Pioneering thought — Sladen Legal

SMSF

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Sladen Snippet – ATO takes aim at SMSFs and property development (again)

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Sladen Snippet – ATO takes aim at SMSFs and property development (again)

The ATO’s attacks on SMSFs conducting property development continues! The ATO has released Taxpayer Alert TA 2023/2 (the Alert) confirming that the ATO will review arrangements where related entities of a SMSF are conducting a property development (or including where property development is undertaken on SMSF owned assets) and where a special purpose vehicle (SPV) is used. The SPV being a company or trust which will be a related party to the SMSF through which generally a member of the SMSF may provide property development services to the SMSF for a commercial arm’s length fee and acquire and manage building materials used for the development.

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Sladen Snippet – Williams Part 2 - another SMSF trustee bites the dust

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Sladen Snippet – Williams Part 2 - another SMSF trustee bites the dust

As seen in Part 1 of our article on the case of Williams v Williams, this is the latest of a long line of cases that have found that a binding death benefit nomination (BDBN) was not binding. However, the case also is an important decision in relation to when the Court will remove an SMSF trustee.

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Sladen Snippet – Williams Part 1 - another BDBN bites the dust

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Sladen Snippet – Williams Part 1 - another BDBN bites the dust

In the case of Williams v Williams, the Supreme Court of Queensland has determined that a binding death benefit nomination (BDBN) was not binding on the basis that it was not provided to the trustees of the applicable self managed superannuation fund (SMSF).

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Sladen Snippet – ATO warns on SMSF gift and loan back (asset protection) arrangements

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Sladen Snippet – ATO warns on SMSF gift and loan back (asset protection) arrangements

In an interesting development, the ATO has released a warning in relation to SMSFs entering into gift and loan back arrangements.

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Divorce, death and super – how to exit an SMSF

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Divorce, death and super – how to exit an SMSF

The structure of a self managed superannuation fund (SMSF) is often based on a family unit. A very common SMSF structure is, for example, two spouses as the members and trustees/directors of the corporate trustee.

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Sladen Snippet – SMSF BDBNs not bound by SIS Regs – Hill v Zuda

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Sladen Snippet – SMSF BDBNs not bound by SIS Regs – Hill v Zuda

In the much anticipated decision of Hill v Zuda Pty Ltd, the High Court has determined that regulation 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regs) does not apply to binding death benefit nominations (BDBNs) prepared for self managed superannuation funds (SMSFs).

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The NALI/NALE Whirlwind – Where Are We At?

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The NALI/NALE Whirlwind – Where Are We At?

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).

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SMSFS And Property Development: Key Compliance Imperatives

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SMSFS And Property Development: Key Compliance Imperatives

SMSFs (self managed superannuation funds) have been carrying on property development activities ever since SMSFs came into existence. Yet despite that there is still a common concern that such activities will cause the SMSF to become non-compliant, or subject to penalties, on the basis that such activities, and in particular undertaking a property development business, are prohibited.

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Tribunal upholds penalties for an SMSF’s breach of the borrowing restrictions

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Tribunal upholds penalties for an SMSF’s breach of the borrowing restrictions

In the recent decision of FYYB v FC of T 2021 ATC 10-592; [2021] AATA 3567, 5 October 2021, the Australian Administrative Tribunal (AAT) affirmed the Commissioner of Taxation’s (Commissioner) decision to disallow an objection by the taxpayer to an administrative penalty of $7,500 imposed on a self managed superannuation fund (Fund) under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act).

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Sladen Snippet - Legislation released for welcome superannuation changes

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Sladen Snippet - Legislation released for welcome superannuation changes

As previously discussed here, the May 2021 budget announcements included a number of changes aimed at increasing flexibility in the superannuation system. Some of these key changes have now been introduced to Parliament as part of the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 (Bill).

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Managing rental properties found to be a business (and business real property?)

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Managing rental properties found to be a business (and business real property?)

In the recent decision of Allen and Commissioner of Taxation (Taxation) [2021] AATA 2768 (6 August 2021), the Australian Administrative Tribunal (the Tribunal) overturned a private ruling of the Commissioner of Taxation (Commissioner) and found that an individual taxpayer was personally carrying on a business of managing rental properties.

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ATO partially softens its view on non-arm’s length expenditure

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ATO partially softens its view on non-arm’s length expenditure

After seeking advice from an independent advice panel, the ATO has released its finalised Law Companion Ruling setting out the ATO view on the non-arm’s length expenditure (NALE) amendments to section 295-550 of the Income Tax Assessment Act 1997 (ITAA97), LCR 2021/2. In addition, the ATO has amended its contribution tax ruling TR 2010/1. The final LCR and amendments to TR 2010/1 partially soften the ATO views on the application of NALE.

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Sladen Snippet – SMSFs can have 6 members from 1 July 2021

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Sladen Snippet – SMSFs can have 6 members from 1 July 2021

The Bill which increases the maximum allowable number of members in an SMSF to six (the current maximum is four members) has passed both houses of Parliament and is now law. From 1 July 2021, SMSFs can now have anywhere between one to six members.

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Death Benefits: BDBNs or Retain Trustee Discretion?

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Death Benefits: BDBNs or Retain Trustee Discretion?

Upon the death of a member of a self managed superannuation fund (SMSF), the member’s benefits in the SMSF must be cashed ‘as soon as practicable’ after the member dies under regulation 6.21(1) of the Superannuation Industry (Supervision) Regulations 1994.

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AAT confirms non-compliance of accountant’s SMSF but reverses trustee disqualification

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AAT confirms non-compliance of accountant’s SMSF but reverses trustee disqualification

Cases on the making of self managed superannuation funds (SMSFs) non-compliant are relatively rare. Issuing a notice of non-compliance is one of the most severe penalties available in an SMSF context, given the taxation implications

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Sladen snippet - super contribution caps and transfer balance cap to increase from 1 July 2021

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Sladen snippet - super contribution caps and transfer balance cap to increase from 1 July 2021

Some of the key superannuation rates and thresholds, including the contribution caps and transfer balance cap, will increase from 1 July 2021.

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Sladen snippet - ATO extends transitional compliance approach to NALE for another financial year

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Sladen snippet - ATO extends transitional compliance approach to NALE for another financial year

As previously discussed here, the definition of non-arm’s length income (NALI) under the Income Tax Assessment Act 1997 was amended in mid-2018 to include non-arm’s length expenses or NALE. NALE includes not just an expenditure, but also a loss or outgoing that is lower than an arm’s length amount, and also includes where there is a nil amount (ie, no expenditure).