Category: Blog
Taxpayer alert: Diverting property development profits to SMSF
he ATO has issued Taxpayer Alert TA 2023/2: Diverting profits of a property development project to a self-managed superannuation fund, through use of a special purpose vehicle, involving non-arm's length arrangements. The Alert states that the ATO is reviewing arrangements under which: one or..Read More
SMSF related-party LRBAs: ATO interest rate for 2023-24
For SMSF related-party limited recourse borrowing arrangements (LRBAs) used to acquire real property, the ATO's safe harbour interest rate is 8.85% for 2023-24 (up from 5.35% for 2022-23). Practical Compliance Guideline PCG 2016/5 sets the safe harbour interest rate each year according to the ..Read More
Definition of “employee” clarified for “work test” eligibility
The Government registered the Taxation Administration (Remedial Power - Work Test for Personal Superannuation Contributions) Determination 2023.The legislative instrument (LI) modifies the operation of s 290-165(1A) of the ITAA 1997 to ensure that all individuals aged 67 to 75 years who are employe..Read More
Personal transfer balance caps displayed from 11 July
Individuals will have a personal transfer balance cap between $1.6 and $1.9 million based on the highest ever balance of their transfer balance account between 1 July 2017 and 30 June 2023. While indexation will occur on 1 July 2023 the general transfer balance cap, the ATO will be displaying memb..Read More
Personal super contributions: deduction work test modification
The ATO has released a Draft Legislative Instrument proposing to use the Commissioner's remedial power (CRP) to modify the "work test" under s 290-165(1A) of the ITAA 1997 to deduct personal super contributions, with date of effect from 1 July 2022. Draft LI 2023/D11 proposes to modify s 290-16..Read More
Compulsory quarterly transfer balance reporting
The ATO reminds from 1 July 2023, self-managed super fund (SMSF) must report certain events that affect members transfer balance account quarterly. Trustees report these events by lodging a transfer balance account report (TBAR) no later than 28 days after the end of the quarter in which the..Read More
Superannuation rates and thresholds for 2023-24
In accordance with Subdiv 960-M of the ITAA 1997, the Australian Bureau of Statistics has calculated the following superannuation rates and thresholds for 2023-24: CONTRIBUTIONS CAPS: The concessional contributions cap is unchanged at $27,500 for 2023-24. The non-concessional contribut..Read More
30% Tax on Earnings for Super Balances Exceeding $3 Million from 2025
The governments has confirmed that the government will implement a 30% tax on earnings for super balances exceeding $3 million from 2025. After weeks of speculation regarding changes to concessions, the revised tax rate will take effect on 1 July 2025. Currently, earnings from superannuation are ..Read More
The SMSF Sector Has Shown Continued Growth
The latest ATO's annual statistics reveal that the self-managed super fund (SMSF) sector in Australia is experiencing continuous growth. The ATO's 13th edition of the SMSF statistical overview provides essential data and analysis of the sector for the 2020-21 financial year, based on SMSF annual ret..Read More
Can an SMSF Buy a Farm from a Related Party?
An SMSF can buy a farm from a related party, but it must comply with the rules and regulations set out by the Australian Taxation Office (ATO) to ensure compliance with superannuation laws. The purchase of assets from related parties is generally prohibited under superannuation law to prevent member..Read More