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SMSFs Acquiring Assets from Related Parties
SMSFs cannot acquire an asset from a 'related party' (such as a member or their spouse or relative) unless it is acquired at market value and is...
Illegal Early Access to Super
Faced with tough times, some people may be thinking about accessing their super early.
Taxpayers may have been approached by someone (a 'promoter') claiming that members of super funds can withdraw their super or use an SMSF to pay off debts, buy a car, or pay for a holiday.
Super Compliance: A Crucial Update for Small Businesses.
The ATO has implemented a significant upgrade to the SBSCH, introducing SMSF bank account validation to bolster the precision and security of super contributions. This development affects all small employers utilising the SBSCH to manage super payments to their employees' SMSFs.
Random ATO audits ensure employment tax compliance for businesses.
The ATO has recently initiated random audits on businesses to assess their employment tax compliance and proper record-keeping.
Different meanings of ‘dependant’ for super & tax purposes.
On a person’s death, their superannuation benefits can only be paid directly to one or more ‘dependants’ as defined for superannuation purposes, unless they are paid to the deceased’s legal personal representative to be distributed in accordance with the deceased’s Will.
Reallocation of excess concessional contributions denied.
The AAT has held that there were no special circumstances in relation to a taxpayer who made excess concessional contributions in a financial year, such that the ATO could allocate some of those contributions to the previous financial year.
Minimum Annual Payments for Super Income Streams.
The ATO reminds taxpayers that an SMSF must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007 (e.g. account based pensions). If the minimum payment is not made by 30 June, this can result in adverse taxation consequences for the member.
New 15% super tax to apply from 1 July 2025.
The Government recently announced it will be imposing a 15% additional tax on individuals that have more than $3 million in superannuation. The new measure is expected to commence from 1 July 2025.
Transfer balance cap indexation.
An individual’s transfer balance cap (‘TBC’) determines the maximum amount they can commit to a retirement phase interest in their super fund, such as an account-based pension, without being subject to penal taxation.
Employee v Contractor.
The ATO is allocating compliance resources to worker classification arrangements and have released draft Guideline PCG 2022/D5 to assist when classifying workers as employees or independent contractors. It also outlines the risk framework to assist in a self-assessing the likelihood of ATO Compliance action.
Super comparison tool updated.
The YourSuper comparison tool helps individuals compare MySuper products and choose a super fund that meets their needs.
Downsizer contributions age changes from 1 July 2022.
From 1 July 2022, people aged 60 years and over will be eligible to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the sale proceeds of their home into their super. For downsizer contributions made prior to 1 July 2022, eligible individuals must have been aged 65 years or older at the time of making their contribution.
Super Guarantee Contribution due date for June 2022 quarter.
The due date for employers to make super guarantee contributions for their employees for the June 2022 quarter is 28 July 2022. Note that the super guarantee rate in relation to salary and wages paid on or before 30 June 2022 is 10%.
Re-contribution of Covid-19 early release super amount.
Individuals can now re-contribute amounts they withdrew under the COVID-19 early release of super program without the re-contribution counting towards their non-concessional contributions cap.
2022/23 Federal Budget: Other budget announcements including Superannuation.
The latest Federal Budget was announced last week. Here are some of the most important things you need to know for this new financial year.
COVID-19 vaccination incentives and rewards.
The ATO has reminded employers to consider their tax and super obligations when employees are provided with incentives or rewards for getting their COVID-19 vaccination.
Super is now following new employees.
The ATO is reminding employers that, as of 1 November 2021, there is an extra step they may need to take to comply with the choice of super fund rules.
Government payments and AUSTRAC data-matching programs.
The ATO will acquire government payments data from government entities who administer government programs for 2017/18 to 2022/23 financial years.
Reminder: Stapled Super Fund Requests now live.
From November 1, 2021 the ATO’s Stapled Superannuation Fund Request initiative became live. Which means if you have employed staff since this date and they have not nominated a super fund, you will need to request your employee’s stapled super fund via ATO Online Services.
Reminder of Superannuation Guarantee obligations for September 2021 quarter.
Employers are reminded that the due date for making SG contributions for the September 2021 quarter is 28 October 2021.