Previously the Reasonable Benefit Limits may have limited the ability for some members of Self Managed Super Funds to hold personal insurance within their fund. However, under regulations which took effect from 1 July 2007, members of Self Managed Super Funds have been able to benefit from transferring their personal insurance to their fund.
If you currently have life insurance and you are not paying for it from your Self Managed Fund or Industry fund you need to contact us to discuss how this strategy may save you considerable money.
The Hot Tip for Salary & Wage Earners - Super Co-Contribution
The government’s Super Co-contribution is designed to help Australians save for their retirements by helping to turn every $1 invested in super into as much as $2.50.
If you earn up to $60,342 and make personal, after-tax contributions to your super, you may be eligible for the co-contribution.
How much you earn and how much you contribute to super each year will determine how much you will receive as a co-contribution.
If you earn $30,342 or less and personally contribute $1,000 in after-tax contributions to your super during the year, the government will match your $1,000 with the maximum co-contribution of $1,500. It works on a sliding scale as shown on the table that follows:
Total assessable income plus reportable fringe benefits |
Personal (after-tax) contribution required to obtain maximum co-contribution |
Maximum co-contribution |
$30,342 or less |
$1,000 |
$1,500 |
$35,000 |
$845 |
$1,267 |
$40,000 |
$678 |
$1,017 |
$45,000 |
$511 |
$767 |
$50,000 |
$345 |
$517 |
$55,000 |
$178 |
$267 |
$60,342 or more |
Not eligible |
Not eligible |
To qualify for the co-contribution, you need to:
-receive 10% or more of your total income (assessable income and reportable fringe benefits) from employment, carrying on a business, or a combination of both
-have total income from all sources of less than $60,342 in the 2008-2009 financial year
-lodge an income tax return for the year
-be less than 71 years old at the end of the income year
-not have held an eligible temporary visa at any time in the year, and
-make personal, after-tax contributions to a complying super fund.
More Reasons To Contribute:
-The co-contribution is added to your tax-free component, which means it will:
-not be subject to contributions tax
-not be taxed when you withdraw it from the fund at retirement.
-it will not be included in your non-concessional contribution limits.
-If you think you may be eligible, please contact our office before 30 June to discuss whether this strategy would be suitable for you.
Results of ATO Compliance Program for the year ended 30 June 2008
For information regarding the results of the ATO compliance program for the last financial year click on the following link: http://www.ato.gov.au/corporate/content.asp?doc=/content/00155156.htm&page=19&H19
ATO Target Areas for the 2009 Financial Year:
Individuals
-focus on capital gains from the sale of property, shares and other assets
-Expand review of the compliance activities of senior executives and directors
-Monitor work-related expense claims, particularly out-of-pattern claims for self-education, car and travel expenses
Examine returns that reflect a pattern of poor knowledge and practice by tax agents
Investors
-Deductions for rental income increased by 11.8% in 2006-07 returns to 30 June 2008
-Focus on landlords who incorrectly claim deductions for interest or those whose claims for capital works exceed the construction expenditure
-Write to new investors to let them know how to report rental income and claim deductions, and people identified as being at risk of not complying
Asset sales
-Expand data matching to include information on asset transactions from state and territory title and revenue offices, security exchanges and share registries and reports from managed funds
-Write to people who purchased investment properties, shares or units in a managed fund last year to inform them of their capital gains tax obligations if they dispose of these assets
-Review cases of individuals who made a gain from disposing of assets to invest in superannuation
Incorrectly claimed work-related expenses
-83% of employees made work-related expense claims in 2007-08 – an 8% growth in the value of claims to $13.6 billion as at 30 June 2008
In 2008-09 we will focus on:
-occupations with a pattern of large and/or rising claims
-returns which do not fit the pattern for a particular occupation
-claims in returns lodged by tax agents that are outside the norm for their client base
Particular attention in 2008-09 will be paid to claims by:
-nurses,
-medical practitioners and
-chefs
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