Useful Resources
We’ve put together a list of links and other useful resources to assist you. For more information, reach out to us!
Useful Links
Tax tables changed on 1 July 2013 Visit ATO – Paying Workers for more details.
Taxable payments reporting – building and construction industry
Other useful links:
ABN searches and registrations
AusIndustry
Australian Stock Exchange (ASX)
Australian Taxation Office (ATO)
Fair Work Online
NSW Office of State Revenue
Small Business NSW
Useful ATO Guides
For Individuals
For superannuation funds
Planning For The Future
With the global financial crisis, Eurozone bailouts, and the roller coaster ride of the share market getting regular front-page coverage in the press, many of us cannot help but wonder what is going on and what will happen next. Some people feel that the average person in the street is not really affected by all this uncertainty but the reality is quite different.
For most of us, our biggest investment is our home, and the way that can move interest rates can change what we have to pay each month on our mortgages. What many fail to consider is probably the next biggest investment, namely our superannuation. For most, this sits in a large superfund that gets added to each time we get paid and a nameless fund manager makes decisions on how that is invested.
Sure, you can choose the breakdown of how your money is invested in relation to risk, for example, 50% into shares, 30% in cash, and the rest in the property.
At first glance, this might seem like one for the too hard basket. Isn’t superannuation heavily regulated and you would need a team of lawyers and a corporate headquarters to untangle all that red tape? Really when you break it down superannuation is a long term saving scheme designed to give you an income after retirement. It does have rules around how the money can be accessed in order to protect it for retirement. But on the flip side, it also has generous tax concessions that can help maximise the return of your hard earned cash. You become the trustee and fund manager, and you decide the investment strategy. You are also the beneficiary of the fund as you have control over the performance.
Benefits and Requirements of SMSF
At a glance, there are a number of benefits in setting up your own super fund, but there are also responsibilities that you must fulfil and certain requirements that you must meet while managing the fund.
Benefits
Control of the Investment – Members get to define their own investment strategy. There is a wide range of investment choices open to those managing their own fund.
Manage the Risk – Because the trustees of the fund control all the assets, they can balance the risk against the investment strategy.
Tax Concessions – The income from the investments of a complying fund is generally taxed at a concessional rate of 15%.
Responsibilities and Requirements
Investment Strategy – The investment strategy for the fund must be formally decided and reported on.
Annual Audit – An approved auditor must be appointed for the fund to provide the annual audit to ensure it is compliant. The ATO is the regulator of Self Managed Super Funds and needs to be provided with the annual audit report.
Annual Reports and Accurate Records – Minutes of meetings and decisions, reports of transactions, copies of member reports and operational statements are some of what need to be recorded.
Sole Purpose Test – The sole purpose of an SMSF is to provide for the retirement or death benefit of its members. All investments or actions of the fund must satisfy this rule to remain compliant and thus enjoy the tax concessions for super funds. Failure to meet this rule can result not only in higher taxes but also mean penalties.