Question:
Self Managed Super Funds – Ever increasing complexities
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
Despite giving lip service to “red tape reduction” and setting up committees for that purpose, it seems that Governments and their associated bureaucracies cannot help themselves.
Here are some extra complexities placed on Super Fund trustees just in the past several months:
Abolition of excess concessional contributions tax. This is not an abolition, it will be paid by the taxpayer instead of the Super Fund and an interest charge will be added. However, you can arrange for a release of excess concessional contributions which would otherwise automatically trigger the bring forward provisions for non-concessional contributions.
Division 293 Tax. This new tax is to be payable by high income earners in respect of superannuation contributions paid for them (see our article on this subject).
Increased Concessional Cap. Previously if you were over 50, your concessional cap was $50,000 compared with $25,000 for younger taxpayers. For 2013/14, the $50,000 cap becomes $35,000 but it doesn’t apply to the over 50s; instead it applies to those who were 59 years or over on 30 June 2013. From 2014/15, it will apply to those who are 49 years or over on 30 June 2014.
For some reason, eligibility for the higher cap is now determined by reference to the person’s age at 30 June in the previous year.
None of this affects the non-concessional contributions cap which remains at $150,000.
Super Fund Auditors. From 1 July 2013, your Super Fund auditor is required to be registered as an Approved SMSF Auditor by ASIC. Your auditor will have had to apply for registration with ASIC as an approved SMSF Auditor and you will need to go to the ASIC website to check that he is on the list of approved auditors.
WTB 32/1446.
