The issues & Govt. revenue grows…
Type of assessment Transitional* 2007-08 2008-09 2009-10
Excess concessional contributions only
Not applicable 18,607 15,035 2,579**
Excess non-concessional contributions only
1,823 2,089 2,019 <5**
Both excess concessional and non-concessional contributions
Not applicable 441 391 <5**
Type Transitional* 2007-08 2008-09 2009-10
Excess concessional contributions only
Not applicable 85.4 72.5 6.2**
Excess non-concessional contributions only
53.4 75.0 71.8 0.1**
Both excess concessional and non-concessional contributions
Not applicable 17.5 18.8 0.1**
No. of ECT notices issued
Value of the ECT liabilities
The issues & Govt. revenue grows…Average & median values of ECT liability
Financial year Contributions type Average Median
Transitional Non-concessional 29,292 9,300
2007-08 Concessional only 4,589 1,923
Non-concessional only 35,902 11,625
Concessional and non-concessional 39,682 4,880
2008-09 Concessional only 4,822 1,993
Non-concessional only 35,562 17,623
Concessional and non-concessional 48,081 6,913
2009-10 Concessional only 2,404 1,410
Non-concessional only *** ***
Concessional and non-concessional *** ***
Transitional 2007-08 2008-09 2009-10
Applications received* 408 1,100 225 31
Number finalised 398 857 111 10
In Progress 10 243 114 21
Discretion exercised 84 146 7 Nil
No. of applications to disregard or reallocate
Is there light at
the end of the
tunnel for
Excess
Contributions
Tax (ECT)?
• ATO removal of Taxpayer Alert 2010/2• MYEFO announced changes to clarify operation of
certain trust deed clauses
SMSFR 2011/D1Key concepts: Limited Recourse Borrowing Arrangements
TR 2011/D3When a pension commences and ceases
Key concepts:
• What is a ‘single acquirable asset’?
• Distinguishing between repairs, maintaining & improvements
• What constitutes the asset becoming a different asset
(replacement)?
• What about some of the outstanding issues?
A NEW TV SHOW? Who will win… The challenge is to use a SMSF Limited Recourse Borrowing Arrangement, make improvements to the property (using SMSF cash) but only to such an extent that it doesn’t become a different asset.
2
Has draft ruling TR 2011/D3 caught us with our pants down?
• When a pension commences
• When a pension ceases:
– Failure to meet minimum standards
– Exhaustion of capital
– Commutation
– Death
It’s been a busy year…
• SMSFD 2011/1 – is a benefit payable with a cheque or promissory note 'cashed' at the time the cheque or note is received by the member or beneficiary?
• ATOID 2011/24 – waiver of disqualified persons – serious dishonest conduct
• ATOID 2011/77 – payment of death benefit to former stepchild
• ATOID 2011/81 – meaning of ‘give a charge’ as per SISR 13.14
• ATOID 2011/83 – death benefits paid to former spouse of same sex relationship
• ATOID 2011/84 – scheme to avoid prohibition on acquiring assets from related parties
It’s been a busy year…
• SISA s62A (SISR 13.18AA) – Collectables
• ITAR s295.465.01 – Streamlined TPD Insurance tax deductions
• Consultation Papers:– Concessional contribution cap extension for over 50’s
– ‘Once-off’ refund of excess contributions tax for concessional contributions
• MYEFO:– Freezing of indexation with contribution caps
– Extension to 25% reduced minimum pension
– Abolition of age limit for SGC
• Future of Financial Advice Reforms
• Stronger Super Reforms
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