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 –…
As trustees and practitioners work through the annual compliance work for the 2021 financial year, the Australian Taxation Office (ATO) is provided a timely reminder (QC 67071) that SMSFs need to regularly review the fund’s SMSF investment strategy to help meet their investment and retirement goals. The investment strategy is not designed to be a…
Investment strategies have been a topic of significant importance within the SMSF sector over the past few years. There has been a much higher expectation being imposed on trustees by the Australian Taxation Office (ATO) and fund auditors to demonstrate how trustees have adequately considered all of the requirements of an investment strategy…
The past couple of years has seen an increased focus on investment strategies within SMSFs. This focus, whilst initially targeted to a particular segment of the market with LRBAs and heavy asset concentration, has broadened significantly as to the expectations of the Commissioner. Just by looking at the data from our Smarter SMSF platform, we…
The Australian Taxation Office (ATO) has decided to extend for a further 12 months the current transitional compliance approach set out in PCG 2020/5 to allow additional time to finalise its position on non-arm’s length expenditure (‘NALE’) within the NALI provisions (section 295-550 of the ITAA 1997). The ATO issued draft ruling, LCR 2019/D3 in…
