In the 2017 Budget, the government announced that the concept of ‘non-arm’s length income’ (NALI) for SMSFs was to expand to specifically include where an SMSF expense was not incurred, or less than would have been incurred had the parties been dealing on an arm’s length basis (NALE) – see for further information:
Section 65 of the Superannuation Industry (Supervision) Act 1993 (SIS Act) prohibits the trustee of an SMSF making a loan to a member or a relative, or providing other financial assistance using the resources of the SMSF. Section 62 contains the sole purpose test and requires the SMSF to be maintained for particular purposes.
Income that is NALI is taxed to the SMSF at the top marginal tax rate rather than the usual concessional rates, so having additional amounts deemed to be NALI can result in a significant increase in tax for an SMSF.
Cooper Grace Ward has been listed as a finalist in the upcoming 2023 SMSF Awards.
Correctly distinguishing between employees and contractors is critical for businesses, with significant consequences for incorrectly applying the law. The case law has developed rapidly in this space in the last couple of years. Those cases provide some helpful lessons for businesses seeking to reduce their risks when contracting with sole traders.
In this edition of ‘It depends’, senior associate Steven Jell talks about transferring property from an SMSF.
In this special extended edition of It depends, partners Scott Hay-Bartlem and Clinton Jackson talk about the proposed tax on super balances over $3 million.
Recent High Court decisions on whether workers were employees or contractors have prompted the ATO to release a new draft ruling and guideline.
The Commissioner of Taxation has released a draft legislative instrument that relieves former directors from needing to apply for a director identification number. However, there are still some uncertainties.
In this edition of ‘It depends’, partner Hayley Mitchell talks about what happens when a trustee of a self-managed super fund needs to pay a death benefit.
Cooper Grace Ward and CGW Structures have been selected as finalists in the 2022 SMSF Awards, which are coordinated by SMSF Adviser magazine and voted on by SMSF professionals across Australia.
In this week’s edition of ‘It depends’, senior associate Tom Walrut talks about the new stamp duty relief for small business restructures.