Divorce, Superannuation, and the Gender Divide

Divorce, Superannuation, and the Gender Divide

From 1 April 2022, the Australian Taxation Office (ATO) will be able to release details of an individual’s superannuation information to a family law court.

The recently enacted laws are designed to ensure that there is procedural and economic fairness in divorce proceedings to prevent the under-reporting of superannuation assets. While a spouse’s superannuation information can be obtained now through legal action, if it is not provided willingly, it is often expensive and time-consuming to obtain factual information through subpoenas or court orders.

From April 2022, when a couple has entered into divorce proceedings, if one of the parties believes the other is not being forthcoming about the value of assets held in superannuation, they can apply to a family law court registry to request their former partner’s superannuation information held by the ATO. They will then be able to seek up-to-date superannuation information from their former partner’s superannuation fund.

For more, Divorce, Superannuation, and the Gender Divide

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What happens to your superannuation when you die?

What happens to your superannuation when you die?

Do you ever wonder what happens to your superannuation when you die? In this article, we explore the way the trustees of your superannuation fund payout your superannuation to your eligible beneficiaries based on the fund’s rules, the superannuation law, and your death nomination.

For more – Superannuation and Death

Please contact us if you have any questions regarding superannuation and nominated beneficiaries or any of the issues raised by this article.

Feel free to call us on 02 9415 1511.

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Self Correct Your Super Or Suffer….

Self Correct Your Super Or Suffer….

Find out what the Super Guarantee Amnesty means for you.

After the original amnesty failed to pass parliament in May 2018 the government have reintroduced legislation to establish a one-off amnesty for historical underpayments of the superannuation guarantee.

If enacted this will apply from the date of the original amnesty announcement, 24 May 2018 until 6 months after the legislation has passed. This will give employers time to disclose of these super guarantees to the commissioner of taxation including historical underpaid or unpaid for any period to the March 2018 quarter.

To qualify for the amnesty, employers must voluntarily make this disclosure and either pay the full amount owing or arrange a payment plan in which all payments are met otherwise the amnesty will no longer apply.

The ATO continue its compliance activities during the amnesty period and if they make the discovery first, full penalties will apply. The amnesty will also not apply to amounts already identified as owing in which the employer is subject to an ATO audit.

What employers pay for failing to meet SG obligations

No AmnestyAmnesty
SGC comprised of:SGC Comprised of:
- The outstanding SG entitlements (this component might be higher than what it would have been had the entitlements been paid on time)- The outstanding SG enititlements
- Interest of 10% per annum- Interest of 10% per annum
- An administration fee of $20 for each employee with a shortfall per quarter- No administration fees
Penalties of up to 200% of the amount of the underlying SG charge (minimum 100% for quarters covered by the amnesty)No penalties
A general interest charge of the SBC or penalties are not paid by the due dateA general interest charge
SGC amount is not deductible - even if you pay the outstanding amountA general interest charge

So, what do employers need to pay under the amnesty?

Under normal circumstances employers pay the super guarantee charge and lodge a superannuation guarantee statement. However, under the quarterly superannuation guarantee, the interest is calculated on an employer’s quarterly shortfall amount from the first day of the relevant quarter to the date when the super guarantee charge would be. If the superannuation guarantee is paid late, special provisions exist within the legislation to automatically protect employees from inadvertently breaching concessional contribution cap limits if the unpaid superannuation guarantee is paid to the Commissioner and then transferred to the employee’s superannuation fund. In the case an employer makes the payment directly into the employee’s fund, the individual would need to apply to the Commissioner requesting the exercise of discretion to either disregard the concessional contributions or allocate them to another financial year.

But what happens if you don’t take advantage of this amnesty?

If you are found to have underpaid employee’s superannuation guarantee penalties up to 200% apply. With the amnesty-imposed legislation however calls for tougher penalties on employers that do not voluntarily correct underpaid or unpaid. The Commissioner therefore loses the power for leniency even in cases where an employer has made a genuine mistake.

So what does that mean for you?

Regardless of if you do not believe that your business has an Super Guarantee underpayment issue, it is worth undertaking a payroll audit to ensure that your payroll calculations are correct, and employees are being paid at a rate that is consistent with their entitlements under workplace laws and awards.

With the introduction of single touch payroll there is going to be a lot more transparency on super and non-compliance with the ATO now able to capture more recent non-payments.

If  you need a super health check get in touch with our accounting team to see how we can help you avoid these penalties and stay on track , you can call us direct on 02 9415 1511 or contact us.

 

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Thinking About Topping Up Your Super This Financial Year?

Thinking About Topping Up Your Super This Financial Year?

With the end of financial year fast approaching, it’s important to plan ahead to ensure you’re aware of key processing cut-off times that apply to your investment and superannuation platform accounts.

All reasonable efforts will be made to process your request before 30 June 2019 providing the request is complete and valid. However, if you are considering make a superannuation contribution (pre or post tax) you should be aware that estimated cut of times start as early as Friday 14th June. The cut-off times and dates are a guide and are subject to change depending on volumes and the turnaround times.

Please take this into account as you plan for the EOFY as platforms are unable to backdate transactions.

If you have any questions contact your Financial Advisor to begin the process as soon as possible.

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Meet The Super Stars of our Super Team

Meet The Super Stars of our Super Team

Recently we’ve had some changes to our team in our growing SMSF division.   We’re very excited to welcome Sadi Islam to PrimeAdvisory as our SMSF Manager, replacing Hugo Furzer.   Sadi joins the team at our Sydney office and has significant experience in SMSF management.

Sadi Islam, Prime Advisory SMSF Manager
Sadi Islam, Prime Advisory SMSF Manager

Sadi holds a Bachelor’s Degree in Finance and Accounting and a Master’s Degree in Professional Accounting. Sadi is also a member of the SMSF Association and joins our other SMSF Association members and SMSF experts: Guy Wall, Christian Borkowski, Ben Norval, Angus Rodgers, and Chathuri Nanayakkara.

Prior to joining PrimeAdvisory, Sadi has worked at a number of specialist Superannuation Accounting firms and has been responsible for the management, workflow and client relationships of over 750 individual SMSF funds.

Sadi is excited about the role at PrimeAdvisory and in particular working in a well-resourced, professional environment with the added benefit of an in-house financial advisory team.

Sadi is already receiving glowing praise from our clients.

 “Thanks for sending through the final accounts and tax returns. We have really appreciated your professionalism, advice and responsiveness during the preparation of the accounts and tax return.”

Paul, PrimeAdvisory SMSF client

At PrimeAdvisory we have extensive experience and expertise in the growing sector of Self-Managed Superannuation Funds (SMSF).

The Prime Advisory SMSF Team
The PrimeAdvisory SMSF Team: (L to R) Christian Borkowski, Angus Rodgers, Chathuri Nanayakkara, Sadi Islam, Guy Wall, Ben Norval,

Recently the ATO released their Self-Managed Super Fund quarterly statistical report to December 2018. The report’s key statistics highlight why there’s a growing need for experts:

  • The total number of SMSFs in Australia is now 597,009
  • The total number of members in SMSFs is now 1,127,304
  • The total estimated SMSF assets is now $726 billion
  • The top asset types held by SMSFs, by value, are listed shares and cash and term deposits, making up 28% and 24% of total estimated SMSF assets, respectively.

At PrimeAdvisory we know how important it is to be able to offer sound advice and strong experience around SMSF.

If you would like to find out more about services for Self-Managed Super Funds or discuss your own SMSF please contact us.

 

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