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New rules permit certain SMSF legacy pension to be commuted

From an SMSF perspective, the new SIS regulations will allow a member to commute their market linked income stream (MLIS) (also known as a ‘term allocated pension’) to the extent of an excess transfer balance account amount included in a commutation authority. However, this new measure will only apply to an MLIS commenced on or after 1 July 2017.

Crackdown on Auditor independence as auditor numbers continue to go down

SMSF auditors must comply with the auditor independence requirements set by the Accounting and Professional Ethics Standards Board (APESB) in APES 110. The guide to these independence requirements was revised in May 2020, with application from 1 January 2020. However, the ATO provided a grace period for enforcement up until 30 June 2021. From 1…

ATO’s SuperStream relief will need a booster shot

The ATO has recently announced a temporary measure to assist SMSFs with rollovers from a SMSF and between SMSFs. SMSFs have been having issues with obtaining an electronic service address (ESA) to facilitate rollovers to and from the fund and in certain situations the ATO may provide permission to perform the rollover outside of SuperStream.…

Contributions calculator

An important consideration when making a superannuation contribution or when a contribution is made on behalf of a member, e.g., employer contribution, is the contribution cap consequences. Exceeding a contribution cap can lead to additional tax. So, it’s crucial to know which cap applies and how much cap space is available.  Whilst there are still…

SMSF SuperStream rollover exclusions

The ATO has updated their SuperStream implementation and onboarding information document to advise of scenarios where a rollover in or out of an SMSF will not be required to be transacted via SuperStream.

NALI fix needs a fix

The amendments made to the non-arm’s length income rules to include the concept of non-arm’s length expenditure took effect from 1 July 2018. However, despite nearly four years passing, an ATO draft ruling, consultation period, finalisation of the ATO’s ruling, there still remains significant concerns on the wide reaching effect of these 2018 amendments and particularly the potential dire tax outcome for a superannuation fund that has non-arm’s length expenditure.