Government ban on segregation for large SMSFs
Federal Budget / Pensions / Professionals / SMSF

Government ban on segregation for large SMSFs

In the second tranche of the super reforms, the Government announced as part of its integrity measures for self-managed super funds to explicitly prohibit the use of asset segregation as a method for determining a fund’s tax exemption for an income year where the member was in receipt of an income stream and just before … Continue reading »

Unpacking the pension reforms
Federal Budget / Pensions / Professionals / SMSF / SMSF Compliance

Unpacking the pension reforms

The Government has released for public consultation the second round of exposure draft legislation (and explanatory material) to implement key superannuation measures announced in the 2016-17 Federal Budget.  This release of information included: The introduction of a $1.6 million transfer balance cap and transitional arrangements for individuals who already have retirement phase balances above $1.6 million; … Continue reading »

When a LRBA is not at arm’s length
ATO / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

When a LRBA is not at arm’s length

Non-commercial terms of a limited recourse borrowing arrangement for some time now have been acknowledged by the Australian Taxation Office (ATO) as schemes that will be subject to the non-arm’s length income (NALI) provisions in section 295-550(1) of the ITAA 1997.  This followed with practical compliance guidelines (PCG 2016/5) that set out ‘safe harbour’ terms for these … Continue reading »

SMSF Podcast Show – Episode 16 | Understanding the $1.6m transfer balance cap
Federal Budget / Pensions / Podcasts / Professionals

SMSF Podcast Show – Episode 16 | Understanding the $1.6m transfer balance cap

I needed the motivation to get the SMSF Podcast Show back underway and with the release of tranche 2 of the superannuation reform package, this provided an ideal opportunity to get my the podcast back up and running so that I can discuss the impact of the proposed superannuation measures and what you need to be … Continue reading »

Finally… draft super regulations have landed
Contributions / Federal Budget / Government / Professionals / SMSF

Finally… draft super regulations have landed

Well, it’s only taken 127 days for the Government to provide the first tranche of legislation for consultation through the release of an exposure draft on the proposed super reforms. Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 sets out a part of the Government agenda with reforms to superannuation tax concessions – many of the more … Continue reading »

Requesting a history of non-concessional contributions
Contributions / Federal Budget / Professionals / SMSF / SMSF Compliance

Requesting a history of non-concessional contributions

Whilst uncertainty still remains over the Government’s budget announcement to introduce a lifetime cap on non-concessional contributions (NCC), it hasn’t stopped a significant number of requests to the Australia Taxation Office (ATO) to obtain a history of non-concessional contributions that have been made for members since 1 July 2007. With both the effective date of these proposed measures and actual … Continue reading »

SMSF Q&A: LRBAs & ATO Safe Harbour
Facebook SMSF Q&A / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

SMSF Q&A: LRBAs & ATO Safe Harbour

  Last week saw the ATO provide an extension of time through to 31 January 2017 for SMSF trustees to have their existing related-party LRBA loans comply with terms that would demonstrate an arm’s length dealing for income tax purposes.  This may be demonstrated by falling into line with the safe harbour guidance provided within Practical … Continue reading »

Early engagement with fund compliance breaches
ATO / Professionals / SMSF / SMSF Compliance

Early engagement with fund compliance breaches

The ATO has introduced a new service to centralise the way a fund trustee and professionals can notify the ATO of any unrectified fund compliance breaches. Where a fund has a contravention, it is has always been the case to encourage fund trustees to work with appointed professionals, including the SMSF auditor to rectify any issue … Continue reading »

Issues with diverting PSI income to an SMSF
Investments / non-arm's length income / Professionals / SMSF

Issues with diverting PSI income to an SMSF

The ATO has recently issued Taxpayer Alert, TA 2016/6 that highlights their concerns with individuals looking to divert personal services income (PSI) to a self-managed super fund.  The taxpayer alert describes the following type of arrangement below where individuals, who are also members of a SMSF purport to divert income from their personal services to … Continue reading »

Time for LRBA’s to swim between the flags
ATO / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

Time for LRBA’s to swim between the flags

With the ATO having previously issued guidance on the application of section 295-550 of the ITAA 1997 – the non-arm’s length income (NALI) provisions applying to non-commercial limited recourse loan arrangements, we have now seen long-awaited guidance through Practical Compliance Guidance, PCG 2016/5 – Income tax – arm’s length terms for Limited Recourse Borrowing Arrangements established … Continue reading »