Employers are eligible to a tax deduction for contributions made for employees to a complying superannuation fund. The contributions are only deductible however in the year in which they are paid. To get the most from the deductions available, employers should make sure that the contributions are received by their employees superannuation funds before the 30th June. Continue reading
Super Guarantee Rate Increases
The super guarantee rate has increased from 9% to 9.25% from 1st July 2013. All payments made after this date need to reflect the new rate. It should also be remembered that the rate is going up by another 0.25% next year followed by 0.5% increases each year until it reaches 12%. Keep this in mind when negotiating employment conditions!
Income Tax Changes for 2012/13
A large number of tax changes apply in the 2012/13 income year. A brief summary is provided to you below in this update. There may be some advantages in acting on some of these items before 30 June so if you think any of these changes may affect you, please contact us for more details.
General Year End Tax Planning Strategies
Business Income and Expenses
Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2013/14 compared to 2012/13. Continue reading
With an increasingly aging population there is going to be continued pressure to be able to fund your own retirement. The sooner you put into place practises to improve your worth when you retire, the more time you will have to get the maximum value from your retirement planning efforts.
At the end of the day we all desire a fulfilling retirement. The question is how is this best achieved? One popular option is the use of a Self-Managed Super Fund (SMSF).
While not everyone will want to set up one of these funds, it may be worth your while to take a look at some of the many benefits they offer, including: Continue reading
However, it’s important to remember that these changes will not come into effect until they are passed by both Houses of Parliament and receive the Governor General’s assent. In most cases, if this takes longer than a proposed start date, ie. if it takes more than three months (and sometimes it can take many months) to pass these changes and a proposed start date is 1 July 2013, it may be backdated.
No doubt there will be much public debate and media attention placed on these proposed changes, particularly in association with the upcoming federal election. But until we advise you that the changes have become law and the actual effects they will have on your super, we just have to wait and see.
The main reason people go into business for themselves is quite simple – to have more control. For others, wealth creation is the main focus, although small business also brings with it the higher chance of failure and loss. Is the hard work and extra risk worth it?
If you are a small business owner or have dreams of becoming one, consider the following and how it might apply to you.
Earn less now to create future wealth
Research suggests that the average Australian small business owner works in excess of 35 hours per week – much more than their employed counterparts of similar age – but despite these hours, small business owners have lower levels of income. Continue reading
When it comes to superannuation, there are two types of people – those who find it all “too hard” and don’t give it the attention it deserves, and the growing group – those who want to take complete control of their super by setting up a Self Managed Superannuation Fund (SMSF). But what does “take complete control” really mean when it comes to your largest asset?
Often a superannuation fund will form the core of a financial plan. Choosing a super fund and using it effectively is a vital part of ensuring a secure financial future. With a SMSF you can control all aspects of your super… Continue reading
The fastest growing sector in the superannuation industry is that of self-managed superannuation funds (SMSFs). Although membership is limited to a maximum of four people per fund, data produced by the Australian Tax Office (ATO) as at 30 June 2011 shows there are over 456,000 SMSFs, with over 7,400 new funds established in that
So, what’s so super about SMSFs? Below are some key advantages that can make them an attractive choice as part of your retirement strategy: Continue reading