Non-arm’s length income (NALI) remains a contentious topic for self managed superannuation funds (SMSFs). Part 1 of this 3-part series provides a history and overview of NALI as well as examining NALI under s 295-550(1) (Ordinary NALI) of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). Types of NALI Broadly, there are different types of [read more]
The ATO says that ‘it has become common within some parts of the superannuation industry for a person to pay an expense on behalf of a superannuation fund.’ In this article, we consider whether that can cause non-arm’s length income (NALI) and/or a contribution. How the situation might arise Consider a situation where a related [read more]
In April 2025, the Full Court of the Federal Court of Australia (Full Court) handed down the latest decision in respect of the Merchant group. This decision is not directly about SMSFs. However, it nevertheless contains an important lesson for SMSFs. The full decision is available at <https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCAFC/2025/56.html> Facts In the 2015 financial year, the [read more]
The ATO can disqualify an individual from having an SMSF. However, the ATO has discretion as to when it exercises this power. Contraventions can occur without disqualification. A recent ART decision sheds light on when disqualification might not occur. The ART decision is Omibiyi and FCT [2025] ARTA 553. The full text is available at [read more]
Prohibition on borrowing and charging It is well known that SMSF trustees are generally prohibited from borrowing. One exception to this prohibition is where the borrowing complies with the requirements under s 67A of the Superannuation Industry (Supervision) Act 1993 (Cth), otherwise known as a limited recourse borrowing arrangement (LRBA). An SMSF trustee is also [read more]
Unrealised capital gains Taxation of unrealised capital gains has been contentiously debated amongst OECD countries. Australia appears set to join the ranks of Norway and Switzerland with the Labor Government seeking to pass legislation that effectively taxes unrealised capital gains. This will be a major step in tax law in Australia and may result in [read more]
DBA Lawyers is pleased to announce our new suite of legacy pension commutation documents. Pursuant to the amnesty provisions, these documents allow for a member to fully commute the following types of legacy pensions within the prescribed 5-year amnesty period (7 December 2024 – 6 December 2029): a complying lifetime pension (CLP) (ie, a pension [read more]
We all know that, since 2007, new SMSF trustees/directors have to sign a trustee declaration pursuant to s 104A of the Superannuation Industry (Supervision) Act 1993 (Cth). However, how long must the declarations be retained for? Do the declarations only need to be retained for 10 years? Also, what to do if the declarations are [read more]
Victoria’s vacant residential land tax (VRLT) has undergone several changes since it was first introduced on 1 January 2018. From 1 January 2025, the VRLT went from being a flat 1% of the land’s capital improved value (CIV) to a progressive tax rate of up to 3% of CIV determined by the number of consecutive [read more]
This article provides important background context on why SMSF trustees may wish to consider using the ATO’s early engagement and voluntary disclosure service to notify the ATO regarding contraventions of the Superannuation Industry (Supervision) Act 1993 (SISA) or Superannuation Industry (Supervision) Regulations 1994 (SISR). As outlined in this article, there can be significant advantages to [read more]
