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Reversionary pensions

A pension may be made ‘reversionary’ to certain dependants (eg, a spouse or child under 25 years). A reversionary pension may have certain advantages compared to a non-reversionary pension. This article focuses on the key features of reversionary pensions and highlights some planning tips and traps. Making a pension reversionary The documents establishing a pension [read more]

SMSFs investing in unit trusts

This news outlines some of practical tips and traps related to investing in both related and unrelated unit trusts. Can further units be acquired in a pre-1999 unit trust? If the trust is related (eg, greater than 50% owned) then the 5% in-house asset (‘IHA’) limit applies. We generally recommend that SMSFs should keep this [read more]

ATO clarifies certain SMSF borrowing queries

Introduction The new SMSF borrowing rules introduced with effect from 7 July 2010 raised a number of queries. The ATO has recently responded to these which are summarised below. Loans for real estate with multiple titles Many apartments comprise more than one title (eg, the apartment and car park may each have a separate title). [read more]

SMSF related party lending

Some SMSF trustees may find the benefits of a related party lender more appealing. Key tips Ease of set up A loan agreement can generally be set up between the trustee of the SMSF and the related party lender for a fixed fee. Once this agreement is in place, the money can then be drawn [read more]

SMSF: property development?

The question of whether an SMSF can carry on a business of property development is one that many would like clear guidance on; especially as the ATO has recently flagged that an SMSF carrying on a business may be in contravention of certain rules. The good news here is that the ATO has confirmed that [read more]

Final SMSF Cooper Recommendations

Some key and somewhat controversial changes in the final Cooper SMSF report issued this Monday are summarised below. Note that our June News covered Cooper’s preliminary findings on SMSFs. Final Cooper Report SMSFs not to be subject to the SCT This is a back flip from the preliminary recommendation that certain SMSF death benefit disputes [read more]

New borrowing law passed

New superannuation fund borrowing rules commenced on 6 July 2010. The old rules (contained in s 67(4A)) were deleted and replaced with revised provisions being ss 67A and 67B of the Supervision Industry (Supervision) Act 1993 (Cth) (‘SISA’). This is good news for SMSFs as it will provide them with more flexibility in some respects. [read more]

New super borrowing rules

The government has proposes key changes for the super fund borrowing rules in the Superannuation Industry (Supervision) Amendment Bill 2010 (Cth) (‘Bill’). How will the changes affect my SMSF? Refinancing Allowed A big question under the current borrowing rules was whether refinancing was allowable. The ATO stated in a ruling last year that refinancing constitutes [read more]

Summary of the Cooper and Henry Reviews

The Cooper Review and the government’s response to the Henry Review have recently been released. This issue of DBA News discusses the key aspects of each. Cooper Review Borrowing is here to stay (at least for two years) The review proposes a ‘wait and see’ approach in respect of SMSF borrowings. It recommends reviewing these [read more]

Excess Contributions Tax & TA 2010/2

The ATO have recently issued the above Taxpayer Alert (‘TA’). A TA is an early warning of tax and superannuation planning measures that the ATO have under assessment. A TA briefly describes the issues and highlights the features that are of concern to the ATO. What arrangements are covered? TA 2010/2 is concerned with arrangements [read more]