Part 1: Understanding the Gainer Associates Decision: A Critical Examination of SMSF Governance
The recent NSW Supreme Court decision in Gainer Associates Pty Limited [2024] NSWSC 1138 sheds light on critical issues surrounding self-managed superannuation funds. This case intricately examines issues of trustee responsibilities, compliance with the Superannuation Industry (Supervision) Act 1993, and the necessary judicial oversight in potentially contentious situations.
The court emphasised the need for trustees to maintain clear documentation and adhere to the Superannuation Industry (Supervision) Act 1993. This case serves as a vital reminder for trustees regarding the complexities of compliance and the significance of transparency in governance..
ATO declares payment of a death benefit to a spouse’s estate not to be tax-free
In a Private Binding Ruling, the ATO determined that payment of a death benefit to a spouse’s estate is not tax-free under section 302-10(2) of the Income Tax Assessment Act 1997.
Transfers to trustees or custodians of superannuation funds or trusts
A transfer of dutiable property made without monetary consideration to a trustee or custodian of a complying superannuation fund where there is no change in the beneficial ownership of the property.
Neal v Brown – Difficulties with Superannuation Deathbed Withdrawals
The recent NSW Supreme Court case of Neal v Brown [2024] NSWSC 841 highlights the adverse and unforeseen consequences of withdrawing superannuation death benefits before one’s death.
This case emphasis the necessity of not only considering tax implications when withdrawing superannuation benefits before death but also how such withdrawals interact with the terms of a will. Proper estate planning is essential to ensure that the distribution of assets aligns with the deceased’s wishes.
Reversal of Land Transfer to Self-Managed Super Fund Due to Unconscionable Conduct
The New South Wales Supreme Court reverses land transfer to SMSF due to son's unconscionable conduct in Cihan Family Trust v Cihan Family Superannuation Fund [2023] NSWSC 1289
Exemption from SMSF Stamp Duty - Property Transfer to Superannuation Fund Beneficiaries
A transfer of real property from a superannuation fund to a beneficiary of the fund
Binding Death Benefit Nominations – Notice and Conduct
A binding death benefit nomination (BDBN) is a direction from a member of a superannuation fund to the trustee of the superannuation fund on how that person’s superannuation entitlements are to be paid or transferred on their death. In the absence of a BDBN, the trustee is not compelled to distribute the superannuation proceeds in accordance with the member’s wishes.