Author Archive
New regulations concerning collectables and personal use assets held by SMSFs
Posted by: | CommentsNew regulations concerning collectables and personal use assets held by self managed super funds came into affect 1st July 2011. In order to avoid committing an offence under the new regulations, SMSF trustees should ensure for all new acquisitions of collectables & personal use assets that they:
- Do not store the asset/s at the private residence of a member or related party;
- Keep a record of the reasons for the decision on where to appropriately store the asset/s
- Insure the asset/s in the fund’s name within 7 days of acquisition;
- Do not dispose of the asset to a related party at a price other than market value (as determined by a qualified independent valuer);
- Do not enter into a lease arrangement with a related party in relation to the asset/s
In relation to collectables or personal use assets acquired prior to 1 July 2011, the new regulations will not apply until 1 July 2016. All existing holdings of collectables or personal use assets must comply with the new regulations or be disposed of by 1 July 2016.
Minors no longer entitled to low income tax offset on investment income
Posted by: | CommentsThe Government has announced in the 2011 Federal Budget that it will seek to stop children under the age of 18 from accessing the low income tax offset (LITO) to reduce tax payable on their investment income, eg distributions from trusts, dividends, interest, income from property etc, effective from 1 July 2011. This measure is to discourage income splitting between adults and children. The Assistant Treasurer has said that increases in LITO over recent years have increased the income that can be allocated to children tax free resulting in increased distributions of income to children, in particular from discretionary trusts.
Income earned by children (such as from part-time jobs etc) will still be eligible for the full benefit of LITO. Investment income of minors who are disabled or orphaned or received from inheritances will not be affected by the change.
“Maximise Your Super” – Special Briefing
Posted by: | CommentsIn the current uncertain environment, it’s more important than ever that you take every opportunity to achieve attractive and consistent returns on your superannuation savings.
That’s why we are holding an special boardroom briefing called “Maximise Your Super” to set out for you some of the latest strategies to boost your retirement savings and that can help you meet your financial objectives.
You’ll discover…
- The truth about retirement and how much you really need to enjoy the lifestyle you desire
- Your investment options… the facts of life about investment and the only effective ways to grow your super more quickly
- How to get the most out of the superannuation system and take full advantage of ALL the savings and benefits available to you (most people are missing out on considerable opportunities)
…PLUS how you can immediately take charge of your superannuation with the real secrets the wealthy use to build and protect their wealth.
And let me be very clear…
…these are NOT the typical strategies that you’ll hear in the mainstream financial press.
We’ve spent a great deal of time and effort in detailed research on these strategies.
Here are the details of the event…
Fringe Benefits Tax Rates and Thresholds for FBT year commencing 1 April 2011
Posted by: | CommentsThe tax office has released new Fringe Benefits determinations dealing with FBT rates and thresholds for the FBT year commencing 1 April 2011 to 31 March 2012:
1. Food component of a Living Away From Home Allowance for expatriate employees per week.
It has been determined the reasonable food component of a LAFHA for an expatriate employee per week is:
$233 for 1 adult, $373 for 2 adults, $419 for 3 adults, $301 for 1 adult and 1 child, $419 for 2 adults and 1 or 2 children, $488 for 2 adults and 3 children, $488 for 3 adults and 1 child, $558 for 3 adults and 2 children and $558 for 4 adults. For larger family groups add $140 for each additional adult and $68 for each additional child.
2. Private use of a motor vehicle other than a car:
The rates to be applied on a cents-per-km basis for calculating the taxable value of a fringe benefit that arises through the use of a vehicle other than a car are:
0-2500cc - 46 cents/km, over 2500cc – 55 cents/km and Motorcycles 14 cents/km
3. The benchmark interest rate is 7.8% pa
David Hunt, a Partner of Peter H. Hunt & Associates, has published a special report concerning Leverage within Superannuation.
Used correctly, leverage and the use of borrowing can significantly boost the returns from investments in super funds. For many years, the authorities discouraged the use leverage in super funds which was only allowed in highly restricted circumstances. This all changed in September 2007 when borrowing by super funds was explicitly permitted in a change to the SIS Act.
A number of issues arose, however, in the operation of the new provisions and there was a further change to the legislation in July 2010. This special report takes a look at the new legislation and the opportunities it offers to super fund investors.
If you would like to read David’s special report “Leverage within Superannuation – What you must know before using borrowing in your super fund” please email us at phhunt@phhunt.com.au and include your name and contact details or call us on (02) 9221 6699 and we will send you a complimentary copy.
Temporary Flood and Cyclone Reconstruction Levy
Posted by: | CommentsThe Temporary Flood and Reconstruction Levy was passed without amendment by the House of Representatives on 24 February 2011. The Bills introduce a one year progressive flood reconstruction levy in the form of additional income tax on Australian resident and foreign resident individuals in the 2011-12 financial year.
The proposed levy payable is 0.5% for taxpayers with taxable income between $50,001 and $100,000 and 1% on taxable income over $100,001. Ms Gillard has said those who receive the Australian Govt Disaster Recovery Payment for a flood event this financial year will be exempt from paying the levy as will individuals with a taxable income of $50,000 or less.
The Bills now proceed to the Senate.
ATO warns of email scam
Posted by: | CommentsThe Commissioner of Taxation has warned taxpayers to be mindful of a scam email claiming to offer a refund from the ATO.
The email contains a virus which is in an attachment to the email. The fake email contains a file which asks for personal and credit or debit card details in order for the ATO to pay a tax refund. The Commissioner of Taxation has said any email requesting personal and credit or debit card details before a refund can be paid is a hoax.
SMSFs – collectibles and personal use assets
Posted by: | CommentsThe Government has announced that Self Managed Superannuation Funds will continue to be allowed to invest in collectibles and personal use assets, like artwork or stamps, as long as they are held in accordance with stricter legislative standards.
The tighter legislative standards are intended to ensure that trustees of SMSFs do not gain a personal benefit from these types of investments and that they be held for the sole purpose of providing a retirement benefit.
Bill Shorten, Assistant Treasurer and Minister for Financial Services and Superannuation, has released draft legislation which allow the Government to make regulations about how SMSFs can make, hold and realise investments in collectibles and personal use assets.
ATO reminder regarding lodgement date
Posted by: | CommentsThe ATO has issued a reminder to people who had a balance of assessment of $20,000 or more in their 2009 income tax return that they are required to lodge their 2010 income tax return by 31 March 2011.
Bucket donations are deductible
Posted by: | CommentsThe Tax Commissioner has advised the ATO will approve “bucket donations” made to the 2011 Queensland Flood Appeal. For 2010-2011, donations to the value of $10 made to a “bucket appeal” for the floods will be allowable without the need for a receipt.