The Government has moved quickly on their 5 April 2013 announcements to increase the concessional contribution (CC) cap, with Treasury releasing of an exposure draft (for industry consultation) which outlines details proposed increases from 1 July 2013. The increase in the CC cap is to be phased in, with an: increase to $35,000 from 1 … Continue reading »
The ATO has recently updated its website with the latest statistics regarding excess contributions tax (ECT), which continues to show individuals predominantly getting caught with their concessional contribution (i.e. salary sacrifice arrangements). After a 314% increase in ECT notices in 2009-10, there has been a reduction again in 2010-11 to date, however it is significantly … Continue reading »
There have been many advisers and trustees alike looking to build strategies around the interpretation the Commissioner’s decision outlined in ATO ID 2012/16, which deals with the timing of concessional contribution allocations. The facts of this interpretive decision effectively allow for the taxpayer to “double dip” on the concessional contribution tax deduction in the current … Continue reading »
Much has been talked about of the budget announcements impacting contributions, in particular a flat $25,000 concessional contribution cap that will apply across all individuals from 1 July 2012. Whilst concessional contributions have been impacted, non-concessional contribution amounts will remain at $150,000 p.a. with the bring forward rule available for those under age 65. Given the … Continue reading »
The media was a buzz over the weekend regarding the proposed budget announcement to increase the contributions tax rate from 15% to 30% for individuals who earn more than $300,000 p.a. In 1996, the Coalition Government introduced the super surcharge to help ‘fix the mess’ of the previous Labor Government. This time, it appears the … Continue reading »
As many Trustees work through their 2011 SMSF compliance requirements, it is an important financial year to consider account balances for those members over 50 and approaching 50 years of age, given the proposed changes to the concessional contribution (CC) cap from 1 July 2012. The Federal Government appears committed to legislating the $25,000 extension … Continue reading »
The use of anti-detriment within SMSFs as a strategy has been stymied over the past couple of years since the Australian Taxation Office (ATO) indicated that any allocation from a reserve for the purposes of paying this tax saving amount was to be counted as a concessional contribution. Subject to the amount of the allocation, … Continue reading »
The reaffirmation in the Federal Budget of the concessional contribution cap extension for those over 50 years of age where their account balances are under $500,000 is likely to bring further problems to the already growing area of Excess Contribution Tax (ECT). Whilst the government has announced relief in the Federal Budget for excessive amounts … Continue reading »
Budget night in May each year regularly throws up changes and challenges, and this one appears to be no different. Retirement policy with an aging population continues to grow in importance, but it is an area that Governments can’t help themselves to fiddle with when endeavoring to “balance the budget”. This year appears to be an interesting … Continue reading »
It was very pleasing to read today in the Australian Financial Review, that Assistant Treasurer and Minster for Financial Services & Superannuation, Bill Shorten has confirmed that Treasury is reviewing the current Excess Contributions Tax (ECT) penalty regime and is looking at options to change the laws. The Minister was quoted as saying, “I am fully … Continue reading »