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Small Business Instant Asset Write-Off Update

Government support for small business passes Parliament

The Federal Government’s measures to support small businesses has passed in Parliament this week.

The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (the Bill) delivers measures announced in last year’s Budget to ease pressure and boost resilience for small businesses.

Key points

  • The Bill will implement a $20,000 instant asset write‑off for assets first used or installed ready for use between 1 July 2023 and 30 June 2024
  • This will improve cash flow and reduce compliance costs for small businesses with a turnover up to $10 million
  • The $20,000 threshold will apply on a per asset basis, so small businesses can write‑off multiple assets
  • Changes are scheduled to commence from 1 July.

The Government’s Small Business Statement in the Budget outlines more than $640 million in small business measures, including a further targeted 12‑months of the $20,000 instant asset write‑off and an additional $3.5 billion of energy bill relief to households and small businesses through the Energy Bill Relief Fund.

The Small Business Energy Incentive, a 2023–24 Budget measure designed to help small and medium businesses save on their energy bills, is designed to help small and medium businesses with turnover up to $50 million pay for upgrades to heating and cooling systems, install batteries and switch to energy saving electrical goods such as efficient fridges.

To read our comprehensive Budget overview please click the button below. 

CONTACT ALLAN HALL BUSINESS ADVISORS


July

Super Guarantee (SG) rise 1 July

SG base rate rise increase from 11% to 11.5% from 1 July

Employers should turn their attention to managing the superannuation guarantee (SG) increase which comes into effect on 1 July.

An SG base rate rise is set from 1 July which will increase from 11% to 11.5% followed by an incremental half percentage point increase to 12% on 1 July 2025.

Businesses should establish an approach strategy to the increase now because non-payment, underpayment or late payments of the new rate are likely to attract ATO attention.

Regardless of how a business approaches the change, it should be done with transparency that clearly communicates how employees’ payslips will be impacted.

Employers should also review their employees’ contractual and award arrangements to ensure their strategy to the payment increase is in accordance with their legal obligations. Please contact Allan Hall HR or email [email protected] if you would like assistance in reviewing or interpreting your current employment arrangements.

Contributions for each employee are required to be paid on at least a quarterly basis.

Employers are urged to plan for the SG increase on 1 July by provisioning for payroll changes via business activities that sustain cash flow.

Please note that software providers will be making the adjustment to their systems but, depending on your setup if you have manually entered a rate you may need to adjust this.

CONTACT ALLAN HALL

super

Important Year-End Super Considerations for 2023-24

ACT NOW to ensure your super is in order before 30 June 2024 

In this article:

Personal Contributions

If you are looking to maximise your personal contributions in 2023/24, please carefully review the limits and information provided below. 

There will be an increase in the contribution limits taking effect from 1 July 2024 so these are also noted below for planning purposes.

Financial YearConcessional Cap (pre-tax)Non-concessional Cap (after tax)
 (Employer / Salary Sacrifice Personal Deductible)(Personal After Tax & Subject to Total Super Balance <$1.9m)
2023/24$27,500$110,000
2024/25$30,000$120,000

Concessional Contributions

Your contributions must be received in your super fund before 30 June 2024 to ensure that:

  • you are eligible to claim a deduction in 2023/24 for your contributions made;
  • the contribution is counted against your limit in the correct financial year.  

Please remember that 30 June 2024 falls on a Sunday so please do not leave your contributions until the last minute. They need to be cleared in the fund’s bank account by no later than Friday 28 June 2024. Please allow at least three days for any interbank transfer to occur. 

Be sure to check the amount of actual employer or personal contributions already received / due to be received in your super fund before making any top up contributions.

Any person aged 67-74 must meet the work test during 2023/24 in order to be able to claim a deduction for any personal contributions.  See below for further detail.  Any person aged 75 or older is unable to make personal contributions.

‘Catch Up’ Concessional Contributions

These rules commenced on 1 July 2018 so we are now into the fifth year of ‘catch up’ contributions whereby a person with a super balance of less than $500,000 as at 30 June 2023 is able to make a personal concessional contribution in 2023/24 equal to the unused amount of the concessional contribution limits applicable from 2018/19 to 2022/23. Please note that 2023/24 is the last year in which any unused contributions from 2018/19 can be claimed as they drop off after five years.  

Financial YearApplicable limit
2018/19$25,000
2019/20$25,000
2020/21$25,000
2021/22$27,500
2022/23$27,500

For example, Sam had employer contributions of $15,000 for each of 2018/19, 2019/20 and 2020/21 and $18,500 for each of 2021/22 and 2022/23. His total superannuation balance at 30 June 2023 was $380,000.  If Sam has higher than normal taxable income in 2023/24, due to say, a capital gain then, in addition to his current year 2023/24 contributions he can contribute an extra $48,000 as a personal concessional contribution before 30 June 2024 to reduce his taxable income. The extra $48,000 comprises $30,000 in unused contributions from 2018/19 to 2020/21 and $18,000 in unused contributions from 2021/22 and 2022/23. 

Please contact us if you want to check your unused catch up contribution amount.

Non Concessional Contributions

It is possible to ‘bring forward’ up to 3 years of contributions in 2023/24 if you were under age 75 on 1 July 2023 and your total superannuation balance at 30 June 2023 was within the thresholds noted below:

Total Super Balance as at 30 June 2023Age <75 on 1 July 2023
Your Total Super Balance is the combined total of all balances in super funds of which you are a member 
Less than $1,680,000$330,000
Greater than $1,680,000 but less than $1,790,000$220,000
Greater than $1,790,000 but less than $1,900,000$110,000
Greater than $1,900,000$0

Please note for planning purposes that the bring forward thresholds will change on 1 July 2024 with effect for 2024/25. These changes are noted in the following table below:   

Total Super Balance as at 30 June 2024Age <75 on 1 July 2024
Less than $1,660,000$360,000
Greater than $1,660,000 but less than $1,780,000$240,000
Greater than $1,780,000 but less than $1,900,000$120,000
Greater than $1,900,000$0
Strategy Tip
  1. If wanting to maximise super contributions, consider contributing only $110,000 in 2023/24 to enable a contribution of $360,000 in 2024/25, provided all eligibility criteria are met.   
  2. If wanting to equalise super balances between spouses, consider a withdrawal from the high balance and a contribution into the low balance. This is useful for optimising the member balances to take full advantage of the pension cap and various eligibility provisions associated with a person’s total superannuation balance. It also has the effect of lowering the ‘taxable’ portion of that member’s benefit which reduces any future tax payable on death benefits received by the beneficiaries. Please talk to us if you are keen to learn more about this.

If you are aged 67 to 74 years, you must satisfy a work test in order to be eligible to claim a tax deduction for your personal concessional contributions.

Work Test

To satisfy the work test, you must have worked at least 40 hours in a consecutive 30-day period in the 2023/24 financial year. 

If you are aged 75 or over, your super fund is only able to accept mandated employer contributions (i.e. superannuation guarantee amounts) on your behalf.

Minimum Pension 2023/24

If you are in pension phase, please check to ensure you have withdrawn your minimum pension for this financial year before 30 June 2024.  Where these requirements have not been met your fund will be subject to 15% tax on its pension asset investment earnings, rather than being tax-free.

For our SMSF clients, the amount would have been notified to you in the completion letter in the FY23 financials package.  Please contact us if you are unsure of your minimum pension payment for 2023/24. 

CONTACT US if you would like advice on any of the above strategies that may benefit your circumstances. 

ALLAN HALL SUPERANNUATION

National Minimum Wage Rise

National Minimum Wage rise effective 1 July

The Fair Work Commission has announced this year’s Annual Wage Review Decision

National Minimum Wage Increase 

Effective from 1 July 2024, the National Minimum Wage will increase by 3.75%.

This means that full-time or part-time employees in receipt of the minimum wage will receive the following rates before tax:

  • $24.10 per hour, and
  • $915.90 per week (based on a 38-hour week for a full-time employee).

This increase will see an extra $33.10 ‘in the pocket’ each week for full-time employees.

This will be effective from the first full pay period on or after 1 July 2024.  For example if your pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.

National Minimum Wage Increase 

Similar to the National Minium Wage increase, all Modern Award minimum rates of pay will also increase by 3.75% on 1 July 2024. 

Most employees are covered by an award, which outlines the minimum pay rates and conditions in various industries and occupations.

If you need assistance determining which award applies to your employees, or the applicable minimum pay rates, please do not hesitate to Contact us.

Changes to Superannuation from 1 July 2024

As a reminder, the super guarantee rate will again rise from 1 July 2024. This will rise by another half percent, taking the minimum super guarantee from 11% to 11.5%.

The super guarantee rate will continue to rise by an additional 0.5% at the start of each financial year, until it reaches 12% in 2025.

Contact Us

At Allan Hall HR, we have a team of experienced HR consultants. To learn more about our services, please click here. Alternatively, please feel free to call us on 1300 916 764 or contact us here to discuss any questions you may have with us in regard to the National Minimum Wage Increase.

payroll

Steps to process and finalise payroll

With mere weeks remaining in FY24, now is a great time to think about your EOFY preparation.

A good place to start? Preparing your payroll to make finalisation as easy as possible come July.

Completing your EOFY is better off in Xero. To help Xero Users get through from start to finish, we’ve included some handy steps to guide you through the process.

1. Check your employees’ records 

As part of Single Touch Payroll (STP), there are key compliance requirements that affect the way employees are set up in Xero. 

In Xero Payroll, all active and terminated employees (who will be included in the STP finalisation for the financial year) will need an employment type, income type and tax scale defined in their records. 

Review your employees’ records to ensure they’re STP compliant. You can run the Employee Contact Details report to check for accuracy, keeping a close eye on things like date of birth, email address and postcode.

2. Review pay items and their settings

Under STP,  the ATO requires the correct reporting categories to be used for your earnings, deduction and paid leave pay items. Allowances will also need to be assigned an appropriate reporting type.

Because these categories tell the ATO how to treat each type of payment you’re reporting through STP, it’s important to double-check that the earnings, deduction, paid leave and allowance pay items used in the current financial year are correctly assigned. 

3. Post and file any pay runs for the 2023/2024 financial year

Any pay runs with a payment date in this financial year will need to be posted and filed before you complete your employees’ STP finalisation. If these pay runs are to be reported in FY24, remember that you’ll need to make sure the payment date is on or before 30 June 2024.

Be sure to check that all of your pay runs have been filed to the ATO successfully using STP.

4. Process any outstanding superannuation payments

To claim a deduction on superannuation accruals submitted via auto super for the current financial year, super batches should be approved no later than 2:00pm AEST, 18 June 2024. We recommend marking this date in your calendar so you don’t forget.

If you’re not registered for auto super, it’s not too late. Alternatively, the payments can be made manually outside of Xero.

5. Reconcile your payroll accounts

After processing all pay runs for the financial year, it’s important to forensically check the accuracy of your reporting. One way to do this easily is by generating the Payroll Activity Summary report and comparing it with the General Ledger report. 

You can specify a custom date range in both reports to help find any discrepancies. If you come across any discrepancies in your payroll accounts, you can use the remove and redo feature to edit the transaction and allocate it to the correct accounts.

Troubleshooting tips

  • If you have multiple payroll expense accounts for earnings or superannuation, be sure to add up the totals for each account when comparing them to the Payroll Activity Summary report
  • Use the Account Transactions report to identify any transactions that may have been incorrectly reconciled against your Expense Accounts
  • Check for any manual journals that may have impacted your totals by running the Journal report and clicking on Manual Journals
  • If you’re unable to locate a discrepancy, try running your reports using a smaller date range to narrow down the issue
  • If you started using Xero midway through the financial year, double-check that the employee opening balances match your organisation’s conversion balances to avoid any discrepancies.

6. Review the Payroll Activity Summary report against the Payment Summary Details report

It can be easy to get the Payroll Activity Summary report and the Payment Summary Details report confused, so remember you’ll still need to compare this information if you’re completing an STP finalisation. You can run these two reports for a custom date range and make sure the information balances.

It’s important to note that the Payroll Activity Summary report shows gross earnings, whereas the Payment Summary Details report shows taxable earnings.

If there are salary sacrifice or pre-tax deductions that have been processed during the financial year, they will need to be deducted from the gross wages that show in the Payroll Activity Summary report. The total should then match the Payment Summary Details report (note that this will only show truncated values – the cents will not show in this report).

7. Remember to identify and amend any mistakes

Any errors made throughout the financial year can be corrected using an unscheduled pay run. Simply create the pay run for the required period and enter the adjustment amounts. You can even enter negative values, if needed.

You will need to check that the payment date of the unscheduled pay run falls within the correct financial year (for example, on or before 30 June 2024) to ensure it’s reported correctly.

8. Process STP finalisation

Last but not least, it’s time to process your STP finalisation. Xero’s product team has been working to make this process simpler, and easier to understand. Xero users might notice some tweaks this year, such as an improved layout for the STP YTD Summary and clearer totals columns. 

You’ll need to file at least one pay run before you’re able to complete the STP finalisation process. Your first submission will include all year-to-date (YTD) payroll information that has been entered into Xero.

Keep these tips in mind to help you along the way:

  • Information included in the STP finalisation will pre-populate based on the information processed in Payroll – you’ll be able to see gross totals, taxes and super — you can also view and easily edit RFBA and RFBA-E (reportable fringe benefit amounts)
  • If you need to report any leave paid out on termination as ‘Lump Sum A’ or ‘Lump Sum B,’ you can do this by processing an unscheduled pay run
  • If you have terminated any employees on or before 30 June 2024 who need fringe benefit tax (FBT) amounts reported, you can use the toggle Show terminated employees for RFBA at the bottom of the STP finalisation page
  • Any Employment Termination Payments (ETP) that have been processed can be shown by clicking View Report to see the STP YTD Summary
  • If you started using Xero part way through the financial year and need to report employee opening balances through STP
  • Based on the ATO’s requirements, gross payments are reported as the pre-sacrificed amount. This means salary sacrificed amounts, such as pre-tax deductions and reportable employer super contributions (RESC), are included in gross payments.

Looking ahead to FY25

The Government has made changes to individual income tax and superannuation guarantee rates, as well as thresholds such as STSL indexation (study and training loan indexation). These come into effect 1 July 2024. Pay runs with a payment date of 1 July 2024 or later will have these new rates automatically applied.

The super guarantee (SG) rate is increasing from 11 to 11.5 per cent on 1 July 2024. Any employees with a superannuation line set up with a rate type of statutory rate will be automatically updated. If their rate type has been set up as Percentage of Earnings, you will need to ensure you edit this percentage manually. These changes to income tax rates and thresholds will also be automatically applied in pay runs with a payment date of 1 July 2024.

If your organisation is impacted by changes to the minimum wage, you will need to update your employees’ pay templates. To find out if these changes could affect you, please refer to the Fair Work Ombudsman.

Looking for EOFY payroll help? Call Allan Hall’s Xero Certified Advisors for everything you need to know (and do) to round out FY24, and set up strong for the new financial year ahead.

CONTACT ALLAN HALL BOOKKEEPING

EOFY blocks

Complete these checks to help meet your super obligations

Simple checks for super success

Meeting your super obligations as an employer is important, and there’s a lot you need to think about.

To help streamline the process, complete these simple checks for super success:

  1. Check if your workers are eligible to receive super guarantee (SG).
    It’s important to classify your workers correctly. You’ll need to work out which of your workers meet the eligibility requirements to receive SG.
  2. Check your eligible workers’ super fund details are correct.
    Make sure you pay super contributions to the correct fund, and that you provide each fund with the relevant worker’s tax file number. The correct fund may be the fund each of your workers chose, their stapled super fund or your default fund.
  3. Check you’re paying the right amount of super.
    The SG rate is currently 11%; however, from 1 July 2024 it will increase to 11.5%.
  4. Check you’re paying the contributions on time.
    You need to pay super contributions at least 4 times a year by the quarterly due dates. The next payment is due on 28 July. If you use a super clearing house, allow enough time for the payment to reach each of your workers’ super fund accounts.
  5. Check you know what to do if you miss or make a late payment.
    If you miss a payment, you’ll need to lodge a super guarantee charge (SGC) statement and pay the SGC to us by the due date to avoid penalties.

For more information to help you meet your super obligations, see the ATO’s checklist. This covers topics such as paying and reporting electronically, record keeping and more.

CONTACT ALLAN HALL SUPERANNUATION

parliament canberra

2024–25 Federal Budget Highlights

Budget 2024–25 key measures you must know

Described as a “responsible Budget that helps people under pressure today”, the Treasurer has forecast a second consecutive surplus of $9.3 billion.

The main priorities of the government, as reflected in the Budget, are helping with the cost of living, building more housing, investing in skills and education, strengthening Medicare and responsible economic management to help fight inflation.

The key tax measures announced in the Budget include extending the $20,000 instant asset write-off for eligible businesses by 12 months until 30 June 2025, introducing tax incentives for hydrogen production and critical minerals production, strengthening foreign resident CGT rules and penalising multinationals that seek to avoid paying Australian royalty withholding tax.

The Budget also includes various amendments to previously announced measures, as well as a number of income tax measures that have already been enacted prior to the Budget announcement, including:

These enacted measures have not been discussed in detail in our summary report:

Income tax

The tax, superannuation and social security highlights are set out below. The government anticipates that the tax measures put forward will collectively improve the Budget position by $3.1 billion over a 5-year period to 2027–28.

  • The instant asset write-off threshold of $20,000 for small businesses applying the simplified depreciation rules will be extended for 12 months until 30 June 2025
  • The foreign resident CGT regime will be strengthened for CGT events commencing on or after 1 July 2025
  • A critical minerals production tax incentive will be available from 2027–28 to 2040–41 to support downstream refining and processing of critical minerals
  • A hydrogen production tax incentive will be available from 2027–28 to 2040–41 to producers of renewable hydrogen
  • The minimum length requirements for content and the above-the-line cap of 20% for total qualifying production expenditure for the producer tax offset will be removed
  • A new penalty will be introduced from 1 July 2026 for taxpayers who are part of a group with more than $1 billion in annual global turnover that are found to have mischaracterised or undervalued royalty payments
  • The Labor government’s 2022–23 Budget measure to deny deductions for payments relating to intangibles held in low- or no-tax jurisdictions is being discontinued
  • The start date of a 2023–24 Budget measure to expand the scope of the Pt IVA general anti-avoidance rule will be deferred to income years commencing on or after assent of enabling legislation
  • Income tax exemptions for World Rugby and/or related entities for income derived in relation to the Rugby World Cup 2027 (men’s) and Rugby World Cup 2029 (women’s)
  • Deductible gift recipients list to be updated.

Superannuation

  • Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025
  • The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024
  • Prior to the Budget the draft of the $3 million super tax legislation was given Senate go-ahead and remains unchanged — it will include the taxing of unrealised gains and no indexation. Read more »

Tax administration

  • The ATO will be given a statutory discretion to not use a taxpayer’s refund to offset old tax debts on hold
  • Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023
  • A pilot program of matching income and employment data of migrant workers will be conducted between the Department of Home Affairs and the ATO
  • A new ATO compliance taskforce will be established to recover tax revenue lost to fraud while existing compliance programs will be extended.

GST

  • Refunds of indirect tax (including GST, fuel and alcohol taxes) will be extended under the Indirect Tax Concession Scheme.

Small business depreciation — instant asset write-off threshold of $20,000 extended to 2024–25

The instant asset write-off threshold of $20,000 for small businesses applying the simplified depreciation rules will be extended for 12 months until 30 June 2025.

Small businesses (aggregated annual turnover less than $10 million) may choose to calculate capital allowances for depreciating assets under a simplified regime in Subdiv 328-D of ITAA 1997. Under these simplified depreciation rules, an immediate write-off applies for low-cost depreciating assets. The measure will apply a $20,000 threshold for the immediate write-off, applicable to eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025.

Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter. The provisions that prevent small businesses from re-entering the simplified depreciation regime for 5 years if they opt-out will also continue to be suspended until 30 June 2025.

The measure extends a 2023–24 Budget measure to increase the instant asset write-off threshold to $20,000 for the 2023–24 income year. A Bill containing amendments to increase the instant asset write-off threshold for 2023–24 is currently before Parliament. The Bill was amended by the Senate to increase the instant asset write-off threshold for 2023–24 to $30,000 and extend access to the instant asset write-off to entities that are not small business entities but would be if the aggregated turnover threshold were $50 million.

Tax administration

Statutory discretion for ATO to deal with tax refunds and debts on hold

The Commissioner of Taxation will be given the discretion to not use a taxpayer’s refund to offset old tax debts where that debt had been put on hold before 1 January 2017. The tax law will be amended to provide for this ATO discretion which will apply to individuals, small businesses and not-for-profits. The discretion will maintain the ATO’s current administrative approach to such debts.

Student loans indexation reform

Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. The measure will apply retrospectively.

Data matching program for migrant workers’ income and employment

A pilot program matching income and employment data will be conducted between the Department of Home Affairs and the ATO to mitigate the exploitation of migrant workers and abuse of Australia’s labour market and migration system. This measure forms part of broader reforms to the migration system.

Strengthening ATO ability to combat fraud and extension of compliance programs

The ATO will be provided additional funding to continue various compliance programs. The current ATO Personal Income Tax Compliance Program will be extended for another year from 1 July 2027 to enable the ATO to continue its focus on emerging risks to the tax system. The Shadow Economy Compliance Program and the Tax Avoidance Taskforce will be extended for 2 years from 1 July 2026.

Funding will be provided to the ATO to improve its detection of tax and superannuation fraud, including to upgrade its information and communications technologies to be able to identify and block suspicious activity in real time. A new compliance task force will also be established to recover lost revenue and block attempts to obtain refunds fraudulently. Funding will also be provided to improve ATO’s management and governance of its counter-fraud activities.

The ATO will also be given additional time within which to notify a taxpayer if it intends to retain a business activity statement (BAS) refund for further investigation. The current required notification period of 14 days will be extended to 30 days, aligning it with time limits for non-BAS refunds. This measure will take effect from the start of the first financial year after assent of the enabling legislation.

2019-20 Budget measure on black economy will not proceed

The 2019–20 Budget measure “Black Economy — Strengthening the Australian Business Number system” will not proceed as integrity issues are being addressed through enhanced administrative processes implemented by the ATO.

GST

Refunds of indirect tax extended under Indirect Tax Concession Scheme

Refunds of indirect tax (including GST, fuel and alcohol taxes) will be extended under the Indirect Tax Concession Scheme (ITCS).

The Square Kilometre Array Observatory (SKAO) will have ITCS access upgraded for additional concessions to be claimed for the purchase of vehicles for personal use by SKAO officials or a member of their family. Additional concessions for commercial rent will also be formalised for existing ITCS packages for Bangladesh, Costa Rica, El Salvador and the Taipei Economic and Cultural Office. Construction and renovation concessions will be formalised for the existing ITCS package for the Netherlands. Concessions for both commercial rent and construction and renovation will be formalised for the existing ITCS package for Pacific Trade Invest.

Superannuation

Super to be paid on government-funded paid parental leave

Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025. Eligible parents will receive an additional payment based on the superannuation guarantee (12% of their PPL payments), as a contribution to their superannuation fund. Payments will be made annually to individuals’ superannuation funds from 1 July 2026.

Recovery of unpaid super from liquidated or bankrupt employers

The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

To discuss how these Budget measures impact you or your business, please contact your Allan Hall Advisor.

Full Budget papers are available at budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au.

CONTACT ALLAN HALL BUSINESS ADVISORS

smash piggy bank hammer

Illegal access to superannuation

Accessing your super early may be illegal

There are only a few reasons that you might be allowed to access your super early.

For most people, you can only access your superannuation when:

  • you retire and turn 60
  • you turn 65 (regardless of whether you’re working).

Otherwise, it is illegal.

If you illegally access your super early, you could:

  • lose your retirement savings
  • pay extra tax, penalties and interest
  • be disqualified as a self-managed super fund (SMSF) trustee and have your name published online.

Be careful if someone offers to help you access your super early

Some people may say they can help you set up an SMSF so you can access your super for reasons such as paying off your credit card, buying a house or to go on a holiday. This is not true, it is illegal.

These people (known as ‘promoters’) will often:

  • charge you a lot of money
  • tell you to transfer some or all your super from your existing super fund to the SMSF
  • tell you that you can use as much as you need for personal expenses.

Identity theft

These promoters may also ask for your personal information. If you give it to them, they can steal
your identity.

With your personal information, they can steal your super for themselves.

What should I do?

If a promoter contacts you, call us on 13 10 20 straight away to get advice.

Do not agree to anything and do not sign any documents or give them your personal details.

Don’t access your super before you retire unless you meet one of the conditions that makes it legal to access your super and receive relevant approval.

CONTACT ALLAN HALL SUPERANNUATION

Disclaimer: This article contains general advice only and has been prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. The information provided in this newsletter is objectively ascertainable and therefore does not constitute financial product advice.  If you require personal advice, please contact us to arrange an appointment with one of our licensed SMSF advisors.

audit & assurance

Safeguard Your Affairs with Audit Insurance

Audit Insurance: A different perspective on a wise investment

In the dynamic world of business, facing an Australian Taxation Office (ATO) audit can be a daunting and costly experience for both business owners and individual taxpayers alike.

However, did you know that already 15% of Allan Hall business clients have chosen to secure their financial well-being by opting for audit insurance?

This strategic decision is not just about protecting finances; it’s about ensuring peace of mind during potential ATO reviews.

The Cost of an ATO Audit

The average cost for professional fees associated with a standard ATO review of a proprietary limited (Pty Ltd) company can be as high as $18,000. This figure includes the expenses incurred in navigating through the intricacies of tax regulations, responding to ATO queries, and addressing any discrepancies that may arise during the audit process.

The Affordable Solution

Enter audit insurance — a financial safety net designed to alleviate the burden of exorbitant audit-related expenses. For an average annual cost of around $600, businesses can secure comprehensive coverage that not only shields them from the financial impact of an ATO audit but also allows them to navigate the process with professional support.

Why Choose Audit Insurance?

1. Cost Mitigation:

  • Shield your business from hefty expenses associated with ATO audits, including accounting and legal fees.
  • The annual investment in audit insurance is minimal compared to the potential costs of an unexpected ATO review.

2. Peace of Mind:

  • Focus on running your business without fear of unexpected financial setbacks due to audits.
  • Audit insurance provides peace of mind, allowing you to concentrate on growth and development rather than compliance concerns.

3. Professional Support:

  • Freedom to access our team of experts to assist in handling ATO audit queries ensures that your business is in capable hands.
  • Receive guidance throughout the audit process, ensuring compliance and minimising the risk of financial penalties.

Being prepared for unforeseen challenges is a mark of a prudent entrepreneur. Audit insurance emerges as a sensible investment, providing a safety net against the potential financial impact of ATO audits.

With an average annual cost that pales in comparison to the potential expenses of an initial review or an extensive audit, business owners can make an informed decision to safeguard their financial health. In the end, the choice is yours but with audit insurance, you can make that choice with confidence and financial security.

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