• You need to be paying and reporting super electronically using the new SuperStream format by 28 October 2016.

If you're currently using cheque or direct deposit, you need to make the switch now.

Even if you're already paying by EFT or BPAY directly to super funds, you may still need to make some changes to your reporting to get across the line.

Get help with our SuperStream webinar - sign up today!

We're running free webinars designed to help you understand SuperStream and the steps you need to take to implement SuperStream.

Next webinars:

• Wednesday 5 October 2016 10:00am AEST
• Saturday 22 October 2016 11:00am AEST.

Small Business Superannuation Clearing House
A free service that distributes super contributions to employees’ nominated funds in one transaction. You will meet SuperStream standards when you use the clearing house service.

Find out about:

• SuperStream employer checklist
• Using the Small Business Superannuation Clearing House

Register for Xero Auto Super if your subscription is Business Standard or higher

Using Xero Auto Super 

Send us an email or give us a call to discuss setting this up - we are always here to assist :)

​The Government is proposing to introduce a $500,000 lifetime cap on non-concessional contributions (NCC) (post-tax contributions) that will include all NCCs made since 1 July 2007.  This measure takes effect from 7:30pm (AEST) 3 May 2016.  
You will need to determine if your NCCs made since 1 July 2007 equal or exceed $500,000.  If they do then you cannot contribute further NCCs to your fund and if you have exceeded the cap you do not need to withdraw the excess NCCs.  If you haven’t reached the cap of $500,000 as at 3 May 2016, then you can continue to make NCCs up to the cap.  If you then exceed the cap, you will need to withdraw the excess NCCs or face a penalty tax.  If you do not have this information, these records may be able to be obtained from the ATO.  The lifetime cap limit removes the current $180,000 annual cap and the bring forward rule.  The cap will be indexed in $50,000 amounts in line with wages. 

​The Government proposes to lower the concessional contribution cap to $25,000 for all taxpayers from 1 July 2017.  You can continue contributing up to the current concessional contribution caps of $30,000 for people aged under 50 and $35,000 for those aged above 50 for the 2015-16 and the 2016-17 financial years.

​From 1 July 2017 the Government is proposing to lower the Division 293 tax threshold from $300,000 to $250,000.  This means that if you have an adjusted taxable income of $250,000 or above, Division 293 tax will be charged at 15% on your concessional contributions above the $250,000 threshold from the 2017-18 financial year onwards.

​From 1 July 2017, the Government is proposing to limit the amount an individual can transfer from accumulation phase to retirement phase to $1.6 million.  Individuals that have in excess of $1.6 million will be able to maintain those amounts in accumulation phase where the earnings will be taxed at the current rate of 15%.  If you are already in retirement phase and your balance is in excess of $1.6 million you will be required to reduce your balance to $1.6 million by 1 July 2017 by either retaining the excess amounts in accumulation phase or withdrawing it from the super fund.  Any amounts over $1.6 million in retirement phase after 1 July 2017 will be taxed on both the amount over $1.6 million and any earnings on the excess amount.

​The Government proposes removing the tax-exempt status of assets supporting a transition to retirement income stream (TRIS) from 1 July 2017.  The new tax treatment will apply to all TRIS irrespective of when they commenced.  You will also not be able to elect to treat TRIS payments as lump sums for tax purposes.
There are a number of other proposed superannuation changes that may affect you from 1 July 2017.  These changes are:

• Allowing catch-up concessional contributions — people who have balances under $500,000 will be able to carry forward any unused concessional contributions caps on a rolling 5 year basis.
• Tax deductions for personal superannuation contributions — all Australians under the age of 75 will be able to claim an income tax deduction for personal contributions made to their superannuation funds.  Currently, this type of deductible contribution is generally available only to self-employed people.
• Harmonising contribution rules for those aged 65 to 74 — people will no longer have to meet the work test before making concessional and non-concessional contributions to their super fund if they are aged from 65 to 74 (including making contributions for a spouse aged under 75).
• Improving superannuation balances of low income spouses — the eligibility rules for low income spouse superannuation tax offset will be extended by raising the threshold from $10,800 to $37,000.
• Introducing a Low Income Superannuation Tax offset (LISTO) — the LISTO will replace the current Low Income Superannuation contribution (LISC) to ensure that people with adjusted taxable income up to $37,000 do not pay higher tax on their super contributions than their take-home pay.
• Removing the anti-detriment provision — super funds will no longer be able to use these provisions to increase a death benefit paid to certain death benefit beneficiaries on the basis of refunding contributions tax paid by the deceased fund member throughout their life.

​If you would like some assistance with identifying how these recent changes are likely to affect your own retirement income planning, please feel free to give us a call to arrange a time to meet so that we can discuss their impact on your particular circumstances. We can then determine whether you need to make any changes to your existing arrangements.

The recent case of Commissioner of Taxation v Ryan ( 2015) FCA 1037 serves as a timely reminder to SMSF trustees about the rules around lending.
 
In this case the Federal Court imposed fines of $20 000 for each SMSF trustee for breaches of the superannuation law involving loans to themselves as fund members. The husband and wife respondents were the trustees/ members of a family SMSF. Over a 3 year period from June 2009 to June 2012, the SMSF made 68 loans to the couple totaling just over $200 000. These loans were unsecured , no interest was charged, and no repayment terms were in place. All up, only just over $28 000 was repaid. The borrowed  money was used by  the couple to service a line of credit in relation to their unsuccessful investment in a dry-cleaning business.
 
In August 2012, the SMSF's auditor lodged auditor contravention reports for the relevant years. The ATO applied to the Federal Court to impose civil penalties for breaches of:

•  The sole purpose test
• Financial assistance to members
• The in-house asset rules, and
• The arm's length dealing requirements

 
While a maximum civil penalty up to 2000 penalty units could apply for each contravention under the Superannuation Industry Supervision Act (i.e. $220 000 at the relevant time), the court imposed a penalty of $20 000 for each trustee of the SMSF to be paid over a 3 year period with monthly repayments of $556. The court agreed that the contraventions were "serious" as they involved deliberate breaches over a 3 year period and had reduced the assets of the fund to only $6000.

​For further details click here.

With only two quarters left until SuperStream becomes mandatory, employers are being urged to cross SuperStream off their ‘to-do’ list ahead of the 30 June 2016 deadline.

It takes a little time to set up, but over a quarter of a million employers who have made the change are already enjoying (on average) a 70% reduction in the time they spend on super. That equates to approximately 1.5 hours each cycle! If you haven't done so already your options to get ready include:

• upgrading your current payroll software - we recommend using Xero which has the add on 'Auto Super'
• using your super fund’s online system - for example AustralianSuper has 'QuickSuper'
• using a messaging portal - a gateway service normally provided for SMSFs
• using a clearing house - like the ATOs free Small business superannuation clearing house.

​
For further details please click here.

The ATO's records show more than one quarter of SMSF trustees have multiple super accounts. If you are one of these trustees consider whether you would benefit from consolidating your super into one account. Consolidation can often make it easier for you to keep track of your super and you may save on fees and other charges.
​
If you are unsure whether it would be in your best interests to transfer super into your SMSF please contact us for specialised advice.

The ATO app puts tax and super help in your hand, making it easier for you to conduct your tax and super affairs on the go.

If you're an individual taxpayer, small business owner or self-managed super fund trustee, you can access relevant tax and super information and tools in one place.

Our app has many features, you can:

• calculate the amount of tax to withhold from salary and wage payments
  
• check an Australian business number (ABN) using ABN Lookup
• work out key dates and, depending on your device, set important reminders and alerts for tax and super obligations
• compare your performance against similar businesses in your industry and measure your business performance over time
• record and manage your car trips, work-related expenses, gifts and donations and the the cost of managing your tax affairs on the go using the myDeductions tool
• watch videos, access checklists and visit SMSF assist for other helpful information for SMSF trustees
• access a number of other useful tools and calculators.

See also myDeductions tool.