The National Cabinet has agreed to a mandatory code of conduct for commercial tenancies. The code will be guided by a set of principles, developed and legislated by State and Territory governments and apply to commercial landlords including SMSFs.
Tenants who participate in the federal government’s JobKeeper assistance and have a turnover of less than $50 million will be protected by the code.
PAYG instalments is a system that helps taxpayers manage expected future tax liabilities on their SMSF income for the current income year by making regular payments in advance. To assist taxpayers experiencing financial difficulty as a result of COVID-19, the ATO is enabling tax payers to vary SMSF PAYG instalments without penalty for the current financial year due to the economic impact of the pandemic.
The ATO has announced it will not be taking compliance action for the 2020 and 2021 financial years where an SMSF provide rent relief to a related party business leasing commercial property from the fund. So if your business has a lease agreement with your SMSF for it’s premises / property being forced to pay market rent at while being impacted by Coronavirus is one less thing for business owners to worry about.
What is my new minimum pension for 2020? Can I put amounts in excess of the reduced minimum pension back into my SMSF? Can I treat payments above the reduced minimum pension amount as lump sums? There are many questions about the SMSF minimum pension reduction 2020-21 and this article answers most of the common questions.
Those suffering hardship due to the Coronavirus pandemic will be able to access a $10,000 Coronavirus superannuation payment this financial year 2020, and another $10,000 next financial year after 1 July 2020. The payments are expected to be available from 20 April 2020 and will be able to be applied for online via myGov or via the ATO for a payment to be made from an SMSF.
The Government has reduced the required SMSF minimum pension 2020 draw-down rates for all superannuation pensioners including SMSFs for the current financial year 2019-20 and the next financial year 2020-21.
Draw-down rates for account based pensions are normally 4% per annum for people under 65 an increase as pension recipients age.
There are a number of ways of legally accessing super early via an SMSF. These strategies are useful in times of economic disruption such as the current disruption relating to the Coronavirus (COVID-19) pandemic. Illegitimate early access of super monies via an SMSF is still illegal and carries with it heavy fines as well as potential civil and criminal penalties.