It provides a consistent, reliable electronic method of transacting linked data and payments for super. The SuperStream standard is part of the government's Super Reform package. If the fund is gaining or producing assessable and non-assessable income, then the legal expenses will need to be apportioned. The legal expenses are deductible to the fund. The changes to the trust deed do not alter the structure or organisation of the fund, and do not result in an advantage of an enduring character. The fund incurs legal expenses in amending its trust deed so that the deed applies with reference to the rules Footnote13 provided under super law regarding the charging and allocating of certain fees to members of the fund. TR 2011/6 Income tax: business related capital expenditure – section 40–880 of the Income Tax Assessment Act 1997 core issuesĮxample 3: Legal expense incurred in amending a trust deed which is deductible under the general deduction provisionĪn APRA-regulated super fund gains or produces assessable income.This is for when their use is in gaining or producing the fund's assessable income. ![]() See Example 2 and Example 3.Ĭertain business-related capital expenditure (or blackhole expenditure) may be deductible over a period of five years Footnote8.Ī deduction may be available for the cost of depreciating capital assets Footnote9 held by the trustee of a super fund. This is provided the changes do not result in an advantage of a lasting character. On the other hand, an expense incurred in making changes to the internal organisation or day-to-day running of the entity is not considered to be capital in nature. If an expense provides an enduring advantage by establishing or expanding the income yielding structure, or it creates or preserves a capital asset (particularly a one-off expense), this indicates the expense is capital in nature. This is not deductible under the general deduction provision. For example, the costs of establishing a super fund are capital in nature.Īn expense incurred in altering the organisation or structure of the entity producing the income is capital in nature. It is not deductible under the general deduction provision Footnote7. providing or bringing into existence a lasting or recurring asset or advantage (from the super fund's perspective).Īn expense incurred in establishing, replacing or enlarging an income producing entity is capital in nature. ![]() ![]()
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