Personal Superannuation Contributions
Individuals with a total superannuation balance of less than $500,000 will be able to make catch-up superannuation contributions using their unused concessional contributions cap. The unused concessional contributions cap can be accessed on a rolling basis for five years.
Legislation has been enacted to prevent employers from using employee salary sacrificed amounts to reduce their minimum superannuation guarantee.
Super Guarantee Non-Compliance
Applications for the super guarantee (SG) amnesty closed on 7 September 2020. If you have any unpaid or late paid super to disclose after this date, you will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).
Reducing Superannuation Minimum Drawdown Rates
The minimum drawdown requirements have been reduced by 50% for 2019–20 and 2020–21 income years, to support retirees with account-based pensions and similar products from having to sell investment assets in their self-managed super funds (SMSF) to fund minimum drawdown requirements.
Capital Gains Tax
Exempting Granny Flat Arrangements
The government has announced they will provide a targeted capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement.
The exemption will apply to arrangements with older Australians or those with a disability.
Small Business CGT Concessions
Be aware of the additional basic condition for the small business CGT concessions if the CGT asset is a share in a company or interest in a trust.
If you have any questions whether these measures impact on you or if you can benefit from them, just contact us for a FREE Financial Health Check to get peace of mind.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.