Demystifying Division 7A: How to Avoid Common PitfallsConfusion in Div 7A
Division 7A of the ITAA36 has been operational since 1997. However, the provisions are complex and their application extends beyond the boundaries of what many accountants think. Below are some common misconceptions around the application of Division 7A that I still seem to see: 1. Loans provided by a private company to another entity (say a […]
FBT or Div 7A
A common occurrence, particularly in family companies, is the provision of benefits to shareholders of a company in which those same shareholders are also directors of the company. The question will then arise; is that payment caught by Division 7A or FBT? As a general rule, a fringe benefit arises if the company provides a […]
Managing a SMSF overseas
Are you an SMSF trustee who loves to travel? Sounds like a great lifestyle, however while planning your summer break you need to be aware that there can be negative consequences if you are out of the country for too long. If you are a trustee and you relocate overseas for an extended period, the […]
Tax deductions for SMSFs
One overarching fundamental that SMSF trustees should ideally keep in mind is the sole purpose test — that is, every decision made and action taken is required to be seen as being undertaken for the sole purpose of providing retirement benefits for the fund’s members. If an SMSF trustee incurs an expense in the usual […]
Child recipient in super
The death of a parent is hard on all those involved, however once the grieving has eased, a time comes to address financial matters. One of these issues can be what happens to any superannuation they have left. Making things harder is the fact that the new transfer balance cap (TBC) brought in as of […]
What counts towards to super cap
The transfer balance cap applies to the total amount of superannuation that has been transferred into retirement phase. The balance of assets in pension phase can be held across several accounts, so the number of accounts is immaterial. The amount of the lifetime cap will start at $1.6 million, and will be indexed periodically in $100,000 […]
C&D Advisory Newsletter Issue 1
Proudly debuting the first edition of C&D Restructure’s monthly newsletter. We’ll be using this newsletter to celebrate our team’s achievements, share comprehensive resources authored by our experienced consultants, and talk about important industry issues impacting our peers and clients. Newsletter Issue 1
Business Liquidation
When a business gets into trouble, it has a number of insolvency options. Whether you’re an advisor to a business in financial strife or you’re in charge of such a business, liquidation is one possible outcome. However, many people are surprised to discover that even profitable, thriving businesses may choose to enter liquidation. But why […]
SMSF Trustee Disputes
Everyone goes through the odd rough patch in their relationships with one another and SMSF trustees are no different. However the ramifications of a dispute between trustees are likely to have more wide ranging affects than the average quarrel between friends as SMSF trustees have vested interests, established duties and legal responsibilities towards the fund, […]
Div 7A Common Errors
The Division 7A laws have been in place for more than 15 years now and are encountered on a regular basis by many practitioners. Despite this implied familiarity, ATO audits often result in significant adjustments being made on the basis that Division 7A has been incorrectly applied. This article highlights four areas where practitioners commonly […]
