superannuation Archives - Accounts NextGen

Get ready! It’s the tax time.

Get ready! It’s the tax time.

Probably this year went through loads of difficult shifts; some unusual and unseen incidents have affected the economy worldwide. All of us did work from home, while most of us relied on the government’s assistance.

But, as the end of the financial year is nearer, the lines of worriment may be visible on your forehead. However, for Australians, it’s not a hectic situation, as they know how and why it’s essential for them.

Along with this, since loads of happening came into existence over time; hence most of you might be curious to know the latest updates on tax returns. Therefore, in light of that curiosity, below is some latest information for you.

If you don’t know when tax returns are due

Because the deadlines vary for tax seasons, you may have to face-off with difficulties. Hence you can take the help of agents who’ll guide on every milestone.

If you want to use an agent

In most instances, you should only seek professional tax agent help. For example- they are expert in filling the tax return and always keep you up-to-date with the latest policies.

If you receive Job Keeper payments

Job keeper payments are, however, taxed as a regular income. Hence beware, the payment is viewed as salary/wages/allowance/ by ATO.

If you receive Job Seeker payments

Like job keeper, jobseeker payments are also taxed, and ATO views it as ‘government payments and allowances.’

If you withdrew some of your superannuation early

According to ATO assistant commissioner, Karen Foat, any withdrawn amount from super are tax-free if you receive early access to your super due to COVID-19.

If you run a business

Taxpayers who don’t pay instalments for GST won’t be affected because the government has decided to suspend the indexation entirely due to coronavirus.

If you run a self-managed superannuation fund (SMSF)

You can take some advice from a charted accountant on behalf of SMSF.

Superannuation guarantee contributions not payable for additional hours or public holidays

The Full Federal Court has held that superannuation guarantee contributions were not payable by an employer in respect of the “additional hours” and “public holidays” components of employees’ salaries since these components did not form part of “ordinary time earnings”. In doing so, it allowed the employer’s appeal against the primary judge’s decision reported at [2018] FCA 80.

Bluescope Steel (AIS) Pty Ltd v Australian Workers’ Union [2019] FCAFC 84 , Allsop CJ, Collier and Rangiah JJ, 24 May 2019.

Regulations made to correct technical and drafting defects in super and tax laws

Regulations have been made to correct technical and drafting defects, and remove anomalies and inoperative provisions to the competition, corporations, superannuation and taxation laws.

The Treasury Laws Amendment (Miscellaneous Amendments) Regulations 2018 (F2018L01691) make amendments to the following:

  • the Income Tax Assessment Regulations 1997
  • the A New Tax System (Australian Business Number) Regulations 1999
  • the Superannuation Industry (Supervision) (Transitional Provisions) Regulations 1993
  • the Competition and Consumer Regulations 2010, and
  • the Corporations Regulations 2001.

Work test exemption for recent retirees

Regulations have been made to provide a one-year exemption from the work test for superannuation contributions to allow recent retirees to boost their superannuation balances.

The Treasury Laws Amendment (Work Test Exemption) Regulations 2018 (F2018L01682) amends the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997 to ensure that individuals aged 65 to 74 years with total superannuation balances below $300,000 can make voluntary contributions to their superannuation for 12 months from the end of the financial year in which they last met the work test.

Currently, individuals aged 65 to 74 years must work a minimum number of hours during a particular period in the financial year in order to keep making voluntary contributions to superannuation (known as the work test).

The work test exemption was announced in the 2018/19 budget as part of the More Choices for a Longer Life package.

Total superannuation balances will be assessed for eligibility at the beginning of the financial year following the year that they last met the work test. Once eligible, there is no requirement for individuals to remain under the $300,000 balance cap for the duration of the 12-month period.

Existing annual concessional and non-concessional caps ($25,000 and $100,000 respectively) will continue to apply to contributions made under the work test exemption.

Individuals will also be able to access unused concessional cap space to contribute more than $25,000 under existing concessional cap carry forward rules during the 12 months.

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