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‘Protecting Your Super’ changes raise $1.75 billion for government

The Government has introduced a Bill to Parliament which it says will protect superannuation savings, but also raise a considerable amount of money for the Federal Budget.

The Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 would cap fees for small account, make some insurance in super opt-in and transfer more inactive super accounts to the ATO – measures which were announced in the 2018 Budget.

Following the introduction of the Bill, Minister for Revenue and Financial Services Kelly O’Dwyer said the Government had taken action to protect the “hard-earned” superannuation savings of Australians from “rorts and rip-offs”. Read more...

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Better performing super funds could see double digit 2017/18 returns

Super funds “look certain” to deliver a ninth consecutive year of positive investment returns, according to research and consulting firm Chant West.

The ‘median growth fund’, with 61-80% in growth assets, was up 0.4% for May. This took returns for the first eleven months of 2017/18 to a “healthy” 8.0%.

Mano Mohankumar, Chant West senior investment research manager, says the firm estimates that median growth funds will see returns of about 9.3% for the financial year, with better performing funds having a chance of double digit returns. Read more...

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Super Guarantee amnesty Bill introduced with “haste and secrecy”: Labor

Labor members of a Senate committee have accused the Government of engaging in “haste and secrecy” around its Bill to create an amnesty for employers who haven’t paid their Super Guarantee obligations.

The majority of the Senate Economics Legislation Committee, which includes Liberal Senators and Greens Senator Whish-Wilson, recommended that the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 be passed. Only Labor Senators issued a dissenting report, calling for the SG amnesty provision be removed from the Bill. Read more...

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Treasury finds $10 billion ‘black hole’ in Labor imputation credit policy

The Government claims to have found a $10 billion ‘black hole’ in Labor’s policy to stop most refunds of imputation credits.

Labor says it’s policy will raise $55.7 billion over 10 years, based on Parliamentary Budget Office figures. But a Treasury costing finds it will raise $45.8 billion.

“A detailed Treasury costing of Labor’s retiree tax proposal has revealed a $10 billion black hole in Labor’s expected budget revenue from denying tax refunds for dividend imputation credits over the medium term,” said a statement from Treasurer Scott Morrison. Read more...

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Compassionate early release of super moving to ATO on 1 July 2018

Responsibility for administering the early release of superannuation on compassionate grounds is set to move from the Department of Human Services (DHS) to the ATO, from 1 July 2018.

The Government said this would improve the early release of superannuation by ensuring applicants received funds sooner.

“These changes will expedite the assessment of early release applications, improve the integrity of the process and allow the funds to be released more quickly to successful applicants,” said Minister for Revenue and Financial Services Kelly O’Dwyer. Read more...

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Jail for SG non-compliance Bill likely to pass with support of major parties

A Bill to introduce potential prison sentences for Superannuation Guarantee non-compliance appears likely to pass with the support of, at least, the Liberal and Labor parties.

The Government has a Bill before Parliament which would allow the ATO to direct an employer to make a payment of Superannuation Guarantee Charge. Failing to comply could be penalised by 12 months’ imprisonment or a fine, or both.

The Bill also extends Single Touch Payroll requirements to small employers – 19 and fewer employees – from 1 July 2019, among other changes. Read more...

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Small Business Ombudsman supports Super Guarantee amnesty

The Australian Small Business and Family Enterprise Ombudsman supports the Government’s planned amnesty for employers who haven’t met their Superannuation Guarantee obligations, a decision which the ACTU has described as “shocking”.

The Small Business Ombudsman appeared before a Senate Committee which is inquiring into the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018.

“Yesterday I outlined my support of the 12 month Superannuation Guarantee Amnesty in this Bill, so the very few small businesses across Australia that are not up-to-date with their superannuation obligations for current and past employees are able to get their affairs in order,” said Ombudsman Kate Carnell on Wednesday. Read more...

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30 June ‘red alert’ for SMSFs as critical issues need consideration

The SMSF Association says 30 June is a ‘red alert’ for SMSF trustees, with several “critical issues” that need to be considered ahead of the “looming” deadline.

SMSF Association CEO John Maroney said the transitional CGT relief, Transfer Balance Account Reporting (TBAR) and contribution caps should all be on the radar in preparation for the end of the financial year.

“SMSF trustees need to be aware they may have to report a transfer balance cap income stream before 1 July 2018,” he said. Read more...

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SMSF lodgments 10% behind prior year as “double-whammy” deadline looms

SMSFs are 10% behind on Annual Return lodgments compared to last year, according to Class lodgements.

Class said that 2 July 2018 – which is a Monday – is a “double-whammy” deadline for SMSFs, with both SMSF Annual Returns and Transfer Balance Account Reporting (TBAR).

“With less than a month to go, accountants have a big task ahead to lodge FY17 annual returns, claim CGT relief and report 30 June 2017 TBAR balances for SMSFs with pensions,” said Class.

“Despite the extension to SMSF annual return lodgments being granted both last year and this year, analysis of Class Super data reveals that accountants are 10% behind on lodgments compared to end of May last year.” Read more...