A thorough review of your clients’ SMSF’s performance can help you maximise their contributions and tax deductions in the next financial year (FY). To help you start, here is the Ultimate SMSF Year-end checklist 2022. Read our blog now!

A thorough review of your clients’ SMSF’s performance can help you maximise their contributions and tax deductions in the next financial year (FY). To help you start, here is the Ultimate SMSF Year-end checklist 2022. Read our blog now!

The ATO has embarked on a new survey for SMSFs aiming to further gain a better understanding of the SMSF audience and market. The new self-managed super funds (SMSF) audience market research survey launched by the ATO aims to target SMSF trustees and advisers to gain a better understanding of the SMSF audience through a profiling and segmentation research study. Conducted with researchers Whereto Research, the research includes undertaking an online survey, interviews with SMSF trustees and advisers along with further group discussions with SMSF trustees and advisers. With over 1 million Australians having made the decision to take control over their superannuation and set up an SMSF, SMSF Association technical manager Mary Simmons said the Australian government has recognised the need to find out more about this population.    “To better understand what motivates and influences SMSF trustees, the government has embarked on a new survey, using information from the ATO to randomly select existing SMSF trustees to participate,” Ms Simmons said in the recent SMSFA update. “The survey is being conducted by an external research provider, Whereto Research, and some of your clients may have already received an invitation to participate. “Having discussed the survey with the ATO, the SMSF Association can confirm that the survey is legitimate and that trustees should not be concerned.” Ms Simmons said the motive behind the survey is to get a better understanding of the SMSF community to assist the ATO to develop targeted communication strategies to ensure key messages reach their audience. “The confidential survey provides the ATO with important information about the SMSF sector and the questions asked are designed to gauge trustees’ understanding of SMSFs and some of the rules and get insight into trustees’ choice of information sources used to manage SMSFs,” Ms Simmons said. “The ATO also wants to determine trustees’ preferred communication channels to keep abreast of changes and understand who trustees primarily rely on to support them with ongoing investment decisions, advice needs as well as reporting and compliance obligations.” If advisers have clients that have been invited to take part in the survey, Ms Simmons noted that participation in the survey is completely voluntary and the information collected remains anonymous. “The survey will take your clients approximately 15 minutes to complete and participants can nominate to partake in subsequent feedback sessions (optional),” she said. See the original post Share on facebook Facebook Share on linkedin LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

Senator Jane Hume has assured that the superannuation measures announced in the federal budget aren’t aimed to force retirees to draw down on savings but instead create greater control in an increasingly complex super environment. Addressing the Australian Institute of Superannuation Trustees CMSF 2021 conference, Minister for Superannuation, Financial Services and the Digital Economy Jane Hume said that the measures made in this year’s federal budget have highlighted the importance of flexibility in super. She noted the changes such as reduction of the eligibility age for the downsizer contribution and the removal of the work test for non-concessional contributions are all part of providing flexibility for older Australians to manage their retirement savings to suit their individual circumstances and the flexibility to save more for their retirement than is mandated by the superannuation guarantee. “As the Retirement Income Review made abundantly clear, your quality of life in retirement is made up of efficient and effective use of all three pillars, including the Aged Pension and savings outside of superannuation,” Ms Hume said.   “Retirees should have the confidence to draw down on their retirement savings knowing that the Age Pension will always be there to support them should their savings not last as long as they planned. “Let’s be very clear here. This is not about forcing retirees, current or future, to draw down on savings through rigid policy settings or punitive regimes that restrict their choice and agency. In fact, quite the opposite. “It’s about giving retirees control of their retirement income no matter what the economic circumstances. And the flexibility and the confidence to use their assets more effectively should they choose to do so.” Ms Hume said these changes come on the back of the Your Future, Your Super reforms announced in the October budget last year. She noted the Your Future, Your Super package is estimated to benefit members by around $17.9 billion over the next decade. “Swimming upstream against a torrent of critics to make our system better, fairer and more efficient for its members has been no easy feat, but the futures of Australian retirees depends on it,” she said. “Today, Australians are more likely to move between jobs and industries and, for most people, superannuation is their primary, if not the only, vehicle for their retirement savings. “Our system is complex. It’s compulsory. It’s opaque. And it’s been plagued by disengagement. But as more Australians rely on superannuation as their primary source of retirement income, much more is at stake financially than it was at superannuation’s inception. “Those vestiges of a past system that tied retirement savings to workplace relations have endured. Super needs to adapt to better meet the needs of a modern workforce. And its structural flaws, unintended multiple accounts and entrenched underperformers are harming millions of members.” See the original post Share on facebook Facebook Share on linkedin LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

ASIC commissioner Danielle Press has suggested a large number of the changes demanded by industry in the regulator’s affordable advice consultation were “above my pay grade”, indicating major action may not be taken to address advice accessibility until the government’s 2022 review. Addressing the Conference of Major Superannuation Funds on Wednesday, Danielle Press said the advice industry was “at a turning point” where significant legislative change may be necessary to ensure consumers continued to access the services they needed. “The consultation we did on access to advice showed half of that was about legislative reform, which is above my pay grade and not things ASIC can do,” she said. With financial services minister Jane Hume having announced the government would conduct its Quality of Advice Review next year, Ms Press encouraged attendees of the conference to “lean into that conversation with Treasury”.   “I’d encourage you to engage with that [review] process… and think about what law reform you need to make things better for clients, really make your voices heard in that process,” she said. “We know trustees are facing a challenge as to how they make sure they’re helping members in the way they want.” Ms Press said following ASIC’s successful case against BT for breaching general advice laws, the regulator was keeping a close eye on trustees who strayed too close to the line between general and personal advice. “We can have a lot of debate around whether the law is right, but the judgement clearly identified the line,” she said. “We’re hoping trustees providing advice are adhering to that law.” As part of its expanded powers as conduct regulator for the super sector, Ms Press said ASIC had also identified issues with super fund dispute resolution for members and the adequacy of whistleblower policies to identify misconduct. “In the nine months to 31 March, 25 per cent of funds had more than half of their complaints taking more than 45 days to resolve, which is the new enforceable standard,” she said. Ms Press added that half of the whistleblower policies sampled across super funds had not been made public, which although not a legal requirement, was encouraged by the regulator. “Whistleblower protections now extend to people outside employees, they also include former employees and suppliers, so we ask you to think carefully about those policies,” she said. See the original post Share on facebook Facebook Share on linkedin LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

The regulator has commenced proceedings in the Federal Court against a collapsed SMSF services firm for allegedly paying illegal bonuses to advisers around the purchase of property through SMSFs. ASIC has commenced civil penalty proceedings in the Federal Court against DOD Bookkeeping Pty Ltd (in liquidation), which was previously called Equiti Financial Services Pty Ltd (Equiti FS). The regulator alleges Equiti FS breached the prohibition against conflicted remuneration and failed to provide appropriate financial advice and discharge its best interests duty in relation to financial advice to selected clients. Equiti FS was part of a group of companies called the Equiti Group, which offered self-managed superannuation fund (SMSF) establishment and administration services through Equiti FS, real estate services through Equiti Property Pty Ltd (Equiti Property) and mortgage broking services through Equiti Finance Pty Ltd.   ASIC alleges that, between 26 October 2015 and 27 August 2018, Equiti FS paid three advisers bonuses totalling $164,750 upon settlement of property purchases those advisers recommended their clients make through either an existing SMSF or an SMSF to be established. The bonuses applied to purchases arranged by Equiti Property. The regulator found that these bonus payments breached the ban on conflicted remuneration under the Corporations Act 2001 because they could reasonably be expected to influence the financial product advice provided, or the choice of financial product recommended, by Equiti FS advisers to retail clients. “Additionally, ASIC alleges that, between 18 May 2015 and 13 February 2018, Equiti FS breached the Corporations Act when its employed advisers gave financial advice on 12 occasions that was not in their clients’ best interests and was not appropriate for their clients,” ASIC stated. “Each advice contained a recommendation to establish an SMSF, purchase a property through the SMSF and borrow funds in order to do so.” ASIC is seeking civil penalties and other orders against Equiti FS.  ASIC and the ATO have on numerous occasions highlighted the dangers of buying property through one organisation that organises all steps in the process.  ASIC’s Report 575 SMSFs: Improving the quality of advice and member experiences was published in June 2018. It identified property one-stop shops tended to promote the purchase of geared residential property through an SMSF. ASIC was concerned with conflicts of interest that can arise in such models, including from representative remuneration structures. See the original post Facebook LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

Changes made in the federal budget for legacy pensions will have a flow-on effect on the treatment of pension reserves, creating uncertain and complex tax issues. In the recent federal budget, the government has announced SMSFs with certain complying income stream products will be given a two-year period to commute and transfer the capital supporting their income stream (including any reserves) back into a superannuation account in the accumulation phase. The commuted amounts, which will include reserves, will be able to be used to fund newer types of income streams, subject to an individual’s transfer balance cap but will also be available to be withdrawn as a lump sum from an accumulation interest. In SuperGuardian’s budget analysis, education manager Tim Miller said a key issue indicated in the budget is that any reserves commuted will be assessed as a taxable contribution to the fund and result in a 15 per cent tax liability. The amount will not count against an individual’s contribution cap so will not create an excess contribution issue.   “This does add a bit of a sting to the measure given the reserves have traditionally not been entitled to the exempt current pension income deduction beyond the amount required to fund the annual pension payments as determined by an actuary,” Mr Miller said. “Individuals will not be required to commute these types of pension; however, it should be assumed that if they are not commuted within the two-year time frame, then they will remain in place until the death of the member or the relevant reversionary pensioner dies.” Looking at it from an actuarial point of view, Accurium head of education Mark Ellem questioned when considering where the best estimate liability belongs to the member and the surplus is in the reserve, is that the amount that is going to be included as assessable income? He also noted from a tax viewpoint there is the ATO’s ruling in SMSFFRB 2018/1 that basically says, in relation to a defined benefit pension, there are no reserves for SIS purposes, but it is considered all a reserve for tax purposes. “So, if it’s all a reserve for tax purposes, does that mean all the capital making of the defined benefit pension would then be included as accessible income of the fund?” he said. “In relation to the post-20 September 2007 pensions, when they were first started, most or all of these pensions started after 20 September 2007 could only be started in an SMSF. If it was a market-linked pension, it would have to come from a previous pension that would have been started before September 2007. “So do we have to do a little bit of ancestry pension DNA testing to show that we can trace that pension back to a pension that started pre-20 September 2007? So, there are a lot of questions here that still need to be answered.”  Heffron managing director Meg Heffron said that the fact sheet explicitly states that the relief is intended to allow pensioners to exit these income streams by fully commuting them and “transferring the underlying capital, including any reserves, back to a superannuation fund account in the accumulation phase” without the reserve allocation being counted against the member’s concessional contributions cap.  “The language is going to be key here. Reading the fact sheet, I am not entirely sure which part of the account balance that supports a legacy complying lifetime or life expectancy pension will be classified as a ‘reserve’ and subjected to tax,” Ms Heffron said. “Consider a lifetime complying pension, for example, where the actuary’s best estimate of the pension’s value is $1 million, an additional $300,000 is required to meet the ‘high degree of probability test’ and the actual account balance supporting the pension is $1.5 million. “Is the ‘reserve’ the whole balance ($1.5 million)? Or just the excess over the actuarial best estimate value ($500,000)? Or just the excess over the amount required to meet all current solvency tests ($1.5 million less $1.3 million, i.e. $200,000)? It’s not clear.” Ms Heffron said the key will be in how this is legislated.  “Those with very large complying lifetime pensions will be watching anxiously, as a very large tax bill triggered by the transition may well rule out using the new rules and could actually create some strange (and unintended) strategy approaches,” she said. See the original post Facebook LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

The new disciplinary function for financial advisers can be further refined to improve the model through the creation of a true professional registration for financial planners, according to an industry body. In its submission to the Treasury’s consultation on Single Disciplinary Body for Financial Advisers, the FPA has thrown its support behind many of the measures proposed by the government.  The proposed model includes important reforms that are at the core of the FPA’s policy platform — Affordable Advice, Sustainable Profession — including removing duplicate professional standards applied by the Tax Practitioners Board (TPB) and creating a disciplinary function with the powers and expertise to directly respond to misconduct. “This is a major reform which will have a lasting impact on our profession, our members and the consumers they advise,” FPA CEO Dante De Gori said.   “The FPA has long advocated for the need for reform to reduce duplication and rising costs facing financial planners. We welcome the recognition of this in the draft legislation, with the proposal to wind up FASEA and removing the redundant oversight of the TPB being important steps in achieving this goal.” However, Mr De Gori said it is crucial to not get the process wrong and ensure the success of the proposed model. The key recommendation for this draft model is to create a true professional registration which is a personal requirement for all financial planners. In the proposed model, the changes make the registration of a financial planner the responsibility of their AFSL. Mr De Gori noted the registration is then contingent on the planner’s ongoing engagement by the AFSL and effectively duplicates the existing authorisation process. The FPA argues that a professional registration should demonstrate that an individual has met their professional requirements, is in good standing in the community and is ready to serve their clients. “A financial planner’s registration should then follow them throughout their career and be a valued symbol of their professional status and commitment to uphold professional values. The creation of a personal obligation to register is an essential component of any professional framework,” Mr De Gori said. “It’s the missing piece to the puzzle. Similar to the legal, medical or architectural professions, the FPA strongly supports a model in which registration is the personal responsibility of each financial planner and is not connected with their employment or authorisation under an AFSL. “A true professional registration will have flow-on benefits for consumers, as it will improve the quality of the information on the Financial Adviser Register and ensure anyone can easily check the qualifications, registration status and disciplinary record of their financial planner.” Establishing a professional registration for financial planners is a perfect opportunity to build the Financial Adviser Register into the valuable resource that it could be, according to Mr De Gori. The FPA has also recommended some improvements to the proposed reform relating to the TPB. While the proposed reform is positive and addresses obvious duplication, the current drafting does not meet the government’s intention of creating a single set of professional standards for financial planners and a single regulatory regime.  The FPA stated that it recommends that the draft bill remove the requirements for AFSLs and corporate authorised representatives (CARs) to register with the TPB. “The FPA continues to believe that the best outcomes for both financial planners and consumers come about when the government and the profession work together on the issues that we are facing,” Mr De Gori said. “We look forward to continuing our discussions with the government on the issues most critical to our members. We strongly encourage our members to keep sharing their feedback on what further support they need so we can continue to build a thriving profession.” This comes as the SMSF Association had also recently made its submission voicing concerns of the supporting role ASIC will play and the increasing cost burdens that could be levied on advisers when it comes to the implementation. See the original post Facebook LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.

Heading into a post-COVID environment, several temporary social security measures have been amended and adjusted, creating different types of advice considerations for advisers and their clients affected by these changes, according to a technical specialist. Speaking on a recent BT podcast, BT technical consultants Tim Howard and Michael Tran said that as the temporary COVID social security measures, which had been top of mind for advisers in 2020, is moving to a next phase, advisers will need to stay on top of the different changes playing out for clients that are affected moving into the end of the financial year. The main change that many working life income support recipients will be aware of is that the COVID-19 supplement has ceased. Mr Howard said this was a supplementary payment which amounted to $150 per fortnight that was paid on top of a core payment clients may have received. Eligible payments included JobSeeker Payment, Youth Allowance, Parenting Payment and other working life benefits. “You might remember that so long as someone received one of these payments at a rate above nil, they would receive the full supplement,” he said.   “While the payment had reduced over time since its inception, originally $550 per fortnight and dropping to the recent amount of $150 per fortnight, it has now ceased entirely.” While it could be quite a material change for these clients, Mr Tran said to partially offset the removal of this supplement, some of these working life payments have had their rates increased permanently by $50 per fortnight and this will mean there also changes to means testing. “Not only were the rates of payments changed but there has also been a reduction in the amount these income support recipients can earn to receive the maximum rate of payment. It also means there has been a reduction in the amount they can earn before their entire benefit is reduced to nil. Not only that, but if they are partnered, the amount their spouse can earn has also been reduced,” Mr Tran said. “If we start first with the changes to the personal income tests, for example, prior to April a recipient could earn $300 per fortnight before their JobSeeker Payment was impacted. If they earned above this amount, it reduced their entitlement by $0.60 for every dollar over this threshold. “Since 1 April, this has now reverted to a two-tier income test. Firstly, the amount a claimant or recipient can earn is up to $150 per fortnight in order to receive the maximum payment. Amounts earned between $150 and $256 per fortnight will reduce their payment by $0.50 in the dollar. Amounts above the $256 per fortnight figure will further reduce their payment by $0.60 in the dollar. So, overall, the income test is harsher. “This change also means that the maximum amount of income a single recipient can earn and still receive any benefit payment reduces from $1,266 per fortnight to $1,217 per fortnight.” In addition to this, Mr Tran noted where the recipient is partnered, the amount their spouse could have earned before they reduced the JobSeeker Payment for the recipient spouse was $1,165 per fortnight.  This means where they earned an amount above this threshold, it would reduce their spouse’s entitlement by $0.27 per fortnight. Since 1 April, this income threshold has reduced to $1,124 per fortnight and the taper rate has increased to $0.60.   “This would be a much harsher reduction and it will also mean that if we assume the JobSeeker Payment recipient doesn’t earn more than $150 per fortnight themselves, prior to 1 April, the maximum amount their spouse could earn before reducing the recipient’s allowance to nil was $3,103 per fortnight. This has now dropped to $2,079.50 per fortnight. In annual terms, that is a difference of over $26,000,” Mr Tran explained. However, while there is a reduction in benefits through the payment rates or income tests, Mr Howard said due to the increase in the payment rate of allowances such as JobSeeker Payment, the income test that applies to the Low Income Health Card has become more generous as they are linked. “Prior to 1 April, to claim this card, a single person had to earn below $576 per week on average over an eight-week period, i.e. up to $4,608 during that time frame. For a couple, this was $993 per week combined,” he explained. “This has now increased to $636 per week on average over an eight-week period or $5,088 during that time frame for a single person, and $1,094 per week or $8,752 over eight weeks for couples with no kids (plus $34 per week for each child). “This has made the income test more generous than it was even during the period of the temporary COVID-19 measures. That should help lower-income-earning clients have access to the card which will give them access to cheaper medicines listed on the Pharmaceutical Benefits Scheme.” Meanwhile, there were also other non-financial measures too which could possibly have an effect on clients that need to be considered, according to Mr Tran. “For example, new claimants ordinarily need to serve a one-week ordinary waiting period before receiving a benefit payment for JobSeeker Payment, Youth Allowance (for jobseekers) and Parenting Payment. This has been waived since the start of the pandemic and was meant to end at the end of March, but it has been extended to the end of the financial year,” Mr Tran noted. “There are other measures still in place which recognise that we are still susceptible to an outbreak and may affect new claimants or current recipients. For example, JobSeeker Payment claimants will satisfy eligibility criteria if they need to self-isolate or care for a family member who needs to quarantine because of COVID-19. This measure has been extended to 30 June. “With these frequent and numerous changes to social security payments, it will be tough for clients to stay on top of all these measures and I’m sure they will turn to their

A specialist team of ATO officers focused on providing lodgement support to tax practitioners has now been established after confusion reigned over the Tax Office’s initial offer of support. Last Friday, the ATO announced that it would look to support practitioners struggling to meet lodgement deadlines through a dedicated phone line linked to the tax agent lodgement program fast key code. Feedback from the profession, however, revealed otherwise, with practitioners being turned away or directed to the ATO’s lodgement program support webpage. ATO assistant commissioner Sylvia Gallagher told sister brand Accountants Daily that the issue has been rectified, with call centre staff now briefed on the offer of support.   “We understand there has been some confusion about the nature of the service to be provided through the phone line and apologise for any inconvenience. We have updated our scripting to ensure this is clear,” Ms Gallagher said. “For members of the tax profession who prefer to contact us via telephone, we have introduced a phone line that they can contact to seek a call back from our specialist team who will support them to put in place a tailored support arrangement.” The ATO has advised that the phone number is 13 72 86, with fast key code 1 3 2. Ms Gallagher, however, has urged practitioners to reach out through the ATO’s secure practice mail channel. “We recommend using this method as this is the fastest way to access the support required,” she said. “We encourage tax practitioners to include preferred contact details and state that they require lodgement support in the subject line, as this will assist us to action these requests as a priority.” The ATO’s offer of support comes as tax practitioners continue to fall behind on lodgements after a year spent helping clients navigate through uncharted waters brought on by the pandemic. A blanket lodgement deferral had been requested, but expectations were curbed after the ATO had refused to defer due dates during the height of COVID-19 last year. The impact of COVID-19 on the ATO’s lodgement performance for the 2019–20 year was apparent in the regulator’s annual report, with 74.6 per cent of business activity statements lodged on time — 2.3 per cent lower than the previous year and well short of the ATO’s target of 78 per cent. See the original post Facebook LinkedIn AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin AAA Auditors are your trusted SMSF Auditors. We deliver an environment through which high-quality firms from diverse backgrounds can work together toward their own common goals.​ Contact Us Suite 4, 45-47 Belmore Rd, Randwick NSW 2031 +61 2 8006 5461 | +61 2 8090 0749 Auditors@aaasmsf.com Follow Us “Your trusted SMSF Auditors” Facebook-f Twitter Linkedin © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved. HOME ABOUT US OUR TEAM SERVICES CONTACT BACK TO TOP © 2020 AAA Auditors – Your trusted SMSF Auditors. All rights reserved.