Non-arm’s length income (NALI) has received a lot of attention lately, particularly in regards to Limited Recourse Borrowing Arrangements (LRBA). NALI has never really received great attention, so much so that many public practitioners may not have even come across a SMSF that receives such income. However, the issue of increased interest in related party lending for LRBAs have recently grabbed much attention.
The key objective of estate planning is to ensure that the right people get your assets after you pass away. Traditionally this was done via a will. It is now common for a third or more of a family’s wealth to be in superannuation, however, which is not automatically covered by their wills.
Three main controls on liability risk
If you run a business you personally, and the business, are subject to liability risk. Controlling liability risk involves three main elements:
A recent ATO publication highlights the importance of planning for year-end trust distributions. If, for instance, the trustee makes a resolution after 30 June, no beneficiary was presently entitled to trust’s income by 30 June and there was no default clause in the trust deed, then the trustee will be assessed on the trust’s taxable income at the highest marginal tax rate, plus the Medicare Levy.
The State Government announced, last week, funding of up to $20,000 will be available for SMEs through the 2015 Innovation Vouchers Program
