The LRBA (Limited Recourse Borrowing Arrangement) interest rate for SMSFs under the ATO’s safe harbour rules for the 2018/2019 financial year, for real property, is 5.80%. For listed shares or units the interest rate is 7.80%. For the 2019/20 rates see this article: LRBA safe harbour interest rates for 2019/20 up slightly These interest rates… Continue reading LRBA safe harbour interest rate for 2018/2019 financial year
2016 was a big year for superannuation changes, probably the largest since the 2007 ‘simpler super’ reforms. However this doesn’t mean that 2017 will be devoid of changes to superannuation. A likely early issue will be setting an objective for superannuation in legislation, which was a recommendation of the Financial System inquiry. Though the recommendation… Continue reading Likely changes to superannuation in 2017
Superannuation changes in 2016 have been dominated by the range of measures announced in the 2016/17 Federal Budget – though several of these changes to superannuation have been modified or abandoned. Below is a list of many of the changes to superannuation in 2016 and their current status. In brief, many of the Government’s changes… Continue reading Superannuation changes in 2016
Update: The changes to superannuation announced in the 2016 Budget, if enacted, would have implications for some people – particularly in regards to the Non-Concessional contributions cap. The superannuation rates and caps for the 2016/17 financial year have been released, including the contribution caps. Superannuation contribution caps – Concessional and Non-Concessional The contribution caps are no longer… Continue reading Superannuation caps, amounts & rates for 2016/17
What does 2016 have in store for SMSFs and the superannuation system, with the Financial System Inquiry recommendations, super fund governance, super choice, a Budget and a Federal Election?
There are several exclusions from the requirement to pay superannuation guarantee contributions. The most well-known is the $450 monthly threshold. However superannuation guarantee contributions are also restricted based on age. People under 18 years of age have to meet additional criteria in order to be entitled to superannuation guarantee contributions.
The average superannuation balance by age is between $15,600 and $74,100, peaking at 323,700 for people aged 55-64.
The Civil Penalty Provision are specific sections of the SIS Act which, if contravened, mean a court can impose a monetary penalty.
The Superannuation Standard Choice Form is a document used by employers and employees in regards to default superannuation funds and choice of super fund. It is available from the ATO here. Some superannuation funds also have their own versions of the form.
The ‘Green Army’ is a Coalition policy to “gradually build to a 15,000 strong environmental workforce.” But this workforce isn’t entitled to superannuation guarantee contributions.