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Does a Joint Venture Pass the Sole Purpose Test?
In the last part of our feature series on property development, we discuss related party joint ventures and the difficulty of meeting the sole purpose test The overriding requirement of...
The Property Development Path Leading to NALI
Part 3 of our series in property development looks at the tax implications of not undertaking transactions on commercial terms. There’s a strange quirk in SIS which sees unsuspecting SMSF...
How a Routine or Mechanical Service Impacts Independence
There has been much discussion surrounding the updated Independence Guide, published by the APESB and Professional Accounting Bodies, concerning how a routine or mechanical service impacts...
Clearing the Murky Waters of SMSF Auditor Independence
The murky waters of SMSF auditor independence just got a whole lot clearer. The Accounting Professional & Ethical Standards Board (APESB) has released a new Independence Guide...
LRBA Property Development Catch-22
In this second article of our four-part series, we look at the compliance issues surrounding property development and LRBAs. One of the concerns outlined by the ATO in SMSFRB 2020/1 is...
Related Party Property Development Concerns
In the first article of our four-part series on SMSFs and property development, we focus on related party leases and how to keep them compliant. The ATO has flagged their concern...
What Happens Once an LRBA is Paid Out?
While paying out a limited recourse borrowing arrangement (LRBA) can free up cash and finally bring in some additional income for SMSFs, it's what happens afterwards that makes the SMSF...
The Impact of Part A Qualifications
Before it became an ATO reporting requirement in the 2019 annual return, Part A qualifications were primarily ignored within the SMSF industry. Discussions centred mostly around compliance...
The New Era of SMSF Penalties
We’ve entered a new era of SMSF administrative penalties where trustees are facing the consequences of any illegal activity in their funds. The anecdotal evidence suggests that SMSF...
How to Pass the Sole Purpose Test
Making sure an SMSF passes the sole purpose test (“SPT”) is one of the cornerstones of operating a compliant SMSF. One of the most important things to understand is that it’s not the type...
New Rules Turn NALI Into Gnarly
The government has recently passed legislation to reduce the ambiguity surrounding the effect of non-arms length expenditure (NALE) on...
Does SMSF Litigation Risk Die with Trustees?
How many times have we heard that it’s only an SMSF audit; there’s not much in the fund, or it’s not high-risk? For some reason, the perception still exists that an SMSF is more...
