Commencing a pension from an SMSF can be easy process provided it is done the right way and you follow the rules that apply. Once a pension has commenced from a SMSF, ongoing administration, such as obtaining an actuarial certificate, may be required to determine how much of the pension’s investment income will be exempt...

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) recently released a report into the effectiveness of the ATO’s communications of taxpayer rights to complain, review and appeal. The report – titled Investigation into the effectiveness of ATO communications of taxpayers’ rights to complain, review and appeal – emphasised that these rights (which are set out...

There comes a time in many people’s lives when they are appointed the executor of a deceased estate. Even in the simplest of estates, though, the responsibilities involved can be quite onerous – and getting things wrong can make even the executor personally liable. It’s therefore normally recommended to get professional assistance with this task....

SMSF trustees that are financially impacted due to COVID-19 because of extended lockdowns in certain States and Territories will be granted extended relief to cover the 2021-22 financial year. The relief was originally offered by the ATO to SMSFs for the 2019-20 and 2020-21 financial years where certain situations may have caused SMSF trustees to...

Applying the “Retirement Exemption” in the CGT Small Business Concessions can be quite difficult – particularly where a company or trust makes the capital gain and the exemption is sought to be applied for the benefit of individual shareholders in the company or beneficiaries in the trust. In this case, the rules in s 152-325...

Is there CGT when a property inherited from a foreign resident is sold? Am I liable for CGT on a home I inherited from a foreign resident when I sell it one year later? The following scenario demonstrates how the CGT rules work in this situation. I have just inherited my uncle’s home. He purchased...

A new law will level up the playing field for divorcing couples to ensure both partners have fair and equitable access to superannuation, particularly during acrimonious family court proceedings. For many Australians, superannuation is their second biggest asset aside from the family home. In a divorce situation, it’s important that both partners, including those with...

A recent Federal Court decision has put the spotlight on asset betterment – the controversial approach the ATO takes to determine undisclosed income. In the case of Le v Commissioner of Taxation [2021] FCA 303, the ATO used an asset betterment calculation to justify including an additional $4.5 million in the assessable income of a...

Many people living in Australia often have money remitted to them from overseas. Often this money is from relatives, friends or an “entity” to which they have a connection. However, even if such funds are merely loans or gifts, it’s time to be vigilant and to keep proper records. The ATO is now actively reviewing...

When do employee gifts and celebrations attract fringe benefits tax (FBT)? And when are they exempt? Christmas is traditionally a time of giving – including employers showing gratitude towards staff for a job well done. However, Christmas parties and gifts can attract the attention of the Taxman. In certain circumstances, an employer can hold a...