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A checklist for setting up your SMSF

Posted on Oct 30, 2018 by admin

Setting up an SMSF can be complex, which is why a checklist is useful to streamline your process. Before you set up your SMSF, first determine if having an SMSF is a commercially viable option. Once a decision is reached and you are about to start your SMSF, here are the basic steps to get things started:. Determine which members will be in your fund? Decide if you will you seek professional help to assist your set up? Decide whether the fund should have individual trustees or a corporate trustee Establish a suitable trust and trust deed Register your fund […]

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Tax implications of a business restructure

Posted on Oct 30, 2018 by admin

Tax exemptions may apply to small businesses going through a restructure provided they meet certain criteria. Typically when a business is sold, you would have to pay income tax due to transferring assets. However, when a business is restructuring, the ownership of assets remains unchanged, and there is instead a rollover. This allows you to transfer assets as a part of the restructure without having to pay income tax on that transfer. Your business may be eligible for the small business restructure rollover provided that: The change is a genuine restructure as opposed to an artificial or inappropriately tax-driven scheme […]

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ATO update: Check for $17.5 billion in lost super

Posted on Oct 26, 2018 by admin

The ATO’s new data revealed that although the total amount of lost and unclaimed super reduced by $420 million in 2017-2018, there is still $17.5 billion left to be found. The ATO has prioritised reuniting people with their lost super spread across over 6.2 million accounts. In the past financial year, the ATO was successful in merging $3 billion into active super accounts across the country. Typically people lose contact with their super funds when they change jobs, move house or forget to update their details. Although some people may intentionally maintain multiple accounts, those who are unaware they have […]

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When can the ATO issue a default assessment for overdue lodgements

Posted on Oct 26, 2018 by admin

A default assessment is an assessment of taxable income for overdue tax returns or the net amount or assessable amount-for late activity statements. Although the ATO’s preferred approach is to work with taxpayers to help them meet their lodgement obligations, a default assessment will be issued if this collaborative approach fails. PenaltyThe administrative penalty of 75% of the tax-related liability will be applied for each default assessment issued by the ATO. The penalty increases by 20% for taxpayers who have a pattern of non-compliance and the ATO may also apply for another penalty for failing to lodge on time. Assessment […]

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Event-based reporting framework for SMSFs

Posted on Oct 19, 2018 by admin

The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. The initiative allows for the administration of the Transfer balance cap (TBC). Under the EBR framework, you need to report to the ATO, when the first member of your SMSF begins a retirement phase income stream. The SMSF annual return is to be kept separate from the transfer balance account report. The TBAR enables the ATO to record and track an individual’s balance for their TBC and superannuation balance. The ATO does not provide ‘special circumstances’ discretion for contraventions of the TBC which is why […]

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