A proposed new law would allow SMSF trustees and directors of SMSF corporate trustees to be remunerated for non-trustee duties or services.Maddocks Financial Services Team
The proposed new law would introduce a new section 17B of the SIS Act so that trustees and directors of corporate trustees could be remunerated for non-trustee duties or services.
The existing prohibition on SMSF trustees receiving remuneration is set out in sections 17A(1) and 17A(2). If the change is made, then the prohibition would not apply to remuneration for any duties or services performed by a trustee of an SMSF, or a director of an SMSF's company trustee if each of the following is the case:
On the basis the Bill is passed, the new section 17B will apply to individual trustees from 8 October 1999, and from the 2007-2008 income year for directors of a corporate trustee.
The change is in the Tax Laws Amendment (2011 Measures No 9) Bill 2011 (Bill) which makes retrospective changes to the Superannuation Industry (Supervision) Act 1993 (SIS Act). The Bill was introduced into the House of Representatives on 23 November 2011 and is due for debate in the next parliamentary term, commencing in February.
For questions or more information about the above alert, please call Maddocks in Melbourne (03) 9288 055) and ask for a member of the Financial Services Team.
You can read other articles concerning superannuation and SMSFs here.
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Julian Smith is a partner in the Maddocks Commercial team.
Julian advises extensively in the following areas:
Julian advises clients ranging from public companies servicing the wholesale financial services market to high net worth individuals and their advisers.
Julian has been with Maddocks since undertaking articles in 2001.
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