Day 1 Superannuation Schools WHAT S NEW FOR SMSFs Changes to the 2013 SMSF Return... 3

Transcription

1 WHAT S NEW FOR SMSFs... 1 Changes to the 2013 SMSF Return... 3 Introduction New information requirements for qualified SMSF audit reports Item 6 (Section A) Reporting changes for SMSFs partly or wholly in pension phase Items 10 to New disclosure requirements for an SMSF that is in pension phase new Item 10 (Section A) New rules for reporting income for an SMSF in pension phase Item 11 (Section B) New disclosures for claiming deductions for SMSFs in pension phase Item 12 (Section C) Consolidated examples completing the SMSF return for an SMSF in pension phase New CGT disclosure requirements for SMSFs with a CGT event Item 11 (Section B) Changes affecting the SMSF supervisory levy Item 13 (Section D) New rules for reporting benefit payments in respect of a member Sections F and G ATO introduces new disclosures for benefit payments New disclosures under the SMSF borrowing concessions Item 15b (Section H) ATO streamlines the reporting of regulatory information for SMSFs NTAA guide on the NEW registration requirements for SMSF auditors The transitional arrangements Requirements for SMSF auditors who apply to ASIC for registration after 30 June What requirements must an approved SMSF auditor satisfy on an on-going basis? Developments affecting limited recourse borrowing arrangements for SMSFs An overview of the LRBA requirements ATO issue LRBA warning in TA 2012/ Borrowing and property title in the wrong name National Tax & Accountants Association Ltd: September October 2013 i

2 2.2 The holding trust was not established at acquisition Acquisition of residential property from a member Where acquisition is comprised of multiple titles LRBA being used to fund a property development When can an SMSF draw down on an LRBA to fund repairs? Distinguishing between a repair and an improvement Traps to be mindful of when using borrowed funds to make repairs to an asset acquired under an LRBA ATO clarify their position on the acquisition of a house & land package under an LRBA House and land packages under multiple contracts Accounting, tax and GST treatment of LRBAs The income tax treatment of an LRBA The GST treatment of an LRBA The implications of transferring the asset to the SMSF The accounting treatment of an LRBA Disclosing LRBAs on the SMSF annual return SMSFs claiming GST input tax credits When can an SMSF claim input tax credits? Claiming input tax credits on acquisitions relating to a taxable supply Claiming input tax credits on acquisitions relating to non-financial input-taxed supplies Claiming input tax credits on acquisitions relating to financial input-taxed supplies When can an SMSF claim reduced input tax credits? Reduced credit acquisitions under Items 23 and When should an SMSF register for GST? Dangers with claiming super support for directors of corporate trustees Kelly The facts in Kelly s case The Federal Court s decision in Kelly s case Deduction for super contributions made for directors who are entitled to payment ii National Tax & Accountants Association Ltd: September October 2013

3 4. Deduction for contributions made on behalf of directors of corporate trustees When is a director of a corporate trustee a common law employee of the trust? New tax regime for excess concessional contributions from 1 July The treatment of ECCs before 1 July 2013 an overview of the old rules The treatment of ECCs from 1 July 2013 the new taxing regime ECCs now included in individual s assessable income Liability for the ECC charge under the new rules Electing to have ECCs released from individual s fund New 15% additional tax on concessional contributions for high income earners When is an individual liable for the additional 15% tax from 1 July 2012? How to determine an individual s low tax contributions (LTCs) for an income year Assessment and payment of the Division 293 tax (15% tax) accumulation interests only Assessments for Division 293 tax Release authority for payment of Division 293 tax Refund of Division 293 tax for temporary residents permanently leaving Australia Background What is a DASP? When is an individual entitled to a refund of Division 293 tax? Latest guide to making contributions under the CGT retirement exemption What is the contribution requirement for the retirement exemption? ATO confirms contribution requirement can be met by making an in-specie contribution ID 2010/ Special deductibility and capping rules for retirement exemption contributions What if an individual is aged 55 or more? Applying the CGT cap for contributions that are made under the retirement exemption What is the time limit for making contributions under the retirement exemption to access the CCT cap? What are the notice requirements for the CGT cap? National Tax & Accountants Association Ltd: September October 2013 iii

4 3.3 What are the disclosure requirements on the SMSF annual return under the CGT cap? New limited AFS licence for accountants giving SMSF advice from 1 July Options for providing SMSF advice under the new rules from 1 July Option 1 Operating as an AFS licence holder Option 2 Operating as an authorised representative ( AR ) of an AFS licence holder Option 3 Operate under the recognised accountants exemption until 30 June Option 4 Operate under the new limited AFS licence What action should accountants take now? Operating without a licence from 1 July SMSF AND RELATED PARTY INVESTMENTS IN ATO S FIRING LINE ATO set to target related party acquisitions When can an SMSF acquire an asset from a related party without breaching the SIS rules? ATO confirms traps with leasehold improvements to SMSF premises and building on SMSF land Can an SMSF acquire assets from a bankrupt relative? Is the lease of an asset from a related party an acquisition of an asset? ATO attacks the use of related non-geared unit trust investments What conditions must be satisfied before a non-geared unit trust investment is acceptable? What features of a non-geared unit trust investment will the ATO be specifically targeting? Converting a geared unit trust to a non-geared unit trust The latest update for SMSFs investing in artworks and other collectables Background Storage of collectables and personal use assets acquired on or after 1 July Insurance of collectables and personal use assets acquired on or after 1 July Investments in bullion iv National Tax & Accountants Association Ltd: September October 2013

5 4. NEW ATO guidelines: Can a 50% interest in a trust result in the trust being a related trust? The argument AGAINST a 50% unitholder controlling the trust ATO s Response NEW ATO advice regarding SMSFs jointly acquiring assets Registration of ownership of property for an SMSF with individual trustees SMSF jointly acquiring property with another party LATEST DEVELOPMENTS WITH PAYING BENEFITS FROM AN SMSF Latest guide to applying the cashing rules during a member s lifetime Early release of benefits (i.e., contravention of the payment standards) could be costly! Applying the voluntary cashing rules for the different categories of a member s benefits PBs, RNPBs, etc Latest compliance developments with paying a pension from an SMSF an ABP and a TRIS Background to the ABP and the TRIS key features ATO finalises ruling on when a superannuation income stream commences and when it ceases TR 2013/ Determining the value of underlying assets used to support a pension new ATO valuation guidelines Calculating the minimum pension amount for an ABP and a TRIS for 2013/14 no more drawdown relief! Failing to pay the total minimum pension amount for ATO s new administrative concession! Can the ATO s administrative concession apply where an SMSF pays more than the 10% limit for a TRIS? How to treat payments arising from the commutation of an ABP new ATO guidelines Proposed reforms to the tax exemption for earnings on pension assets from 1 July Payments made by an SMSF under release authorities new ATO guidelines Background to release authorities issued by ATO Tax treatment of payment under a release authority Payments under a release authority that are made from an accumulation interest ATO ID 2008/ National Tax & Accountants Association Ltd: September October 2013 v

6 3.4 Payments under a release authority that are made from a pension interest recent ATO guidelines New rules now provide greater certainty after death for members in receipt of a pension Problems for pensions that ceased upon the death of a member before 1 July 2012 old rules Applying the changes from 1 July 2012 for pensions that cease upon a member s death new rules NTAA s 2013 SMSF AUDIT KIT Requirement to appoint an auditor and the eligibility requirements Registration of SMSF Auditors with ASIC Disqualification of SMSF Auditors by ASIC Ongoing obligations of approved SMSF Auditors Competency standards for approved SMSF Auditors Auditor independence Applying the APES guidelines to independence Applying the Australian Auditing Standards to the concept of independence How will ASIC and the ATO enforce the concept of auditor independence? Common questions regarding the concept of auditor independence A guide to planning for an SMSF audit Introduction The planning phase of the audit ASA Establishing the scope of the audit Planning Memorandum Other issues associated with the planning memorandum How to perform a financial audit of an SMSF Contributions received by the fund Investments/assets of the fund Benefits paid by the fund Expenses of an SMSF Other considerations vi National Tax & Accountants Association Ltd: September October 2013

7 5. How to perform a SIS compliance audit Part B of the Audit Report: The Starting Point Does the fund satisfy the definition of an SMSF? Has the fund been operated in accordance with the sole purpose test? Has an investment strategy been prepared and implemented? Have the investment restrictions been adhered to? Have the contribution and benefit payment standards been satisfied? Have the administrative and documentation requirements been satisfied? A guide to the whistle blower provisions When is an Auditor Contravention Report needed? What happens once a material contravention is identified? What happens with immaterial contraventions? Auditor information requirements 2013 SMSF return How to finalise an SMSF audit The trustee representation letter Approved audit report Management letter Auditor Contravention Report (ACR) Signed financial reports of the SMSF Audit working papers Other reporting requirements Notes National Tax & Accountants Association Ltd: September October 2013 vii