Well, I can’t say that this year’s budget was my favourite, which I’m sure is a shared sentiment among a lot of our clients. Whilst I still believe that Superannuation is a great space and retains a high degree of tax advantages, there are some changes on the table that will affect quite a few people.
For simplicity’s sake, let’s break it down into the good and the bad:
- The work test has effectively been done away with. Up until now if you were over 65 and wanted to contribute you had to meet this test. From 1 July 2017, this will be no more. One less thing to provide at audit time as well.
- Low-income spouse rebate. This has been introduced as a measure to equalise spouse super accounts – namely women. It’s a $540 offset that phases out once the recipient’s income is $40,000.
- Another initiative for the low-income earner is the rebate on contributions tax if you are earning less than $37,000.
Are you on the monthly bill cycle for Superfund Partners? If that is the case, you are part of the monthly processing system. As the name suggests, this means that each month your superfund is reconciled up to the end of the previous month. This is made possible by our ability to utilise data feeds that port transactional data into our software Class Super (For more details see Chloe Ward’s blog on Data Feeds).
There are many advantages to this system as it allows us to reduce the amount of queries at year end and to capture any potential compliance issues that may arise (For example Contribution Caps). This also allows you to make informed decisions on the direction you would like to take your fund as you are working with real time data instead of the last financial year’s history. Class actually allows a login to the software system for trustees called Fundweb. Once you have been sent an invitation you will be able to see a consolidated view of your fund that details Bank Accounts (statements and unmatched Cash),
Chloe talks about a successful month, looking at opportunities and getting ready for the budget announcement.
Chloe interviews Mark Beveridge from Quill Group and gets his insight on the difficulties investors are facing and what opportunities they should be looking out for.