Beware of super schemes

As a part of the tax integrity drive at the ATO, it is currently running a campaign to crack down on what it terms “super schemes”. Although some of these are undoubtedly schemes such as diverting income earned from personal services to an SMSF or LRBAs that are not consistent with a genuine arm’s length dealing. Some others fall into a grey area depending on the intention of the individual, for example, switching multiple funds between accumulation and retirement phases or those “deliberately” exceeding their non-concessional contributions cap.