Superannuation

Sladen Snippet - Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, still not law

Sladen Snippet - Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, still not law

Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, did not pass in the Senate yesterday, 13 February 2025.

Division 296, if passed, would impose an additional 15% tax on members with a $3 million or more total super balance (not indexed).

Division 296 is now unlikely to be put to the Senate before an election, and is expected to become a key election issue.

#division296 #$3million #unrealisedgains

Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

Active Super was found to have made false or misleading representations by using unequivocal language, and engaged in conduct liable to mislead the public in relation to investments it made.

The case provides further insights into the latest developments on ASIC’s ongoing greenwashing enforcement action.

Does failure to make minimum pension payments really cause a super pension to cease?

Does failure to make minimum pension payments really cause a super pension to cease?

Last year, the ATO has updated its ruling TR 2013/5 Income tax: when a superannuation income stream commences and ceases. This included that the ATO’s view that if a super pension ceases (eg because of failure to make minimum pension payments, that a new pension will not start until a new pension commences (eg via new pension documents).

Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

Last year, the Federal Court of Australia handed down its decision in Australian Securities Investment Commission v Vanguard [2024] FCA 308. This case serves as a reminder that business who are making sustainable investment claims must ensure that those claims are not misleading or deceptive in nature.

From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

In ASIC’s first case against alleged greenwashing conduct, the court has ordered that Mercer Superannuation (Australia) Ltd pay a landmark $11.3 million penalty after it made misleading statements about sustainable and environmentally-friendly superannuation investment options marketed to its members.

Read on for key details of the case, and a breakdown of what your business can do to avoid greenwashing.

Sladen Snippet – Conversion of Legacy Pensions now Law

Sladen Snippet – Conversion of Legacy Pensions now Law

As previously noted, the Government has released regulations to permit the conversion of legacy pensions and reserves over a 5 year period and to better allow allocations from non-pension reserves. These regulations have now been tabled in parliament.

Sladen Snippet - Gainer the sequel - Lost discretionary trust deed - Failed for uncertainty of beneficiaries

Sladen Snippet - Gainer the sequel - Lost discretionary trust deed - Failed for uncertainty of beneficiaries

In the decision of Application by Gainer Associates Pty Ltd [2024] NSWSC 1437, the Court found that, due to the lost trust deed for the Werner Thelen Family Trust (Trust), the corporate trustee of the Trust (Gainer Associates Pty Ltd – referred to as Gainer) would hold the assets purportedly held for the Trust on resulting trust for the sole beneficiary the late Werner Thelen (Werner), husband of the late Gail Thelen (Gail).

Sladen Snippet – Gainer Part 6 – SMSF trustee indemnity

Sladen Snippet – Gainer Part 6 – SMSF trustee indemnity

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice that the self managed superannuation fund (SMSF) corporate trustee (Gainer Associates Pty Ltd – referred to as Gainer) could be indemnified from the assets of the SMSF in relation to all issues disclosed to the Court in that application for judicial advice.

Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

In this fifth part of our series on the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, we examine Gainer’s request for the Court’s advice as to whether it would be justified to remunerate Mr Heesh for his time and efforts in acting as sole director of Gainer in its role as the corporate trustee for a self managed superannuation fund (SMSF) and, if so, at which rate and whether the remuneration could be for some or all of the work completed by Mr Heesh.

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice that the self managed superannuation fund (SMSF) trustee would be justified in defending the removal proceedings to be brought against it by Mr Bone, the partner of the deceased member of the SMSF.

SMSFs and NALE That Triggers NALI Let's Get Specific

SMSFs and NALE  That Triggers NALI  Let's Get Specific

Non-arm’s length income (NALI) has been a hot topic of discussion and debate in the SMSF industry in recent years, in particular since the ATO first released their draft ruling on non-arm’s length expenditure (NALE) in 2018 (and its subsequent iterations). Recently, the long debated amendments to NALE provisions were passed in Parliament and received Royal Assent in June 2024.

Sladen Snippet – Gainer Part 2 – The death benefit decision

Sladen Snippet – Gainer Part 2 – The death benefit decision

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice to uphold the decision of the self managed superannuation fund (SMSF) trustee to distribute 1/3rd of the death benefits in the SMSF to a partner of the sole surviving SMSF member and 2/3rd to her estate.

Sladen Snippet - ATO attempts to read down loss in Merchant disqualification decision

Sladen Snippet - ATO attempts to read down loss in Merchant disqualification decision

The Australian Taxation Office (ATO) has issued a draft Decision Impact Statement (DIS) on the Administrative Appeals Tribunal (AAT) decision of Merchant and Commissioner of Taxation [2024] AATA 1102 (which was decided on 16 May 2024) (Merchant).

 

Sladen Snippet: Armidale Jockey Club - Racing clubs “clearance house” liable to pay superannuation guarantee to jockeys

Sladen Snippet: Armidale Jockey Club - Racing clubs “clearance house” liable to pay superannuation guarantee to jockeys

This Decision of the Administrative Appeals Tribunal (AAT) is a series of decisions against five jockey racing clubs brought by the Australian Taxation Office (ATO) regarding whether the racing clubs must pay super contributions on behalf of jockeys under the Superannuation Guarantee (Administration) Act 1992 (SG Act).

Sladen Snippet – NALE changes pass parliament

Sladen Snippet – NALE changes pass parliament

After a number of years in the making, the changes to the non-arm’s length expenses (NALE) rules have now passed through Parliament. While, as previously noted, the changes did not go far enough for many of the tax industry, and accounting bodies, the changes offer some relief to taxpayers.

Sladen snippet - S&H Investments - Company cannot contract out of super guarantee

Sladen snippet - S&H Investments - Company cannot contract out of super guarantee

In the decision of S&H Investments Pty Ltd and Commissioner of Taxation [2024] AATA 893, the Administrative Appeals Tribunal (AAT), the Tribunal affirmed the decision of the Commissioner of Taxation to assess the taxpayer for the superannuation guarantee charge for failing to pay superannuation for their employee/contractor referred to as “TW”.

Sladen Snippet - Kirk - superannuation removed no longer protected from creditors

Sladen Snippet - Kirk - superannuation removed no longer protected from creditors

In the decision of Kirk as trustee of the Property of Smith (a Bankrupt) v Smith [2024] FCA 240 (15 March 2024) the Federal Court held, among other things, that a transfer of superannuation from the husband to his wife’s superannuation was no longer protected as an interest of the bankrupt in a regulated super fund under section 116(2)(d)(iii)(A) of the Bankruptcy Act 1966 (Cth) (Bankruptcy Act).