Articles

Medical practitioner for disability superannuation benefit: ATO ID 2015/11

'Legally Qualified Medical Practitioners' for the purpose of Disability Superannuation Benefit, ATO ID 2015/11The ATO has issued an Interpretative Decision (ATO ID 2015/11) setting out what the tax office deems to be ‘Legally Qualified Medical Practitioners’ for the purpose of a Disability Superannuation Benefit.

The definition of ‘disability superannuation benefit’ is important for several sections of the Income Tax Assessment Act 1997 (ITAA 97), including section 307.145, which modifies the tax free component of the benefit to reflect the time that would have been spent in the workforce, and section 301.40, which sets out the rules for a 15% tax offset.

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SMSF buy-sell agreement can breach SIS Act: ATO ID 2015/10

SMSF buy-sell agreement, ATO ID 2015/10An ATO decision says SMSF buy-sell insurance agreements may breach the sole purpose test and prohibitions on giving financial assistance.

The buy-sell agreement

In ATO ID 2015/10: Self managed super fund: Life insurance – Buy sell agreement – financial assistance – sole purpose the ATO sets out a scenario where a member of an SMSF and their brother own shares in a business. Read More »SMSF buy-sell agreement can breach SIS Act: ATO ID 2015/10

Time running out for SMSFs to get SuperStream ready

SuperStream

Time is running out for SMSF to get ready for SuperStream, if they haven’t already. From 1 July 2015 all businesses should be using SuperStream, the new electronic system for transferring data about superannuation contributions.

Large employers started using SuperStream from 1 July 2014, and should fully comply with the data transfer standard by 1 July 2015. This is also the date for small employers to start using SuperStream, they have until 1 July 2016 to complete their implementation.

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What is the value of assets held by the fund?: SMSF ABR question

The Australian Business Register (ABR) has started to ask a new question of SMSFs applying for an ABN, ‘what is the value of assets held by the fund?’

For several years the ATO has been making it clearer that SMSFs can only apply for registered status, and for an ABN and TFN, once the fund hold assets. However this does cause some issues for SMSF trustees, which can experience difficulties in setting up bank accounts without an ABN or TFN for their fund.

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