Category: Uncategorized
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Labor’s new super tax applies to Unrealised Capital Gains… Crazy!!!
Bob has his $1.85m farmland in his SMSF and $150,000 in cash (from renting the farm land to the business). The Government decides to rezone the area residential, and his land is now worth $5 million. He has no earnings on the cash, no contributions, no withdrawals but his earnings are $3 million ($5 million…
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More info on the proposed super changes from 1 July 2025
A little more clarity… Individuals with total superannuation balances over $3 million at the end of a financial year will be subject to an additional tax of 15% on certain earnings. Earnings are calculated by the difference in total superannuation balance at the start and end of the financial year, adjusting for withdrawals and contributions.…
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How do we apply the 30% on earnings for super funds over $3 million to government defined benefit pensions? I think it is easy!
The 30% only applies during the accumulation phase, and there is no accumulation phase for a defined benefit fund, as the government employees in these schemes are not accumulating anything. Rather they are hoping the Government will be solvent enough when they retire to give them an amount of money each year. But obviously, paying…
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A few easy questions about a 30% tax rate for super funds with more than $3,000,000 in assets
From 2025‑26, the tax rate applied to earnings for superannuation balances above $3 million will be 30%. UPDATE – GOVERNMENT CLARIFIES TO THE 30% IS AN EXTRA TAX AFTER YEAR END ONLY ON EARNINGS ABOVE $3 MILLION I assume this means that a super fund in accumulation phase that has a total superannuation balance at…
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Super tax increases does not fix the budget…
The Gratton Institute has done the leg work for us and it shows that you cannot fix the Federal Budget by taxing super. Their proposals are far reaching… but hardly raise enough revenue each year to cover just the increase, not the actual cost, in spending programs like the NDIS. Idea 1: removing tax concessions…
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Payroll tax for medical centres
I hang out with lots of doctors and right now they are all talking about payroll tax. Last year a NSW case found a medical centre had to pay payroll tax on its contracted GPS. This was followed up by a ruling by the Queensland Treasury saying the same (Although the Queensland government is now…
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General non-arm’s length expense rules for superannuation funds
In a 2020 Practical Compliance Guidance the Commissioner indicated that a 45% tax rate could apply to all the income of a super fund – making a super fund useless from a tax perspective – if there were “non-arm’s length expenses of a general nature”. These are expenses linked to all income of the fund.…
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Alienation of professional firm profits
The 2022/23 year is the first year that the Commissioner’s guidelines on the risk of Part IVA (the general anti-avoidance rule) applying to us alienating professional firm profits to lower tax entities applies – but to be honest we probably have a couple more years (see section 2.1 of the paper below). So in case…
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Trust distributions the Commissioner does not like – 100A
Now that the Commissioner has released his final ruling and guideline on when he will look to apply section 100A, it is about time we looked at what he has to say.
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Self education deductions and expensive MBA programmes
Below is an extract from this paper that covers this often overlooked issue… There were 11 private ruling requests in 2022 regarding whether a taxpayer could claim self-education deductions for undertaking an MBA, and that was a low year (by Jan 12 of 2023 there were already 2 for 2023). The reason for there being…
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