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TD 2014/7 — segregated bank accounts are now made easy, so why have unsegregated assets? The simple answer!

The ATO released Taxation Determination 2014/7 (‘TD 2014/7’) on 9 April 2014 entitled ‘Income tax: in what circumstances is a bank account of a complying superannuation fund a segregated current pension asset under section 295-385 of the Income Tax Assessment Act 1997 (Cth) (‘ITAA’)?’. Broadly, TD 2014/7 adopts a much more practical approach to dealing [read more]


SMSFs buying overseas property – tips & traps

Introduction Overseas property investment may appear attractive to many; such as an investment in an apartment in Paris, a Balinese beachfront villa, or a ski chalet in Colorado. However, when an SMSF is the purchaser there are a number of compliance tips and traps to navigate. SMSF trustees can purchase property either by an outright [read more]


Independent contractors recent wins against ATO superannuation guarantee assessments

Overview There have been two recent decisions in which taxpayers have won the independent contractor argument in the Administrative Appeals Tribunal (‘AAT’). Naturally, if the contractor is an employee, then the PAYG withholding and superannuation guarantee obligations fall on the employer (head contractor). Moreover, other obligations such as those under state and territory legislation regarding [read more]


Excess non-concessional contributions to be abolished … but a trap exists!

The recent Federal Budget announcement that excess non-concessional contributions will be abolished is great news. However, there is a trap that means advisers still can’t afford to let their guard down when it comes to contributions and careful monitoring is still required. The announcement The Federal Budget contained the following announcement, which was ‘music to [read more]


Great news in the budget — excess non-concessional contributions tax!

There was some great news in last night’s budget! The government made the following announcement regarding excess non-concessional contributions: The Government will allow individuals the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings, with these earnings to be taxed at the individual’s [read more]

nil interest SMSF loan

New ATO materials suggest non-arm’s length LRBAs = huge tax bill!

Recent ATO materials suggest non-arm’s length limited recourse borrowing arrangements will give rise to huge tax problems. More specifically, the materials suggest income derived can be non-arm’s length income (ie, taxed at 45%) where the LRBA favours the SMSF. This could come as a shock as many have incorrectly said the ATO has previously ‘green [read more]


DBA Lawyers in Asset magazine — The tax trap for super death benefits paid to a deceased estate

This article originally appeared in the March 2014 edition of Asset Magazine (Financial Review). If superannuation death benefits are paid to the estate, a quirk in the law can mean higher tax and increased administration costs. Advisers are well-placed to add value by alerting clients and lawyers to this possible tax trap. Where does a [read more]

red cherry

Preservation rules — a little known quirk and how to use it for clients to cherry pick

A little known quirk in the preservation rules can have important implications for clients. This article explains how the quirk arises, and then how to use it to advantage clients. In a nutshell the quirk allows trustees of super funds to ‘cherry pick’ whether to fund pensions from unrestricted non-preserved benefits or preserved benefits. Legislative [read more]


TD 2013/22 & ID 2012/16: ATO confirms that each contribution made to a reserve requires an objection

By Daniel Butler, Director, and Bryce Figot, Director, both of DBA Lawyers The ATO has confirmed that contribution reserving is a viable strategy. The ATO has issued an interpretative decision (‘ID’) ATO ID 2012/16 relating to contribution reserving up to 30 June 2013 and a tax determination (‘TD’) TD 2013/22 in respect of contributions made [read more]