2016 Newsletter

Newsletter

End of Financial Year

alarm

 

Are you Super Stream ready? 

 

Under SuperStream, you need to pay super contributions for your employees electronically (EFT or BPAY) and send the associated data electronically.

The data is in a standard format so it can be transmitted consistently across the super system – between employers, funds, service providers and the ATO. It’s linked to the payment by a unique payment reference number.

This means you can make all your contributions in a single transaction, even if they’re going to multiple super funds.

Small employers (19 or fewer employees) must meet the SuperStream standard by 30 June 2016. Larger employers should have been using SuperStream since 31 October 2015.

If you have had issues or are struggling to meet your employee superannuation requirements call our office and let us help.


Small Business Support                       

This year we are launching our cloud accounting solutions for local business.cloud

Cloud accounting allows the automation of your data entry as well as linking the entire important book keeping functions in one place. You can complete payroll obligations, superstream compliance and have complete debtor management at all times you have internet access.

Our business packages are all customisable, which means you can add or subtract the modules you need, to suit your business.

Why not call our office to discuss how we can personalise your business package and get your accounting information automated and on the cloud?

 


Superannuation Changes

The 2016 Federal Budget has seen, once again, significant changes to superannuation and retirement savings. Whilst many of the changes will not apparently effect many taxpayers today, the overall effect will have an impact over many years, with younger taxpayers not realising the impact for 20 or more years. The significant changes are outlined below:

 Reduced cap on before-tax super contributions

From 1 July 2017 the concessional (before-tax) contributions cap be cut from $30,000 (or $35,000 for people over the age of 49) to $25,000 per year for everyone, irrespective of age.

Lifetime cap on after-tax super contributions

The government has proposed that from 3 May 2016 the cap on non-concessional (after-tax) super contributions—which is currently $180,000 per person, per financial year—be replaced with a $500,000 lifetime cap.

The lifetime cap, if introduced, would take into account all non-concessional contributions made on or after 1 July 2007.

 Reduced threshold for high-income earners

The government has proposed, the high-income concessional contributions tax rate of 30%, which is double the 15% paid by most workers, will apply to those earning an annual income above $250,000. Currently the annual income threshold is $300,000.

 Removal of the work test for voluntary super contributions

The government has proposed that from 1 July 2017 individuals under the age of 75 will no longer need to meet the work test. Under current requirements, those aged between 65 and 75 must have worked for a set period of time in the financial year to be able to make voluntary super contributions.

 Introduction of the Low Income Super Tax Offset

Since July 2012, individuals with an income of up to $37,000 automatically received a government contribution of up to $500 paid directly into their super. This arrangement expires on 30 June 2017.

In order to replace this, the government has proposed that from 1 July 2017, it will introduce a Low Income Super Tax Offset.

This will provide a tax offset up to $500 to an individual’s super fund, where that individual’s total income does not exceed $37,000.

 Changes to transition to retirement strategies

Investment earnings on super fund assets that support a pension are currently tax free, however the government has proposed that from 1 July 2017 this will no longer apply to transition to retirement income streams.

This means that earnings on fund assets supporting a transition to retirement income stream after this date will be subject to the same maximum 15% tax rate applicable to an accumulation fund.


End of Year Checklistschecklist

As in previous years we have prepared a checklist to help prepare for the end of the year and the information that we will need to assist in the preparation of your 2016 tax return.

Details can be found on the Tax Return Checklist


Late Night Appointmentslatenight

Once again as in previous years we will be open late on Tuesday nights to prepare tax returns for clients that are unable to get to our office between 9.00am and 5.00pm.

Please call the office to make an appointment


Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.