The vacant residential land tax (VRLT) applies to all vacant residential land throughout Victoria from 1 January 2025. This tax can also apply to holiday homes unless the holiday home exemption (HH Exemption) or another exemption applies. What is VRLT? VRLT was originally introduced in 2017 to assist with housing affordability as overseas purchasers were [read more]
The non-arm’s length expense (NALE) legislation was approved by the Senate on 27 March 2024. The draft legislation (ie, the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (Bill)) that includes a limit on general NALE for SMSFs, now awaits approval from the House of Representatives. Parliament resumes on [read more]
Preparing a valid change of trustee deed can prove complex as, among other things, the governing rules of the trust or SMSF must be complied with, the correct parties must be made a party and the deed needs to be appropriately drafted. Moreover, in New South Wales (NSW), the question also arises –– whether a [read more]
The AAT decision of Came and Commissioner of Taxation [2023] AATA 3951 highlights some complexities related to foreign superannuation fund transfers to Australian superannuation funds under the rules in sub-div 305-B of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997). Facts The taxpayer, Mr James Came, migrated from South Africa to Australia in 2004. [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]
A recent Australian Financial Complaints Authority (AFCA) decision highlights the consequences for financial advisers when they fail to meet their service obligations. Under the Corporations Act 2001 (Cth) (CA) financial advisers are required to ‘act in the best interests of the client’ and ‘must only provide advice if it would be reasonable to conclude that [read more]
Overview A new commercial and industrial property (C&I Property) tax of 1% p.a. applies in Victoria from 1 July 2024. This new tax will be levied on the land’s unimproved value and is payable in addition to any land tax. Duty on the purchase of C&I Property will be phased out. This article reflects the guidance [read more]
This question and answer sheet was prepared following a recent webinar on VRLT presented by DBA Lawyers. A number of queries were raised at this webinar. This Q&A is a summary of the key queries with brief answers. Naturally, we would be pleased to assist with any query. Q-1. Can VRLT be tax deductible? A-1. [read more]
The ATO has a program of auditing or reviewing certain approved SMSF auditors. If the ATO is satisfied with what they see, they can simply close their file. However, if the ATO is not satisfied, they have various options, including referring the approved SMSF auditor to ASIC. At the ASIC stage, ASIC then has various [read more]
Overview Unless a discretionary trust deed excludes foreign persons, foreign trustees and foreign corporations, significant additional duty and land tax is typically imposed if the trust acquires residential property. The best way to minimise such tax is to make sure you obtain assistance from a quality supplier and obtain advice well in advance. Why did [read more]
