Articles by Jason Spits

Division 296, SMSF, Tax

Div 296 addbacks creating confusion

self managed super, self managed superannuation, SMSF, withdrawals, superannuation, Division 296, formula, earnings calculation, proportion of earnings, Heffron, Meg Heffron, addbacks

The addition of withdrawals into the Division 296 formula is causing confusion, but their inclusion should only be to calculate earnings.

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ATO, Regulation, Superannuation, Trusts

High Court can hear Bendel appeal

self managed super, self managed superannuation, SMSF, ATO, High Court appeal, unpaid present entitlements, UPE, Federal Court, Commissioner of Taxation v Bendel, unit trusts, loans, Division 7A, financial accommodation

The High Court has granted leave for the ATO to appeal the Bendel case decision related to the treatment of unpaid present entitlements.

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ASIC, financial advice, Investments, SMSF

ASIC moves against scheme operator

self managed super, self managed superannuation, SMSF, Australian Securities and Investments Commission, ASIC, managed investment scheme, asset preservation orders, Australian Fiduciaries Ltd

ASIC has moved to preserve assets held in a number of managed investment schemes that appear to have been pitched at SMSF investors.

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Compliance, Contributions, NALI/NALE

NALI sidestep may breach other rules

Self managed superannuation fund, Self managed super, SMSF, trustee, NALI, reimbursement, fund expenses, non-arm’s-length, ASF Audits, Shelley Banton, property, deposit, contribution, non-arm’s-length income, NALI, compliance breach, auditor contravention report, ACR

An SMSF reimbursing a trustee for fund expenses may avoid NALI, but can create other breaches under superannuation law.

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Accounting, Division 296, SMSF, Tax

Reasons needed to avoid new tax

Self managed superannuation fund, Self managed super, SMSF, total super balance, TSB, Division 296 tax, Division 296, tax effect accounting, DBA Lawyers, Bryce Figot, pension, deferred income tax liability, scheme, scheme benefit, promoter penalty regime, scheme promoter

SMSFs should be wary of using tax-effect accounting to reduce the possible impact of the proposed Division 296 impost.

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Division 296, SMSF, Tax

Stop seeing Div 296 as super fund tax

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, Division 296 tax, fund tax, Heffron, Meg Heffron, superannuation tax, 15 per cent, 30 per cent, interest, rent, dividends, earnings, tax deduction

Confusion around the details of the Division 296 impost can be overcome by separating what taxes are paid by an SMSF and what will be paid only under the proposed new tax regime.

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Compliance, NALI/NALE, Regulation

Law clear on arm’s-length status

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, related-party transactions, non-arm’s-length income, ASF Audits, Shelley Banton, arm’s-length arrangements, section 109, SIS Act, Part 8 associate

How parties can deal with each other on arm’s-length terms is not confusing as super law has clear parameters on what is expected during SMSF transactions.

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Division 296, SMSF, Superannuation, Tax

Minister meeting confirms no tax changes

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, SMSF Association, consultation, Division 296, Financial Services Minister, Daniel Mulino, alternative options, unrealised gains, Financial Advice Association Australia, FAAA, Sarah Abood, David Sharpe, Delivering Better Financial Outcomes, Compensation Scheme of Last Resort, Australian Financial Complaints Authority, wholesale investor

The SMSF Association has labelled Division 296 consultations that took place in 2023 as an endorsement process after meeting recently with the new Financial Services Minister.

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Division 296, LRBA, SMSF, Superannuation, Tax

LRBA carve-out inconsistent

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, limited recourse borrowing arrangements, LBRA, total super balance, TSB, Division 296, superannuation earnings, DBA Lawyers, Bryce Figot, $3 million threshold, explanatory memorandum

Plans to carve out LRBAs from the total super balance figures used to calculate Division 296 tax highlight the irregularities around their inclusion within TSBs.

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Division 296, SMSF, Tax

Div 296 consultation claims refuted

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, consultation, unrealised capital gains, Division 296, Institute of Financial Professionals Australia, IFPA, Natasha Panagis, submissions, Senate Economics Legislation Committee, Jim Chalmers, alternative model, terms of reference

Claims the government consulted widely but was not presented with an alternative Division 296 model have been rejected by an industry body.

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