The ATO has made no secret of its data matching capabilities and as of 1 July, there are a few changes you should be aware of.
Australia's self managed superfunds – SMSFs - currently hold about $558 billion in assets, and access to or use of that money is a touchy subject.
From 1 July 2014, the ATO has new powers to deal with delinquent trustees including directly levying financial penalties. Trustees should read the bolstered ATO powers more broadly as part of an overall campaign to 'add teeth' to the ATO's SMSF compliance programs.
So, if your SMSF has borrowed funds, has overseas interests, undertaken related party transactions, etc., make sure your investment strategy allows it, and all the paperwork supporting your position is in place and within the rules.
Employers can also expect a renewed focus from the ATO on superannuation guarantee (SG) payments made to employees. With the increase in the SG rate from 9.25% to 9.5% on 1 July 2014, employers will need to make sure that payments are made on time and that the calculations are accurate.
Just be aware that the increase in SG does not necessarily reduce the take home pay of employees. In many cases employee contracts are 'base plus superannuation'. In this case, the employer absorbs the increased SG rate not the employee.
For more information about the ensuring your SMSF is compliant or questions about the Superannuation Guarantee, please contact us on 02 9957 4033 or via our website contact form.
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Last updated July 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.