The Australian Government finally had most of its 2016 budget measures on superannuation pass through Parliament on 23 November, following a tortuous process of negotiation with the cross-benches. Most of these changes to Australia’s superannuation system will take effect from 1 July 2017.
To save you having to search for the right tax rate or relevant threshold this tax season, we’ve put all the relevant information in one place.
Our guide includes tax rates, offset limits, benchmarks, rebate levels, allowances, superannuation and fringe benefit tax rates and thresholds, student loan repayment rates and salary levels.
The Turnbull Government’s Federal Budget, delivered on 3rd May 2017, included the most significant structural changes to the Australian superannuation system since compulsory superannuation was first introduced. Pre-budget speculation had anticipated many changes, however some have gone much further than anticipated.
Running your own self-managed super fund (SMSF) can provide a great means of managing your retirement savings, with the potential for more control, greater choice and lower costs. In fact, more than one million Australians are now members of an SMSF.
The money put aside in your self-managed superannuation fund (SMSF) is, of course, intended to be kept to fund the retirement of you and your fellow fund members. The over-riding obligation of you as trustee is to adhere to this “sole purpose” test.
SuperStream is part of the Government’s Stronger Super initiative and introduces a more efficient method of sending superannuation payments and associated information in the superannuation system. Measures have been progressively coming into place since July 2014.
Do you understand when your self-managed superannuation fund (SMSF) can borrow and when it can’t?
Generally, SMSFs are not able to borrow to acquire assets. The rationale is that superannuation is meant to be a relatively conservative investment vehicle, and borrowing can put the fund at risk.
An Actuarial certificate is a statement provided by a qualified actuary to confirm the proportion of an self managed superannuation fund’s (SMSF) income that should be exempt from income tax. The tax treatment of a fund depends on whether it is in accumulation or pension phase, or a combination of both.
There will in all likelihood come a time when you will need to wind up your self-managed superannuation fund (SMSF).
It’s always a good idea to start by sitting down to read your trust deed, as it may contain vital information about winding up your fund. Remember, once a fund is wound up, it cannot be reactivated.
A Self Managed Super Fund (SMSF) can be a very powerful retirement savings vehicle. It’s good for long-term wealth accumulation and asset protection within a tax-effective structure.
There is plenty of scope, however, to lose your footing over some of the required (and numerous) compliance tasks. If mishandled, the potential pitfalls can work to outweigh the benefits of saving for retirement through your SMSF.