According to the ATO website, as at 30 June 2015, the average and median age of members of newly-established funds over the past five years declined from approximately 54 years to 49 years. In other words, the idea of a SMSF is becoming more popular than ever before with peopleContinue Reading
To assist eligible individuals save for their retirement, the government will match personal (after-tax) superannuation contributions made up to certain limits.
The maximum co-contribution is $500. The amount of co-contribution you can receive depends on how much you contribute and what your level of income is.
When an eligible individual ‘s taxableContinue Reading
The government also provides a low income super contribution of up to $500 annually for eligible individuals on adjusted taxable income of up to $37,000.
The amount payable under this measure is calculated by applying a 15% matching rate to concessional contributions made by of for eligible individuals.
This is only aContinue Reading
An excess concessional contribution (ECC) charge is applied to the additional income tax liability arising as a result of having excess concessional contributions included in your tax return.
The intent of this charge is to acknowledge that the tax is collected later than normal income tax.Continue Reading
Should an individual exceed their concessional contribution cap, the excess contributions are included in their income tax return and taxed at the marginal rate of the individual. (Note: An ECC charge is also applied.)
Should an individual exceed their non-concessional contributions cap (including making use of the bring forward rules, ifContinue Reading
The SMSF Accountant uses specialised software to assist with SMSF administration and accounting. This software is called “Class”.
Class software means that clients of The SMSF Accountant don’t need to wait for reports or call us to get an update on their fund investment position, performance and asset allocations, contribution caps, pension limits andContinue Reading
What is SuperStream?
SuperStream is a government reform aimed at improving efficiency of the superannuation system.
Under this system, SMSFs must be able to receive contribution payments and contribution data electronically.
What’s needed to integrate SuperStream with the SMSF?
To meet these obligations, members of an SMSF should provide their employers with:
SMSF’s bank account details
For the 2016 financial year, commencing 1 July 2015, the concessional contribution cap (limit per member) is $30,000.
For individuals aged 49 years or older at 30 June 2015, the concessional contribution cap is $35,000. This is a temporary increase and will cease when the general cap is indexed to $35k.
As of 1 January 2015, the normal deeming rules were extended to superannuation account based income streams. This means that all financial assets are assessed under the same rules.
Account based income streams (a typical SMSF pension) held by pensioners prior to 1 January 2015 will continue to be assessed underContinue Reading