Contributions caps increase July 1
Contribution caps to increase from 1 July 2024 Following the release of the latest Average Weekly Ordinary Time Earnings (AWOTE) index, the expected increase to the contribution caps from 1 July 2024 has been confirmed. As a result, from 1 July 2024: The standard Concessional contribution cap will increase from $27,500 to $30,0001. The Non-concessional […]
ATO warning regarding prohibited SMSF loans
Navigating Superannuation Compliance ATO’s Focus on Loans to SMSF Members Loans to members continue to be the highest reported contravention of the superannuation laws that the ATO sees in auditor contravention reports. SMSF trustees should remember that they cannot loan money or provide other forms of financial assistance to a member or relative, and if […]
Care required in paying super benefits
Navigating SMSF Benefit Payments: Rules and Risks for Trustees Ensuring Compliance and Minimizing Penalties in Superannuation Benefit Distributions Generally, before SMSF trustees pay a member’s super benefits, they need to ensure that: the member has reached their preservation age; the member has met one of the conditions of release; and the governing rules of the […]
Deduction for contributions denied due to notice requirement problems
AAT Ruling on Personal Super Contribution Deduction Claim Key Notice Requirements and the Impact on Deductions The Administrative Appeals Tribunal (‘AAT’) recently held that a claim for a deduction for personal super contributions should not be allowed, as the relevant ‘notice requirements’ were not satisfied. In order to claim a deduction for personal super contributions, […]
Remember the unused concessional contributions cap concession
Enhanced Superannuation Contribution Opportunities Utilising Unused Concessional Contribution Caps for Eligible Individuals As from 1 July 2018, individuals with a total superannuation balance of less than $500,000 as at 30 June of the previous income year may be entitled to contribute more than the general concessional contributions cap (i.e., and make additional concessional contributions to […]
Different meanings of ‘dependant’ for superannuation and tax purposes
Understanding Superannuation Death Benefit Distribution Different Definitions of ‘Dependants’ for Superannuation and 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
Administrative Appeals Tribunal case The Administrative Appeals Tribunal (‘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. On Wednesday, 26 June 2019, the taxpayer arranged for […]
Downsizer contribution measure eligibility has been extended
Downsizer contribution measure eligibility extension The downsizer contribution concession was introduced to allow older Australians selling an eligible dwelling to make additional contributions into their superannuation fund. Broadly, the downsizer contribution concession allows eligible individuals to make non-deductible contributions of up to $300,000 (or up to $600,000 per couple) from the sale of an eligible […]
Proportional indexation of transfer balance caps from 1 July 2023
The ATO reminds taxpayers that, from 1 July 2023, the general transfer balance cap will be indexed. Individuals will have a personal transfer balance cap between $1.6 and $1.9 million, based on the highest ever balance of their transfer balance account between 1 July 2017 and 30 June 2023. While indexation occurred on 1 July […]
2023-24 Budget Update
Here’s what you need to know On 9 May 2023, Treasurer Jim Chalmers handed down the 2023/24 Federal Budget. Some of the measures announced by the Government (including some which were actually announced prior to the Budget) include: from 1 July 2026, employers will be required to pay their employees’ superannuation at the same time […]
