News : Division 296

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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Division 296, ECPI, Pensions, Tax

Accumulation exits best for Div 296

Self managed superannuation fund, Self managed super, SMSF, total super balance, Division 296 tax, Division 296, withdrawals, accumulation, Colonial First State, Craig Day, exempt current pension income, ECPI

Drawdowns to manage the proposed Division 296 impost should be made from the accumulation interest of SMSF trustees to achieve an optimal tax outcome.

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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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Division 296, SMSF, Superannuation, Tax

Personal injury a Div 296 escape

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, structured settlement contribution, personal injury contribution, Division 296, Colonial First State, Craig Day, total super balance, exclusion

Any individual who makes a superannuation contribution stemming from a personal injury insurance payment will not be captured by the Division 296 tax.

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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, Superannuation, Tax

Half a million may be hurt by new impost

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, Financial Services Council, FSC, Division 296 tax, impact, unindexed threshold, $3 million threshold, indexation, Blake Briggs

New analysis by the Financial Services Council has calculated the full impact of the proposed superannuation tax under four different scenarios.

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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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Division 296, Documentation, SMSF

Proposed tax necessitates SAR change

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, SMSF annual return, amendments, Division 296 tax, Colonial First State, Craig Day, ATO, reporting, SMSF administrator

The reporting regime for SMSFs is having to be modified due to additional information that will be required for Division 296 tax calculations.

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