The ATO’s online Super Fund Lookup (www.superfundlookup.gov.au) (‘Lookup’) contains the ATO’s record of the current compliance status of SMSFs. Employers and large superannuation funds can utilise the Lookup to determine the credentials of the SMSF (eg, whether it is treated as complying) for the purposes of super contributions and rollovers. In the normal course of [read more]
The recent case of Trustees of the Property of Morris (Bankrupt) v Morris (Bankrupt) [2016] FCA 846 shows just what happens when superannuation, bankruptcy and the payment of death benefits intersect. Facts Ms Debbie Morris was married to Mr Michael Foreman. They had two children: Gracie (born in July 2011) and Wes (born in January [read more]
A disqualified person is not permitted to be an SMSF trustee. If a disqualified person knows they are disqualified and nevertheless acts as an SMSF trustee, they will be committing an offence. However, some may not realise they are a disqualified person. This discussion covers the three main ways that a person becomes a disqualified [read more]
This article looks at whether a parent and deceased child can be in an interdependency relationship for the purpose of satisfying the definition of death benefits dependant in the Income Tax Assessment Act 1997 (Cth) (‘ITAA97’). This article follows the AAT decision in TBCL and Commissioner of Taxation (Taxation) [2016] AATA 264 (‘TBCL’). [read more]
A desire for some people who exit large funds and start a new SMSF is to leave a portion of their superannuation in the large fund. This is often because it can be relatively simple to retain life, total and permanent disability (‘TPD’) and income protection insurance cover in a large fund. While the above [read more]
This article examines some of the key reasons for having a company appointed as an SMSF trustee as compared to having individual trustees. It also examines some issues that can arise when advisers are preparing change of trustee documents. Why do so many SMSFs have individual trustees? SMSFs can have either have a company or [read more]
All newly acquired investments by SMSF trustees in collectables and personal use assets since 1 July 2011 have been subject to strict rules under reg 13.18AA of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (‘SISR’). However, SMSF trustees should be aware that the grandfathering relief in relation to such investments that were held prior to [read more]
A new Federal Court case underscores the continuing relevance of pecuniary penalties under the civil penalties regime to the ATO’s enforcement toolkit. Facts of the case The facts in Deputy Commissioner of Taxation (Superannuation) v Ryan [2015] FCA 1037 (‘Ryan’) involve a husband and wife, Mr Joseph Ryan and Mrs Carolyn Ryan, who were the [read more]
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]
Introduction Advisers should be aware that there have been recent changes that reduce flexibility in implementing different types of insurance in an SMSF context. From 1 July 2014 regulated superannuation funds can only provide insured benefits consistent with the following conditions of release (subject to certain ‘grandfathering relief’): death; terminal medical conditions (‘TMC’); permanent incapacity [read more]
