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Integrity, Innovation & Commitment

SMSF News

  • Friday, 01 January 2016 22:05

SMSF BANK ACCOUNT AND ELECTRONIC SERVICE ADDRESS DETAILS

The Self-managed superannuation fund annual return 2015 has been updated to: bank account

  • allow self-managed super funds (SMSFs) to provide different bank accounts for tax refunds and super payments (such as super co-contributions or unclaimed super money rollovers); and
  • collect the electronic service addresses of SMSFs.

SMSF TAX RATE CHANGES

Due to the temporary budget repair levy and increase in the Medicare levy, the following tax rates for SMSFs have also changed.

Rate for tax on:

Rate in 2013–2014

Rate in 2014–2015

No-TFN-quoted contributions of a complying SMSF

31.5% additional tax

34% additional tax

No-TFN-quoted contributions of a non-complying SMSF

1.5% additional tax

2% additional tax

Non-arm's-length income

45%

47%

Income of non-complying SMSFs

45%

47%

The tax rate for arm's-length income of complying SMSFs remains unchanged at 15%.

MINIMUM ANNUAL PENSION PAYMENT

senior person

Trustees are reminded to make sure any members in pension phase have been paid the annual minimum pension amount. Once an account-based pension commences, there is an ongoing requirement for you, as trustee of a complying super fund, to ensure the pension standards in the super laws are satisfied; this includes meeting the minimum pension payment requirements.

If a fund fails to meet the minimum pension payment requirements in an income year the super income stream will be taken to have ceased at the start of that income year for income tax purposes.

From the start of the income year the account is no longer supporting a super income stream and any payments made during the year will be super lump sums for both income tax and SIS Regulations purposes.

This is the case even if the member remains entitled to receive a payment from the fund for the pension under the governing rules or under general trust law concepts. This means the fund will not be entitled to treat income or capital gains as exempt current pension income (ECPI )for the year.

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Let us advise you with your accounting and taxation needs!