Deductible contributions to superannuation: a change for employees, including VMOs

Embed from Getty Images

Until recently employees who received ‘employer sponsored super’ could not claim a tax deduction if they made additional contributions themselves. If they wished to make higher contributions than what the employer paid, they had to enter into a salary sacrifice arrangement with their employer. The only exception being, if their income derived from employment was less than 10% of their total income. Read More…

Super Stream – Paying your own and your Staff Superannuation



From 31 October all businesses must be ‘super stream ready’. This means you must include an ESA (Electronic Service Address) with your payment. Your employees should let you know what the ESA is for their super fund.

We strongly advise clients with fewer than 20 employees to avoid administrative headaches and use the ATO’s Superannuation Clearing House for all employee (and if you wish also your own) superannuation contributions. Read More…

Changes to SMSF advice



From the 1st of July 2016 a Self Managed Super Fund is deemed to be a ‘financial product’. Consequently any advice related to SMSFs is financial product advice and is governed by the Financial Services Act, which is regulated by ASIC. The upshot is that accountants no longer can provide advice the way we used to with regards to SMSFs. For all advice (which includes ‘information that could be considered to be advice’) the same process must be adhered to as with any other financial planning advice: a separate licence is required, we’ll need to compile a fact finder, including a risk profile, prepare a Statement of Advice, have this signed by the client and so on. Read More…

Commercial Property as an investment for a Self Managed Super Fund



There are several types of commercial property from SMSF investment perspective. The usual distinctions are industrial, commercial (as in: office space), retail. These are still relevant for SMSFs, but a sub-type should be added: ‘owner occupied’. For doctors it would mostly be either commercial or retail, few would set up a surgery in a converted warehouse.....Doctors also have an option for residential/professional, but that doesn’t affect the SMSF investing case.

What distinguishes commercial property from residential (other than the usually much larger amounts involved) are the investment returns and volatility. Commercial property tends to generate a much higher rental return than residential: typically between 6 and 9% rather than 2 to 5%. There is a reason for that: volatility. Whilst the rental returns are high when leased, vacancy rates are potentially a lot higher. Empty industrial sites, shops and offices abound and a vacancy can last many months or even years, no matter by how much you reduce the rent (or increase the ‘incentives’). Read More…

Super Stream Changes



A brief note on Super Stream: from 31 October 2015 all entities employing 20 staff or more must use the Electronic Service Address (ESA) of the employee’s superannuation funds when remitting their super contributions.

From 30 June 2016 this will be mandatory for ALL employers. The exception is when you are paying superannuation from a related entity into your own SMSF. Read More…