Treasury has released draft legislation to enact the Government’s plan to increase the tax rate on earnings on superannuation balances
above $3m from 15% to 30% from 1 July 2025.
This is the final step before the legislation is introduced into Parliament and a step closer to reality. The draft legislation appears largely unchanged from the Government’s original announcement.
The proposed calculation aims to capture growth in total super balance (TSB) over the financial year allowing for
contributions (including insurance proceeds) and withdrawals. This method captures both realised and unrealised gains, enabling negative
earnings to be carried forward and offset against future years.
The ATO will perform the calculation for the tax on earnings. TSBs in excess of $3 million will be tested for the first time on 30 June 2026
with the first notice of assessment expected to be issued to those impacted in the 2026-27 financial year.
From a planning perspective, for those with superannuation balances close to or above $3m, it will be important to explore the implications
to your personal situation – there is no one size fits all strategy here and what is best for you will depend on your circumstances.
Superannuation, even with the increased tax, remains a tax efficient vehicle.
We provide strategic business and tax advisory, underpinned by our expertise in financial planning to ensure we develop financial structures that are smart and well considered.
Our payroll refresher webinar will cover an overview of Xero’s payroll function. We’ll touch on new features, tips and tricks, auto superannuation, and finish with a demonstration of finalising and submitting Single Touch Payroll (STP) reporting at year-end.
April was an interesting month for financial markets. Coronavirus-related restrictions remained in place globally and the economic growth outlook remained dire.
An effective business planning process gets to the heart and soul of your business.
This session will require you to take time out from day to day activities in the business to focus on the business. Together we’ll review
your past performance and clarify your future direction.
Moratorium on evictions and rent relief
Estate planning involves much more than having an up-to-date Will. It is important to ensure that your assets are distributed in the most effective manner and without adverse tax consequences for your beneficiaries.
Self-managed superannuation funds (SMSFs) are a popular option for investors seeking greater control over their retirement savings.
Brandon has recorded a video on how to process JobKeeper in Xero. Just minutes after he finished, Xero updated further to include a basic last month turnover calculator too!
Core Values are the essence of a company’s identity; they support the vision and shape the culture of an organisation. Core Values cannot be plagiarised and made to fit an organisation. They need to be developed from within to be authentic to your company and your team.
The JobKeeper subsidy represents the largest single stimulus initiative ever offered to Australian business. A payment of $1,500 per fortnight for each eligible employee for a period of up to 6 months is a massive underwrite of the Australian economy and already hundreds of thousands of businesses have registered their interest to participate in the scheme. Under this scheme many businesses will be receiving tens or hundreds of thousands of dollars over the six-month period. You cannot afford to get this wrong.
UPDATED 13th April - Businesses significantly impacted by the coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. THIS INCLUDES SELF-EMPLOYED!!
BAS time seems to come around quicker and quicker! Here are some tips to try and make it a little easier! We have also included a summary of common errors we see, take a look to ensure you don’t do these.
How do you manage cashflow during the best of times? What about during the worst of times?
With the economy tipping GFC point due to the coronavirus outbreak, the harsh impact is felt directly by small business. So how do you ride
the waves during economic changes?
It is essential that every business has a plan for dealing with the fallout from this pandemic.
A plan will give you peace of mind and clarity for decision-making for the future of your business, and ensure you access Government support
entitlements and maximise opportunities to preserve your cashflow and profitability.
Funding of $10,000 per business is available and will be allocated through a grant process.
Does your business rent a commercial property from your SMSF? You can now give your business reduced rent because of COVID-19 to ease the
pressure on your business.
The Federal Government has secured passage of the $189bn economic stimulus package proposed to support businesses and keep Australians in
jobs, but how does that apply to you?
In the past week or so, we’ve seen share markets fall on the back of growing concerns about the spread of the coronavirus. At times of heightened market volatility, it’s easy to fear how your superannuation and other investments might be affected, but it’s important to understand the nature of market movements before making any sudden decisions.
We know that even the smallest changes can have a big impact on your finances.
With the impact on businesses due natural disasters such as COVID-19 and the Australian bushfires, we see the knock-on effect on sales,
market presence, and businesses unsure on where they should be spending their limited resources.
It's a good time to share some industry knowledge about what marketing you should consider investing in when times are tough.
As part of a $1.7 billion economic survival package, the Victorian Government has announced $500 million to establish a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak.
The Victorian Government has announced a range of tax measures to support businesses through Victoria's State of Emergency as part of a
broader economic survival package to support business and jobs in response to COVID-19.
We will regularly update this page with new questions and answers, so check back to stay up to date.
Not sure what support your bank is offering in the chaos? Check out this summary of the majors and their current plans.
The Government yesterday released a second, far reaching $66.1 bn stimulus package that boosts income support payments, introduces targeted
changes to the superannuation rules, provides cash flow support of up to $100,000 for small business employers, and relaxes corporate
insolvency laws.
The stimulus measures are not yet legislated. Parliament will reconvene on Monday 23 March 2020.
A series of high-profile examples of businesses underpaying their employees has brought the need to get payroll right into sharp focus.
Complex award and enterprise agreements can complicate payroll obligations, in terms of both regular salary and wages and the ongoing need
to pay employee superannuation. On top of that, from 1 March 2020, changes commence for annualised wage arrangements that will increase the
compliance burden on some businesses.
Let’s make it happen. We have tips, tools and solutions to support you.
We’ll build a solid understanding of your goals. Then we’ll help you reach them.
In the past week or so, we’ve seen share markets fall on the back of growing concerns about the spread of the coronavirus. At times of heightened market volatility, it’s easy to fear how your superannuation and other investments might be affected, but it’s important to understand the nature of market movements before making any sudden decisions.
Cashflow is the pain point for many small businesses. It can single-handedly make or break your business even if you’re generally running a
profitable business.
Learn the need-to-knows to improve your cashflow.
With the start of the Fringe Benefits Tax year looming on 1 April, businesses are being urged to review their Fringe Benefits Tax (FBT) position.
Many newlyweds start married life struggling from heavy debts from their big day. But with a proper financial plan, a walk down the aisle can also be a stroll in the park.
In an increasingly digital world, the value of money can be a difficult concept for children to grasp. Here are some tips for helping your kids and grandkids become wealthy and wise.
IT ALL ADDS UP – That's what the theme was for Xero Roadshow 2020. Hayley Brass was the Xero’s acting MC for today’s Xero Roadshow at Narre Warren. Hayley started the morning by remembering all the small businesses that were affected by the tragic bush fires and floods in early January. This was a great choice to star the morning.
If someone were to ask you what your business is worth, would you be able to reply with a realistic figure? Surprisingly, you wouldn’t be alone if you didn’t know the answer to this very important question.
Join Shannon and the SMART Team at the first 90 minute Lunch & Learn Workshop for 2020!
It doesn't matter if you're a retailer, tradie, health practitioner or one of a thousand other businesses. The tools remain the same. We're
all about getting you on track to help you understand your business, make realistic goals and to be better positioned to reach your business
goals.
Treat finding an accountant like speed dating. Life is busy, you need your accounts looked after and you don’t have time to wade through all the possible suitors.
There is plenty of advice out there about why you should save for your future, but little that explains exactly how
Most businesses are based, either consciously or subconsciously, on the Greek philosopher Plato’s statement indicating that necessity is the mother of invention. You identify a need and then invent a product or process to fill that need.
Your child’s education is an important investment in their future. But getting it right takes careful planning, which means you need a true understanding of the costs involved.
Automate processes to save time
Look at current processes you could change to save you time or money. One way could be changing from manual systems to automatic ones to
free up time for more important tasks.
Conduct customer research to identify new ideas
Ask your customers about what new products or services they would like to see added to your range. Brainstorm ideas with your staff, along
with which new markets to target. This article has some advice on how you can unlock innovative ideas.
Tax planning is more than just a financial necessity—it's a strategic advantage for businesses of all sizes. By proactively managing your tax strategy, you can significantly reduce your liabilities, enhance cash flow, and ensure full compliance with ever-evolving tax regulations.
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