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Welcome to this edition of the Chartered Accountants Superannuation Bulletin. In this edition the Institute advises members of the new rules involved in claiming tax deductions for personal super contributions, updates the Audit of SMSF Information Kit with 2008 changes to the terminal illness benefit and contributions section and announces the release of dedicated superannuation training sessions now available through the Institute's new online training program - Chartered Accountants Live Online Training.
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| Issue No 13 /2008 |
25 July 2008 |
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10 July 2008
Superannuation guarantee charge statement and calculator tool
You can use this tool if you are late in paying your employees' superannuation contributions to a superannuation fund. It will enable you to calculate your SGC liability and prepare the SGC statement to be lodged with the Tax Office.
Super contributions - too much super can mean extra tax
Explains the caps that apply to super contributions from 1 July 2007 and the tax payable if you exceed these caps.
16 July 2008
Self managed superannuation fund statistical report
Statistics around the self managed superannuation fund market will be made available by the Tax Office every quarter. The contents of this report have been determined following valuable feedback from the superannuation industry.
18 July 2008
Using ordinary time earnings to calculate the super guarantee
From Tuesday 1 July 2008, you must use ordinary time earnings as defined in the super guarantee law, to calculate super guarantee contributions for your employees. This document explains how to calculate the super guarantee using ordinary time earnings.
SuperUpdate July 2008
SuperUpdate is a monthly electronic newsletter issued to those working in the superannuation industry. It includes information about superannuation issues and changes in the administration of Australia's superannuation system.
New SMSF rulings available on ATO website
Two Self Managed Superannuation Fund Rulings (SMSFR) are now available on the ATO website.
SMSFR 2008/1
Self Managed Superannuation Funds: giving financial assistance using the resources of a self managed superannuation fund to a member or relative of a member that is prohibited for the purposes of paragraph 65(1)(b) of the Superannuation Industry (Supervision) Act 1993.
SMSFR 2008/2
Self Managed Superannuation Funds: the application of the sole purpose test in section 62 of the Superannuation Industry (Supervision) Act 1993 to the provision of benefits other than retirement, employment termination or death benefits.
Claiming tax deductions for personal super contributions - new rules, new form
If a member wishes to claim a tax deduction for their personal super contributions, you must direct them to complete and lodge a "Notice of intent to claim a tax deduction for super contributions or vary a previous notice" approved form. They can do this by completing either a Tax Office form in Deduction for personal super contributions or an approved form developed by you.
The "Notice of intent to claim a tax deduction for super contributions or vary a previous notice" can be replicated by a Super Funds and must request the same details that are in the NAT 71121 form from their clients. This form is covered by an Instrument of Approval.
The form replaces Section 82AAT (1A) Notice which was applicable up to 30 June 2007 and did not place time limits on the lodgement of the notice.
On this notice they must:
- Show how much they are claiming as a tax deduction, and confirm the amount has not been covered by an earlier notice
- You must tell the member in writing how much they can deduct
- A member cannot revoke or withdraw a valid notice of intent but they can vary the notice to reduce the amount to nil if they wish.
Members must lodge their notice or vary their previous notice:
- Before they lodge their income tax return for the year the contributions were made in, or
- By the end of the income year following the income year the contributions were made in,
whichever comes first.
If a deduction they claimed in their tax return is not allowed, they can vary the notice to reduce their claim by the amount that is not allowed.
Members cannot claim deductions for:
- Rolled-over super benefits
- A benefit transferred from a foreign super scheme
- A directed termination payment paid by an employer under transitional arrangements, or
- Salary sacrifice amounts.
ATO develops new publications
New publications include:
Super – what employers need to know (NAT 71038)
Introduces employers to their super obligations.
Employers and tax file numbers (NAT 70999)
Explains employer obligations to give employee tax file numbers to superannuation providers.
Recently revised publications include:
Superannuation guarantee – how to meet your super obligations (NAT 1987)
Gives employers details on how to meet their super guarantee obligations.
New publication to be released in late June 2008:
Employment termination payments, when an employee leaves (NAT 71043)
Details the tax treatment applying to employment termination payments made after 1 July 2007.
New online tools are also available 24 hours a day on the Tax Office website:
The Superannuation guarantee (SG) eligibility decision tool
Helps you work out your workers' eligibility for contributions under the superannuation guarantee law.
The superannuation guarantee (SG) contributions calculator
Helps you work out the amount you need to pay each quarter for your eligible employees.
The Superannuation guarantee charge statement and calculator tool helps you work out the super guarantee charge amounts you owe for their employees, and prepare the super guarantee charge statement they need to lodge with the ATO. The tool will be on the ATO website from July 2008.
National Tax Liaison Group Superannuation Subcommittee
The National Tax Liaison Group Superannuation Subcommittee (NTLG SPR) has asked Institute members to fill out the following form if they wish to raise any technical matters which they feel require resolution. Interested members are asked to submit the form by COB Wednesday, 30 July 2008 to natala.low@charteredaccountants.com.au
The Institute's latest leadership project Governance of SMSFs has been released and aims to address the key issues affecting the fastest growing superannuation sector in Australia – self managed superannuation funds. The leadership project should be read in conjunction with the discussion paper SMSF: Review of the existing regulatory and governance framework
More information can be found on the Institute's website
Section I Label O of the SMSF return |
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Members are advised when answering Section I label O of their SMSF return "Does your auditor provide any other services?" that the question should be answered in the spirit of which it was asked. The ATO has advised that the question is ultimately about independence with the purpose to find whether the same individual has been directly involved in the audit together with any other activities that might compromise their independence. Members are advised that this question should be answered in the affirmative where the auditor has also prepared the tax return or has provided compliance advice to the fund.
Update to Audit of SMSF Information Kit |
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The Institute advises members that changes have been made to the Audit of Self-Managed Superannuation Funds Information Kit, which can be accessed via the members section of the website, please click here
to view.
2008 changes include updates to the Terminal Illness Benefit and Contributions section.
Launch of the Institute's online training |
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The Institute officially announced the release of its new Chartered Accountants Live Online Training program on Monday, 14 July 2007 designed to provide Institute members with access to the Institute's training sessions anywhere in the world. The training tool provides presenters to speak directly to, and engage with, participants over the internet. Presenters will be able to use an array of visual tools and applications, which will enable members to interact with the presenter and have questions answered in real time during the session.
Chartered Accountants Live Online Training will provide a flexible training alternative for all members. Regional and suburban members, who in the past may not have attended training sessions due to geographical or budget limitations, will greatly benefit from the accessibility of Chartered Accountants Live Online Training. It is also a convenient way to contribute to qualifying hours for Continuing Professional Development (CPD).
The benefits of Chartered Accountants Live Online Training includes:
- Lower cost of training for employers
- Elimination of downtime through travelling to training facility/site
- Removing the cost of travel, including costly interstate flights
- Removing accommodation costs
- Access to leading experts regardless of where you are in the world
A host of superannuation dedicated sessions will be available to members including:
Borrowing by superannuation funds – unfinished business
Self managed superannuation – fundamentals
Superannuation – investment in unit trusts pre 1999
Search here for a full list of the training sessions.
SMSF Conference DVD 2008
Recorded at the successful inaugural conference in February 2008, this DVD contains all the papers and presentations to view at your convenience.
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This is an initiative of, and has been prepared by
the Technical Standards Team of the Institute of Chartered Accountants in
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information contained therein, neither the Institute nor its employees
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treated as a substitute for specific professional advice or referral to
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