A guide to consolidating your super
Posted on December 20, 2018 by admin
Merging your super is vital to maximising your retirement savings. Changing jobs over the years will put you at risk of losing some of your super if your previous employers have set up accounts you have forgotten about. Fees will erode the balances on these inactive accounts and result in you losing your hard earned super. You should also consolidate to maximise the interest accrued on your single super balance. Merge your super with this checklist and keep your super savings on track for success. Research your fund’s policyCompare your active super accounts so you can make the right choice about which one you should close. You should assess: Exit fees Insurance policies Investment options Ongoing service fees Performance of the funds Rollover processOnce you have made your decision, you can combine your super balance by: Requesting to merge your accounts through your chosen super fund Apply through your myGov account or the ATO Keep in mind that funds will take time to process your request and rollover.
Claiming deductions for business travel expenses
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You can claim tax deductions for expenses related to business travel provided you follow the ATO’s rules. Eligibility requirementsYou must fulfil certain eligibility requirements for your tax deduction claims to be valid. You can only claim a tax deduction if you: Travel once your business has already started Keep records and documentation to provide evidence for your claim Record keeping rulesThe ATO has strict recordkeeping rules to ensure deductions are accurate. For one or more nights away from home ensure you keep documents like: Boarding passes Booking confirmations Receipts For travellers spending six or more consecutive nights away from home, a travel diary or similar document must be kept. You must record the detail of each business activity before your travel ends, or as soon as possible afterwards. You must log: The nature of the activity The day and approximate time the business activity began How long the business activity lasted The name of the place where you engaged in the business activity Business and private travel rulesMany travellers may integrate a holiday into their business trip. If you operate your business as a company or trust, fringe benefits tax may apply if the employee travel includes private activity paid […]
Authority for super complaints introduced
Posted on December 14, 2018 by admin
The new Australian Financial Complaints Authority (AFCA) will make it easier for individuals and small businesses to make complaints about their superannuation financial firms. The Coalition government has responded to criticisms of previous dispute resolution bodies by creating a new financial disputes framework. AFCA has been described as a “one-stop shop” that will improve outcomes for consumers and increase the efficiency of the dispute resolution process. AFCA’s jurisdictionAFCA has been given authority over a range of complaint areas including: Superannuation annuities Corporate, industry and retail super funds SMSFs (handled under investments and advice jurisdiction) Approved deposit funds Small funds Retirement savings accounts Trustees, insurers and decision makers of relevant super bodies What you can make complaints aboutYour super complaint to AFCA must adhere to its governing rules. AFCA has specific time limits for complaints but no monetary limits. You can make complaints about: The advice you were given about a superannuation product Fees or costs that were incorrectly charged or calculated Information you weren’t given about the product including fees or costs Errors in the information provided to you; for example, if your benefit statements are incorrect Decisions your super provider has made Payment of a death benefit Giving instructions […]
Avoid these small business tax errors
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Unwanted attention and penalties from the ATO can jeopardise your small business. Protect your business by avoiding these common small business tax errors. Not using an accountantTax laws frequently change, and compliance requirements can be time-consuming and demanding. A registered tax agent will streamline your financial processes, provide advice on maximising your finances and keep you compliant. Inaccurate tax returnsSmall businesses that do not declare their income and deductions accurately will attract the ATO’s attention and financial penalties. All foreign income, capital gains tax, business sales and bank interest must be declared. You must also have legitimate evidence supporting your tax deduction claims. Poor record keepingBusinesses that fail to keep accurate records will struggle to remain compliant. It is vital to keep: Cash, online, EFTPOS, bank statements, credit and debit card transactions Records showing when you use business purchases for private purposes to provide evidence for tax deduction claims Incorrect superannuation paymentsThe ATO will sanction employers that fail to pay their employees’ superannuation correctly and on time. Make your mandatory quarterly payments are paid at the correct rate of 9.5 per cent of your employee’s pay. The cash-flow benefits of delaying super payments and missing deadlines are not worth the […]
Employer SuperStream checklist
Posted on December 7, 2018 by admin
Employers must make superannuation contributions on behalf of their employees. SuperStream is the ATO’s electronic and standardised solution that streamlines the super payment process. Using SuperStream for employers means: You can use one online channel to pay multiple funds Less room for error during data entry, due to fewer steps Transactions reach funds faster ObligationsYou must make contributions to a super fund through a SuperStream solution unless you are eligible for the following exemptions: Personal contributions if you are self-employed or a sole trader and make after-tax contributions to a super fund for yourself Contributions to your SMSF where you’re a related party employer. For example, if you are an employee of your family business and your super guarantee contributions go to your SMSF. Step-by-step guideOnce you have decided that SuperStream is right for you, the following steps will help you stay compliant: Choose an option: you can choose from a payroll system, your super fund’s online system, a super clearing house and a messaging portal Collect information and update your records: refer to the ATO for an exhaustive list of the information you will need from your employees Pay the SuperStream way: pay as soon as possible so you […]
Getting to know the ATO Business Portal
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The ATO has introduced the Business Portal to allow small business owners to manage their tax affairs online at their convenience. Connect your ABN to your myGov account or a compatible AUSkey so you can access the business portal. The portal is accessible 24 hours a day, seven days a week. The portal can be used for the following services: Registering for GST or PAYG withholding Lodging, revising or viewing activity statements Requesting refunds or transfers between accounts Updating your business details Tracking the progress of refunds or transfer requests Communicating with us through a secure mailbox Refer to the ATO for direct links that will step you through how to use these services successfully. If you still have trouble with technology it may be worth consulting a registered tax agent to help you fulfil the ATO’s compliance requirements.
