SUPERCentral News
From purely a superannuation perspective, the 2024 Budget has been a bit of a non-starter. Only two SMSF related announcements were made: the first relating to the deeming test for age pensions and the second relating to payment of SG contributions on Government funded Paid Parental Leave.
Now that the 2023/24 financial year is coming to a close, it will be necessary for individuals receiving pensions from their SMSFs, to ensure that the minimum pension requirement in relation to each of their pensions has been satisfied by 30 June 2024.
This article considers the application of the “catch-up” contribution provisions – when they can be made? How much can be made? And what happens if an excess of “catch up” contributions are made?
First, there is a theoretical maximum catch-up contribution limit. The unused concessional contribution cap arising in respect of a tax year can only be carried forward for at most 5 tax years.
The deeming rates are 0.25% (low rate) and 2.25% (high rate) and the deeming thresholds are $62,600 (single) and $103,800 (Couple- combined).
The income free areas applying for 2024/25 financial year are $212 (single - previously $204) and $372 (Couple combined - previously $360).
The key Super thresholds which will apply for the 2024/25 financial year are as follows:
Concessional contributions are superannuation contributions in respect of which a tax deduction has been claimed whether those contributions are made by the employer (or a related company of the employer) of the member or by the member themself. These contributions are subject to tax in the super fund at 15%.
Age Pension Rates from 20 March 2024 The maximum age pension rates from 20 March 2024 will be
This very issue was the subject of a recent private binding ruling (released 25 March 2024). The taxpayer had for a number of years (actual number was redacted in the published ruling) made personal superannuation contributions for which the taxpayer claimed a tax deduction. The actual amount of each of these contributions was not provided in the published ruling.
If you have funds that are still in catch-up mode or are on different deeds, talk to us about our bulk SMSF conversion program. This will ensure that your trustees have all the necessary powers to comprehensively and legally administer their funds and remain SIS compliant into the future – safeguarding them against potential legal, tax problems and associated penalties.
With an increasing number of elderly parents living with their adult children is it possible that an adult child of a deceased parent could, on the death of the parent, receive their parent’s superannuation tax free?
Two significant changes have been made to the Work Bonus scheme. These changes apply from 1 January 2024. The first change is that an initial credit of $4,000 will be granted to the “work bonus bank” of each new age pension recipient. The second is that the maximum balance of the “work bonus bank” has been increased to $11,800 (previously the maximum balance was $7,800).
Contrary to popular belief, simply tearing up or ignoring signed legal documents does not eradicate its effect. The reality is, once a documented agreement is executed (by signature or common seal) it can only be unmade, corrected or amended by the signing of other relevant legal documents.
The NSW Govt has advised that from 1 February 2024 their duties will increase as follows...
AASB 2020-2: What could be more innocent than an accounting standards board deciding to create a simple, objective, consistent, comparable, transparent and enforceable financial reporting framework? Well if the financial reporting framework was also sustainable, diverse and carbon neutral then we would have a “world’s best” financial reporting framework. What rational person could possibly take exception? Well read on…
One of the most significant features of account-based pensions is the ability to commute the pension, whether in full (also known as a 100% commutation) or in part (a partial commutation ie. less than 100%).
Draft legislation to (non-constitutionally) enshrine the objective of superannuation has now (20 November 2023) been introduced into Parliament. The draft legislation is titled the Superannuation (Objective) Bill 2023. This draft legislation has, at least, the virtue of brevity: the entire bill can be read in under 10 minutes.
Did you know that SUPERCentral have a library of over 100 SMSF Toolkit Documents to assist you in the management of your client’s SMSF’s?
Generally pensions cannot be commenced if the initial pension account balance is greater than $1.9m (the current transfer balance cap which applies from 1 July 2023). However, what if...