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ATO provides further guidance on SMSF related party arrangements

Posted on Nov 30, 2016 by admin

The ATO has provided further guidance regarding limited recourse borrowing arrangements (LRBAs) and when non-arm’s length income (NALI) rules apply to a related party LRBA. The Tax Office recently released a Taxation Determination (TD 2016/16) and updated their Practical Compliance Guideline (PCG 2016/5/) to provide further clarification concerning the circumstances where a self-managed super fund with a related party LRBA would attract a higher marginal tax rate of 47 per cent under NALI provisions. The ATO will continue to use the “safe harbour” terms for LRBAs set out in PCG 2016/15. The “safe habour” terms are designed as a safety […]

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Succession planning for SMSFs

Posted on Nov 24, 2016 by admin

A mandatory component of managing a self-managed super fund (SMSF) is planning out what will happen to the fund if its trustee was to pass away. While succession planning may not be one of the first responsibilities that comes to mind when managing an SMSF, it is a necessity that can provide certainty and peace of mind for a deceased trustee’s family. It is also especially important in cases where one trustee, for example, a husband, takes a more active role in the management of an SMSF than his wife and fellow trustee, and wants to reduce any potential burdens […]

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