ATO found wanting on SMSF information
Posted by editor
An assessment of the interpretive assistance function of the Australian Taxation Office (ATO) as the regulator of self-managed superannuation funds (SMSFs) has found the timeliness of the service to be wanting. The ATO’s interpretive assistance role is to provide information to help SMSF trustees understand their rights and obligations and is seen as one of the regulator’s core responsibilities. The report recommended improving access to the ATO information about SMSFs and about interpretative assistance products may, in turn, increase the level of demand for these products.
Retirees on social media
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More than half of Australia’s retirees use social media weekly, providing an opportunity for Superannuation funds to interact with members, digital experts say. A report has revealed that more than half of 65 to 75 year olds used social media, in the same way as younger generations do, to connect and research.
Accountants to practice what they preach
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A new industry report has found that accountants who use the same processes and procedures that they recommend to clients, have happier, more functioning clients. For many accounting professionals, after a week assessing their clients financial health, checking on their own firms health is not always a priority. But it is worthwhile, using products and techniques that are suggested to clients helps accountants keep their finger on the pulse of the financial industry. Testing out ways to help out clients in our own firm is the most effective we can be sure we always give you the best advice.
Unique Super needs of women
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Financial professionals must recognise the different approach taken by their female clients regarding superannuation, a new industry report has found. Women don’t want to be ’sold to’ but do require a more in-depth understanding of how their super is working, in order to feel financially secure. The report found that one third of women feel financially insecure, and a similar amount find it hard to make financial decisions without doing extensive research on available products. The report also found that 41 per cent of women do not feel they have enough wealth to fund their retirement, compared with only 29 per cent of men.
ATO’s micro focus
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This year the Australian Taxation office will continue its focus on the cash economy operated by many small or micro businesses. In 2010 the ATO received legal powers to investigate micro businesses (with a turnover of less than $2 million), and show no signs of slowing down its pursuit of offenders. The major area of concern is the use of cash transactions to hide income and help some businesses evade tax obligations. Key areas include: paying cash-in-hand wages to employees not including all of the cash takings, or skimming running part of normal business activities off the books not reporting the exchange of GST on all goods and services avoiding tax obligations by not registering or not lodging returns
Fraud an issue for SMSF’s
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Accountants and financial advisers who promote self-managed super funds (SMSF), may now have to inform clients of the loss of protection when a contributor shifts from a regulated fund to an SMSF. A recently released Parliamentary report into the collapse of Trio Capital has sheds some light on the pitfalls of managing a SMSF, naming fraud as a significant issue. If possible a contributor should sign a form of acknowledgement, accepting this risks. If you have any questions, contact your account who will discuss the matter further with you.
Super changes for over 50’s
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New superannuation laws announced in the 2012 Federal Budget will effect high income earners who are over 50 years old. From 1 July 2012 individuals with income exceeding $300,000 will have the tax concession on their contributions reduced from 30% to 15% .This means that taxpayers may face an increase in tax of up to $3,750, which may cause some Baby Boomers to rethink their retirement plans. To further complicate matters, increased contributions may now lead to cap breaches.For further information contact us to discuss how these changes may effect your super.
10 highlights from the 2012 Federal Budget
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No Company Tax Cut as previously promised Family Tax benefit A increases payments to families and individuals on welfare No standard deduction on company tax for small businesses New Schoolkids bonus scheme for education expenses Super high contributor’s tax for over 50’s earning greater than $300,000 per year Funding for GST additional compliance extended Deferral of contributions cap increase for over 50’s with low super No 50% discount on interest income Company loss carry-back scheme to receive refund on tax paid in prior year New Income support supplement for workers with children
Positive work environment increases productivity
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Recognising the importance of a positive work environment is crucial to creating high levels of productivity, as well as employee retention rates, issues which become costly if ignored. If negativity has crept into the workplace, it is important to address the issue so that the negativity does not become wide spread. Regular communication between managers and employees is seen as the key to staff maintaining motivation and a high level of performance. This may include regular meetings, as well as team discussions and activities.
Compliant SMSF Insurance
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A new court ruling has clarified the requirements of SMSF in relation to assets insurance. The SMSF must be the listed beneficiary for all assets, such as collectables, jewellery, antiques and more. If these items are not clearly listed the SMSF runs the risk of being non-compliant. A separate policy for each item is not required, as a ‘group’ policy will cover the items if they are individually listed.The ruling is put in place immediately, although the funds have until July 2016 to update policies.
