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Superannuation Quarterly
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(Superannuation Australia
Members Only)
Members can download issue 45 of Superannuation Quarterly here.
If you are not yet a member, but would like to be kept up to date with all tax issues, click here to purchase a subscription.
Trusts - Current Issues
(updated to 30 September 2009)
DIY Superannuation Manual
The 'DIY Superannuation Manual' is an excellent resource for both the taxpayer running their own SMSF or the professional who may be operating funds for their clients.
The manual is available in paper and electronic formats.
Purchase the paper DIY Superannuation Manual here.
Members can download the Electronic DIY Superannuation Manual here.
Purchase the paper DIY Superannuation Manual updates here.
Welcome to the Super e-news.
Editorial
Earlier this week the Tax Office released its SMSF statistical report for June 2009. This data is provided in aggregate form and covers a number of parameters relevant to the sector including the number of funds, their asset allocation and value, contributions and demographic characteristics.
Continue reading the full editorial
Items of Interest
Henry Tax Review warned
A combination of the Federal Budget and indications from the Henry Tax Review panel run the risk of undermining confidence in the superannuation system, according to a superannuation industry association.
The association said that the 2009 Federal Budget had introduced changes that had been interpreted by many as altering the long-held philosophy that a combination of compulsory and voluntary superannuation contributions was the means by which all Australians could achieve an adequate and dignified retirement.
It said tinkering with the system, together with speculation about future changes such as an increase in the preservation age would discourage people from consolidating their long-term saving in superannuation.
Retirees worse off due to excessive super fees
Up to a quarter of the retirement savings of some Australian workers are being eroded by excessive fees, according to a recent study. The study found that fees and commissions on superannuation cost the country more than $14 billion per year or around half the total cost of paying the age pension. As a result, these enormous administration costs will inevitably place a greater burden on taxpayers as more retirees come to rely on the pension because of insufficient savings.
Regulator Roundup
Australian Tax Office
Warning: Beware of promoters offering early access to super
Published on 31 August 2009, this Tax Office warning highlights the various plans which offer illegal early access to superannuation money before retirement.
The promoters of these plans say that they can help access superannuation savings for reasons such as paying off debts, buying a house or car, or even going on holiday. These schemes are illegal and heavy penalties apply if a taxpayer decides to participate in one of these schemes.
Continue reading this and further Regulator Roundup items
Cases of interest
FFWX and Commissioner of Taxation [2009] AATA 657
‘Dividends were held to be special income of a super fund'
On 1 September 2009 the Administrative Appeals Tribunal (AAT) held that dividends paid to the trustee of a superannuation fund, in respect of shares acquired in a private company at an undervalue, were ‘special income' for the purposes of the former s273 of the ITAA36 and has upheld the Commissioner's decision not to exercise his discretion in favour of the taxpayer to treat the dividends otherwise than as special income.
Click here for a copy of the AAT decision
Roy Morgan Research Pty Ltd and Commissioner of Taxation [2009] AATA 702
‘Contractors deemed employees for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA92)'
This case addressed the issue of determining whether contractors are employees for the purposes of the SGAA92. The AAT upheld the Commissioner of Taxation's determination that interviewers contracted by Roy Morgan Research Pty Ltd were employees for the purposes of SGAA92. The AAT also affirmed that no discretion existed under SGAA92 to reduce the amount of Superannuation Guarantee charges assessed by the Commissioner.
Click here to read more about this case.
Tax and property transactions seminar:
Sydney and Melbourne
Presenter: Roger Timms
Sydney: Thursday 5th November
Melbourne: Tuesday 10th November
Workshop overview:
- When will the disposal of real property be taxed on capital account as a ‘mere realisation'?
- What happens if a taxpayer has a change of purpose eg acquiring property on capital account but subsequently deciding to subdivide and sell?
- What distinguishes a property developer from a speculator and what are the tax consequences?
- Main residence - in what circumstances is the exemption extended or restricted?
- Interest incurred in respect of property - when is it deductible?
- Deductions available in respect of rental properties
- Where developers who are unable to sell; properties rent them out, what are the income tax and GST implications?
Click here to book for this seminar online.
Click here to download a booking form.
Trusts Seminar Notes - updated to 30 September 2009
The notes from this highly successful seminar, presented by Roger Timms, TAI's National Technical Manager, are now available. If you weren't able to attend the sessions, you can avail yourself of their excellent content, including the powerpoint presentation. These notes are fully updated as to 30 September 2009 and include:
- Discretionary, Fixed, Hybrid and Testamentary trusts
- Trust income
- Present entitlement
- Trust distributions
- Distributions where there is no trust income
- Distributions of net capital gains
- Distributions of non-assessable amounts - CGT Event E4
- Streaming of income
- Trustee distribution checklist
- Distributions from a Managed Investment Trust (MIT)
- Testamentary trusts
- Division 7A and trusts
- Family trust and interposed entity elections
- CGT small business concessions
To take an in-depth look at the content, click here.
QUESTION
Please help me because I am a little bit confused.
My understanding of one of the superannuation rules, is that a ‘disqualified person' cannot act as a SMSF trustee.
What happens where the SMSF trustee is not a person as such, but a proprietary limited company, about to go into administration?
ANSWER
Section 120 of the Superannuation Industry (Supervision) Act 1993 (SISA93)‘disqualified person'. Subsection120(2) extends the definition to include a body corporate where an administrator has been appointed in respect of the body.
New and proposed legislation
LEGISLATIVE BILLS
There were no superannuation related Bills before Parliament as at the close of parliamentary business on 17 September 2009.
Disclaimer
Taxpayers Australia Inc, its State Divisional Councils, and the editor in his personal capacity, exclude themselves from any liability that may arise directly or indirectly, from matters contained in this publication. The Copyright is owned exclusively by Taxpayers Australia Inc (ABN 96 075 950 284).
Taxpayers Australia Inc. and the Editor are not aware that any person intends to act or rely on any of the comments in this publication. Although we believe the information is accurate, anyone intending to act or rely on it should check its application to the circumstances and seek professional advice on whether another course of action should be contemplated.