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Trustee obligations of a disqualified person

Posted on March 28, 2014 by admin


There are ramifications when a trustee in a self managed super fund (SMSF) becomes a disqualified person. An individual can become a disqualified person if any of the following conditions apply. If they: -have been convicted of an offence involving dishonesty -have been subject to a civil penalty order under the super laws -are insolvent under administration -have been disqualified by a court or regulator A company is a disqualified person if any of the following conditions apply: -a responsible officer of the company (such as a director, secretary, or executive officer) is a disqualified person -a receiver, official manager, or provisional liquidator has been appointed to the company -action has been taken to wind up the company Under superannuation laws, if an individual becomes a disqualified person they must notify the ATO immediately of their disqualification- unless they were disqualified by the ATO- and cease being, or acting as, a trustee. It is an offence for a disqualified person, who is aware of their status of being disqualified, to continue to be, and act, as a trustee of the SMSF.  Penalties for this can include fines and in some cases, imprisonment. To determine whether a disqualified person can again […]


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Reduced super concessions under Division 293 tax

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A tax may apply to individuals with high incomes to reduce the amount of concession paid on their super contributions. This tax is known as Division 293 tax. Division 293 tax was introduced to reduce the concession on superannuation contributions for individuals with income greater than $300,000 per annum. Under Division 293 of the Income Tax Assessment Act 1997 tax will be payable on certain contributions made from 1 July 2012. If an individual’s income for surcharge purposes, plus their low-tax contributions are greater than $300,000, they may be liable to pay an extra 15 per cent tax on their taxable contributions. For individuals who are members of a defined benefit fund Division 293 tax may be calculated on notional contributions, which are not capped. There are also modifications to the contribution calculation for constitutionally protected state higher level office holders or Commonwealth justice. To calculate whether an individual has income and low-tax contributions greater than $300,000 the ATO will be looking at: income reported on the individual’s income tax return, including: -taxable income -total reportable fringe benefit amounts -net financial investment loss -net rental property loss -amounts on which family trust distribution tax has been paid -super lump sum […]


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SMSF annual return for pension phase trustees

November 15, 2017

Self-managed super fund (SMSF) trustees who are in pension phase must lodge their SMSF annual returns if they remain active, or choose to wind up the fund.

The ATO is warning SMSF trustees about their regulatory obligations and is paying close attention to those SMSFs that are not meeting their lodgment obligations.

Trustees must lodge a Self-managed superannuation fund annual return 2017 if it was a self-managed super fund on 30 June 2017, or a self-managed super fund that was wound up during 2016-17.

Super funds that are not SMSFs at the end of 2016-17 must use the fund income tax return 2017 and, where required, a separate super member contributions statement.

Even if your fund does not have a tax liability, your SMSF must lodge an SMSF annual return.