Super co-contributions help eligible individuals boost their nest egg. The government makes a contribution of up to $500 when certain individuals make personal (after-tax) contributions to their super fund. The amount of co-contribution will depend on an individual’s income and how much is contributed. To receive a government co-contribution, you must meet the following conditions:…
As the trustee of an SMSF, you are required by the Superannuation Industry (Supervision) Act 1994 to keep accurate records. There are specific records that need to be kept, some for a minimum of five years and others for a minimum of ten years. Records that must be kept for at least five years include:…
Self-managed super funds are an effective superannuation strategy for those individuals looking to exercise greater autonomy over their retirement. Examine the following advantages of using a SMSF. Minimise tax bill: one of the major benefits of using a SMSF is the ability it provides you to minimise your tax bill. Investment income is taxed at…
There will be a new transfer balance cap for retirement phase accounts as of 1 July 2017. Individuals may have an excess transfer balance and have to pay excess transfer balance tax if they exceed their transfer balance cap. These changes may affect retirees who receive: – One or more account-based income streams – A…
Individuals will no longer be able to elect to treat super income stream benefits as lump sums for tax purposes as of 1 July 2017. For those who are receiving a super income stream and normally would have made this election, you can no longer access the super lump sum low rate for payments from…
As an employer, you must pay your employees super if they meet specific conditions, regardless of whether they are employed full time, part time or casually. The Australian Taxation Office outlines the conditions employees must meet in order to be paid super. These include: employees must be eighteen years or older and are paid at…
Employers have an obligation to pay superannuation to eligible workers – not paying super guarantee (SG) can result in penalties and loss of tax incentives such as tax deductions. Employees who earn $450 or more before tax in a calendar month are entitled to super guarantee (SG). Contract workers and employees under 18 have special…
Following changes to superannuation coming into effect from 1 July 2017, some super members will need to calculate their ‘total superannuation balance’ to work out their eligibility for a number of contribution measures. A member’s ‘total superannuation balance’ refers to an individual’s total super interests on a given date. The ‘total superannuation balance’ is relevant…
This year’s Federal Budget announced a new measure to help encourage older people to downsize from homes that no longer meet their needs. From 1 April 2018, those aged 65 years and over will be able to make an additional non-concessional contribution of up to $300,000 from the sale proceeds of their principal residence that…
The ATO has provided self-managed super fund (SMSF) members with further guidance on commutation requests made before 1 July 2017 to avoid exceeding the $1.6 million transfer balance cap. The Tax Office’s Practical Compliance Guideline (PCG) 2017/5 addresses the compliance approach that will be taken by the ATO where a SMSF member requests an amount…