SUPERCentral News
The Budget has made three very significant changes to the income test for the age pension.
The Budget proposes to increase the SG rate from 9.25% to 9.5% for 2014/15 and the 9.5% rate will apply for the following three years.
Having previously resolved the problem of excess concessional contributions, the Government has now solved the problem of excess non-concessional contributions.
The Government will, temporarily, impose a 2% levy on high income earnings.
After a week's reflection how does the Budget affect SMSFs and superannuation?
Will the ATO be eagerly imposing administrative penalties at the first available opportunity, even for minor breaches?
SUPERCentral is currently providing a special conversion deed program incorporating change to fund structure. For further information about the program and available options, please contact our BDMs, Antonia Chao or Ricardo Indolfo, on (02) 8296 6266 or email info@supercentral.com.au.
There is a material difference between the treatment of corporate and individual trustees. Where the contravention relates to a duty imposed on the trustees collectively, then each trustee will be subject to the penalty.
The SUPERCentral Governing Rules have been previously updated to accommodate this legislation.
Where the breach is of an obligation which is on the trustee as against a director of the corporate trustee then the penalty will be imposed on the corporate trustee.
The ATO will now have the power to impose a monetary penalty on SMSF trustees and directors of SMSF trustee where the trustees have contravened any of 17 listed SIS Act provisions.
Where the breach is of an obligation which is imposed on the trustees collectively then each trustee will be subjected to a penalty.
What are they? They are a direction by the ATO that the trustee undertakes an approved educational course. The ATO will approve the educational course and may provide some of the courses.
A trustee to whom a rectification or education order has been issued has the right to request the ATO to vary the direction. 'Variation' includes a request to cancel or withdraw the direction.
The start date is 1 July 2014. Consequently the ATO will be able to give remediation directions and impose administrative penalties in respect of contraventions which occur on or after that date.
What are they? They are a written direction from the ATO requiring the trustee to take specified action to rectify a contravention.
This legislation applies to SMSFs and allows remediation directions and administrative penalties to be imposed on trustees of SMSFs.
Currently the ATO has only four responses to an SMSF breaching a prescribed standard.
If the SMSF is going to accept Superstream affected contributions/rollovers and benefit transfers, the SMSF must participate in Superstream.
If Superstream applies your SMSF, you need to do the following;