Operating expenses that are incurred by an SMSF are mostly deductible, however there can be exceptions to the extent that these relate to the gaining of non-assessable income (such as exempt current pension income) or are capital in nature.
The income year of 2019-20 has just ticked over, which is also the first year in which an individual is able to make additional catch-up contributions to super through the application of unused concessional (before tax) contributions.
The Coalition Government has been re-elected in the 2019 Federal Election, so you may be relieved to hear that for at least the next three years we hope to have sustained stability for super. However, there are still some tweaks to the superannuation system which we anticipate will be implemented. With the end of the financial year fast-approaching, now is the time to ensure everything is in place for your SMSF before 30 June.
The federal election has been called for May 18 and both major parties have outlined their superannuation and tax policies. With the federal election only weeks away many of our clients have been asking what the major political parties’ policies are that may impact their SMSF, individual taxation circumstances or personal investments.
Under the superannuation downsizer scheme, people aged 65 and older can make a non-concessional (post-tax) contribution of up to $300,000 from the proceeds of selling what was once their family home. Downsizing enables more effective use of housing stock, and existing contribution caps and restrictions will not apply to the downsizer contribution. The scheme applies from 1 July 2018.
The Treasurer Josh Frydenberg’s first budget has lots of goodies with few “baddies”. This was to be expected with the next federal election only weeks away and the Coalition Government trying to make up ground in the polls.
A major change in the way employers report the tax and super information for their employees to the ATO has been on the way for a while now. The single touch payroll (STP) system started to be rolled out gradually from 1 July 2018 for what the ATO refers to as “substantial” employers (those with 20 or more staff). Recently passed legislation extends STP to all employers, regardless of the number of staff, from 1 July this year.
The same business test to be replaced by a “similar business” test
Removing tax deductibility of ‘non-compliant’ payments
The new “consumer” rules for GST and online purchases
Rental travel expenses mostly off the table
When valuations of property are important for tax
The ATO has announced that it is reviewing arrangements where members of an SMSF (typically at, or approaching, retirement age) purport to divert income earned from their personal services to their fund, which results in minimising or even avoiding tax altogether on that income.
Tax incentive for angel investors in start-ups
Guide to making motor vehicle expense claims
The ATO is looking for personal services income diverted to SMSF’s
For certain travel expense claims, the term “itinerant” needs clarity
Self-employed? You could claim a deduction for saving for your retirement
Shares and tax: A stock market investment primer
Have you had a change in creditable purpose for GST reporting purposes?
Will new LRBA rules stymie your SMSF contribution plans?
Apportioning GST annually for business and private purchases