Question:
Self-managed super fund errors
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
There are number of common errors in the way the self-managed super fund tax return is completed including the correct record of an instalment warrant/limited recourse borrowing arrangement for real property or securities. The Tax Office has reported common errors in the SMSF Newsletter.
To overcome common errors in the superfund tax return, care should be taken to:
+ Record instalment warrants/limited recourse borrowing arrangements at the Derivatives and instalment warrants label and not at the real property label until the borrowing arrangement has been discharged;
+ Recording investments in the appropriate categories and not bundling them in the other category if there is a more specific label;
+ A super fund can not have nil assets unless it has been wound up;
+ All new, continuing and ceased members of the fund throughout the year should be reported (including their tax file numbers);
+ Auditor fees should be shown at the specific label and not as a mere component of management and administration fees;
+ A self-managed superfund can not pay a defined benefit income stream unless it commenced before May 2004; and
+ Auditor details should be accurately completed and the return can not be lodged until the annual audit has been finished.
Tax Office SMSF Newsletter-addition 18, NTAA Voice 206, p7
