SUPERCentral News
The Supervisory Levy for new SMSFs (ie established during the 2014 financial year) is $518 (being $259 for the 2014 financial year and an advance payment of $259 in respect of the 2015 financial year).
The Supervisory Levy for current SMSFs (ie established before the 2014 financial year) is $388.
The amount paid to the ATO in accordance with the release authority is, in fact, treated as a benefit payment to the relevant member.
Double concession contributions can be made for the financial year ending 30 June 2014.
The ATO is now beginning to issue Division 293 assessments which relate to taxpayers who have been subject to the additional contributions tax of 15% on the non-excessive portion of their concessional contributions.
The latest APRA statistics show that super assets totalled $1.84 billion (as at 31 March 2014) which represents a 16.8% increase in the previous 12 months.
That depends on whether you require a comfortable or modest lifestyle in retirement.
30 June is approaching fast so if you need our help with fund establishments, pensions, compliance rectification, limited recourse borrowing or any of the other myriad of administrative issues SMSFs face and might need before the end of this financial year please contact us as soon as possible to avoid disappointment.
Now is the time to ensure that pension payment limits will be met for the 2014/15 financial year.
As the current financial year will soon be closing, it is important to ensure that any in specie contributions which are intended to be made before 30 June 2014 are in fact completed before that date.
The Budget proposal is to index (based upon CPI) the current income limits applying to the eligibility for the Commonwealth Seniors Health Card.
This Scheme will be abolished. New accounts opened on or after Budget night will not be entitled to any Government co-contribution
The Budget proposal is to index the age pension (and certain other pensions) by reference to the Consumer Price Index.
The income and asset test free thresholds (ie income and assets which can be held without triggering a reduction in the age pension) will be paused for 3 years from 1 July 2014.
The Budget proposal is to ultimately increase the qualifying age for the age pension to be 70.
The Budget has made three very significant changes to the income test for the age pension.
The Budget proposes to increase the SG rate from 9.25% to 9.5% for 2014/15 and the 9.5% rate will apply for the following three years.
Having previously resolved the problem of excess concessional contributions, the Government has now solved the problem of excess non-concessional contributions.
The Government will, temporarily, impose a 2% levy on high income earnings.
After a week's reflection how does the Budget affect SMSFs and superannuation?