SMSF: Unpacking the latest amendments

Updated legislative and regulatory instruments were added to the ever-expanding cache in the SMSF sector last month. In this episode of the SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn unpack what it all means with Bryce Figot, special legal counsel for DBA Lawyers.

Figot delves into the changes made in LCR 2021/2 and TR 2010/1, focusing on non-arm’s length income provisions and contributions and specifically how they may affect professionals working in the sector.

Listen as they discuss:

• The new “safe harbour” example (7A) in LCR 2021/2.

• Paragraph 51, outlining discounted prices for SMSF services.

• Contribution updates in TR 2010/1 that clarify how acquiring an asset for below-market value is not a contribution if it’s a purchase under a sale contract.

• The importance of proper documentation and arm’s length valuations that are crucial for mixed part-purchase and part-contribution scenarios.

• The disproportionate outcomes that still exist where small non-arm’s length capital gains can taint entire net capital gains or distributions from unit trusts.