The SMSF Association is seeking clarity from the ATO over its position regarding the treatment of market-linked pension commutations on an individual’s transfer balance account.

A common query we receive is: How does the proportioning rule apply and how do you calculate the tax-free and taxable components in a superannuation benefit? This article aims to assist you in understanding the fundamentals of this rule.

The ATO has recently outlined its concerns with the use of reserves in SMSFs, making it clear it expects them to use reserves only in limited circumstances and for legitimate purposes, as set out in section 115 of the Superannuation Industry (Supervision) Act 1993. 

The ATO has revealed it has taken a renewed interest in certain SMSF activities and will closely monitor these key areas.

The ATO has warned SMSF trustees must seek professional advice to protect themselves from targeting by promotors of unlawful schemes and other questionable practices.

The ATO has released a discussion paper on a currently known issue where an individual’s total superannuation balance (TSB) has duplicated accounts, leading to higher TSBs being displayed for the member.

The ATO has released material saying SMSF property developments can be considered tax avoidance schemes that are “too good to be true”. Within the program called Super Scheme Smart, the tax office aims to educate the public about SMSF strategies that concern it.

The ATO has declared its adoption of technology to make tasks such as SMSF establishment more efficient will always be limited by the need to protect the integrity of the sector.

SMSF trustees and members transacting in cryptocurrencies need to be aware of the tax consequences and keep records of all cryptocurrency transactions, according to a recent ATO update.