News

Legislation for First Home Super Saver scheme and downsizer super contributions

October 6th, 2017

A Bill has been introduced into Parliament to establish the First Home Super Saver (FHSS) scheme and allow people aged 65 or over to make “downsizer contributions” to their super. The FHSS scheme will allow people to make voluntary contributions into super, take advantage of the associated tax concessions, and later withdraw the contributions and [...]

Tax measures for affordable housing

October 6th, 2017

The Government has released draft tax legislation to implement elements of its housing affordability plan. The proposed measures include an increased capital gains tax discount for people who hold affordable rental housing investments for at least three years. Under the draft legislation, managed investment trusts would be allowed to hold affordable housing investments with the [...]

Identification numbers for directors: an Icarus moment for phoenix activities?

October 6th, 2017

The Government has announced a package of reforms to combat phoenix activities, including the introduction of a Director Identification Number (DIN). Phoenixing involves deliberately transferring assets from a failed or insolvent company to a new company, with the intention to avoid paying the original company’s creditors, tax and employee entitlements (that is, the new company [...]

Tax cut closed off for passive investment companies

October 6th, 2017

The Government has released exposure draft legislation to deny access to the lower corporate tax rate of 27.5% (down from 30%) for companies with predominantly passive income. Under the changes, companies will qualify for the lower tax rate only if: • their passive income is less than 80% of their assessable income for the year; [...]

Small business restructure rollover: changes

October 6th, 2017

The ATO is proposing to modify how the small business restructure rollover (SBRR) operates. The SBRR means that small businesses can restructure from one legal entity to another – for example, from a company to a trust – and transfer the business’s assets to the new structure without immediately causing a capital gains tax liability. [...]

Compensation for ATO systems outages

October 6th, 2017

After the ATO’s unplanned systems outages, it provided lodgment deferrals, and remitted interest and penalties where the outages affected practitioners and their clients’ lodgments. The ATO has also advised that it assesses claims for compensation in two ways: • compensation for legal liability (eg negligence); and • compensation under the Compensation for Detriment caused by [...]

Super assets total $2.3 trillion at June 2017

September 13th, 2017

APRA has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the June quarter 2017. As at 30 June 2017, superannuation assets totalled $2.324 trillion (up 10% from $2.113 trillion in June 2016). Total assets in MySuper products amounted to $595 billion (up 25.5% from $474 billion in June 2016). Self-managed [...]

First Home Super Saver Scheme – draft legislation

September 13th, 2017

Treasury has released draft legislation to implement the 2017–2018 Federal Budget superannuation measures aimed at improving housing affordability by the establishment of the First Home Super Saver Scheme (FHSSS). The FHSSS will allow voluntary superannuation contributions made from 1 July 2017 to be withdrawn for a first home deposit starting from 1 July 2018. The [...]

Segregated current pension assets

September 13th, 2017

A warning has been issued from the Actuaries Institute that tens of thousands of self-managed super funds (SMSFs) could be at risk of incorrectly claiming exempt current pension income (ECPI) under the ATO’s approach to segregated current pension assets.

Super system reforms

September 13th, 2017

Australian Prudential Registration Authority (APRA) has written to RSE licensees setting out its approach to the Government’s super system reforms aimed at enhancing APRA’s prudential powers to improve member outcomes. Under the proposed reforms, the current “scale test” will be replaced with an “outcomes test” requiring MySuper trustees to attest to outcomes promoting the financial [...]