Superannuation, in many ways, is our vehicle leading to a decent post-retirement life. We have this fleeting vision of life, so we often tend to disbelieve in the distant future; but surprisingly, it arrives one day. We actually grow old and retire, and it is then that Superannuation fund comes to our rescue; if we have paid some emphasis on it during the course of our working lives that is. Let us first define superannuation and explain the importance of Super fund.
Category: Feature Archives
The definition of what constitutes an SMSF contravention is all set to change in the light of the new penalty regime of the ATO. July 1 will alter the chapters of contravention thresholds, but there is no reason to panic as the auditors are registered with the commonwealth agency and they can be trusted.
ATO’s Taxation Determination 2014/7 came out on 9 April and was called “Income Tax: in what circumstances is a bank account of a complying superannuation fund a segregated current pension asset under section 295-385 of the Income Tax Assessment Act 1997 (Cth) (‘ITAA’)?”. In the light of the ATO’s directive, let us find out what situations does the statement “an asset can be segregated on the whole but not in parts” sound workable in.
The Inspector-General of Taxation’s (IGT) review of the ATO penalties brought various recommendations to the surface. This was announced by the Finance Minister Matheas Cormann in his release. Ali Noroozi, the Inspector-general of taxation, felt that various improvements could be made to the ATO penalties in order to tackle stakeholder concerns better and iron out the overall penalty process.
Self-managed Super Funds are perceived to be DIY in nature, but not all their aspects can be dealt with without professional assistance. When it comes to strategising the tax implications, there are quite a few things the SMSF trustees should be aware of.
The SMSF age profile has undergone a sea change. Compared to July last year, the number of SMSF entrants between the age bracket 34 and 54 has shot up from 36.6% to 62.1%. For the age bracket 25-34, SMSF entrant list has nearly trebled — from a modest 4% to a formidable 11.1%.