Budget changes prompt ATO SMSF warning
|
|
The super contributions cap changes announced in the Federal Budget have prompted the Australian Taxation Office (ATO) to issue a warning to self-managed superannuation funds trustees about the non-commercial use of negotiable instruments to gain income tax and superannuation credits.
The Tax Commissioner, Michael D'Ascenzo, referred to the use of promissory notes, cheques or other negotiable instruments between trustees and members with no exchange of money or assets ever taking place.
He said the ATO was concerned trustees might be lured into such arrangements without understanding the potential super and income tax implications.
"We are concerned with the non-commercial use of promissory notes to avoid the need to liquidate assets in order to change the timing of transactions or to obtain tax advantages that are not available in the circumstances," D'Ascenzo said.
He said, in particular, the ATO was concerned that taxpayers might be led into the non-commercial transactions hoping to take advantage of the existing superannuation concessional contributions caps in view of the Government's Budget announcements.
AUTHOR
Mike Taylor
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
