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Superannuation Quarterly
Issue 53: Member download
Superannuation Strategies
Issue 1: Member download
DIY Superannuation Manual
June 2011: Member download
Not a member?
Superannuation Australia membership just got better!
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July 2011
Welcome to Super e-news
Editorial
The government's response to Cooper's recommendations, while not a total endorsement, comes pretty close to being one and given the finely balanced Lower House together with the new Senators taking their seats from 1 July, the decisions of government will continue to operate on a knife edge as the government also keeps a wary eye on the Opposition to avoid any miss-step that might lay bare an opportunity for its replacement. What then should we expect from the incumbent government in respect of superannuation reform with this Damocles' Sword hanging over it? |
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Read the full editorial.
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Super savings boost for low income workers [MR 2011/092]
On 16 June 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon. Bill Shorten MP, released a discussion paper containing proposed changes that will provide a tax refund that will directly boost the superannuation savings of workers earning up to $37,000. Currently, around 3.5 million Australians get no tax benefit from contributing to superannuation, due to the 15% superannuation contribution tax being at or below their income tax rate.
This consultation paper presents a broad overview of how this measure is intended to operate and provides interested parties with an opportunity to comment on the proposed design of the low income earners government superannuation contribution. The closing date for submissions is 15 July 2011.
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Read the Minister's full media release here
and download a copy of the consultation paper here.
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Deductible percentages for TPD insurance [MR 2011/093]
On 16 June 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon. Bill Shorten MP, announced the release of a consultation paper containing the deductible percentages for Total and Permanent Disability (TPD) insurance premiums, and descriptions of insurance policies, which would be prescribed in regulations permitted under the Tax Laws Amendment (2011 Measures No 4) Bill 2011 passed by the Senate on 15 June 2011. These proposed changes will apply from the 2011-12 income year.
The consultation paper provides the basis for consultation on the content of the regulations. The paper sets out the deductible percentages for certain TPD insurance premiums, and the definitions of the associated TPD insurance policies, that would be prescribed in the regulations. The closing date for submissions is Friday, 1 July 2011.
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To read the Minister's full media release here
and download a copy of the consultation paper here.
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Superannuation Seminars - August 2011
Join Roger Timms, TAI's Head of Tax & Superannuation, for a comprehensive update on the changes to the taxation of superannuation.
View the depth of content Roger will cover, download the seminar notes Table of Contents here or view the content overview here.
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DATES & VENUE INFO:
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Sydney:Thursday 11 August - The Menzies
Baulkham Hills: Friday 19 August - Crowne Plaza Norwest
Brisbane: Tuesday 23 August - Royal on the Park
Melbourne: Tuesday 30 August - Leonda by the Yarra
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Superannuation Australia membership just got better!
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We are pleased to introduce two new services: Superannuation Strategies and a subscription to Individuals Tax & Super Online. These two new services, along with our traditional offering, provide a practical, powerful and cost-effective SMSF knowledge hub covering how-to/compliance issues and longer-term strategies.
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PLUS, join now and receive: The June 2011 Superannuation Quarterly & Superannuation Strategies journals in addition to the next four editions!
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Membership entitles you to all these benefits, and more, for only $326 pa:
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DIY Superannuation Manual & Quarterly Updates - A practical 500-page plus guide covering all aspects of setting up and running a DIY fund |
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Superannuation Quarterly - Analysis of the important compliance issues facing trustees and members of funds |
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NEW! Superannuation Strategies - Focusing on strategies directed at the enhancement of superannuation benefits and the gaining of access to those benefits in a tax-effective manner, it is the essential companion to Superannuation Quarterly |
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NEW! Individuals Tax & Super Online service - News and views on all things SMSF as well as ALL tax and superannuation matters, view free content here |
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Please refer to our website for a full listing of membership benefits.
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FOUR EASY WAYS TO JOIN
Register & pay online | Download order form
Call 1300 657 572 | Email info@taxpayer.com.au
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Cases of interest
Confidential v FC of T [2011] AATA 403: Auditor disqualified for failing to perform his duties
On 13 June 2011, the Administrative Appeals Tribunal (AAT) decided that the auditor of a number of SMSFs was unlikely to perform adequately his duties as an auditor under the Superannuation Industry (Supervision) Act 1993 (SISA93) and the Superannuation Industry (Supervision) Regulations 1994 (SISR94). It also held that he was not a fit and proper person to be an approved auditor for the purposes of the SISA93. Therefore, it affirmed the Commissioner's decision to disqualify the auditor.
Get a copy of the AAT decision here and read further cases of interest here.
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Regulator Roundup: Australian Taxation Office
Read information that has been recently released by the Tax Office
here. |
Your Association at work
Meetings with the Tax Office
Taxpayers Australia actively represents its members across a number of committees and forums. Our representations include the compilation of submissions to Treasury and the Tax Office in relation to draft legislation and draft tax rulings and determinations.
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For a list of our recent activities, please go here.
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New and proposed legislation
NEW LEGISLATION
As at 1 July 2011, the following Bill was still before the Parliament.
Abolition of Age Limit on Payment of the Superannuation Guarantee Charge Bill 2011: 'Abolishing the SG age limit'
Schedule 1 of this Bill amends the Superannuation Guarantee (Administration) Act 1992 to abolish the age limit on payment of the superannuation guarantee charge.
If passed, the Bill will come into effect on the day it receives Royal Assent.
Download this Bill here.
NEW REGULATIONS
Superannuation Industry (Supervision) Amendment Regulations 2011 (No 2) 'SMSFs: regulations for investing in collectables'
Registered on 30 June 2011, these regulations amend the SISR94 to specify the rules that prevent SMSF trustees from gaining current day benefit from an investment in collectables and personal use assets to ensure that such investments are made for genuine retirement income purposes.
New r13.18AA specifies the assets that are taken to be collectables and personal use assets. They include artwork (as defined in the ITAA97), jewellery, antiques, artefacts, coins, memorabilia, wine or spirits, motor vehicles and rare books.
The regulation prevents SMSF trustees from making an investment in such items for the purpose of leasing it to a related party.
The regulation also specifies that each SMSF trustee commits an offence if the fund:
- stores collectables and personal use assets in the private residence of a related party
- does not record its reasons for the decision on where to store collectables and personal use assets
- does not insure collectables and personal use assets in the name of the fund within seven days of acquiring them, or
- disposes of collectables and personal use assets at a price other than a market price determined by a qualified independent valuer.
Each offence is an offence of strict liability. A transitional period provides SMSF trustees with existing investments in collectables and personal use assets time to comply with the new rules.
The amendments commence on 1 July 2011.
Download these Regulations here.
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Question and Answer
Question
I am the reversionary beneficiary of my late husband's account based pension. He died on 1 March 2011.
For 2011-12, is the minimum payment based on his age or my age?
Answer
The minimum payment for 2011-12 is based on your age as at 1 July 2011. |
Disclaimer
All information provided (including all publications which may be viewed or downloaded, articles, Q&As, FAQs, calculators, ready reckoners, and other tools) is of a general nature only and is not personal financial advice.
It does not take into account your particular objectives and circumstances.
No person should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor.
To the fullest extent permitted by law, no person involved in producing, distributing or providing the information for this newsletter (including Taxpayers Australia Incorporated, each of its directors, councillors, employees and contractors and the editors or authors of the information) will be liable in any way for any loss or damage suffered by any person through the use of or access to this information.
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