Butler, Director ([email protected]), DBA Lawyers With the imposition of foreign purchaser duty continuing to be implemented around the country there is a need to determine how this additional tax will apply to SMSFs. Background Most jurisdictions imposing some form of ‘foreign purchaser duty’ include a ‘foreign trust’ or ‘trustee [read more]