Dual LRBAs feasible but complex

Related-party commercial LRBA NALI ATO SIS

August 16, 2023

SMSFs can use commercial and related-party LRBAs to purchase an asset, but may struggle to get past lending criteria and the NALI safe-harbour provisions.

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LRBA, SMSF

Rate impact not yet seen in LRBA market

August 15, 2023

Jason Spits

SMSFs with related-party LRBAs have yet to respond to the rise in the safe-harbour interest rate as their peers search for better terms following successive moves by the Reserve Bank of Australia.

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Insurance, SMSF, Strategy, Tax

Insurance source doesn’t impact tax

August 14, 2023

Todd Wills

SMSF trustees are not required to use funds from their superannuation accumulation accounts to cover life insurance premiums in order to qualify for a tax deduction.

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ATO, Compliance, Pensions, SMSF, Superannuation

SMSF reserves under control

August 10, 2023

Darin Tyson-Chan

The ATO has seen the number of reserves being used by SMSFs significantly diminish and no longer regards this as a concerning compliance issue.

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Documentation, Investments, SMSF

Segregated assets need well-defined rules

August 10, 2023

Jason Spits

SMSF members can segregate investments within their fund, but without specific rules, returns, tax and death benefits may be allocated incorrectly.

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Administration, Investments, SMSF

Concept of control defined

August 9, 2023

Darin Tyson-Chan

The concept of control sought by SMSF trustees has been more specifically clarified by the latest research into the sector.

AAT overturns NALI interest ruling

August 9, 2023

Todd Wills

The AAT has ruled interest derived from a complex lending arrangement established by an SMSF trustee was not NALI despite the arrangements being at non-arm’s length.