December 2023 Newsletter
Contents:
- ATO recoups $684m in unpaid super
- Testamentary Trusts – Benefits and Pitfalls
- The Sharing Economy Reporting Regime: What Does it Mean For Me?
- Why it’s important to retire with purpose
- The interview questions employers shouldn’t ask you
- Employers Beware Of The Hasty And In The Heat Of The Moment Resignation
- How to invest for your kids
- Woman jailed for pocketing $70k in illegal GST claims
- Announcements
ATO recoups $684m in unpaid super
The ATO has recouped and distributed $684 million in unpaid superannuation entitlements to funds and individuals, while also raising over $1.3 billion in super guarantee charge liabilities through compliance actions in the 2022-23 financial year.
During the year, the ATO completed around 14,000 superannuation guarantee (SG) audit cases, coupled with the issuance of 134,000 reminders, which collectively unearthed over $685 million in liabilities, including penalties.
Testamentary Trusts – Benefits and Pitfalls
When it comes to estate and succession planning, people often consider a Will in solitude as the only way to provide for their loved ones. Structures such as testamentary trusts offer significant tax and saving benefits to ensure loved ones are best provided for under a Will. In this article, our commercial and succession law teams consider the availability and functions of testamentary trusts as well as the benefits and pitfalls of this unique type of structure.
The Sharing Economy Reporting Regime: What Does it Mean For Me?
If you request an Uber, book an Airbnb or hire services from an Airtasker, you are participating in the “sharing economy”. The sharing economy works by connecting customers to goods or service providers through a digital platform, such as an app or website. However, the Australian Taxation Office (ATO) has found prevalent underreporting of income derived from people working in the sharing economy. To address this, the ATO introduced the Sharing Economy Reporting Regime (SERR).
Why it’s important to retire with purpose
Retirement isn’t the freedom from work, but the freedom to do your life’s work.For those who have saved a healthy nest egg, retirement is a dream destination, one where you have loads of free time and zero responsibility.
Gone are the days of the 9-5 toil and traffic-riddled commutes. Once you retire, what you do with your day is completely up to you—you have the control.
Gone are the days of the 9-5 toil and traffic-riddled commutes. Once you retire, what you do with your day is completely up to you—you have the control.
The interview questions employers shouldn’t ask you
Before you head to an interview, it’s important to be aware of the questions that recruiters and employers shouldn’t be asking you.
Employers use job interviews as a way to work out how suitable you are for a role – and the interview is an ideal opportunity to discuss your skills and expertise.
But there are limits to what employers can or should ask you about. Here’s what you need to know.
Employers Beware Of The Hasty And In The Heat Of The Moment Resignation
In the recent Fair Work Commission (FWC) decision of Tao Yang v SAL HR Services Pty Ltd [2023] FWC 1325 (4 July 2023), the FWC found that a worker who resigned immediately after a meeting to review his performance, was in fact sacked by their employer after “an unsatisfactory exchange of views conducted in a cursory and excited manner”.
How to invest for your kids
Getting your children started early can give them a leg up financially and teach them a critical life skill.
One of the most common questions we get is how you can make investments on behalf of your children. Investing for your kids not only provides them a leg up financially, but also teaches financial responsibility and the life skill of investing. Most brokers, asset managers and investment platforms allow you to hold accounts as a custodian, or ‘in trustee of’.
Regardless of the name, the consequences of holding it in this manner means that the adult must wear any tax consequences until the minor turns 18.
Woman jailed for pocketing $70k in illegal GST claims
A NSW woman who pocketed more than $70,000 through fake tax claims has been jailed for almost two years for her crimes.
Wollongong fraudster Rachel Saville was sentenced to one year and eight months in prison in the Port Kembla Local Court after she attempted to obtain more than $250,000 in fraudulent GST refunds.
The court heard Saville lodged 63 fraudulent business activity statements between February 2022 and July 2022, obtaining $73,650 and attempting to obtain a further $192,983 in fraudulent GST refunds.
Announcements:
This month we congratulate Phoebe on achieving her 7th work anniversary and wish Lee a very happy birthday!
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Important ATO Dates
| Lodgement Program | Date |
| November monthly activity statements | 21/12/2023 |
Other News
Victorian Flood Grant Support Extended
For existing applicant(s), please be advised in relation to the Victorian and Commonwealth Government’s Flood Support Package, the final date to submit eligible claims for re-imbursement has been extended from 13 January 2024 to 31 May 2024.
Please note with the passage of time, some eligible claims immediately following the flood event are unlikely to be eligible claims if purchased now (e.g. fodder purchase). This extension applies to successful applicants of the:- Primary Producer Flood Recovery Grant,
- Rural Landholder Grant, and
- Transport Support Program.
ATO Data Matching of Unpaid Employee Super
In the meantime we are starting to see a number of cases where the ATO is using their data matching capabilities to catch employers that have fallen behind in the payment of their employee’s super. In a number of these cases the Super Guarantee Charge penalties can be greater than the unpaid super amounts.
If you need assistance in keeping on top of your employer payroll obligations please contact our office to discuss how we can help!
50% Pension Drawdown Ended 30 June 2023
The government had applied reduced minimum drawdown rates by 50% for all account-based pensions, up to 30 June 2023 as a COVID relief measure. However, from 1 July 2023, the government’s standard minimum drawdown rates will apply to all account-based pensions, with no reductions.
| AGE AT 1 JULY EACH YEAR | MINIMUM DRAWDOWN RATES |
| Preservation age to 64 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
| 85 to 89 | 9% |
| 90 to 94 | 11% |
| 95 and over | 14% |
Automatic Refunds of Franking Credits
Quarterly SMSF Reporting (TBAR)
This is a reminder to all Self Managed Superannuation Fund (SMSF) Trustees that you may be required to provide quarterly ‘Transfer Balance Account Reporting’ (TBAR) reports if certain events have occurred over the last quarter. These events include:- Starting a new retirement phase and/or death benefit income stream
- If you paid yourself a lump sum amount from your retirement phase income streams (in addition to your regular pension payment)
- Made payments under a limited recourse borrowing arrangement (LRBA) where the payment results in an increase in the value of the member’s interest that supports their retirement phase income stream
- Complied with a commutation authority issued by the Commissioner
- Received a personal injury (structured settlement) contribution
