Non-arm’s length income (NALI) applies a 45% tax to both ordinary and statutory income of a superannuation fund. A net capital gain is statutory income. However, how does NALI interact with the capital gains tax (CGT) provisions? The ATO has recently released Tax Determination (TD) 2024/5 to outline its current view on the interaction between [read more]
While DBA is recognised as Australia’s leading SMSF law firm, it is also well known for its trust law experience and trust documents. We believe that we offer an excellent discretionary trust deed that is easy to read, provides great flexibility and reflects the latest legal developments. As lawyers advising on discretionary trust issues and [read more]
The short answer is ‘an’ SMSF. The medium answer is that it probably does not really matter, because whichever you use, your reader will almost certainly understand you. However, there is a longer and, we dare say, more fascinating answer. The rule that most of us would recall from school is that we should use [read more]
The ATO is a large bureaucracy and produces a lot of guidance material. Thus it is important that advisers and taxpayers understand the range of material (or products) published by the ATO and the level of protection that each provides. Generally, the ATO feels bound by its published material from an administrative viewpoint. However, only [read more]
Introduction This case note was prepared shortly after the Katz v Grossman decision was handed down in late 2005 and I have updated this newsfeed as it remains relevant today and is a great ‘war story’ for advisers. Indeed, there has been a great number of cases that have since added to our understanding in [read more]
A recent Federal Court decision has held that a transfer of units in a unit trust to an SMSF was void pursuant to s 128B of the Bankruptcy Act 1966 (Cth) (BA). The decision of Ruhe (Trustee) v Rodmarg Pty Ltd, in the matter of Bankrupt estates of Power [2024] FCA 638 demonstrates the circumstances [read more]
DBA Lawyers latest SMSF governing rules and related documents include many value-added features. This article briefly explains why our SMSF documents are the best available. Recent changes to DBA Lawyers’ SMSF governing rules Our latest DBA Lawyers’ SMSF governing rules (version 2024-25) comes with the following upgrades: enhanced wording to cater for Div 296 tax; [read more]
Legislation that includes the non-arm’s length expense (NALE) changes has finally become law almost five years from the date the legislation now takes retroactive effect (ie, from 1 July 2018). The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2023 (Act) includes a limit on general NALE for SMSFs. Royal [read more]
This is part 9 of our series of ‘employee versus contractor’ articles. Part 9 focuses on the ATO’s recent decision impact statement (DIS) on the Full Federal Court (Full Court) in Jamsek v ZG Operations Australia Pty Ltd (No 3) [2023] FCAFC 48 (Jamsek). The other articles (parts 1-8) are linked under the Related Articles [read more]
Unless carefully managed, unpaid present entitlements (UPEs) and beneficiary accounts in family/discretionary trusts can give rise to significant tax risks. Section 100A anti-avoidance provisions Section 100A of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936) is an anti-avoidance provision that applies to arrangements where one person receives a benefit from a trust but another [read more]
