John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

SMSF trustees should rectify contraventions as soon as possible, says ATO [49]

ATO Deputy Commissioner Superannuation, Alison Lendon, has noted the Government’s proposed legislation giving the ATO new powers to address non-compliance by SMSF trustees. If the legislation is adopted, administrative penalties will apply to breaches of super law from 1 July 2014. This means SMSF trustees will be personally liable for penalties between $850 and $10,200 depending on…

Members travelling overseas can’t contribute to their SMSFs under current legislation: Assistant Treasurer asked whether he’ll review that at SPAA Q&A [47]

Speaking at the SMSF Professionals’ Association of Australia National Conference Q&A session on Wed 19.2.2014, the Assistant Treasurer was asked whether he had addressed an issue concerning the Australian super fund definition and the inability for people when they travel overseas to be able to be able to contribute to their SMSF while they are…

SMSF investment and growth trends from younger generations: SPAA study [45]

The SMSF Professionals’ Association of Australia (SPAA) and Russell Investments released their 2014 report, Intimate with Self Managed Superannuation, at the SPAA National Conference in Brisbane on Wed 19.2.2014. The report says that strong growth in the SMSF sector is expected to continue from younger generations. SPAA noted that those aged over 50 still dominate…

SMSF auditor annual statements – first ones were issued on 1 February 2014 [44]

On 1 February 2014, ASIC issued the first SMSF auditor annual statements to affected auditors. All approved and suspended auditors are required to lodge an SMSF auditor annual statement as part of their registration. ASIC says SMSF auditors will receive an email notice on their registration anniversary date to advise them that their annual statement is ready…

ASFA submissions: SMSF borrowings; s 290-170 deduction notice; fund expenses [43]

ASFA has released submissions on the following superannuation items: SMSF in-house asset exemption for borrowing arrangements – ASFA believes that the Tax Office’s Draft Legislative Instrument – Self Managed Superannuation Funds (Limited Recourse Borrowing Arrangements – In-house Asset Exclusion) Determination 20xx will be effective in meeting its objectives. Broadly, the draft instrument proposes a specific…

ASFA warns that legislation mandating the transfer of larger (inactive) balances to the Tax Office may leave members without life insurance [42]

ASFA has warned that the Government’s draft legislation to increase the account balance threshold above which lost superannuation accounts must be transferred to the Tax Office may leave some account holders without insurance cover. Currently, lost and inactive superannuation accounts with balances of less than $2,000 must be transferred to the Commissioner. The Exposure Draft – Tax…

Liwszyc v FCT – Excess super contributions tax: late BPay not “special circumstances” [41]

The Federal Court has upheld a superannuation excess contributions tax assessment and affirmed the Commissioner’s decision that there were no “special circumstances” under s 292-465 of the ITAA 1997 to warrant reallocating excess concessional contribution received late via BPay. The taxpayer is the managing director of a fluid technology company. On 30 June 2009, the bookkeeper for the…

Actuaries’ submission that they ought to be exempt from regulation under the Tax Agent Services Act in relation to certain superannuation related services [40]

The Actuaries Institute has released its submission in response to Treasury’s discussion paper entitled, Better regulation and governance, enhanced transparency and improved competition in superannuation (released in November 2013). The Institute raised a number of issues. In relation to regulation, the Institute expressed its concern about the potential additional regulation of actuarial services via the Tax Agent…