ATO warning to SMSFs: “Paying the price for non-compliance” There are various courses of action available to the ATO when trustees of self-managed super funds (‘SMSFs’) have not complied with the super laws, including applying administrative penalties. A number of factors determine the amount of the administrative penalty, including: the type of contravention; when it occurred; and the number of penalty units that apply. For example, if an SMSF contravenes… Read more
Director ID deadline is approaching The Government has launched an awareness campaign to help company directors get their director identification number (‘director ID’) as the 30 November deadline approaches. A director ID is a unique 15‑digit identifier that a company director will apply for once and keep forever. Director IDs are administered by the Australian Business Registry Services (‘ABRS’), which is managed by the ATO. All directors of companies registered… Read more
Are you aware that, if your business employs workers in Queensland, it is a legal requirement to insure them against workplace accidents by taking out an accident insurance policy with WorkCover Queensland? If one of your workers is injured at work, they can apply for workers’ compensation no matter who or what caused their injury. An accident insurance policy is peace of mind because it covers employers in the event that a worker… Read more
As expected, this year’s second Federal Budget had a strong focus on families, education, health and aged care, energy and affordable housing. From a superannuation perspective it has been a relatively quiet Budget but there were some welcome announcements that will benefit SMSF members funding their retirement. Please remember the following budget announcement are not yet law. Reducing the eligibility age for downsizer contributions The eligibility age to make downsizer… Read more
On 25 October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government. 1. Providing certainty for unlegislated taxation and superannuation measures The Government has announced it will not proceed with certain legacy tax and super measures that were announced but not legislated by the previous Government, including the following: The 2018/19 Budget measure that proposed changing the annual audit requirement for… Read more
Photo By Headway More COVID-19 business grants are now tax-free The Federal Government has expanded the list of State and Territory COVID-19 grant programs that may be tax-free to eligible businesses. A State or Territory Government COVID-19 grant payment will generally be tax-free if: the payment is received under a grant program that is formally declared to be an eligible program; the recipient carried on a business and had an… Read more
Foreign resident capital gains withholding (FRCGW) applies to real property disposals where the contract price is $750,000 or more. The foreign resident capital gains withholding (FRCGW) rate is 12.5%. Once withheld from the sale price, you can only get it back once you lodge your tax return. Depending on the timing of the sale, you may be waiting for this money for months. If you sell property for let’s… Read more
You’ll have an extra step to take if you have new employees who start from 1 November 2021 and they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing super account of an employee that follows them as they change jobs. This change aims to stop your new employees paying extra… Read more
You have until 16th November to apply for the QLD COVID-19 Business Support Grants! Who can apply for QLD COVID-19 Business Support Grants? To be eligible, your business or not for profit organisation must: employ staff (employees must be on your payroll and does not include any business owners) have an Australian Business Number (ABN) continuously held from 30 June 2021 be registered for GST have Queensland headquarters (i.e. your principal… Read more
Who can apply for VIC Small Business COVID Hardship Fund grant? To be eligible, businesses must: be located within Victoria as a direct consequence of COVID-19 restrictions since 27 May 2021 have experienced a reduction in turnover of at least 70% for a minimum consecutive two-week period comparable to a benchmark period in 2019 have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis… Read more
Only couple of weeks until the applications for NSW Covid-19 Business Grant close! Who can apply for NSW Covid-19 Business Grant? Funding is available to support businesses, sole traders and not-for-profits that have experienced reduced demand or have had to close due to the public health orders. It will support businesses with cash flow for the first 3 weeks of the Greater Sydney lockdown, which started on 26 June 2021.… Read more
With the end of the financial year fast approaching, now is the perfect time to make some final checks and ensure everything is in order for your SMSF before 30 June. The following are some matters that you might want to know more about, particularly if you have taken advantage of some of the COVID-19 relief measures. If there is anything in this paper that you are unsure about, we… Read more
Boutique Firm 2021 Finalist Superannuation Specialist Accountant 2021 Finalist The Australian Accounting Awards recognises and acknowledges the achievements of individuals and firms whether they are in the profession’s most senior ranks or if they’re a rising star within the industry and rewards them with a prestigious and highly sought-after accolade and national exposure for their contributions. The 2021 awards will be like no other, shining a light on the professionals… Read more
Ella And Jett Hold Record Xero Certified Courier Mail Two Brisbane children aged 10 and 9, have broken the world record to become the youngest humans ever to become Xero accounting certified. While other kids their age were turning to games, movies and play over the summer, maths whiz Ella King, 10. and her brother Jett, 9. decided they’d follow in their accounting parents’ footsteps to qualify as Xero advisors.… Read more
If you are in the travel industry, you may be eligible to additional help recently announced by the Government. Are you eligible for Consumer Travel Support Program? To be eligible for a payment, a business will need to meet the following requirements: Operating a business as either a travel agent or tour arrangement service provider prior to the announcement of the closure of international borders by the Prime Minister on… Read more
Regardless of the size of your superannuation benefits, it is vital that you sort out your estate plans to ensure that you have a well prepared estate plan so that the right assets go to the right beneficiaries. You need to make sure that you get holistic estate planning advice and have arrangements in place to review your estate plans regularly. Estate plans are not to be set and forgotten.… Read more
The economic impacts of the COVID-19 crisis are causing significant financial distress for many businesses and individuals. If your SMSF has a related party loan and is impacted due to the financial effects of COVID-19, you may be able to provide your LRBA with relief under an agreed commercial arrangement. Ordinarily, not paying market interest rates in an SMSF is usually a breach of superannuation laws. However, the ATO have… Read more
An SMSF is not for every client, even if they do have a significant amount to invest. Factors such as their financial literacy, understanding of the legal, taxation and other requirements, available time and general interest are all things to be considered. SMSF trustees need to understand the obligations associated with undertaking the role. Do you? Obligations with which SMSF trustees must comply under superannuation and taxation laws include: Sole… Read more
Despite well formulated investment strategies and appropriate investment advice, no trustee could have foreseen the impacts of COVID-19 on financial markets globally. Whilst history suggests that a strong recovery is likely within a relatively short period after large market corrections, it is still too early to know the impact of COVID-19 on members’ retirement plans. If your SMSF has experienced some negative returns, there may be an opportunity to ensure… Read more
