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  The economic impact of Coronavirus (or COVID-19) has prompted some significant government announcements for both business and individuals to assist people through these difficult times. One of which is the ability to access some of your super. Let’s take a look at what is available, who is eligible and how to apply. For those significantly affected by the Coronavirus you may be able to access $10,000 of your superannuation savings before 1 July 2020 and a further $10,000 from 1 July 2020 (for approximately 3 months although this may be extended). Eligibility To be eligible for this early release [...]

Although the five year rolling catch-up of concessional contributions rule came into effect from 1 July 2018 it is really now that we can start to utilise the benefits. From 1 July 2018 super fund members with a total super balance below $500,000 can soak up unused concessional contributions caps from prior years. This means that the first year in which this can be accessed is the 2019-20 financial year. Combined with the removal of the 10% rule (read our blog Making Personal Contributions to Super) a great opportunity to reduce your personal tax and boost your super savings arises. [...]

With the roll-out of Single Touch Payroll (STP) now finalised for many employers, it’s never been a more important time to ensure that you’re complying with your employee obligations surrounding Superannuation. The Australian Taxation Office (ATO) now have more information than ever before including detailed records of payments made to employees in real time. Given we consistently observe that the December quarter is where the most breaches occur in respect of Superannuation Guarantee (SG), it’s important to get processes in place now so you don’t miss the cut for making superannuation contributions coming off the back of the silly season. [...]

  Did you know that an SMSF can have up to four members? This can be a great way to access opportunities that otherwise wouldn’t be available. Let’s take a look at these opportunities and consider potential matters. With size can come opportunity. But getting it right is very important especially when we are talking about your super and your retirement. But firstly let’s take a look at what some of the situations that may unleash these opportunities: Having an SMSF with your business partners and using your super fund to purchase property to be used in your business (learn [...]

Knowing your contributions caps for both concessional and non-concessional is very important to ensure you don’t exceed them where possible or know the ramifications if you do. Refer to our table below regarding the current contributions caps as at July 2019. Financial Year Concessional Contributions Non-concessional contributions 2018 $25,000 $100,000* 2019 $25,000 $100,000* 2020 $25,000 $100,000*   *You are only eligible to make non-concessional contributions if your total super balance is less than $1.6m at the end of the previous financial year Bring Forward contributions from 2018 onwards Total Superannuation Balance** Contribution and bring forward available Less than $1.4m Access [...]

  We are now starting to settle in to the new super reforms. Some have been complicated, some not so much, some have had a negative impact and some will be positive. One of the great reforms that may positively impact you is the ability to make personal concessional contributions to super after 1 July 2017. Most of us know about salary sacrificing and some of us may already be doing it. If you are not quite sure what salary sacrificing is please read our blog below: Salary Sacrificing and your contribution caps But this does not suit everybody. Personally [...]

If you or a member in your SMSF has a balance over $1m and are currently receiving an income stream you will be required to report events to the ATO that impact your transfer balance account quarterly from 1 July 2018. This is called transfer balance account reporting (TBAR). In addition to this if you commenced a pension prior to 1 July 2017 you will need to submit a report to the ATO before 1 July 2018. But don’t worry, we are here to help. Let’s start by learning a bit about what it involves. What is my transfer balance [...]

Borrowing within super can have its benefits as can borrowing within super from yourself. This is referred to as related party borrowing. But it is very important that you consider the safe harbour provisions and the limited recourse borrowing (LRBA) requirements to ensure you are meeting your obligations as trustee. Both existing and new related party borrowing must consider the guidelines within the safe harbour provisions set out by the ATO as they are now in full effect. • Have a loan agreement in place for the related party borrowing • Ensure the loan agreement sets out a maximum loan term of [...]

  Have you ever considered what the impact your super balance has on your age pension? This is a very complex area and due to constantly changing thresholds it can be difficult to navigate from year to year. The government calculates your age pension based on the assets test and income test and will apply whichever test results in the lower age pension payments. **The below information is based on the rates from 20 September 2017 and may be subject to change. The Assets Test: To be eligible for the pension your assets must be below a certain threshold. Assets [...]

Do you have reversionary pensions in place between you and your spouse within your super fund? Make sure you understand how this can impact your transfer balance cap and what you can do to avoid exceeding the cap. When you start a pension you add to your transfer balance account. You can only add (transfer) $1.6m over your lifetime into your transfer balance account. An important point to consider here is that when you become entitled to receive a reversionary pension from your spouse, you are adding to your transfer balance account. You may need to act quickly to ensure [...]