Category: Blog
SMSF client to agent linking
For new SMSFs engaging a tax agent, you can submit the SMSF ABN registration form and specifying your tax agent as your representative, eliminating the need to go through the standard client-to-agent linking procedures. For existing SMSFs you'll need to follow the client-agent linking steps i..Read More
SMSF contraventions increase during the 2023 financial year
There has been an increase in non-complying SMSF funds during the 2023 income year. This has resulted in the ATO imposing a higher number of sanctions compared to previous years, including: an additional $29 million in income tax liabilities, administrative and tax shortfall penalties, and in..Read More
Taxpayer alert: Diverting property development profits to SMSF
he ATO has issued Taxpayer Alert TA 2023/2: Diverting profits of a property development project to a self-managed superannuation fund, through use of a special purpose vehicle, involving non-arm's length arrangements. The Alert states that the ATO is reviewing arrangements under which: one or..Read More
SMSF related-party LRBAs: ATO interest rate for 2023-24
For SMSF related-party limited recourse borrowing arrangements (LRBAs) used to acquire real property, the ATO's safe harbour interest rate is 8.85% for 2023-24 (up from 5.35% for 2022-23). Practical Compliance Guideline PCG 2016/5 sets the safe harbour interest rate each year according to the ..Read More
Definition of “employee” clarified for “work test” eligibility
The Government registered the Taxation Administration (Remedial Power - Work Test for Personal Superannuation Contributions) Determination 2023.The legislative instrument (LI) modifies the operation of s 290-165(1A) of the ITAA 1997 to ensure that all individuals aged 67 to 75 years who are employe..Read More
Personal transfer balance caps displayed from 11 July
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 will occur on 1 July 2023 the general transfer balance cap, the ATO will be displaying memb..Read More
Personal super contributions: deduction work test modification
The ATO has released a Draft Legislative Instrument proposing to use the Commissioner's remedial power (CRP) to modify the "work test" under s 290-165(1A) of the ITAA 1997 to deduct personal super contributions, with date of effect from 1 July 2022. Draft LI 2023/D11 proposes to modify s 290-16..Read More
Compulsory quarterly transfer balance reporting
The ATO reminds from 1 July 2023, self-managed super fund (SMSF) must report certain events that affect members transfer balance account quarterly. Trustees report these events by lodging a transfer balance account report (TBAR) no later than 28 days after the end of the quarter in which the..Read More
Superannuation rates and thresholds for 2023-24
In accordance with Subdiv 960-M of the ITAA 1997, the Australian Bureau of Statistics has calculated the following superannuation rates and thresholds for 2023-24: CONTRIBUTIONS CAPS: The concessional contributions cap is unchanged at $27,500 for 2023-24. The non-concessional contribut..Read More
30% Tax on Earnings for Super Balances Exceeding $3 Million from 2025
The governments has confirmed that the government will implement a 30% tax on earnings for super balances exceeding $3 million from 2025. After weeks of speculation regarding changes to concessions, the revised tax rate will take effect on 1 July 2025. Currently, earnings from superannuation are ..Read More