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]
This is Part 3 of our series of articles on key issues relating to family trust elections (FTEs) and interposed entity elections (IEEs). In this article, we examine the meaning of ‘distribution’ for the purposes of the relevant provisions of Schedule 2F of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936). Distributions made outside of [read more]
From 1 July 2026, the Payday Super regime will be in effect and will require employers to pay superannuation guarantee (SG) contributions at the same time as they pay salary/wages (Payday Super). Payday Super replaces the current requirement to pay SG quarterly where employers have had 28 days from the end of each quarter to [read more]
Daniel Butler and Bryce Figot of DBA Lawyers are Senior Fellows at Melbourne Law School and are lecturing a subject titled Taxation of Superannuation (LAWS70267). This four-day intensive subject provides an in-depth analysis of the Australian taxation regime for superannuation funds, with a particular focus on self-managed superannuation funds (SMSFs). [read more]
Many SMSF clients want to understand how the new Division 296 tax might work. We have found that it can be difficult to succinctly communicate this in practice. However, we hope we can provide a helpful tool! The tools are the following formulas. These formulas provide a succinct summary of how the new tax might [read more]
The Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 was released on 19 December 2025 for members with superannuation balances over $3 million. The closing date for feedback on the revised exposure draft legislation was 16 January 2026 and The Tax Institute made a comprehensive submission on the revised provisions. The revised provisions include [read more]
This is Part 2 of our series of articles on key issues relating to family trust elections (FTEs) and interposed entity elections (IEEs). Part 1 provided a general overview of FTEs, the family group and the ATO’s recent increased focus in this area. In this article, we examine IEEs, revoking an election and lost election [read more]
