Latest News

Hot Issues
spacer
Aged care report goes to the heart of Australia’s tax debate
spacer
Removed super no longer protected from creditors: court
spacer
ATO investigating 16.5k SMSFs over valuation compliance
spacer
The 2025 Financial Year Tax & Super Changes You Need to Know!
spacer
Investment and economic outlook, March 2024
spacer
The compounding benefits from reinvesting dividends
spacer
Three things to consider when switching your super
spacer
Oldest Buildings in the World.
spacer
Illegal access nets $637 million
spacer
Trustee decisions are at their own discretion: expert
spacer
Regular reviews and safekeeping of documents vital: expert
spacer
Latest stats back up research into SMSF longevity and returns: educator
spacer
Investment and economic outlook, February 2024
spacer
Planning financially for a career break
spacer
Could your SMSF do with more diversification?
spacer
Countries producing the most solar power by gigawatt hours
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
Quarterly reporting regime means communication now paramount: expert
spacer
Plan now to take advantage of 5-year carry forward rule: expert
spacer
Why investors are firmly focused on interest rates
spacer
Super literacy low for cash-strapped
spacer
Four timeless principles for investing success
spacer
Investment and economic outlook, January 2024
spacer
Wheat Production by Country
spacer
Time to start planning for stage 3 tax cuts: technical manager
spacer
Millions of Australians lose by leaving savings in default MySuper funds
spacer
Vanguard economic and market outlook for 2024: A return to sound money
spacer
An investment year of ups and downs
spacer
How to tame the market's skewness
spacer
The Countries that Export the Most Wine in the World
spacer
Tips for preparing for the best tax outcomes
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
NALI, LRBA measures pass Parliament

The government’s further restrictions to non-arm’s length income and LRBAs have passed Parliament, meaning SMSF trustees approaching retirement with an outstanding loan on a property will need to consider their options when planning contribution strategies for the 2020 financial year.

       

 

The Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 passed the Senate on Thursday after passing through the House of Representatives earlier this week, meaning the bill now only needs to receive royal assent before it becomes law.

The bill contains a measure to include the value of outstanding LRBAs in a member’s super balance if the loan is from a related party or the member has met a full condition of release, and where the LRBA was entered into from 1 July 2018 onwards.

It also includes further restrictions to non-arm’s length income, meaning income earned at arm’s length can still be taxed as NALI if a member has incurred an expense in relation to that income which was not at arm’s length.

Additionally, the bill introduces an option for high-income earners with multiple employers to opt out of super guarantee contributions for part of their employment.

Commenting on the new laws, Australian Executor Trustees senior technical services manager Julie Steed said affected SMSF members would need to factor their LRBA balance into their total super balance at the end of the last financial year, as well as make changes to their portfolio if needed.

“The inability to make certain additional contributions may be a catalyst for some members to conclude that the LRBA doesn’t suit their needs any longer,” Ms Steed said.

“Some funds may look to sell the asset and repay the loan, and some trustees who currently have diversified holdings which include a property with an LRBA may decide to liquidate cash and shares to pay down their LRBA and retain the property, leaving them with less diversified investments.”

In regard to the NALI changes, SuperConcepts general manager of technical services and education Peter Burgess said trustees would need to be diligent going forward in ensuring any services performed for their own SMSF were provided at arm’s-length rates.

“From now on, to avoid these new NALI measures being applied, trustees who provide services to their fund will either need to be able to show the amount charged for any such services is not less than that which would be expected to be charged between parties dealing at arm’s length, or the service provided was purely internal — for example, where the trustees undertake bookkeeping activities for no charge in performing their trustee duties,” Mr Burgess said.

He added that the changes overall would close the remaining loopholes by which trustees might have been able to circumvent the super reforms introduced in 2017.

 

 

Sarah Kendell
20 September 2019
smsfadviser.com

 

Site by Plannerweb