The United Kingdom (‘UK’) tax authority, HM Revenue & Customs (‘HMRC’), has recently notified superannuation funds in Australia (including SMSFs) that are registered as Qualifying Recognised Overseas Pension Scheme (QROPS) of new UK regulations that apply from 6 April 2015. Broadly, the new UK regulations require, among other things, that the fund rules do not [read more]
There is often a last minute or second panic to ensure a contribution is made prior to each 30 June. Unless a contribution is made by 30 June a deduction may be denied or the contribution may count towards the next financial year’s contribution caps. This may result in excess contributions or other issues. Also, [read more]
A 2015 Supreme Court decision is both good news and a caution for contributions to super in the context of business failure A recent court decision demonstrates what can happen when a business borrows from a bank to make large super contributions to an SMSF, and then the business folds. The Court of Appeal division [read more]
An SMSF trustee is required to reject contributions in certain circumstances. This rejection rule can prove very helpful for overcoming an excess non-concessional contribution (‘NCC’). Advisers must be aware of how this rule works if they seek to rely on it. Fund-capped contributions can be rejected Regulation 7.04(3) of the Superannuation Industry (Supervision) Regulations 1994 [read more]
In certain cases, members can claim a deduction for personal contributions made to a superannuation fund. In order to claim this deduction, it is essential that the appropriate paperwork is in place. However, there is a trap that many unknowingly trigger, rendering many personal contribution deductions invalid! Background Section 290-150 of the Income Tax Assessment [read more]
True to its word, on 10 October 2014 the Government introduced draft legislation, which proposes practical and long-awaited changes to the treatment of excess non-concessional contributions (‘NCCs’). This article outlines the tips and traps associated with the proposed changes. Details of the draft legislation The draft legislation takes the form of the Tax and Superannuation [read more]
The latest official word on the status of excess non-concessional contributions was a positive one, but caution is still needed. The latest official word The ATO published on Friday 26 September 2014 the official minutes of the most recent Individual Taxpayer Liaison Group Minutes. In it the ATO stated: Under the new measure for non-concessional [read more]
Superannuation funds Regulated superannuation funds (ie, both APRA funds and SMSFs) must plan when they will become ready to receive contributions and data in the new SuperStream electronic standard. Originally this date was 1 July 2014, however this is now the voluntary induction date for funds and employers. There have been a number of extensions [read more]
Overview There have been two recent decisions in which taxpayers have won the independent contractor argument in the Administrative Appeals Tribunal (‘AAT’). Naturally, if the contractor is an employee, then the PAYG withholding and superannuation guarantee obligations fall on the employer (head contractor). Moreover, other obligations such as those under state and territory legislation regarding [read more]
Overview This article provides a brief summary of the excess contributions tax (‘ECT’) regime. It also summarises the latest developments including the May 2014 Federal Budget announcement, the latest statistical information and covers several key recommendations made by the Inspector-General of Taxation (‘IGT’). Brief summary The ECT regime was introduced in July 2007 as a [read more]
