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Transfer balance cap changes

The transfer balance cap is increasing to $1.7 million!

The superannuation transfer balance cap was introduced in 2016 and took effect from 1 July 2017.  Apart from changes to concessional and non-concessional contribution amounts, the legislation limited the lifetime amount which could be transferred from accumulation mode to pension mode to $1.6m.  However, indexation is increasing this to $1.7m on 1 July 2021.

The legislation also precluded further non-concessional contributions where your superannuation balance exceeded $1.6m.

While you are unable to transfer more than the prescribed transfer balance cap amount into pension mode, the pension account may continue to grow and exceed $1.6m.

Any monies you are unable to transfer into pension mode may remain in the accumulation mode within the fund.

Essentially, there would be two accounts within the fund, one being the tax free pension account and the other the accumulation account, subject to the 15% income tax ordinarily applied in the superannuation environment!

If you have any queries or need advice then CONTACT US now at BSN & Co!

JobMaker hiring credit scheme

Employing more staff?
Find out about your eligibility for the JobMaker Hiring Credit scheme.

The JobMaker hiring credit scheme has been backdated to start from 7 October 2020 to 6 January 2021 (and has now been extended, so read on!).

The scheme provides eligible employers with payments for new jobs created for young workers:

-  $200 per week for hiring a worker aged 16 to 29 years, for at least 20hrs per week

-  $100 per week for hiring those aged 30 to 35 years.

Conditions apply such as:

-  Employer must have an ABN

-  Employer is registered for PAYGW

-  Employer is reporting through STP

-  Employer is up to date with lodgements

-  Employer must have hired additional eligible employees (i.e. employee head count +1 at least)

-  Employer demonstrates increased payroll for the reporting period, compared with the 3 months to 30 September 2020.

GREAT NEWS! The JobMaker hiring credit scheme has been extended and now continues until 6 October 2022!

 

For more information or assistance with registering for the JobMaker scheme CONTACT US now!

Working from home shortcut claim has been extended

Working from home still? Good news! You can still use the shortcut claim method.

The shortcut method of claiming deductions for working from home has been extended to 30 June 2021 and is therefore available for the period 1 March 2020 to 30 June 2020 and for the full 2020/2021 financial year.

The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.  The shortcut method covers all your working from home expenses, such as:

phone expenses

internet expenses

the decline in value of equipment and furniture

electricity and gas for heating, cooling and lighting

Taxpayers must have spent the money themselves and not have been reimbursed, and the claim must be directly related to earning income.

Taxpayers wishing to utilise this simple and straightforward method of claim are required to maintain a record of hours and days worked at home over the period.

 If you have any queries or need advice then CONTACT US now at BSN & Co!

 

Pensions (SMSF) – what happens when I’m gone?

Pensions (SMSF) – here’s what you need to know…

The fund assets that support pensions in your SMSF and the income earned from those assets, enjoy concessional tax treatment only while a member is receiving the pension or income stream!

Generally, when an SMSF pension ceases, for example, on the death of a member, the exemption of pension assets from capital gains tax also ceases, as does the deceased member’s pension exemption from income tax.

However, if the fund trust deed and other documentation provides for auto-reversionary pensions, then the payment of  the pension may continue after death, to the surviving spouse!

If you have any queries or need advice then CONTACT US now at BSN & Co!