News

Super Reforms – Division 293

From 1 July 2017, the threshold at which high income earners will pay additional contributions tax will be lowered from $300,000 to $250,000. This will lower the cutoff point before an extra 15% contributions tax is payable on deductible contributions. Due to the broad nature of the inclusions (taxable income plus reportable fringe benefits plus total net...

Super Reforms – Concessional Contributions

Concessional contributions will decrease but eligibility to contribute will be broadened. From 1 July 2017, the concessional contribution cap will be reduced to $25,000 from $30,000 (under 50s) or from $35,000 (50s plus). Currently, an income tax deduction for personal superannuation contributions is only available to people who earn less than 10 per cent of their income...

Super Reforms Series

We will be sending you a series of short articles on the impending super reforms over the coming days. We will be breaking down the changes into more digestible pieces whilst suggesting planning options. Our particular focus will be the period leading up to 30 June 2017 when a careful assessment of each client’s position will...

Fee Reduction

As we have been able to negotiate a more competitive arrangement with our legal outsourcers we are pleased to pass on these savings to you. Effective immediately; Our fee for providing a new trust deed, all necessary registrations, minutes and bank account opening (if required) has been reduced from $635 to $300. Our fee for establishing a corporate trustee,...

Further Clarification of Super Proposals

The operation of the bring forward provisions under the proposed new regime is a little different to the current rules. The assumption that the full $540k bring forward limit can be carried forward to the next two years is not correct. Let’s consider a few cases. If a member (under age 65) begins their 3 year bring forward...

Proposed NCC Budget Changes relaxed

In a previous newsletter we canvassed the problems that the proposed NCC cap changes announced in the budget would create for those seeking to rectify uncommercial, related party, limited recourse loans. Effectively the changes, if implemented, would generally remove the ability to reduce existing loans by forgiving the debt and converting it to a non concessional...

End of Year Checklist

As we approach the end of this very eventful financial year we have, once again, prepared a list of items that may not only be used to ensure your clients satisfy their compliance obligations but may also prompt you to consider other useful items as well. We suspect that our 21 point checklist is probably the...