High risk industries targeted for super obligations
The ATO has identified that employers in the following industries have a higher risk of not meeting their super obligations: Hairdressing and beauty; Clothing retailing; and Management advice and consulting. The ATO is currently running an education campaign...
Asset Protection and Testamentary Trusts
Introduction 1. A testamentary trust is simply a trust established pursuant to a will. Most testamentary trusts are similar to ‘normal’ discretionary trusts established during the life time of a person, complete with classes of potential beneficiaries,...
Deductible Donations
A deductible gift recipient (DGR) is an organisation that is entitled to receive income tax deductible gifts (donations). DGRs are either: Endorsed by the ATO; or Listed by name in the tax law. There are two types of DGR endorsement: An organisation is...
The Importance of Binding Death Benefit Nominations (BDBNs)
Two recent court cases dealing with Self-Managed Superannuations Funds (SMSFs) have highlighted the impotance of making, and recognising, Binding Death Benefit Nominations (BDBNs). A member of a Superannuation Fund may generally make a 'BDBN' which, if valid,...
Recognising and avoiding tax scams and fraud
You should be wary of SMS and emails claiming to be from the ATO. We have developed some simple tips to avoid identity fraud. Tip 1: How to recognise scam SMS and emails Hoax SMS and emails can look very convincing. To protect yourself from scams and fraud,...
Tax compliance: improving compliance through third party reporting and data matching
On 6 November 2013, the government announced that it would proceed with the 2013–14 Budget measure Tax compliance: improving compliance through third party reporting and data matching. The measure will establish new, and strengthen existing, reporting systems...
What Will 2014 Bring?
There is still a lot of uncertainty in business circles all around Australia, as to what is going to happen during 2014. Unfortunately, we will probably not know the key political decisions of the Abbott government, until the Federal Budget is delivered in May 2014. ...
SMSFs Provide Major Benefits and More Choices
Superannuation is still the first choice for accumulating wealth for retirement by most working Australians. When compulsory superannuation was first established, the bulk of investment savings were controlled by retail and industry superannuation funds. However, in...
Issues with Providing Guarantees to Secure a Contract
Introduction It has become common business practice to rely on guarantees as a mechanism for securing contracts. To name a few examples, guarantees are now used where banks and finance companies lend money, where landlords lease property, where goods are leased, and...
Trustees duty to consider Insurance Cover in SMSF Investment Strategy
Following an amendment to the superannuation regulations, SMSF Trustees must from the 2012/13 year onwards, give consideration to whether the SMSF should hold insurance cover for the members. The new regulation means that Trustees, who are also normally the...