In this article we explore how businesses that have turnover less than $10 million can maximise their deductions to save on tax for 2018 year and other issues they need to be aware of – deadlines, things to do etc in the coming few weeks. We will touch on employee superannuation payments, $20,000 asset write off etc
This article will apply to businesses running as sole traders, companies, trusts and partnerships.
You may have heard of Events Based Reporting but not quite sure what this means for you as a member of a SMSF.
The ATO’s initial proposal of Events Based Reporting had software providers, administrators and professional bodies scratching their heads at the thought of the additional administration and costs required to adhere to the ATO’s new requirements.
There have been many disgruntled conversations over the last few months regarding the impracticality of these new reporting rules from these parties.
The superannuation changes from 1 July 2017 certainly had us on our toes and as if these changes weren’t enough, the ATO started to talk about ‘events based reporting’ as a means to keep track of individual’s superannuation balances.
We have now heard good news that the ATO has taken on board the many suggestions and criticisms its proposals received and eased up on the reporting requirements they wished to implement.
The ATO announced that its implementation of SMSF event based reporting will commence from 1 July 2018.
Events Based Reporting will be limited to those SMSFs with members with total superannuation account balances of $1 million or more. These SMSFs will be required to report Transfer Balance Cap events 28 days after the end of the quarter in which the event occurred.
SMSFs whose members’ total superannuation balances are less than $1 million can report Transfer Balance Cap events at the same time the SMSF lodges it’s tax return.
The ATO originally expected all SMSFs regardless of account balances to report Transfer Balance Cap events monthly!
The final proposal will save SMSF’s excessive administrative costs.
SMSFs solely in accumulation phase are not affected by Events Based Reporting as it only relates to transfer balance cap events.
If you are one of our valued clients likely to be affected by the above reporting changes, you will hear from us closer to 1 July 2018 to help you transition to the new reporting rules.
If you would like to know more information please Contact Us
The Government has released a Fact Sheet on their plan to encourage older people to downsize from homes that no longer meet their needs and to free up housing stock for young families starting out.
From 1 July 2018, older Australians will be provided with greater flexibility to contribute the proceeds of the sale of their home into superannuation, reducing a current disincentive to downsizing.
Read the Fact Sheet Here.
From 1 July 2017, the following key changes to the contribution rules now apply:
Self Managed Super Funds or SMSFs as they are known by, are often referred to as Do-It-Yourself funds. But it’s not that easy! In reality, you will need help to ensure you understand the complex superannuation rules and ensure your fund remains compliant.
