The ATO have released important information detailing interest rates, loan-to-value ratios (‘LVRs’) and other terms that constitute safe harbours for SMSF limited recourse borrowing arrangements (‘LRBAs’) so that arrangements will... read more →
Through ATO ID 2015/27 and ATO ID 2015/28 the ATO seem to have cemented their position in relation to the application of s 295-550 of the Income Tax Assessment Act... 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... read more →
Every year, the ATO announces a number of compliance targets that will be subject to additional scrutiny. It always pays to be aware of these focuses, as non-compliance is, more... read more →
Once it is clear that an SMSF has run into problems, it seems counter intuitive to some trustees to assist the ATO in investigation or in prospectively rectifying issues. However,... read more →
Generally, a pension must be paid in cash. However, not every SMSF has ready cash to satisfy the minimum. Thus, it provides much needed flexibility when a pension can be... read more →
Treasury released draft legislation recently that will impact limited recourse borrowing arrangements. For full details see http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/Look-through-treatment-for-instalment-warrants We consider the major changes for SMSFs and limited recourse borrowing arrangements. Background Naturally,... read more →
Two ATO Interpretive Decisions (ie, ATO ID 2014/39 and ATO ID 2014/40 both published on 12 December 2014) address the question: Will ordinary or statutory income derived by an SMSF... read more →
The ATO has recently released self managed superannuation fund determination SMSFD 2014/1. SMSFD 2014/1 builds on taxation ruling TR 2013/5 and SMSFD 2013/2 and provides some important insights regarding the... read more →
ATO Interpretive Decision 2014/22 addresses the question: ‘Can an adult child be a 'death benefits dependant' of his or her deceased parent for the purposes of section 302-195 of the... read more →
There has been much conjecture as to whether a self managed superannuation fund (‘SMSF’) trustee can implement a cross-insurance strategy after 1 July 2014. The ATO recently addressed this question;... read more →
Two mysteries that loom large on the SMSF landscape are the issues of SMSF penalties and the sole purpose test. However, a recent Federal Court case sheds some light on... read more →
In 2013, DBA Lawyers released an article that considered the ability to deduct superannuation contributions for directors of trustees of ‘passive’ investment trusts. The article proved to be quite controversial.... read more →
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... read more →
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... read more →
The ATO released Taxation Determination 2014/7 (‘TD 2014/7’) on 9 April 2014 entitled ‘Income tax: in what circumstances is a bank account of a complying superannuation fund a segregated current... read more →
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... read more →
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... read more →
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... read more →
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... read more →