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.
