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.
Super News
Tax Recommendations for SMSF Members
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.
SMSF Age Profile Undergoes Sea Change
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%.
SG Rate Hiked to 9.5%
Amidst mild protest by the employer fraternity, the minimum Superannuation rate has increased from 9.25 to 9.50 percent. The Federal government had made a promise prior to the election that the rate would not rise, but the bill to hold the SG rate could not pass through the senate in time.
Australian Super System Fails to Secure Retirees
Super system prevalent in Australia does not promise even a decent retirement to all who believe in its competence. This statement, harsh as it may sound, is as close to the truth as it comes. More than half of the pre-retirees will be in excess of $140,000 short at the time of their retirement.
SMSF Investments in Residential Property Market
With the SMSF members’ tally crossing the million mark, it is about time we begin to look into where their investments are going. Any new financial strategy comes with its fair share of cynics and detractors and SMSF has not been an exception.
This said, the cynics are fast beginning to comprehend that the self-managed super fund is here to stay. After all, individuals becoming helmsmen of their own retirement planning is a novel idea.
