No Tax - Adult Children happy they are Financial Dependants for Taxation Purposes on Death Introduction to Death Benefits When it comes to planning for the future, particularly in the context of an SMSF, understanding how your assets will be handled after your passing is crucial. Unlike the often complex and drawn-out process of managing estate affairs through probate, SMSFs offer a more straightforward path. With an SMSF, the transfer of a deceased member's superannuation interests can typically be done directly within the family's fund. This method not only bypasses the intricate prob ..read more

Imagine waking up on 1 July 2024 knowing you've slashed your tax bill and supercharged your superannuation. Sounds too good to be true? It isn't. Thanks to the Commissioner of Taxation's guidance, businesses and taxpayers can now prepay deductible and after-tax contributions into superannuation funds without facing penalties. This strategy not only reduces tax liabilities but also maximises the funds invested in a low-tax environment. Let's break it down. Typically, taxpayers make their super contributions through direct contributions, salary sacrifice, or personal deductible contributio ..read more

As we approach July 1, 2025, a new tax measure will commence, targeting the superannuation earnings of individuals with balances exceeding $3 million. Known as the Super Wealth Tax, this policy, according to Treasury will potentially affect only 80,000 people - like our farmer in this picture. So why is he smiling - find out later! Understanding the Tax Mechanism The Super Wealth Tax applies only to earnings on balances over the $3 million threshold, effectively raising the headline tax rate on these earnings to 30%. The tax is calculated based on the growth of the Total Superannuation Ba ..read more

Offset accounts linked to SMSF loans can provide substantial financial benefits through interest savings, provided they are structured correctly, and the loan documentation allows. However, the complex nature of limited recourse borrowing arrangements (LRBA) necessitates careful consideration of the setup of offset accounts to avoid regulatory pitfalls. Understanding SMSF Loans Section 67A of the Superannuation Industry Supervision (SIS) Act 1993 permits trustees to borrow under specific conditions known as a limited recourse borrowing arrangement (LRBA). In an LRBA, a separate bare trust hol ..read more

In the exciting world of startups and small to medium-sized enterprises (SMEs), shareholder agreements stand as crucial tools for navigating the complexities of ownership and investment. These legal frameworks are particularly vital in scenarios where businesses lack immediate liquidity or clear exit strategies. Today, we delve into the mechanics and benefits of shareholder agreements, illustrated through a comparative case study of two startup scenarios—one marked by success and the other by conflict.   Case Studies: From Unity to Acquisition Success Story: Drag-Along Provisions Facili ..read more

Grant Abbott and Tony Anamourlis from Abbott and Mourly Lawyers working on a child maintenance trust for a parent - saving tax and protecting assets! Introduction Child support in Australia is a legal requirement whereby a non-custodial parent contributes financially to the upbringing of their children post-separation or divorce. This financial support is essential in ensuring that the children's standard of living is maintained, covering costs related to education, health, and daily living expenses. The system is designed to balance the financial contributions of both parents ..read more

How Estoppel Shapes Estate Planning and Understanding the Unseen Force of Promises In the realm of estate planning, where legal documents are king, there lies an often-overlooked principle that harks back to the age-old adage: “Your word is your bond.” This principle is known as “estoppel,” a term that might seem cryptic but boils down to a simple yet profound concept: if you make a promise that someone else relies on, you could be legally obligated to keep that promise, especially in the context of wills and inheritance. This legal doctrine serves as a crucial reminder that, in the intri ..read more

  Introduction Understanding and navigating the complexities of the Legal Profession Act as it applies to the provision of legal services by non-lawyers is a crucial area of focus in Australia. This encompasses a broad spectrum of considerations, from the statutory provisions that regulate who can offer legal advice and services, to the mechanisms in place for protecting consumers and ensuring the integrity of the legal profession. With modern technology many accountants, financial planners and others are using on-line document platforms to create documents that have legal standing ..read more

Introduction In the context of Australian family law, completing a property settlement agreement amicably without incurring excessive legal fees involves understanding specific legal principles and processes defined by the Family Law Act 1975 (Cth) and relevant case law. Here, Abbott and Mourly Lawyers apply these principles strategically and efficiently to ensure a smooth, cost-effective resolution for a separating couple with one minor child and two adult children. Analysis Under Australian Family Law Legal Framework and Principles Four-Step Process: Australian family law courts apply ..read more

In today's complex modern family structures, the tale of the Robinsons, a blended family, serves as a cautionary tale. The Robinsons' journey began with optimism, a new wife and children from a previous marriage. Without a structured estate plan, they believed love and mutual understanding would suffice. However, upon the sudden death of Mr. Robinson, the absence of a clear legal framework led to four year and $400,000 legal dispute among the surviving members. Assets intended for the welfare of his second spouse and children were embroiled in litigation, eroding much of the estate's value and ..read more