All Things Super
By Tina Zawila
Recently we have found ourselves addressing a number of client enquiries regarding superannuation matters, covering everything from employer obligations under the superannuation guarantee scheme, carry-forward concessional contributions as a tax planning strategy and retirement planning activities. As I can only briefly touch on topics in an article, I encourage you to reach out to us for more information and your own personal advice on superannuation.
Superannuation Guarantee Employer Obligations
Last year, the ATO offered a Superannuation Guarantee Amnesty to employers where they could voluntarily disclose any unpaid or late superannuation to the ATO and avoid some of the harsher aspects of the SGC rules. However, this amnesty closed on 7 September 2020, and as expected, since January 2021, the ATO has been taking firmer action against employers who have not met their SGC obligations. If you are an employer or an employee with questions around your obligations or entitlements under SGC, please contact us urgently regarding this matter.
Carry-forward Unused Concessional Contributions
From 2019-20, carry-forward rules allow you to make extra concessional contributions above the general concessional contributions cap. These rules involve accessing unused concessional cap amounts from previous years (that is where you haven’t contributed the full $25,000 into super in a prior year). To access this opportunity, your total super balance as at the end of 30 June the previous financial year must be less than $500,000, and you can only go back to the 2018-19 year. Again, you should seek your own advice before making additional contributions to super, however this might be a good tax planning opportunity to consider before 30 June 2021 rolls around.
We often suggest to our clients that they plan for their retirement several years in advance. This is particularly important if you are a business owner, but also if you have property investments outside of superannuation. Careful planning for retirement can have significant financial benefits, particularly in light of the carry-forward rules mentioned above for concessional contributions to superannuation. Our professional team can advise you on tax minimisation strategies as you near retirement, capital gains tax advice if you intend to sell your business or other assets and our financial planning division can advise you on superannuation strategies.
The key message in this article is that superannuation is important to everyone, whether you are an employee, an employer/business owner, whether you are in your twenties or over sixty. It has never been more important to seek professional advice regarding all things super.
Call our team at UHY Haines Norton CQ today on +61 7 4972 1300, we are here to help.