As we approach 30 June many clients will be wanting to maximise not only the amount they can contribute to superannuation but also the maximum deduction they can claim on their personal contributions. For what it’s worth, there is no maximum amount that can be claimed but there is a maximum amount before the excess…
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As part of the economic response package to the global impact of the coronavirus, the Federal Government has introduced into Parliament the Coronavirus Economic Response Package Omnibus Bill 2020 which includes a temporary reduction to the drawdown amounts from accounts-based pensions, which include Market Linked Pensions (also known as Term Allocated Pensions). In the same…
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It was a recommendation from the Financial Systems Inquiry (FSI) to ban the use of limited recourse borrowing arrangements (LRBA) within superannuation that put the operation of section 67A in the firing line as a strategy for SMSFs. With an overheating housing market, problems with property spruikers and ‘one-stop’ shops promoting the use of…
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The Australian Taxation Office (ATO) has recently updated their questions & answers section on limited recourse borrowing arrangements (LRBA) where an SMSF has sought loan repayment relief to confirm that any adjustment to the loan to capitalise interest will not amount to a replacement of the existing LRBA loan contract. Where temporary repayment relief has…
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With an increase in interest rates in Australia by the Reserve Bank, this also has an impact on rates that are required to be charged under a limited recourse borrowing arrangements (LRBA). The impact of these rate changes is significantly important for SMSFs that comply with the safe harbour terms outlined in PCG 2016/5 –…
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