Transition to retirement in SMSF – ATO provide key clarification on TRIS strategies

September 29, 2014

ATO issues TRIS confirmation of key commutation strategy The ATO in SMSFD 2013/2 confirmed that an account-based pension can be partially commuted to a lump sum to enable a member to take advantage of their low rate cap. (The low rate cap for the 2014/15 financial year is $185,000.) However, the ATO in paragraph 11 […]

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Cut the cost of insurance

September 15, 2014

Many of us often look at what we pay for our insurance cover over a year and wonder if there are ways we can cut the cost of insurance without jeopardising the cover. One option is to facilitate the insurance cover via your superannuation fund. Mike’s case Mike and Terri are both aged 38 and […]

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Borrowing within your SMSF

September 10, 2014

Self-managed superannuation funds (SMSFs) open up a whole new world of investment opportunities for your retirement savings, including direct property. But what if you simply don't have enough money in super to buy an asset outright? Traditionally, you may have had to consider borrowing the balance yourself and then becoming joint owner of the investment […]

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SMSFs and gift-giving

September 5, 2014

There are now over five hundred thousand Self Managed Superannuation Funds (SMSFs) in Australia where the members of the fund are also the trustees. These trustees are responsible for running the fund according to the superannuation rules. If they get it wrong, the consequences can be dire. Each year, SMSFs lose their concessional tax allowance […]

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Buying property using SMSF, LRBA’s and leasing: What you need to know

August 13, 2014

Introduction A common strategy implemented by business clients is to acquire business real property (usually the premises from which their business is run) via their SMSF and then lease this property to a related party. Borrowings are often used to finance the acquisition. The above is typically a standard transaction. However, where the complexity arises […]

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SMSFs need caution when considering loans to an unrelated trust

July 23, 2014

Australian Taxation Office Interpretative Decision ATO ID 2014/23 confirms that  loans to an unrelated trust will not constitute an in-house asset of an SMSF. However, advisers must exercise a high degree of caution — as all is not as ‘simple’ as it seems. This article highlights the need for caution before applying the result. Facts […]

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End of financial year SMSF checklist

June 27, 2014

  The end of the financial year is fast approaching. We now address some of the key items that should be considered in the lead up to 30 June 2014. DBA Lawyers offers a range of kits that can assist SMSF trustees and advisers in meeting their end of financial year obligations. For more information […]

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Year End Superannuation Planning

May 29, 2014

Superannuation year end planning for 2014   The end of the financial year always seems to crop up faster than it should.  Understanding what you could do before and after 30 June 2014 can provide the icing on the cake for employees, investors and those in small business.  Such things as bringing forward tax deductions […]

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Introduction of Stronger Super 2013/2014

May 20, 2014

The Federal Government has introduced a series of reforms, known as ‘Stronger Super.’ These reforms are set to deliver major changes to Australia’s superannuation system. Stronger Super will impact super funds, their members and employers. The aim of the reforms is to create a more efficient super system focused on the best interest of members. […]

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Budget 2014 – Retirement and super planning

May 16, 2014

The Government has proposed some relatively conservative changes to Australia’s superannuation and retirement system in this year’s Federal Budget. Superannuation contribution caps One of the more interesting developments is the indexation of contribution caps from 1 July 2014. Regular indexation of the caps was legislated seven years ago; however it had been frozen in recent […]

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Year end super strategies

May 15, 2014

Superannuation issues are some of the most important considerations to keep in mind as the end of the financial year approaches.   Spouse contributions The spouse super tax offset allows higher earning taxpayers who contribute super for their non-working or low income earning partners to be eligible for a tax break. To be eligible for […]

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Federal Budget Updates 2014

May 14, 2014

What’s in the Federal Budget for you?   Last night, the Treasurer, Mr Joe Hockey, delivered his first Budget describing it as “the Budget that gets on with the job and it is time, for all of us, to contribute and build”. The 2014/15 Budget sets a timeline for reducing the deficit from its present level […]

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Money on the table for defective ATO administration

May 12, 2014

Introduction   Those who have suffered loss as a result of defective ATO administration may be eligible to claim compensation from the ATO. Such compensation will only be available in limited circumstances, and knowing when to enquire about the options can be a real ‘value add’ for clients.   This article outlines what you need […]

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New penalties for SMSF trustees

May 7, 2014

The ATO has warned SMSF trustees about a new range of SMSF administrative penalties that can be imposed for a range of breaches of the law. This includes breaches that may be inadvertent. This new legislation received Royal Assent on 18 March 2014 and will make new penalties available to the ATO for breaches that […]

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Huge tax bill for SMSF loans not at arms length!

April 30, 2014

If you don't have an 'arm's length' SMSF loan, you're likely to be in for a huge tax bill!   Introduction The ATO have released a private binding ruling suggesting that an overly favourable related party SMSF loan can give rise to significant negative tax implications. This might come as a shock to many who incorrectly […]

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Hidden benefits of a sole purpose corporate SMSF trustee

April 23, 2014

Sole purpose corporate SMSF trustees have been touted as superior for many years. While the ‘old’ reasons for having one still ring true, recent legal news and ATO policy make it timely to revisit the question.   Statistical reality In spite of any benefits in having corporate trustees (and in particular, sole purpose corporate trustees), […]

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Cross-insurance in an SMSF

March 6, 2014

Traditionally, SMSF trustees have effected insurance for members under a self-insurance model. This involves the SMSF trustee to take out, say, death insurance on a particular member. In the event of a claim, the insurance proceeds are allocated to the relevant member’s account in the fund. The proceeds can then be paid to the member […]

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Did the ATO get it right? Liwszyc v Commissioner of Taxation tells all! (TR 2010/1)

March 4, 2014

In taxation ruling TR 2010/1 the ATO consider what is a contribution to a superannuation fund and when a contribution is made. A recent court case, Liwszyc v Commissioner of Taxation [2014] FCA 112, answers the question of whether the ATO actually got it right in TR 2010/1. Liwszyc v Commissioner of Taxation also contains […]

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SMSF expenses

January 29, 2014

The ATO recently released an important draft tax ruling TR 2013/D7 (‘D7’) that focuses on the apportionment of expenses incurred by a superannuation fund where a fund derives both assessable and non-assessable income. D7 is proposed to take effect from 1 July 2014 and then supersede TR 97/13 which currently provides guidance on apportioning expenses. […]

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The dangers of downloading SMSF documents

January 13, 2014

Concerns are growing with the increased commoditisation of the SMSF industry and our usage of cheap generic SMSF documents available on the internet.  It’s becoming easy and cost-effective to purchase important financial and legal documents needed to establish new SMSFs, including documents for borrowing to invest in property.  But these are serious legal documents that […]

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What contributions can you make to your superannuation?

January 8, 2014

In the years since the introduction of contribution caps (generally from 1 July 2007), the maximum amount you may contribute to your superannuation has changed quite a few times. As the 2013/14 financial year sees us in the midst of another period of change, it is timely to consider what level of contributions you can […]

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Time to reflect

January 1, 2014

  Ready or not, the end of the year is fast approaching and now is the perfect time to start thinking about the year(s) ahead. In particular, this time of year presents a great opportunity to meet with your adviser to review your financial strategies and goals. Many people use the Christmas/New Year period to […]

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A super solution for blended families

December 17, 2013

Did you know that one in three marriages ends in divorce ?  It’s really no surprise then, that the number of blended families in Australia is rising . A blended family (or a step family) is simply a family where one, or both, parents have children from a previous marriage. If you, or someone you […]

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The most important case ever in SMSF succession planning

December 13, 2013

The most important case ever in SMSF succession planning … and what it really means This article was produced by DBA Lawyers.  Disclaimer: DBA Lawyers advised the plaintiffs during the course of litigation. We only mention facts made publicly available in the judgement. The recent decision of Wooster v Morris [2013] VSC 594 is the most […]

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