SuperStream is a government reform which aims to improve the process for reporting employer contributions to superannuation fund administrators. The primary purpose of SuperStream is to ensure that employer superannuation contributions are paid to a members account in a consistent, timely and efficient manner. Under the SuperStream Standard employers make superannuation contributions which comprise an electronic transfer of both contribution data and payment. All superannuation funds then receive contribution data and payments electronically.
The accounting practice uses BGL Simple Fund as the administrative software for self managed superannuation funds. BGL is working with Australia Post to ensure that the process of registering and reporting contribution data for SuperStream is efficiently handled.
Clients who we have registered are required to provide their employer with the following information
- The name of the self managed superannuation fund
- The Australian Business Number of the self managed superannuation fund
- An electronic service address (ESA) which is AUSPOSTSMSF
- Bank account BSB and Account Number
The Australia Post Gateway Service will act as an end point gateway service for all electronic messages from employers and other superannuation funds. Australia Post has developed a service to meet the ATO’s electronic data message requirement for gateways. The service offered by Australia Post delivers superannuation transaction messages via a secured electronic distribution network to a nominated email address.
Please note: All comments in this blog 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 circumstance. Issued by Leigh Barker West Pennant Hills.
The ATO has advised that it will have an increased focus on rental property deductions and is sending out letters reminding owners to only claim deductions for the period that the holiday home was genuinely available for rent.
The ATO is paying closer attention to excessive deductions claimed for holiday homes in 2015, and is actively educating rental property owners about what they can and cannot claim.
To avoid making mistakes on your tax return property owners should
- retain accurate records to ensure that the right amount of income is declared and to hold documentary evidence for all claims made
- only claim deductions for that period the property is genuinely available for rent
The ATO advised that it recently amended a taxpayer’s return to disallow deductions claimed for a holiday home after it was identified:
- the taxpayer rented the home to family and friends during the year at less than market rate;
- other than for a brochure only available at the taxpayers’ business premises, there were no realistic efforts to let the property;
- the advertised rent for surrounding properties was much higher; and
- the income pattern did not match the advertised rate, or the requirement for a five-night minimum stay.
It was decided by the ATO that the property was mainly used by the taxpayer, and deductions were limited to the amount earned from family and friends.
Note: All 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 circumstance. All content has been sourced from the National Tax and Accounting Association & issued by Leigh Barker West Pennant Hills.
Self Managed Superannuation Fund issues on the Radar
The ATO has a number of issues on the radar which include
- Overdue annual returns for a self managed superannuation fund
- Individual taxpayers with a poor history of lodging tax returns and/or no or limited income who establish a self managed superannuation fund
- Where there is no rectification of breaches identified in Audit contravention reports
- Incorrectly claimed tax deductions when a fund is in pension mode
- Non-compliance with pension rules
- Non-commercial related party transactions or investments
- Where there are significant changes in income or assets without an obvious reason that re inconsistent with the history of the self managed superannuation fund
Potential Breaches of the Sole Purpose Test
The ATO monitors the Self Managed Superannuation sector to ensure that the sole purpose test is adhered to by all funds and has identified some activities that may be of some concern
- Loans to a self managed superannuation fund under a limited recourse borrowing arrangement that are not established correctly which includes but is not limited to the incorrect the registration of the owner or having other assets of the self managed superannuation fund being offered as security for the asset being purchased under a limited recourse borrowing arrangement
- Where there is a promotion of an arrangement whereby the member gains a benefit from the self managed superannuation fund without having met a condition of release
- The marketing of investment products where the focus is to tempt people to establish a self managed superannuation fund to invest in that product
Please note: All content has been sourced from the NTAA & issued by Leigh Barker West Pennant Hills. 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 circumstance.