Question:
More red tape for self-managed super funds
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The Government plans to increase regulation of self-managed super funds detailed in its Stronger Super announcement in September.
The Government has announced support for a long list of changes including:
+ Giving the Tax Office power to issue administrative penalties payable from the corpus of the fund and also applied against trustees or trustee directors or alternatively issuing a rectification order on the fund;
+ Empowering the Tax Office to enforce mandatory education of trustee who have breached the super rules;
+ Removal of the exemption under the financial services license rules that allows accountants to establish self-managed super funds for their clients;
+ Require registration of super fund auditors with ASIC and making them subject to competency standards, penalty regimes and deregistration of defaulting auditors as well as setting up auditor independence standards;
+ Reviewing the ability for super funds to borrow on a limited recourse basis;
+ Where business real property or listed company shares are transferred to or from a super fund it would have to been done on underlying market value or if no particular market exist then on the basis of an independent valuation from a qualified valuer;
+ Collection of self-managed super funds statistics by the Tax Office;
+ Requiring funds to value assets at net market value;
+ Requiring the Tax Office to publish valuation guidelines for super funds;
+ Requiring proof of identity checks for all people joining a self-managed super fund;
+ Capturing details of advisers who established or provided advice in relation to the establishment of a self-managed super fund in the registration process (to catch accountants who incorrectly advise on the set up of a fund after that change is implemented);
+ Disclose member details, confirm trustee details and super fund bank accounts to large public funds where a rollover request to a self-managed super fund has been received;
+ Provide criminal and civil sanctions for schemes that seek access super savings before it is legal to do so;
+ Tax early access to superannuation funds at the highest tax rate of 46.5%;
+ Capture illegal rollovers to self-managed super funds under the money laundering and counter terrorism rules;
+ Amend the legislation to automatically overrule super fund trust deeds to deem requirements permitted by the legislation;
+ Strengthen standards for separation of the fund assets from personal and employer assets; and
+ Require self-managed super funds to consider life and total permit disability insurance for fund members.
http://strongersuper.treasury.gov.au/content/Content.aspx?doc=publications/government_response/recommendation_response_chapter_8.htm
