Top Super Consulting in Melbourne, Victoria, Australia | Accountant

Top Super Consulting

Locality: Melbourne, Victoria, Australia

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25.01.2022 COVID-19 package part 2 - 50% reduction of minimum pension drawdown The Government has announced that minimum drawdown rates applicable to account-based pensions (including market-linked) will be temporarily reduced by 50%. This will apply to the 2019-20 and 2020-21 financial years.... Some older SMSF deeds specify drawdown rates so it might be wise to check the deed and update if necessary. #superannuation #smsf #coronavirus #stimuluspackage #covid19

24.01.2022 Some SMSF trustees have asked if they can switch to share trading in order to take advantage of the losses from plummeting asset values . Since 2011, however, it cant be done (this was announced as part of the Federal Budget 2011). Gains and losses of SMSF assets are generally subject to the CGT provisions, one exception being trading stock. With effect from 7.30pm on 10 May 2011, shares, units in a trust, land (or an interest in land) and options over any of these were exc...luded from the definition of trading stock for complying superannuation entities. From that date, gains and losses from those assets are to be treated as capital gains and losses. Assets held as trading stock by an SMSF prior to the date of effect can continue to be taxed on revenue account. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Superannuation #Financialplanning #Accounting #Taxation #Australia #Wealth #Finance #Investment

24.01.2022 Drawing a pension from your SMSF? The ATO have reduced the minimum amount pension members are required to draw for the 2019/2020 and 2020/2021 years. The minimum percentage factors have been reduced by 50%. Before you put back some of what you have already drawn, remember that the usual contribution caps and rules still apply!... Unsure? Book a time to chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Retirement #Wealth #Taxation #Financialplanning #Investment #COVID19 #Australia

24.01.2022 2019-2020 is the first year during which the unused portion of the concessional contributions cap from a prior year may be utilised. Starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their total superannuation balance (TSB*) is less than $500,000 at 30 June of the prior year. During the current financial year, ta...xpayers may access any unused cap from the 2019 financial year in addition to their $25,000 cap if their TSB is below the threshold. Going forward, the unused portion from each year will carry forward, lapsing after 5 years if not used. The unused caps from the earliest year are utilised first. An individual may choose not to use their full cap, allowing it to carry forward for use in a year in which they are expecting a high taxable income, from a capital gain or bonus for example. This measure may also be beneficial for those who have taken an extended period of time away from work. Note that these contributions may be subject to Division 293 tax for high income earners. *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA This information is of a general nature only and should not be relied upon as advice. It does not take into account your objectives, financial situation or needs. #SMSF #Accountant #Wealth #Superannuation #Financialplanning #Retirement #Taxation #Investment #Australia #Accounting

23.01.2022 Unused CC caps a potential opportunity for family groups This measure may create a tax planning opportunity for a family group with a member who has turned 18 and contributed little or no super to date. Even a minor who isnt eligible to make tax deductible contributions (as they are not employed or running a business) has a concessional contributions cap of $25,000. This cap will be carried forward under the rules.... Whilst an 18 year old is unlikely to derive enough income to warrant a large contribution or want their money tied up in super, this may be useful in the context of a family group with large amounts of trust income to distribute. For example, during 2020, an 18 year old who has previously earned no income is eligible to contribute CCs of $50,000 ($25,000 plus the unused $25,000 from 2019). Thus, an increased family trust distribution may be paid to them with an amount contributed to super to offset it. In 2024 and beyond, many 18 year olds will be eligible to contribute CCs of $150,000 (the caps for 2024 plus the previous five years) or close to it. To recap the rule, starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their total superannuation balance (TSB*) was less than $500,000 at 30 June of the prior year. *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Superannuation #Tax #Taxstrategy #Accounting #Taxation #Retirement #Investment #Wealth #FinancialPlanning #Accountant

22.01.2022 ECPI simplification measures pushed back Accountants who prepare SMSF financials will wait another year for the passage of the two measures which will simplify the calculation of ECPI. Both previously expected to apply from 1 July 2020, the reprioritising of government resources due to the COVID-19 crisis has seen the start date pushed back to 1 July 2021. Currently, accountants may be required to break the year into segregated and unsegregated segments for ECPI purposes for... a fund with a combination of retirement phase and accumulation interests. The change will allow accountants to revert to the old industry standard of choosing to apply an actuarial percentage across the entire year regardless of pension status. The second measure will enable accountants to apply the segregated method for ECPI purposes where all member accounts are in retirement phase for the entire year regardless of members total superannuation balances. Since 1 July 2017, where at least one member has a superannuation balance of over $1.6 million at 30 June of the financial year prior (including balances in other funds) and running a pension from any source, SMSFs have been required to use the proportionate method and therefore pay for an actuarial certificate even where all assets in the fund were backing pension accounts and income was 100% tax exempt anyway. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Tax #Taxation #Accounting #Superannuation #Wealth #Financialplanning #Money #Retirement

21.01.2022 Accountants...I can help Accountants are snowed under, working day and night helping clients. SMSF compliance is falling behind....hand it over to someone within Australia to do the job for you. Make a time to have a quick chat.... https://calendly.com/topsuperconsulting/discovery-call . . . #SMSF #Superannuation #Accountant #Accounting #Taxation #COVID19 #Retirement #Australia #KeepitinAustralia #FinancialPlanning

21.01.2022 SMSF sole purpose An SMSF must only be established and maintained for the sole purpose of providing retirement or death benefits. You mustnt set up an SMSF in order to draw on your super early. Even if you are in financial difficulty, early access is illegal. It is sometimes possible to withdraw a limited amount of super on compassionate grounds but strict rules apply. Penalties can be severe and may include fines of tens of thousands of dollars and imprisonment.... If in doubt about what you can and cant do, book in for a chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Accounting #Tax #Wealth #Retirement #Superannuation #Australia #Money #Financialplanning #Investment

21.01.2022 EOFY strategy - catch-up contributions If an individual is in need of a tax deduction in 2020 and didnt use their full concessional contributions cap for 2019, they may be able to use some or all of the unused portion. To be eligible, the individuals total superannuation balance (TSB*) must have been less than $500,000 on 30 June 2019.... Starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their TSB was less than $500,000 at 30 June of the prior year. Should you wish to discuss this or any SMSF issues, book in for a free 30 minute chat: https://calendly.com/topsuperconsulting/discovery-call *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

19.01.2022 Perfect morning to take some time out at the beach

19.01.2022 EOFY strategy - deferred contributions Where a member of an SMSF could use a tax deduction this year or has less need for one next year, it can be useful to make a contribution in June but have it not count toward the cap until July. Why youd do it... Need for a higher deduction in the first year due to unusually high taxable income eg a capital gain or bonus No need for a deduction in the second year due to low income eg retirement Ineligible to contribute in the second year due to age or work test restrictions Have a need for the additional cash flow in the first year eg settlement of an asset purchase Rules A requirement to meet the work test applies in the year in which the contribution is made. A total superannuation balance restriction applies in the year in which the contribution is allocated. Making a contribution in June of the first year will not circumvent a cap of nil which applies in the second financial year. (Only applies to non-concessional contributions (NCC)). Only a discrete contribution may be deferred. A contribution of say, $50,000 cant be allocated across two years. Two separate contributions must be made. Check the deed to ensure the contributions may be held unallocated. Necessary paperwork Resolutions documenting the strategy as well as the decisions to defer allocation and subsequently allocation. Notice of intent to claim a deduction and subsequent acknowledgement (s290-170 paperwork). Logically, this wouldnt be completed until after allocation. If a CC is to be deferred, the member must complete a Request to adjust concessional contributions form and lodge it with the ATO, preferably prior to lodgement of the individual and SMSF tax returns. If a NCC is to be deferred, the member must apply to the ATO in writing to have the contributions allocated to the second year. Remember that the member cant start pension or split to a spouse until after allocation has been made and the notice of intent lodged. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

19.01.2022 Unused CC caps a potential opportunity for family groups This new measure may create a tax planning opportunity for a family group with a member who has turned 18 and contributed little or no super to date. Even a minor who isnt eligible to make tax deductible contributions (as they are not employed or running a business) has a concessional contributions cap of $25,000. This cap will be carried forward under the rules.... Whilst an 18 year old is unlikely to derive enough income to warrant a large contribution or want their money tied up in super, this may be useful in the context of a family group with large amounts of trust income to distribute. For example, during 2020, an 18 year old who has previously earned no income is eligible to contribute CCs of $50,000 ($25,000 plus the unused $25,000 from 2019). Thus, an increased family trust distribution may be paid to them with an amount contributed to super to offset it. In 2024 and beyond, many 18 year olds will be eligible to contribute CCs of $150,000 (the caps for 2024 plus the previous five years) or close to it. To recap the rule, starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their total superannuation balance (TSB*) was less than $500,000 at 30 June of the prior year. *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Superannuation #Tax #Taxstrategy #Accounting #Taxation #Retirement #Investment #Wealth #FinancialPlanning #Accountant

19.01.2022 SMSF Accountants: Try our TBAR questionnaire! TBAR errors still a major concern, says ATO The ATO is still seeing significant errors with transfer balance account reporting, with retrospective reporting, duplicated reporting and late reporting among some of the ongoing concerns....Continue reading

18.01.2022 Halved pension minimum continues for 2020/2021 The prescribed minimum percentage for account-based pensions (including market linked) has been halved for the 2020-2021 financial year. If they havent already, trustees who are paying pensions via a regular fixed amount may wish to review the figure and adjust to reflect the reduced minimum.... Remember, when calculating the minimum, halve the percentage then apply it to the balance. Calculating the minimum then halving it isnt always accurate. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accounting #Taxation #Financialplanning #Accountant #Superannuation #Pension #Wealth #Retirement

17.01.2022 Winding up an SMSF: not always a neat little package The final stages of winding up an SMSF can be confusing. The SMSF must have nil assets to be wound up and a final return lodgedbut what if the fund is due a refund and/or hasnt yet paid all the fees? How can the return be final if there will be a refund or payable?... The ATO understands that it doesnt always tie together in a neat little package of zeros. In practice, it is acceptable to leave a small balance in the bank account to pay any remaining tax and fees and accept a tax refund. Estimate and accrue any interest that will be received after the wind up date. The balance sheet must show net assets of zero this can be achieved by showing the bank balance and a corresponding liability accounting fees and rollover or lump sum payable. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accounting #Taxation #Financialplanning #Retirement #Financialfreedom #Wealth #Accountant #Finance #Investment

16.01.2022 Keeping up to date with the latest in SMSF. It doesnt get much more nerdy.

16.01.2022 Temporary early access to superannuation With an expected commencement of mid-April, those eligible will be able to apply to withdraw up to $10,000 until 30 June 2020. From 1 July, a further $10,000 will be available until 24 September 2020. For each financial year, a limit of one application applies, however, an individual with multiple accounts may nominate more than one account from which amounts are to be released when they make the request. The application will be made ...via MyGov, the individual self-assessing and certifying eligibility. For benefits to be released from a fund other than an SMSF, a determination will be sent by the ATO to the fund and the benefit paid in due course. There is no requirement to apply to the fund separately. If the benefit is to be released from an SMSF, the determination will be provided to the member who will then pass it to the fund. The SMSF is then permitted to make the payment. The payment will be treated as a benefit in the fund, that is, the proportioning rule will apply. The SMSF will be required to prepare benefit payment documentation, however there will be no obligation to register for PAYG Withholding. The benefit will be non-assessable non-exempt income and therefore tax free. It will not impact Centrelink or Veterans Affairs payments. A fund is not compelled to allow payment from a defined benefit interest. Temporary early access will be available to an individual who: ~ Is unemployed, or ~ Is eligible for a job seeker payment, youth allowance for job seekers, parenting payment, special benefit or farm household allowance, or ~ On or after 1 January 2020 ~ ~ Was made redundant, or ~ ~ Had working hours reduced by 20% or more, or ~ ~ Was a sole traders whose ~ Business was suspended, or ~ Turnover was reduced by 20% or more The 20% reduction is calculated relative to turnover for the period 01/07/2019 to 31/12/2019. No income or assets test applies. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #smsf #superannuation #covid19 #accounting

15.01.2022 EOFY is looming! 30 June this year falls on a Tuesday. To ensure timely completion, make contribution and pension transfers before Friday 26 June.... Need assistance? Book in for a free 30 minute chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

15.01.2022 All our processing takes place within Australia, and here are more reasons to keep it that way. Book a time to see how we can help https://calendly.com/topsuperconsulting/discovery-call #SMSF #Accountant #Taxation #Wealth #Retirement #Financialplanning #Accounting #Australia

15.01.2022 THOSE AGED 65 AND 66 LIKELY TO BE ABLE TO CONTRIBUTE TO SUPER WITHOUT THE WORK TEST Draft legislation which will create more flexibility for older Australians wishing to continue contributing to superannuation has been released. The legislation is expected to be effective from 1 July 2020, however the earliest date on which it can now pass is in August 2020 which is when Parliament will next sit.... The measure, which was proposed as part of the 2019 budget, will increase the age at which an individual is required to pass the work test (working 40 hours in 30 days) in order to make voluntary contributions from 65 to 67. Individuals will also be eligible to access the bring forward rule until the year in which they turn 67 (currently 65). If passed, the measure will provide a two year period during which an individual has full access to their super (without the need to retire) as well as the ability to contribute the maximum. As well as the obvious benefit of potentially contributing more to the concessionally taxed environment, recontribution opportunities will enable some individuals to create more favourable tax positions for estate planning purposes. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accounting #Taxation #Superannuation #Wealth #Retirement #Australia #Financialplanning

14.01.2022 SMSF sole purpose An SMSF must be established and maintained for the sole purpose of providing retirement or death benefits. Setting up an SMSF so you can use your super to buy assets such as a classic car or holiday home for personal use is a serious breach. Penalties can be severe and may include fines of tens of thousands of dollars.... If in doubt about what you can and cant do, book in for a FREE 30 minute chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Accounting #Tax #Wealth #Retirement #Superannuation #Australia #Money #Financialplanning #Investment

14.01.2022 This is irresponsible. Yes, the Government is temporarily allowing eligible individuals to draw a limited amount from super to assist during the current crisis, however, it is not an opportunity for a tax advantage. Anyone contemplating undertaking the strategy outlined in the article should be aware of possible consequences:... ~ the ATO is likely to view these actions as a scheme, apply Part IVA (tax avoidance) and disallow the deduction and ~ should the ATO consider the application misleading, they may revoke the determination, resulting in the amount withdrawn becoming taxable in the hands of the individual. #SMSF #Accounting #Financialplanning #temporaryearlyrelease #taxation #superannuation #coronavirus https://www.abc.net.au//coronavirus-tax-loophole-/12111778

14.01.2022 MY PENSION BALANCE HAS DROPPED: CAN I TOP IT UP? SMSF members with high pension balances that have decreased sharply amid the market crash have asked whether they can convert more of their accumulation balance to pension. Unfortunately, if you have already reached the transfer balance cap, the answer is no.... Heres how your transfer balance account works. The transfer balance cap (TBC) is the limit to the amount any person can convert to pension during their lifetime. Your transfer balance (TB) is the amount that you have converted to pension on or after 1 July 2017. When a pension is commenced, the purchase price or starting balance is added to your transfer balance. Rolling a pension back to accumulation or drawing a lump sum (commutation) will reduce your TB and commencing any further pension will increase it. Once your TB reaches the TBC, you cannot convert more to pension without also rolling some back. There are a number of transactions which will alter your transfer balance, however investment earnings and losses are not amongst them. The dollar value of your TB remains static. Had you commenced a pension on 1 July 2018 with a purchase price of $1.6 million and made no commutations, your TB remains unchanged, even if market losses have resulted in a reduced balance of $1.4 million. Converting another $200,000 to pension to make up the difference will increase your TB to $1.8 million, breaching the allowed cap. The good news is that when or if your investments increase in value, if your pension balance increases to an amount above the TBC, say, $1.9 million (which may have already happened prior to the current crisis), you are sitting pretty. This increase has not breached the cap and youre not required to roll any of your pension back to accumulation. Remember, too, that for the 2019-2020 and 2020-2021 years, minimum drawdown amounts have been halved for account-based pensions to minimise assets trustees are obliged to sell in order to meet payments. Please message me should you wish to discuss this or any other SMSF issues. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Superannuation #Taxation #FinancialPlanning #Australia #Wealth #Retirement #Accounting

13.01.2022 Temporary reduction in minimum drawdown rates extended to include the 2022 financial year

12.01.2022 What our clients say about us....

12.01.2022 Im thinking this might come up in the near future.trustees of many SMSFs whose balances have plummeted wanting to switch to share trading and take advantage of the losses. Since 2011, however, it cant be done. Q: Can my SMSF be treated as a share or options trader for tax purposes? A: No, these assets must be held on capital account.... Gains and losses of SMSF assets are generally subject to the CGT provisions, one exception being trading stock. With effect from 7.30pm on 10 May 2011, shares, units in a trust, land (or an interest in land) and options over any of these were excluded from the definition of trading stock for complying superannuation entities. From that date, gains and losses from those assets are to be treated as capital gains and losses. Assets held as trading stock by an SMSF prior to the date of effect can continue to be taxed on revenue account. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Superannuation #Accounting #Taxation #Wealth #Retirement #Investment #Australia

12.01.2022 EOFY strategy - contributions Were nearing the end of financial yearhere are some things to consider around contributions. 1. Check total super balance at 30 June 2019 and status of any bring forward already triggered to determine your non-concessional contributions cap.... 2. Check if any payments have been made on behalf of the fund (eg expenses, insurance premiums or PAYG instalments) as these will be treated as contributions unless promptly reimbursed. 3. Ensure that the work test requirement has been met (40 hours within a 30 day period) if necessary. 4. Need an additional tax deduction? It may be possible to make a contribution this month and have it count toward next years cap (only possible in an SMSF). 5. If you had less than $500,000 in super at 30 June 2019, you may be able to utilise unused concessional caps carried forward from 2019. 6. Check eligibility for co-contributions or the spouse contribution offset. 7. Review contribution strategies for those around retirement age as changes may mean the ability to contribute more over the next couple of years: From 1 July 2020, the work test requirement for making voluntary contributions will kick in at 67 (increased from 65). A change allowing those under 67 (currently 65) at any time during the year to trigger the bring forward rule from 1 July 2020 is expected to pass before 30 June. 8. Ensure contributions are received by 30 June. If made via electronic transfer, a contribution is received when credited to the funds bank account. A cheque dated on or before 30 June may be included if presented promptly and sufficient funds were in the account on 30 June. An in-specie contribution is received when beneficial ownership is transferred to the fund ie when it receives executed documents necessary to register legal ownership eg off-market transfer form. This year, 30 June falls on a Tuesday. To ensure timely completion, make any transfers the week before, by Friday 26 June. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

11.01.2022 EOFY finalising pensions Were nearing the end of financial yearhere are some things to consider around pensions. 1. The minimum percentage factors for account-based pensions (including market-linked) have been reduced by 50% for the 2020 and 2021 financial years.... Reduce the pension factor then apply to the balance.calculating the minimum then halving it is not always accurate. This pension factor reduction applies for the full year. If the member drew 50% or more of their minimum for the year prior to the measure being passed, they need not draw any more. If a member has drawn more than the minimum and wishes to put some back, the usual contributions rules apply! 2. If the member has drawn the minimum from an account-based pension but wishes to draw more, consider not treating the excess as a pension payment. Treating the excess as a partial commutation will reduce their transfer balance, maximising the amount that can be retained in retirement phase in the long term. Drawing the excess from the accumulation account if there is one will help preserve the retirement phase portion of the fund. 3. Timing - a pension payment is considered made when the member has received the amount and their benefit in the fund reduced. If made via electronic transfer, the payment is received when it has left the funds account and has been credited to the members bank account. A cheque dated on or before 30 June may be included if presented promptly and sufficient funds were in the funds account on 30 June. This year, 30 June falls on a Tuesday. To ensure timely payment, make any transfers in the week prior which leads up to Friday 26 June. 4. Review any recontribution strategies. From 1 July 2020, the work test requirement will only kick in at age 67 (increased from 65). The bring forward age limit is expected to be increased to 67 from 1 July 2020. 5. Before resetting a pension, check that it isnt grandfathered for the purposes of Centrelink benefits This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

11.01.2022 Work test change favourable for older Australians Those aged 65 and 66 are no longer subject to the work test requirement for making voluntary contributions. This change has given rise to the opportunity for some individuals around retirement age to contribute (or recontribute) more as they have unrestricted access to benefits without the need to retire together with the ability to contribute.... Unfortunately, the corresponding change to the bring forward rule increasing the age limit to 67 (currently 65) has not yet made its way through Parliament. Although its passage is expected (and it is expected to apply from 1 July 2020), we can’t assume and it is unclear when we will know for sure. It’s worth noting that many who were not expecting to ever be eligible to make non-concessional contributions again may be eligible again in 2020/2021 given the lower asset values. Have questions around SMSF? Book in for a FREE 30 minute chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Taxation #Tax #Accounting #Financialplanning #Wealth #Money #Retirement #Australia #Superannuation

10.01.2022 The Bill which will enable 65 and 66 year olds to access the bring forward rule has passed through Parliament. It will apply from 1 July 2020. Individuals who are under 67 years of age (previously 65) at any time during the year are eligible to contribute up to three times the non-concessional contributions cap (subject to work test or total superannuation balance restrictions). The non-concessional contributions cap is currently $100,000, increasing on 1 July 2021 to $110,0...00. If a bring forward cycle is triggered prior to 1 July 2021, the bring forward cap is locked in at $300,000 ie the individual will not benefit from the cap increase. . . This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. . . #SMSF #superannuation #wealth #tax #totalsuperannuationbalance

10.01.2022 Had a few folks ask if they can set up an SMSF during the crisis. Yes, you can, but there are few things to think about first. Do you have the KNOWLEDGE? Do you have sufficient knowledge to invest appropriately and in accordance with your risk profile? Do you know how you want to invest and whether the desired investments are permitted? ... Are you prepared to understand and follow the RULES? Strict legislation surrounds SMSFs and there are restrictions on investment. You are responsible for the operation of the SMSF so must be aware of what is and isnt allowed and seek advice if unsure. The trustees are jointly and severally liable for any contraventions and penalties can be severe. Are you prepared to commit the TIME? Proper record keeping is important. If you wish to manage your own super, you must be prepared to commit the time not only to investment activities but also maintaining the records and providing all source documents to the accountant and auditor. Do you WANT to run an SMSF? Very important do it because you want to manage your own super, not to keep up with your friends. Do you have SUFFICIENT SUPERANNUATION to invest to make it worth it? There is no minimum amount required to establish a SMSF, but you do need to be sure that the costs of running the fund (accounting, audit and any costs associated with investment) wont erode the returns. Are you an Australian RESIDENT? If you are planning on living outside Australia for an extended period, seek advice. Management of an SMSF must be within Australia and there are strict rules surrounding this. Before closing super accounts, check whether any existing INSURANCE is worth retaining. Review or seek advice regarding your insurance requirements and any policies already held in super before you close accounts. Various factors including age and health issues may make it difficult to secure the same level of cover. In addition to the above, if youre thinking of switching from another fund, it might be wise to talk to a financial adviser about whether its a good idea to move your money during the crisis. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Superannuation #Taxation #Retirement #Wealth #Financialplanning #Investment #Accounting #Australia

10.01.2022 Can the SG Amnesty mean EXCESS CONCESSIONAL CONTRIBUTIONS? The short answer is no, contributions covered by the amnesty will be disregarded. Usually, an individual may apply to the Commissioner to have contributions in excess of their cap disregarded or allocated to another year. A determination may be made in their favour where special circumstances exist, the unexpected receipt of an SG shortfall usually qualifying. Contributions made under the amnesty will automaticall...y be disregarded without the need for an application. These amounts will also not count toward income or contributions for Division 293 tax purposes. Under the amnesty rules, an employer must make a disclosure to the ATO between 24 May 2018 and 7 September 2020 regarding shortfalls in respect of quarters from 1 July 1992 to 31 March 2018. The amnesty is a one-off opportunity for an employer to claim a deduction for the contributions and have any penalties remitted. Shortfall amounts which relate to periods after 1 April 2018 are not covered by the amnesty. Should an individual wish to have these amounts disregarded or reallocated to another year, the usual process will need to be followed. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #superannuation #accounting #sgamnesty

09.01.2022 Tis the season for decision making around contribution strategies Why increase the tax-free component or even up balances when the members are over 60? Most of us are aware that we maximise the tax-free component for estate planning purposes. That is, when super passes to a members adult children, the taxable portion of the benefit is taxed in their hands.... In many cases, the transfer balance cap is reason enough to boost the super of the spouse with the lower balance and split contributions or draw if possible from the higher balance. This maximises the amount that can be held in pension phase during a members lifetime and then in super after one spouse passes away. There is another reason though. We dont know when or how the rules will change in future. For some time now, super has been the environment with the tax advantages. Those with money try to get as much in as they can. Even better, once over 60, no tax is paid on withdrawals regardless of form or whether tax was paid on the way in (apart from an untaxed element which isnt covered here). The benefits the Government are handing out due to COVID-19 are going to have to be repaid somehow, sometime. Super might just be easy pickings. Two tax free thresholds are better than one. Should the Government at some point decide to begin taxing income streams and/or lump sums, many couples taking pensions will be less impacted if they are both in receipt of a pension and thus able to utilise their tax-free threshold and any available tax offsets. Keeping the balances as even as possible will allow the members to gain the maximum benefit should this situation ever arise. Naturally, a higher tax-free component would also mean less assessable income. . . Contribution and pension payments for 2020 With EOFY nearing, its time to look at final pension payments and contributions for the year. Bear in mind that, in 2020, 30 June falls on a Tuesday. To ensure timely completion of transfers, it might be wise to make any transfers in the week prior ie leading up to Friday 26 June. . . To discuss this or any SMSF issues, book a time to chat: https://calendly.com/topsuperconsulting/discovery-call . . This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Accounting #Tax #Wealth #Superannuation #FinancialPlanning #Investment #Contributions #Australia #Pension

08.01.2022 Good news: the work test requirement will no longer apply to those aged 65 and 66 from 1 July 2020. The expected corresponding change to the bring forward rule has not yet been passed (under current rules, an individual must be under 65 at some time during the year in order to trigger).

08.01.2022 What our clients say about us

07.01.2022 Unexpected excess non-concessional contributions notice? Check that all intended personal concessional contributions were claimed! Contributions for cap purposes are determined by the ATO using information reported by the fund as well as the concessional contributions (CC) claimed in the individual tax return.... Where a personal contribution has been reported by the fund, any amount that is not claimed in the individual’s return is applied against their non-concessional contributions (NCC) cap. This can mean an excess NCC notice if the individual has also made the maximum NCC. If the individual has lodged a notice of intent to claim a personal contribution under s290-170 and receive the acknowledgement, failing to claim the deduction means that the contribution is treated as a CC in the fund (and taxed at 15%) but applied against their NCC cap. Have questions around SMSF? Contact me at [email protected] Or Book in for a FREE 30 minute chat: https://calendly.com/topsuperconsulting/discovery-call This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #SMSF #Accountant #Tax #Wealth #financialplanning #Finance #Money #Superannuation #Supercontributions

06.01.2022 SMSFs and related party tenants: RENT RELIEF The ATO has responded to the industrys request to provide relief to trustees whose related party tenants are experiencing financial stress due to COVID-19. Via their web page, the ATO have made it clear that they will not take action in the event that a trustee temporarily waives or reduces rent provided the relief is necessary and temporary and is offered as a direct result of COVID-19. They will take this approach for the 2019-...2020 and 2020-2021 financial years. To avoid a breach of SIS, however, paperwork will still need to be in place to document what form the relief will take. This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. #smsf #accounting #taxation #financialplanning #commercialproperty #investment #property #wealth #australia #retirement

06.01.2022 Contribution opportunities may arise due to reduced asset values Lower year end balances may offer an unexpected opportunity for non-concessional contributions strategies or utilisation of catch-up contributions during the next year or so. Individuals who had a total superannuation balance (TSB*) of more than $1.6 million and were not expecting to ever be eligible to make non-concessional contributions again may have the opportunity in 2020/21 given lower asset values.... This may also be of benefit where a TSB had reached $1.4 million, denying access to the full 3-year bring forward cap of $300,000. Should plummeting asset values have the balance at 30 June 2020 below the threshold, an individual may be eligible to utilise the full 3-year cap during 2020/21. Similarly, an individual previously unable to complete an already triggered bring forward cycle due to their super balance may have their chance this year. Unused concessional contributions caps Utilising unused concessional contributions caps relies upon a TSB of less than $500,000 at 30 June of the prior year. It might be worth checking the TSB of those hovering just over the threshold if they have unused caps from 2019 onward and could use a tax deduction. TSB thresholds also apply around the government co-contribution ($1.6 million), the one year exemption from the work test ($300,000) and the spouse contribution tax offset, for which the receiving spouses TSB must be less than $1.6 million. Naturally, any age and work test restrictions still apply. Remember, too, that 65 and 66 year olds are no longer subject to the work test requirement for making voluntary contributions. This has given rise to the opportunity for some individuals around retirement age to contribute (or recontribute) more as they have unrestricted access to benefits without the need to retire together with the ability to contribute. Unfortunately, the corresponding change to the bring forward rule which will increase the age limit to 67 (currently 65) has not yet made its way through Parliament. Although its passage is expected (and it is expected to apply from 1 July 2020), we cant assume and it is unclear when we will know for sure. *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlements + (in certain circumstances) the outstanding balance of an LRBA This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.

05.01.2022 How your TRANSFER BALANCE ACCOUNT works The limit any individual can convert to pension during their lifetime is known as their transfer balance cap*. An individuals transfer balance is calculated by accounting for all the transactions that have been recorded in their transfer balance account during their lifetime. This balance cannot exceed their transfer balance cap....Continue reading

04.01.2022 SMSFAR DUE DATE DEFERRAL The ATO have announced that the 2018-2019 SMSF annual return due date has been deferred until 30 June 2020. Contact me for assistance.... #SMSF #Accountant #Superannuation #Taxation

04.01.2022 EOFY strategy - catch-up contributions If an individual is in need of a tax deduction in 2021 and didn’t use their full concessional contributions cap for the last two years (2019 and 2020), they may be able to use some or all of the unused portion. To be eligible to access the unused portion, the individual’s total superannuation balance (TSB*) must have been less than $500,000 on 30 June 2020.... Starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their TSB was less than $500,000 at 30 June of the prior year. No additional paperwork is required. Records of concessional contributions are maintained by the ATO. . . . *TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA . This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. . . #SMSF #Wealth #superannuation #taxation #retirement #Accounting #Money #TSB #TBC #Totalsuperannuationbalance #Accountant #Financialplanning

03.01.2022 Heres what our clients say about us...

02.01.2022 EOFY finalising pensions We’re nearing the end of financial yearhere are some things to consider when finalising pensions. 1. The minimum percentage factors for account-based pensions (including market-linked) have been reduced by 50% for the 2020 to 2022 financial years.... Reduce the pension factor then apply to the balance.calculating the minimum then halving it is not always accurate. If a member has drawn more than the minimum and wishes to put some back, the usual contributions rules apply! 2. If the member has drawn the minimum from an account-based pension but wishes to draw more, consider not treating the excess as a pension payment. Treating the excess as a partial commutation will reduce their transfer balance, maximising the amount that can be retained in retirement phase in the long term. Drawing the excess from the accumulation account if there is one will help preserve the retirement phase portion of the fund. 3. Timing - a pension payment is considered made when the member has received the amount and their benefit in the fund reduced. If made via electronic transfer, the payment is received when it has left the fund’s account and has been credited to the member’s bank account. A cheque dated on or before 30 June may be included if presented promptly and sufficient funds were in the fund’s account on 30 June. This year, 30 June falls on a Wednesday. To ensure timely payment, make any transfers in the week prior which leads up to Friday 25 June. 4. Review any recontribution strategies. The work test requirement applies from age 67. The bring forward age limit is expected to be increased to 67. Unfortunately, this is still in front of the senate and tabled for debate this month. Whilst expected to pass, it still may not and there is a chance that it will apply from 1 July 2021 rather than 2020 as planned. 5. Before resetting a pension, check that it isn’t grandfathered for the purposes of Centrelink benefits Need help? Contact me: [email protected] . . . This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. . . #SMSF #totalsuperannuationbalance #tax #superannuation #Wealth #Money #Taxation #accountant #pensions #accounting

02.01.2022 Client question: My friend and I receive rent from a jointly owned property. Does that make my friend a related party of my SMSF? Yes, it does. For the purposes of SIS, partners in a partnership are part 8 associates and related, however this does not only refer to a business partnership.... The definition of a partnership also includes arrangements in which income is received jointly, for example, investing in a rental property which earns rent or opening a bank account which earns interest. If your SMSF is dealing with other parties, it is important to determine whether they are related for SIS purposes. Engaging with those same parties in external activities can inadvertently create in-house asset problems. . . This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs. . . #SMSF #Superannuation #Accounting #Taxation #Wealth #Retirement #Money

02.01.2022 The new due date for the 2019 SMSF annual return is 30 June 2020. The ATO has allowed a blanket deferral (yay!!). Need help getting them done? Book a time for a chat:... https://calendly.com/topsuperconsulting/discovery-call #SMSF #Accountant #Taxation #Wealth #Retirement #Finance #Investment #FinancialPlanning #Australia #gold #tennis