The Government proposed minimum 30% non-refundable tax credit (NRT Credit) on trustees of discretionary trusts (DTs) announced in the Federal Budget on 12 May 2026 will have a significant impact on tax planning and investment structures including impacting SMSFs. The Government’s justification The Labor Government’s stated policy behind the proposed change is to improve ‘the [read more]
New Queensland trust legislation has introduced a number of changes to trustee duties, beneficiary rights and court powers. The changes affect trusts subject to Queensland trust law, including discretionary trusts, testamentary trusts, unit trusts and self managed superannuation funds (SMSFs). Background The Trusts Act 2025 (Qld) (Act) received royal assent on 19 May 2025, with [read more]
The recent decision of Carrello [2026] FCA 468 illustrates various options in respect of SMSFs and bankruptcy. Carrello contrasts interestingly to Hunt [2026] FCA 389, which is also a recent decision. Carello Mr and Mrs Jones were the trustees of an SMSF. At all relevant times, a principal asset of the SMSF was certain real [read more]
Subject to satisfying the relevant legislative requirements, individuals may be entitled to deduct financial advice fees from their assessable income under sections 8-1 or 25-5 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997).Tax Determination (TD) 2024/7 sets out the ATO’s views on how these provisions apply to financial advice fees. TD 2024/7 does [read more]
With Div 296 now commencing from 1 July 2026 many advisers and trustees are asking us: ‘Do I need to update my deed?’. As usual, the answer is not straightforward. What is Div 296? Generally speaking, tax outcomes for an SMSF are driven by the relevant legislation and regulations, with the deed having a more [read more]
In Hunt, in the matter of Hunt (bankruptcy) [2026] FCA 389, McDonald J of the Federal Court considered yet another application by an undischarged bankrupt for orders permitting him to continue to act as director of a corporate trustee of a self managed superannuation fund (SMSF). Bankruptcy has immediate consequences under both the Corporations Act [read more]
One of the most significant tax concessions available to SMSFs is the exemption for income derived from assets supporting retirement phase pensions. Exempt current pension income (ECPI) can substantially reduce or eliminate the tax payable by a fund once members commence retirement phase income streams. However, the ECPI framework is often misunderstood. Advisers must navigate [read more]
The Payday Super (PDS) regime requires employers to pay superannuation guarantee (SG) contributions at the same time as they pay salary and wages from 1 July 2026. Further, these SG contributions must be received by the relevant superannuation fund within 7-business days. This article focuses on the key risks and considerations for employers who make [read more]
This is part 4 of our series of articles on key issues relating to family trust elections (FTEs) and interposed entity elections (IEEs). In this article, we outline the imposition of family trust distribution tax (FTDT) and the general interest charge (GIC). Broadly, distributions made outside of the relevant family group by an entity that [read more]
The ATO’s Practical Compliance Guideline, PCG 2026/1 – Payday Super: first year ATO compliance approach (the PCG) provides no real comfort for employers who do not comply with the strict provisions and time frames of the law. A legislative transitioning rule is needed that provides legal protection to employer’s. The ATO acknowledges in the PCG [read more]
