As the end of the financial year approaches, here are some areas at risk of increased ATO scrutiny and opportunities to maximise tax deductions. For Individuals Opportunities Bring forward your deductible expenses into 2023-24. Prepay your deductible expense where possible, make any deductible superannuation contributions and plan any philanthropic gifts to utilise the higher tax...Read More

The ATO is cracking down on business owners who take money or use company resources for their personal uses. With a blurry line between personal and working life for business owners, they often utilise company resources for their personal uses. Whilst there are tax laws preventing individuals from accessing profits or assets of the company...Read More

The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of SMSFs. Generally, access to super can only be possible when: You retire and turn 60, or You turn 65, regardless of whether you’re working Early access to superannuation is only possible in limited...Read More

The ATO has signalled that it is willing to pursue professional services firms who divert profits to avoid tax. Two new cases before the Administrative Appeals Tribunal demonstrate how serious the Australian Taxation Office (ATO) is about making sure professional services firms – lawyers, accountants, architects, medical practices, engineers, architects etc., – are appropriately taxed. ...Read More

The ATO has issued a warning to trustees of SMSFs about sloppy valuation practices. ATO data analysis has revealed that over 16,500 self managed superannuation funds (SMSFs) have reported assets as having the same value for three consecutive years. With many of these assets residential or commercial Australian property, you can forgive the ATO for...Read More

From 1 July 2024, the amount you can contribute will increase from $27,500 to $30,000 for concessional super contributions; $110,000 to $120,000 for non-concessional contributions. Growing Your Super Contribution caps are indexed to wages growth based on the December quarter average weekly ordinary times earnings (AWOTE) of the previous year. Indexation Impacts The Following Areas:...Read More

The allure of property investment, coupled with the appealing 15% tax rate during the SMSF accumulation phase and the potential for tax-free retirement, greatly motivates many SMSF trustees to consider property development for substantial returns. This article delves into the advantages, challenges, and common issues associated with this investment approach. An SMSF can invest in...Read More

Learn about the non-arm’s length income rules and the confirmed tax on super earnings above $3 million, and how it affects super funds and investors in this informative article. Clarifying the non-arm’s length income rules for superfunds The Non-Arm’s Length Income (NALI) rules aim to prevent superannuation trustees from artificially inflating the fund’s balance and...Read More

The ‘Ace in the Hole’ of the 2023-2024 Federal Budget was the $4.2 billion surplus, the first in 15 years. The Federal Budget at a glance The surplus was driven by a surge in the corporate and individual tax take: High commodity prices, inflation, and high employment have all pushed up corporate and individual tax...Read More

Article Source: Morningstar (https://www.morningstar.com.au/smsf/article/why-smsf-members-should-plan-on-living-to-100/207765) It found life expectancies for SMSF trustees averaged 90 years for men and 91.7 years for women, exceeding the Australian average by 2.7 and 2.3 years, respectively. This is due to such factors as health, nutrition and lifestyle, quality of housing, geographical location and occupation. SMSF trustees are also wealthier and...Read More