Recent developments have confirmed the critical importance of trustees properly considering which beneficiaries should receive distributions and how those distribution entitlements are satisfied.
We understand that the recent proposal to impose an additional tax on superannuation balances greater than $3m may be causing you concern and questioning whether you should be doing anything with your super.
Recent court cases and ATO guidance products present additional challenges for trustees when considering how to distribute trust income.
In February 2023, the Government announced an intention to pursue an increase in the tax rate applying to superannuation earnings on member balances over $3m.
Ali Suleyman, Elena Bogomolova and Gary Matthews from Pitcher Partners Melbourne, present the annual Fringe Benefits Tax (FBT) Update.
As the world emerges from the pandemic crisis, regulatory authorities are once again turning their attention to compliance matters.
The non-arm’s length expense (“NALE”) rules for complying superannuation entities were introduced with effect from 1 July 2018.
The Full Federal Court has handed down its decision in FCT v Guardian AIT Pty Ltd [2023] FCAFC 3 (“Guardian”) which considered the application of anti-avoidance rules to trust distributions to a corporate beneficiary.
The ATO has finalised draft guidance on the application of section 100A to trust entitlements, staying close to the original released earlier this year. The finalisation comes despite two cases (both for and against the Commissioner) currently on appeal to the Full Federal Court. The guidance provides a very stringent view by the ATO on what may fall within the scope of section 100A. This may create significant risks with respect to trust distributions that will need to be managed very carefully.
Recent media articles speculating on possible superannuation changes in the upcoming Federal Budget on 25 October 2022 have many questioning what they should be doing with their super before Budget night.
Thank you for you interest