Introduction The proportioning rule provides that the tax free and taxable components of a superannuation benefit are deemed to be paid in the same proportion as the tax free and taxable components of the member’s superannuation interest. This rule is contained in s 307-125 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). This [read more]
The recent Victorian Civil and Administrative Tribunal (VCAT) decision in Tao v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 637 (Tao) illustrates that a person can incur duty when they acquire control of a landholder (eg, including a change in the directorship and/or shareholding of a trustee company). This can occur even without [read more]
The trustees of self managed superannuation funds (SMSFs) must be aware of the non-arm’s length income (NALI) provisions and how they interact with other areas of tax and superannuation law. Part 4 of this series considers NALI interactions with contributions and the capital gains tax (CGT) provisions. Contributions and NALI Despite the recent changes to [read more]
Division 296 first floated in March 2023 A report on the proposed Division 296 tax, being an additional 15 per cent tax to future earnings of member balances above $3 million from 1 July 2025, was released by Treasury on 2 March 2023 titled ‘Impact Analysis Better Targeted Superannuation Concessions’ (Report). The Report examined how [read more]
Freedom of Information (FOI) laws provides individuals and private entities with powerful rights to access information held by government bodies. This article considers a taxpayer’s rights to make an FOI request to obtain information from the ATO in respect of their tax affairs. We discuss who can and how to lodge a request, the likely [read more]
This article focuses on when a non-arm’s length general expense (General NALE) in a self managed superannuation fund (SMSF) will give rise to a non-arm’s length income (NALI). This Part 3 examines General NALE found in subsections 295-550(8) and (9) of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). Parts 1 and 2 and related articles are [read more]
There are number of ways in which self managed superannuation funds (SMSFs) can receive non-arm’s length income (NALI). Part 2 of this 3-part series examines some of the oft overlooked NALI provisions, including dividend NALI found in s 295-550(2) and (3), non-fixed trust NALI found in s 295-550(4) and fixed trust entitlement NALI found in [read more]
Background/overview As a lawyer, I do a lot of work advising and representing approved SMSF auditors who the ATO are reviewing/auditing. I also advise and represent auditors who the ATO have referred to ASIC. Accordingly, the recent Sidhu decision very much piqued my interest. This decision involved an approved SMSF auditor (Mr Sidhu) who the [read more]
Recent changes to Queensland trust law allows for trusts to vest up to 125 years after the commencement date of the trust, including a discretionary trust, testamentary trust and unit trust. The extended vesting date should be reflected in new trust deeds while a variation to extend the vesting date of an existing trust deed [read more]
Introduction The ATO is placing increased scrutiny on rental and property related matters as recent ATO data suggests that around 9 out of 10 taxpayers are not meeting the current tax rules. This is interesting as the superannuation rules add greater complexity on the normal tax rules when an SMSF invests in a rental property, [read more]
