TECHNICAL ARTICLES

SMSF Trustees are approaching the biggest change to the operation of their SMSF since 2007, when Simpler Super was introduced.Prior to the 2007 changes, 1999 was a time of major change, when the term ‘Self Managed Super Fund’ took over from ‘Excluded Fund’, preservation and in-house asset changes were made,…

In September 2016, the ATO released a Taxation Determination TD 2016/16 which provided guidance to trustees who could not, or who decided not to, meet the Safe Harbour guidelines of the previously released ATO Practical Compliance Guidelines on related party limited recourse borrowing, PCG 2016/5. With a rather lengthy title…

Your Will is a legal document that sets out directions for the administration and disposal of your assets after death. Whilst most people are familiar with the concept of a Will, many are surprised to learn that a Will cannot automatically control the distribution of their interests in Companies, Trusts…

Provided their Trust Deed permits, SMSF members can construct Binding Death Benefit Nominations in a similar fashion to a Will, enabling complex estate planning strategies for their SMSF Along with pension reversionary nominations, Binding Death Benefit Nominations (BDBNs) are the most common means by which a member will allocate the…

The appointment of a SMSF Guardian provides security for underage members of a SMSF. This article uses a case study to bring reality to a SMSF Guardian appointment. Although a parent will generally act as the Guardian on behalf of an underage member of a SMSF, who looks after the…

Changing the trustee of your trust involves more than just a trustee resolution. Care must be taken to ensure the appointment is effective and the Trust does not incur any stamp duty obligations A number of considerations need to be addressed when changing the trustee of your Discretionary, Unit or…

Senior Lawyer at Topdocs Legal, Lav Chhabra, outlines the key legislative reasons that preclude individual trustees from using electronic signatures to execute their SMSF and other trust deeds in NSW, QLD, SA and WA, and the complications associated with companies using electronic signatures generally. The financial services industry is continually…

In July 2012, the ATO released a finalised version of two previous draft taxation rulings on the deductibility of TPD insurance premiums paid by superannuation funds. This paper details the rules applicable to the deduction for insurance premiums paid by SMSFs, following the changes in 2012. Ruling The ruling, Taxation…

The residency conditions must be carefully considered in relation to any potential, or existing, SMSF members who are likely to spend periods of time outside of Australia. Failure to meet the residency conditions is likely to result in a fund losing its complying fund status and thereby becoming ineligible for…

When the Trustee of an SMSF opens a bank account to conduct the financial transactions of the SMSF, who should be authorised to transact on the account? One decision often given minimal consideration when establishing an SMSF is the decision concerning authority to transact the SMSF finances, and any limitations…