Accounting Directions is looking to expand!
Be a part of our referral rewards program
by sending a new client our way!
Posted on Nov 26, 2018 by Accounting Directions
The ATO classifies contractors paid for their labour as employees for superannuation guarantee purposes. This is the case even if the contractor quotes an Australian Business Number (ABN). Eligibility requirementsSuper contributions must be made for these individuals if you pay them: Under a verbal or written contract that is wholly or principally for their labour- that is, more than half the dollar value of the contract is for their labour For their personal labour and skills- which may include physical labour, mental effort or artistic effort and not to achieve a result To perform the contract work personally – they […]
Posted on Nov 19, 2018 by Accounting Directions
SMSF trustees have the freedom to invest as they choose to grow their retirement savings, which is why it is vital that they check in on their investment strategy regularly. Maximising your retirement nest egg depends on how well your investment strategy functions at different phases in your working life. This is why your investment strategy should shift according to your changing financial circumstances. A new job, fluctuating markets, changes in tax laws or your retirement drawing closer may mean it’s time to switch up your investments. Here is a checklist to get you started. Map your risk profiles Consider […]
Posted on Nov 7, 2018 by Accounting Directions
Trustees must comply with reporting obligations to avoid penalties from the ATO. The following trustee reporting checklist to make sure you are stress-free at tax-time. Trustees must: Value the funds’ assets at their market value at 30 June Pay any minimum annual income stream payments required under super laws Get an actuarial certificate if required Prepare the fund’s end of year financial accounts and statements Appoint and approve a SMSF auditor not more than 45 days before the SMSF annual return is due Lodge your SMSF annual return by the due date Lodge your transfer balance account reports if required […]
Posted on Oct 30, 2018 by Accounting Directions
Setting up an SMSF can be complex, which is why a checklist is useful to streamline your process. Before you set up your SMSF, first determine if having an SMSF is a commercially viable option. Once a decision is reached and you are about to start your SMSF, here are the basic steps to get things started:. Determine which members will be in your fund? Decide if you will you seek professional help to assist your set up? Decide whether the fund should have individual trustees or a corporate trustee Establish a suitable trust and trust deed Register your fund […]
Posted on Oct 26, 2018 by Accounting Directions
The ATO’s new data revealed that although the total amount of lost and unclaimed super reduced by $420 million in 2017-2018, there is still $17.5 billion left to be found. The ATO has prioritised reuniting people with their lost super spread across over 6.2 million accounts. In the past financial year, the ATO was successful in merging $3 billion into active super accounts across the country. Typically people lose contact with their super funds when they change jobs, move house or forget to update their details. Although some people may intentionally maintain multiple accounts, those who are unaware they have […]
Posted on Oct 18, 2018 by Accounting Directions
The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. The initiative allows for the administration of the Transfer balance cap (TBC). Under the EBR framework, you need to report to the ATO, when the first member of your SMSF begins a retirement phase income stream. The SMSF annual return is to be kept separate from the transfer balance account report. The TBAR enables the ATO to record and track an individual’s balance for their TBC and superannuation balance. The ATO does not provide ‘special circumstances’ discretion for contraventions of the TBC which is why […]
Posted on Oct 11, 2018 by Accounting Directions
SMSFs provide the trustee autonomy and an increased opportunity to maximise your retirement savings. However, an investment strategy must be accompanied by a risk management plan should some of your investments come up short. Consider the following risk management strategies: DiversificationDiversification reduces risk by investing in many different assets including property, annuities and equities. By spreading your earnings across several investments you minimise the risks to your retirement nest egg that can occur if one investment suffers a loss or a disappointing return. Organise your target returns according to your asset class and establish the accepted variation range from this […]
Posted on Oct 5, 2018 by Accounting Directions
Choosing the right super risk profile at the right time can drastically increase your retirement savings. The following considerations will help you invest wisely when it comes to building your retirement nest egg. Types of investment optionsYour super fund should offer a range of investment options to consider. Here is what to know about each kind of option: Aggressive options are high risk, and you may have to sustain significant losses hoping to maximise your return in the long-term Growth options aiming for higher returns over longer terms may sustain some losses in poorly performing markets Balanced options provide moderate […]
Posted on Sep 26, 2018 by Accounting Directions
Superannuation is more critical than it has ever been. If having an ageing population has taught us anything, it is how managing money now can have substantial ramifications for your retirement plan. Merge your superEvery super account you have comes with a set of fees. It is worth your while chasing down inactive accounts and putting all your super into the one account to reduce fees and maximise the investment benefits. Salary sacrificeIf you can budget putting more of your salary away into a super account every month, you can reap multiple rewards. First, you can use the extra super […]
Posted on Sep 23, 2018 by Accounting Directions
Normally employers have to pay a worker super. However, this becomes confusing with the different visas that employees might be on. Some rules are listed below. Paying super to temporary residentsTemporary residents working in Australia are eligible for super guarantee. When temporary residents leave Australia, they can claim the super paid as a departing Australia superannuation payment (DASP). This is provided that they meet the requirements where you must: Be 18 years old or over (if you are under 18 you must meet the above conditions and work over 30 hours per week to be entitled to SG) and, Paid […]
Sign up to be the first to receive our E-news mailings.