This topic has given rise to considerable debate since the ATO’s view on ARPs was finalised in TR 2013/5. Thus, I thought it would be worthwhile illustrating by way of case study how the law applies to this type of situation. Facts We will assume the following facts exist in relation to Rob and Mary: [read more]
There is a deduction available under s 295-470 of the Income Tax Assessment Act 1997 (Cth). It is called a deduction for future liability to pay death benefits. Sometimes this deduction is thought of as an accompanying deduction along with s 295-485 anti-detriment deductions. However, a s 295-470 deduction for future liability to pay death [read more]
There are numerous pitfalls that can upset a binding death benefit nomination (‘BDBN’) and render it invalid. To help navigate this difficult terrain, we examine the major risks to be identified, managed or avoided. Essentially, a BDBN is a direction made by a member to the superannuation fund trustee requiring the trustee to pay the [read more]
The recent case of Munro v Munro [2015] QSC 61 illustrates how long a BDBN in an SMSF can last for … and the answer is not what everyone expected! Background Section 59(1) of the Superannuation Industry (Supervision) Act 1993 (Cth) provides that generally only a trustee can exercise [read more]
A recent decision Re Trustee for the Payne Superannuation Fund and FCT [2015] AATA 58 examines how the ATO are examining whether SMSFs are appropriately carrying forward tax losses and apportioning expenses when they are partly in pension mode. Prior to analysing the implications of this decision, we will first examine a general overview of [read more]
A 2015 Supreme Court decision is both good news and a caution for contributions to super in the context of business failure A recent court decision demonstrates what can happen when a business borrows from a bank to make large super contributions to an SMSF, and then the business folds. The Court of Appeal division [read more]
Munro v Munro [2015] QSC 61 is the latest case involving a binding death benefit nomination (‘BDBN’) that was held not to be binding. This case is a very important decision as it confirms that BDBNs for self managed superannuation funds (‘SMSF’) can last indefinitely. The facts Mr Barrie Munro practised as a solicitor during [read more]
Sometimes SMSFs are referred to as family superannuation funds due to the ability to have mum, dad and two children as members in the fund. However, is this actually a good idea? What happens if there is a fight in the SMSF between parents and children? This article considers the hidden implications of having children [read more]
In late 2013, the WA Supreme Court handed the decision of Ioppolo v Conti [2013] WASC 389. It contained many important implications for SMSF advisers. The decision was appealed and on Tuesday the WA Court of Appeal handed down the outcome of the appeal in Ioppolo v Conti [2015] WASCA 45. This article discusses some [read more]
Most of us are aware that superannuation benefits can be paid out on retirement (ie, after attaining your preservation age), as well as on suffering permanent incapacity and on death. However, many are not aware that our super savings can also provide some welcome relief on suffering temporary incapacity. Those that suffer temporary incapacity can [read more]
