Division 7A

The ATO is continually monitoring Division 7A as it has been recognised as a high risk area of tax. Division 7A tax applies to all loans, advances, and other credits made by private companies to shareholders, or their associates. It is important to consider any tax consequences under Division 7A. For example, if: -shareholders or…

Risk of excess contributions tax

Super fund members saving for retirement should remain vigilant about the risk of excess contributions tax. The amount of contributions an individual makes into their super each financial year is subject to contributions caps. If the contributions exceed the caps, the level of contributions above the cap is known as ‘excess contributions.’ The amount of…

Medicare levy increase

The Medicare levy will increase from 1.5 per cent to 2 per cent from 1 July 2014. The money raised from this increase will be placed into a National Disability Insurance Scheme (NDIS) fund. Individuals could be affected if they are individual taxpayers, individuals and trustees who are in the pay as you go instalments…

Reform of SMSF levy arrangements

The Government has made reforms to supervisory levy arrangements for self managed superannuation funds (SMSF). Superannuation funds are required to pay an annual supervisory levy to the regulator of the fund. For SMSF’s, the regulator is the ATO. The changes made are: -the timing for collection of the levy -an increase to the levy ensuring…

Updating a Will

A Will is an important part of keeping estates and finances organised, so it is important that individuals keep it updated to reflect their current circumstances. In the absence of a Will, the law dictates how an estate is managed.  The government will use the estate to pay any outstanding bills, and then distribute the…

Avoid common lodgement errors

In recent years, the ATO have noticed an increase in the number of invalid objections and withdrawn objections lodged by clients. In 2012-13, the ATO received over 2,600 invalid objections and 2,800 objections that were lodged and subsequently withdrawn, predominantly because they were unable to be made valid. This increase in invalid and withdrawn objections…