The new concept of retirement phase
Federal Budget / Pensions / SMSF / SMSF Compliance

The new concept of retirement phase

One of the most important ‘shifts’ in legislative design with the super reforms has been the Government’s decision to limit the available tax concessions for those individuals drawing an income stream in post-retirement.  Whilst conceptually we understand the notion of ‘retirement phase’, it will now become an important definition within the tax laws to determine eligibility … Continue reading »

Understanding your retirement debits and credits
Federal Budget / Pensions / SMSF Compliance

Understanding your retirement debits and credits

The super reforms from 1 July 2017 will introduce a range of new concepts for post-retirement, along with an obligation to report amounts being transferred into retirement phase so that it is assessed against each member’s $1.6 million transfer balance cap.  This cap is designed to limit the amount of capital that can be transferred into retirement … 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 »

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 »

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 »

Look before you leap with TRIS election strategy
Professionals / SMSF / SMSF Compliance / SMSF Strategy

Look before you leap with TRIS election strategy

It would be fair to say that new strategies have been relatively ‘light on’ over the past few years in the superannuation space.  So, when the industry gets wind of a new strategy that arguably changes the game for transition to retirement income stream (TRIS) recipients, the excitement certainly lifts amongst SMSF professionals. The decision in private … Continue reading »

Narrowing in on the sole purpose test
Professionals / SMSF / SMSF Compliance

Narrowing in on the sole purpose test

It’s very easy to take a narrow focus towards the way a fund may invest or in assessing the activities of trustees.  When considering the application of the sole purpose test (which is contained within section 62 of the SIS Act), it is deliberately stated in very broad terms to ensure that it encapsulates that a … Continue reading »