Rabobank's Latest Insights on Current Agricultural Prices

Posted by: Kylie Wilson

The Agribusiness Monthly provides timely information and analysis on agricultural conditions, commodity price updates and commentary on the latest sectoral trends and developments.

To view the May issue of Agribusiness Monthly, please click here.

Joint Seminar by UBS and Anderssen Lawyers

Posted By: Scott Thompson

Our recent seminar was well attended and a very appreciative gathering listened to Kylie Wilson deliver great succession planning advice for blended families – aim to have no assets in your estate! 

We also heard from David Sokulsky of UBS outline world trends and even identified Harvey Norman shares as a good buy, just before they increased significantly in value a few days later!

If you would like to go on our mailing list for future seminars please contact Laura@anderssens.com.au

When is a SMSF Binding Death Benefit Nomination not binding?

Posted by: Richard Thompson

The recent case of Munro v Munro underscores the importance of ensuring that requirements prescribed by a self-managed superannuation fund (SMSF) deed in respect of the making of a binding death benefit nomination are strictly complied with.

Please click here to view my full article co-authored with Richard Williams, Barrister-at-law published in this month's Lexis Nexis Bulletin.

ATO waves another red flag about insurance in superannuation

Posted by: Kylie Wilson

On 1 May 2015 the ATO released ATO ID 2015/10.  This interpretative decision further illustrates the ATO's views about an SMSF acquiring a life insurance policy over the life of a member where the acquisition of the life insurance is a condition of a business succession/buy-sell agreement.

The ATO had previously expressed its view, that this was a breach of the sole purpose test under Section 62 of the Superannuation Industry (Supervision) Act (SISA), in a private SMSF Specific Advice issued on 12 March 2014.

In the case that was the subject of the ATO ID, the terms of the relevant buy-sell agreement required the SMSF to purchase a life insurance policy over the life of the member based on an agreed value of shares owned by the member in a company in which the member and the member's brother were the only shareholders.  In the event of the member's death, the terms of the agreement directed the proceeds of that life policy to the member's spouse and the member's shareholding in the company to the member's brother.

The ATO took the view that this arrangement:

1. breached the sole purpose test in section 62 SISA;
2. constituted the provision of financial assistance to a relative of the member in breach of section 65 SISA; and
3. was not in accordance with the relevant SMSF investment strategy.

It is not uncommon for life insurance to be held in superannuation.  When life insurance is owned by an SMSF it will be important to ensure that the terms of any buy-sell agreement that is entered into by members of that SMSF do not result in the SMSF breaching the sole purpose test which can result in significant compliance issues for the SMSF.

If you have any questions about this issue you should contact our superannuation team for further information.

Major Shift in State Government Policy Will Impact on Grazing Rights in Queensland's National Parks

Posted by: Tony Allen

In August 2013 I was pleased to write a blog concerning the positive announcement of the then Newman Government that promised farmers and graziers across Queensland greater security of land tenure. At that time, the former Premier unveiled important changes to leasehold land renewals and committed to setting clear pathways for farmers and graziers to upgrade from leasehold to freehold land. For many grazing families this was extremely promising news as their grazing interests in many cases been had been held in the same family for multiple generations and had become a fundamental part of the family business operations.

It was therefore disappointing to recently read a report that suggests a major shift away from this policy by the current Queensland government to a policy that could result in the loss of existing grazing leases in national parks. The new National Parks Minister Steven Miles is quoted as saying that Labor was not keen on the idea to roll such grazing leases to new 20 and 30-year terms and that "It's not our intention to continue renewing leases as the previous government intended to do".

Pressure is coming from interest groups such as the National Parks Association of Queensland Inc (NPAQ), which takes the view that grazing threatens the long-term viability of native species in the parks. While NPAQ wants National Parks Minister Steven Miles to rule out renewing any of the grazing leases and to consider options for ending them early, the Minister is considering the Government's options.

Whatever position is finally adopted by the current government, this development highlights the fundamental difference between freehold title and grazing leases and the need for graziers to review their grazing operations and develop plans that take account of such policy changes. This story will be watched by many.