Changes to work test requirements for non-concessional contributions

Posted on 11 April 2022 | by Allan Hall

Changes to the work test requirements for superannuation contributions

Soon older Australians will no longer have to meet the work test to make non-concessional contributions.

From 1 July 2022, members under 75 years of age will be able to make or receive non-concessional contributions without meeting the work test, subject to existing contribution cap limits. They may also be able use the bring forward rule.

Fund Trustees will no longer have to administer the work test at the time they accept the contribution.

Removing the requirement to meet the work test when making non-concessional contributions will simplify the rules governing superannuation contributions and increase flexibility for older Australians to save for their retirement through superannuation.

However, those aged 67 to 74 will need to meet the work test if they wish to make a personal concessional contribution for which they intend to claim a personal superannuation deduction.

For those individuals there is no change to the way they lodge their notice of intent to claim or vary a personal super contribution deduction.

The only change is that now the ATO will be checking to see if they meet the work test at the time they lodge their income tax return. The work test must be met during the financial year in which the contribution is claimed.

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Claiming Family Tax Benefit and Child Care Subsidy

Posted on 8 March 2022 | by Allan Hall

REMINDER: Claim Family Tax Benefit and Child Care Subsidy by 30 June

Confirm your income now for the 2020/21 year to receive the Family Tax Benefit (FBT) or Child Care Subsidy (CCS).

You need to confirm your income by lodging your tax return for the 2020/21 year, or advising that you do not need to lodge a tax return, no later than 30 June 2022, if you wish to:

Submit a claim for the 2020/21 year for Family Tax Benefit (FTB) (lump sum)
Submit a claim for the 2020/21 year for Single Income Family Supplement (SIFS)
Ensure you continue to receive your Child Care Subsidy (CCS)

If you DON’T do this:

You will not receive your FTB supplements and top ups for the 2020/21 year
Your CCS will reduce to zero – Services Australia will balance CCS once they receive:
- all attendance information from your child care service
- confirmation of your family’s income
You may also be required to repay all the FTB and CCS you got for the 2020/21 financial year.

If you are eligible the Child Care Subsidy (CCS) is paid directly to your child care provider to reduce the fees you pay. CCS claims can only be backdated by 28 days. CCS replaced Child Care Benefit and Child Care Rebate when they stopped on 1 July 2018.

Act now!

To ensure both you and your partner’s Tax Returns are lodged on time, please contact your Allan Hall Business Advisor or simply click below.

We are anticipating a high demand off the back of this article. To enable us to lodge your returns by the 30 June deadline, we would encourage you to send in your information as soon as possible and no later than 31 May 2022.

close up of completing Australian tax form

ABN intent to cancel program

Posted on 13 December 2021 | by Allan Hall

The ATO is reviewing Australian business numbers (ABNs) to identify potentially inactive ABNs for cancellation.

We’ve made improvements to the ABN cancellation program by introducing a new automated process that allows you to confirm if an ABN is still required via a secure voice response system.

An ABN may be selected if it has not reported business activity in a tax return, or there are no signs of business activity in other lodgments or third-party information.

Any income earned under an ABN needs to be reported in your tax return, regardless of the amount. By keeping your tax obligations up to date the ATO can see you are actively undertaking a business, therefore the ABN should not be cancelled.

If the ATO believes you are no longer carrying on an enterprise, they may contact you or your accountant to advise of their intention to cancel the ABN.

If your ABN is identified for cancellation you may be contacted and advised what actions you need to take to prevent your ABN from being cancelled
If you are no longer in business, no action is required to be taken
If your ABN has been cancelled and you are still entitled to one, you will need to re-apply to reactivate it.