Log into Accountancy Group

Superannuation

Business news and views from Accountancy Group

Tax on super balances above $3m hits Parliament

Legislation enabling an extra 15% tax on earnings on super balances above $3m is before Parliament.

While not a concern for the average worker,if enacted, those with significant property or other illiquid assets in their superannuation fund are most at risk, for example farmers and business operators who own their business […]

By |18 December, 2023|Superannuation, Tax|Comments Off on Tax on super balances above $3m hits Parliament

30% tax on super earnings on balances above $3 million

Treasury has released draft legislation for consultation to enact the Government’s plan to increase the tax rate on earnings on superannuation balances above $3m from 15% to 30% from 1 July 2025.This is the final step before the legislation is introduced into Parliament.

From a planning perspective, for those with superannuation […]

By |10 November, 2023|Superannuation, Tax|Comments Off on 30% tax on super earnings on balances above $3 million

‘Payday’ super from 1 July 2026

The Government intends to introduce laws that will require employers to pay SG at the same, or similar time, as they pay employee salary and wages. The logic is that by increasing the frequency of SG contributions, employees will be around 1.5% better off by retirement, and there will be […]

By |10 November, 2023|Superannuation|Comments Off on ‘Payday’ super from 1 July 2026

Workers owed $3.6bn in super guarantee

Workers are owed over $3.6 billion in superannuation guarantee according to the latest Australian Taxation Office estimates – a figure the Government and the regulators are looking to dramatically change.

Superficially, the statistics on employer superannuation guarantee (SG) compliance look pretty good with over 94%, or over $71 billion, collected without […]

By |8 November, 2023|Superannuation|Comments Off on Workers owed $3.6bn in super guarantee

Legislating the ‘objective’ of super

The proposed objective of superannuation released in recently released draft legislation is: ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.’

The significance of legislating the objective of super is that any future legislated changes to the superannuation system must be […]

By |12 October, 2023|Superannuation|Comments Off on Legislating the ‘objective’ of super

What changed on 1 July 2023

Employers & business

Superannuation guarantee increases to 11% from 10.5%National and Award minimum wage increases take effect.The minimum salary that must be paid to a sponsored employee – the Temporary Skilled Migration Income Threshold – increased to $70,000 from$53,900.Work restrictions for student visa holders reintroduced to 48 hours per fortnight.The cap […]

By |11 August, 2023|Superannuation, Tax|Comments Off on What changed on 1 July 2023

Super savings and strategies

Tax deductions for topping up super

You can make up to $27,500 in concessional contributions each year assuming your super balance has not reached its limit. If the contributions made by your employer or under a salary sacrifice agreement have not reached this $27,500 limit, you can make a personal contribution […]

By |15 June, 2023|Superannuation|Comments Off on Super savings and strategies

Right to super to be enshrined in National Employment Standards

The Government has announced that it will enshrine a right to superannuation payments in the National Employment Standards (NES).

Currently, workers not covered by a modern award or an enterprise agreement containing a term requiring an employer to make superannuation contributions have to rely on the ATO to recover their lost superannuation entitlements.

By […]

By |12 May, 2023|Superannuation|Comments Off on Right to super to be enshrined in National Employment Standards

Update: Tax on super balances above $3m

In a very quick turnaround from announcement to draft legislation, Treasury has released the exposure draft legislation for consultation to enact the Government’s intention to impose a 30% tax on future superannuation fund earnings where the member’s total superannuation balance is above $3m.

The draft legislation confirms the Government’s intention to: 

Impose […]

By |26 April, 2023|Superannuation|Comments Off on Update: Tax on super balances above $3m

1 July 2023 Super Balance Increase but no Change for Contributions

The general transfer balance cap (TBC) – the amount of money you can potentially hold in a tax-free retirement account, will increase by $200,000 on 1 July 2023 to $1.9 million. The TBC is indexed to the consumer price index each December.

The TBC applies individually. If your transfer balance account […]

By |9 March, 2023|Superannuation|Comments Off on 1 July 2023 Super Balance Increase but no Change for Contributions
Malcare WordPress Security