Jason Spits

Using the five-year amnesty to commute a legacy pension will require caution where the new rules interact with other superannuation, tax and social security laws.

The correct reporting of a total super balance can be skewed heavily if accumulation and retirement-phase values are poorly reported in an SMSF annual return.

The changes to the operation of the NALE rules have not flowed through to LRBAs, with the ATO’s revised guidance seeing non-arm’s-length dealings as tainting the arrangement forever.

Legacy pension holders will not face any social security debt if they choose to commute their income stream, but will lose any asset text exemptions.

The FAAA has called for any money paid to an SMSF via the Compensation Scheme of Last Resort to be limited to the fund and not multiplied by the number of members it contains.

The application of the trustee capacity rules within the ATO’s revised NALI arrangements appears to be less rigid, but responsibility for compliance has not changed.

The tax concessions given to superannuation earnings have continued to grow, with millions of fund members benefiting from them each year, according to new government figures.

The slow progress of the Division 296 bill through parliament has eaten into the time set aside to prepare for its implementation, meaning its possible start date may also be pushed back.

Key risk factors that can arise in related-party funding arrangements have been flagged by the ATO for compliance activity if it identifies at least one of them is present.employees job cuts. Reducing staff to maintain business. Far-reaching consequences of crisis lockdown. Work layoffs due pandemic quarantine.

Life insurance premiums paid by an SMSF for a particular member may be considered specific NALE given they are not costs related to the general operation of the fund.