Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

The Government has released a bill to extend the application of the non-arm’s length income (NALI) rules to income and capital gains gained or produced under arrangements involving non-arm’s length expenditure. The genesis of this measure was non-commercial limited recourse borrowing arrangement (LRBA) loans but the proposed legislation applies to all arrangements where there is non-arm’s length expenditure or costs and also to arrangements where assets are acquired for under market value consideration.

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Sladen Snippet - Aussiegolfa part 1 - the in-house asset rules and what is an interest in a trust?

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Sladen Snippet - Aussiegolfa part 1 - the in-house asset rules and what is an interest in a trust?

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the former, another snippet looks at the latter.

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Sladen Snippet - Aussiegolfa part 2 – Court finds SMSF to be in breach of the sole purpose test

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Sladen Snippet - Aussiegolfa part 2 – Court finds SMSF to be in breach of the sole purpose test

The recent decision of Aussiegolfa v FCT is an important decision for considering two aspects of the superannuation laws that are not often considered by the Courts, the in-house asset rules and the sole purpose test. This snippet looks at the latter, another snippet looks at the former.

Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

The ATO has announced the extension of the lodgment date for self managed superannuation (SMSF) annual returns for the 2016/17 year to 30 June 2018. Because 30 June 2018 falls on a Saturday, the ATO has confirmed the lodgment can occur on Monday 2 July 2018 without penalties.  

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Sladen Snippet – ATO to extend transitional period for new SMSF TBAR reporting regime

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Sladen Snippet – ATO to extend transitional period for new SMSF TBAR reporting regime

As reported in our previous Sladen Snippet, the Australian Taxation Office (ATO) is currently developing a new self managed superannuation fund (SMSF) event based reporting regime to be called the Transfer Balance Account Report or TBAR.

Sladen Snippet – Are actuarial certificates required if a pension is commuted on 30 June 2017

Sladen Snippet – Are actuarial certificates required if a pension is commuted on 30 June 2017

Self managed superannuation funds (SMSFs) are not required to obtain an actuarial certificate if 100% of the SMSF is in “pension phase” for 100% of the year. That is, the SMSF uses the segregated method for the whole year. But what happens for SMSFs that use the segregated method for the 2017 year but, because of the transfer balance cap measure, have to commute back their pensions to $1.6 million by 30 June 2017?

Sladen Snippet - further changes to TRISs – qualifying for retirement phase and the cost base reset

Sladen Snippet - further changes to TRISs – qualifying for retirement phase and the cost base reset

The Treasury Laws Amendment (2017 Measures No. 2) Bill 2017 has been tabled in Parliament. The Bill proposes to make two important changes to transition to retirement income streams (TRISs). Firstly, to allow certain TRISs to qualify for “retirement phase” and, secondly, to ensure TRISs qualify for the cost base reset.

Sladen Snippet - many SMSFs to face “monthly” TBAR reporting regime from 1 July 2017

Sladen Snippet - many SMSFs to face “monthly” TBAR reporting regime from 1 July 2017

As part of administering the new transfer balance cap measure, the Australian Taxation Office (ATO) is currently developing a new self managed superannuation fund (SMSF) event based reporting regime. This regime is likely to be in the form of a report to be called the Transfer Balance Account Report or TBAR. At this stage, the reporting regime is expected to be as follows:

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Sladen Snippet – death benefit pensions may be commuted into accumulation prior to 1 July 2017

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Sladen Snippet – death benefit pensions may be commuted into accumulation prior to 1 July 2017

There is some good news and some bad news with the ATO’s release of Practical Compliance Guide PCG 2017/6. The good news is that spouses in receipt of death benefit pensions may commute their death benefit pensions in excess of the transfer balance cap back into accumulation before 1 July 2017. The bad news is that this concession does not apply to non-spouses and won’t apply after 30 June 2017.