How to pay less tax, boost your super and ease into retirement

Two things first up: (1) If you want to (or have to) work past the age of 55, you need to read this article; or (2) If you know someone else who that applies to, please forward them this article or a link to it.

They’ll thank you for it.

There are now ways you can ease into retirement, tap into your super before you fully retire, save tax and potentially boost your super as you do it.

Before this legislation came in, people had to fully retire and leave the workforce before they could access their super. These days, the ‘cold turkey’ approach to retirement where all of a sudden one Monday you’re fully retired, is far less common.

It makes sense, for many, to instead gradually transition to retirement.

There are various reasons people may want to continue working past the age of 55, including:

  • Many of us actually enjoy our work including the social and mental stimulation and don’t want to take up travelling, lawn bowls or the fully retired lifestyle just yet;
  • Others want to avoid the shock to the system of full retirement and prefer to gradually reduce their working hours so they can adjust over time to a different lifestyle;
  • And there’s the obvious one: Financial reasons. Many people don’t have enough super or other investments accumulated that they can stop work altogether at age 55 and not suffer a big drop in income.

So continuing to work at least part-time past the age of 55 makes sense for many people.

It also makes sense for our economy. With the ageing population and fewer people in the traditional working years age bracket, the government has introduced various legislation to encourage people to stay active in the workforce.

One of these measures is called Transition To Retirement (TTR).

TTR allows you to wind back your work hours and reduce your income from that source, but then offset that with an income stream from your super.

The purpose of this article is not to give advice as such—as there are a number of variables to consider for each person’s circumstance, so you will need to sit down with your advisor here to discuss TTR further—but rather to make you aware of the main considerations so you can determine if you qualify.

You can use a TTR pension in one of two ways:

  1. You can keep working full-time and boost your super; or
  2. You can choose to work fewer hours and use your super to lessen the drop in income.

Either way, that’s a nice deal.

People who are unaware that they can access a TTR pension while they continue to work past age 55 stand to pay many thousands of dollars of tax needlessly.

Here’s how you can avoid that happening to you or your loved ones…

Firstly, some terminology: Your ‘age pension age’ differs from what’s called your ‘super preservation age’. The latter is age after which you’re allowed to access your super.

You can use this ASIC Super and pension age calculator to work out your preservation age. Just enter your month and year of birth and then click the Female or Male button.

Do that now, then continue…

Here’s how to determine if you can use a Transition To Retirement pension:

  1. You have hit your preservation age; but
  2. You are under the age of 65; and
  3. You are still working.

If you can tick all those boxes, you can withdraw 4% to 10% of your super each financial year.

Note that you cannot withdraw money as a lump sum.

Also note that not all super funds allow you to do this, and if that’s the case with your fund(s), you might need to change super funds if you want to take advantage of the TTR measures. We can help with that process.

So if all three of those above points apply to you, you should contact us as soon as possible to make a time to go through the specifics of your circumstances, your super fund’s TTR options and a number of other very important details. We’ll make it easy for you and will make the paperwork happen.

There’s more we could share with you here about TTR, but rather than burden you with all those details, we figure that’s what you want us to handle for you!

TTR is one of the smartest retirement strategies available. It makes sense to take advantage of it if you can.

Your 9 point checklist for paying less tax this year (and why this checklist will be useless to you in a few weeks’ time)

Time is running out.

If you want to take a few simple preventative measures to minimise or defer how much tax you will pay for this Financial Year, you need to do two things:

  1. Read the following 9 point checklist, then
  2. Call or email us as soon as possible so we can make a time to sit do with you to assess which of these preventative measures can be done for you in your circumstances.

Depending on your situation, this tax planning process could save you many thousands of dollars. That’s cash in your bank account, rather than the Tax Office’s.

After all, why pay one more dollar in tax than you have to?

I’m sure you have better uses for your money, such as investing in your future or just investing in the here and now and rewarding yourself with a little ‘lifestyle indulgence’.

Now … to the checklist. Tick each item you think is relevant to you:

❑ Review debtors Your income tax is payable on any invoices you’ve issued, even if you haven’t been paid. Don’t pay tax on any invoice you know won’t ever get paid. Review the list of those who owe you money and write off those ‘bad debts’ now.

❑ Review your stock levels The value of your closing stock directly affects your business profit, the higher your stock value the higher your profit and tax. Review and identify any obsolete or old stock and scrap it or re-value it to its correct value. Individual items of stock can be valued at cost, market value, or replacement value.

❑ Review your business assets Write off any obsolete asset and claim its remaining book value now. There are also new ways assets can be depreciated, called pooling, that will increase the depreciation expense. This isn’t suitable for all business, but it is worthwhile reviewing.

❑ Defer income — A simple tip that can defer a lot of tax for you If your cashflow allows, you may consider deferring some of your invoices until July. If the income was not invoiced this financial year, it can’t be taxed this financial year. Before taking this option we recommend having a budget to manage these months income and expenses. We can help you with that.

❑ Review your invoices issued If you have invoiced someone in advance for services you will provide in the next financial year, then you may not have earned that income in this tax year. That income may belong in the year you provide the service. Again, this is something we can work out with you when we meet for tax planning.

❑ Pay the June quarter superannuation Superannuation if paid on time is deductible when paid. Since you have to pay the 9.5% superannuation by 28 July, bring it forward a month and pay it now and claim the deduction now. Why wait a whole year to reduce your tax?

❑ Using all of your superannuation cap If maximising your superannuation is part of your retirement plan, then don’t forget to contribute as much as you can into your super fund. We can guide you as to how much you can contribute. It’s a missed opportunity not to do this each year.

❑ Employee bonuses Bonuses to employees are deductible when the business has committed to paying them and it is not subject to any discretion. So finalise and sign off on the bonuses to be paid and reduce this year’s tax.

❑ Capital Gains Tax (CGT) Minimising your capital gains tax is often about timing. Ensure the asset has been owned for at least 12 months. If you already have a capital gain, are there any investments making a loss you can sell? Do you qualify for any capital gain rollover relief concessions? (Again, we can guide you here.) CGT is a whole topic on its own, and the potential savings are so great, it is definitely an area in which you should seek our guidance.

If you ticked any of the above items, then we need to talk. And soon.

Call us now on 3421 3421 (Brisbane) or 5474 8955 (Sunshine Coast) or email Rob, Sam, Peter or Myself to make a time to meet and discuss your tax planning options.

Changes to Superannuation Rules – $1.6 million transfer balance cap

In this ever-changing financial environment, it seems that service charges are forever on the rise – which leads to the age-old question, “How do I inform the owners?”.

In truth, it’s a little more involved than simply informing the owners. While the question might best be answered by a solicitor, the position of the Office of Fair Trading (OFT) is that the best practice for advising owners about updated fees calls for the most direct approach.

That means personal notification—rather than having the news buried in a general issue newsletter—where it might easily go unnoticed.

How you can notify and renegotiate

Owners would be required to respond one way or the other (either negatively or positively), a non-response cannot be taken as acceptance. There must be a clear provision for the owner’s signature and a date, so that a manager has proof that the appropriate person was notified and accepted the updated fees for the new owner agreement.

One possibility is to make an announcement on the monthly statement sent to the owner, advising him or her about the inclusion of a new addendum on the statement, which calls for their immediate attention.

It should be remembered that under the Property Occupations Act, any units which still operate under the old PAMDA 20a Form, must move to the latest version of Form 6 in cases where changes are made to owner agreements—including increases to owner agreement fees.

The Office of Fair Trading and its Judiciary

As you read through the Property Occupations Act (POA) and its regulations, you will occasionally see the term ‘Maximum Penalty’, which may apply to non-compliance or breaches of the Act. Terminology used by the Office of Fair Trading implies that a wide range of actions can potentially be taken when dealing with breaches of the POA, and that the maximum penalty will not necessarily be sought.

OFT Compliance officers identify three separate categories of offenses: those of carelessness, those of recklessness, and those of dishonesty.

  • ‘Careless’ offenses include administrative oversights which have little or no financial impact, and which have already been rectified.
  • ‘Reckless’ offenses are considered to be more serious, because these do carry a financial impact, and must therefore be corrected at the very earliest opportunity.
  • ‘Dishonest’ offenses are self-explanatory, and must be reported immediately to the OFT, as they require immediate rectification.

Where to learn more about updating owner agreement fees?

As part of the continuing education of licensees, the OFT will be conducting informative seminars in locations all along the east coast. These seminars will provide excellent educational opportunities for managers new to the industry, and will also serve as great refresher courses for veterans.

The OFT provides education on an ongoing basis through its Web-site and YouTube channel.

 

Payroll End of Year Processing in Xero

Xero – Year end Payroll procedure – Payment Summaries and Lodgement with ATO

It’s That time of year again, end of year and time to process your PAYG Payment Summaries.

Following a step by step process, your payment summaries can be generated and issued to the ATO using your Xero.

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Payroll End of Year Processing in Xero

Step 1:

Checking your payroll settings

  • Select Settings from the main toolbar. Go into General Settings
  • Organisational Settings

Check the details are correct, make sure the Trading Name is the correct name, as this is what will show on the payment summaries

  • Save and close
  • Select Settings from the main toolbar. Go into Payroll Settings
  • Organisation – Check the correct accounts are linked to Pay Items
  • Pay Items – Check pay items have been set up as the correct type
  • Check the W1 checkbox settings are correct in the pay items; this can be found by selecting the individual Earnings Name and editing the earnings rate
  • Select Payroll from the main toolbar
  • Employees
  • Check each employee for accuracy (TFN, DOB, and Address)

Step 2:

Pre-Reconciliation Checks

  • Check all pay runs for the financial year have been posted
  • Check all wages have been paid through the business bank account
  • Check the payment dates for the pay runs march those to the bank payments

Step 3:

Reconciling payroll totals to general ledger accounts 

  • Select Reports from the main toolbar. On into Reports
  • All Reports
  • Payroll Activity Summary report
  • Check that the following items match

 

In your Payroll Activity Summary In your General Ledger Summary
Total Earnings Should match Total Wages & Salaries
Total Super Should match Total Superannuation
Total Tax Should match Total PAYG Withholding Payable

 

If any of the balances don’t match check your pay run history to find the pay run with the error and process any necessary adjustments.

Step 4:

Identify & correct errors

Make corrections for any discrepancies found.

  • If any adjustments need to be made, a new pay run will have to be processed.
  • Use an unscheduled pay run to make any corrections to a processed pay run.
  • You can adjust a pay run for missed pay items, or reverse and re-enter an incorrect wage item.
  • You can also use an unscheduled pay run to process a negative pay run to reverse incorrect wages & taxes.
  • You can go back 8 pay periods from the current date when adjusting a processed pay run.

Step 5:

Employee payment summaries

  • Select Payroll from the main toolbar.
    • Go into Employees
    • Payment Summaries
  • Check that your organisations name, ABN & postal address information is correct.
  • Enter the Signatory name & add the contact number, then select Confirm & Continue
  • Select the Financial Year Ending
  • Review the Gross payment, PAYG, allowances and amounts allocated based on your payroll data
  • Identify & fix any payment summary errors
  • Enter any RFBA from your fringe benefits tax return to each employee if applicable
  • Enter any additional Lump Sum amounts paid if applicable
    • You can preview the payment summaries before you publish
  • Select all employees
  • Select Publish
    • Once you have published the payment summaries select ‘Send to employee”
    • You can now print them PDF or email them to your employees 

Lodge the report to the ATO through Xero 

  • Select Payroll from the main toolbar.
    • Go into Employees
    • Payment Summaries
  • Select Confirm & Continue
  • Select all employees and select File Now
  • Select the Authorisation to File declaration check box
  • Select File Now

The annual report is filed at the ATO if all payment summaries are accepted. If it can’t be filed, you will need to fix the relevant payment summaries & submit the file again.

Once you have sent the annual report to the ATO, your end of year payroll process is complete.

Budget 2016 – Superannuation

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Budget 2016 – Superannuation

Last week, in his budget speech, Federal Treasure Scott Morrison put forward a number of proposed changes to superannuation.

Here is a brief roundup of what the proposal are.

  • Lifetime cap on non-concessional contributions
  • Concessional contributions cap reduced
  • 30% tax on super for high income earners
  • Tax free super balances capped at $1.6m
  • Tax deductions on super contributions expanded

You can see by the dates to take effect only the lifetime cap on non-concessional contributions has an immediate impact.

If you are planning to make a non-concessional contribution to your super fund prior to 30 June 2016 and have made previous contributions of this nature please contact us to ensure you don’t breech this cap.

Regarding the other changes they will not take effect until 1 July 2017, so there is plenty of time to plan.

Remember, proposals are not set in stone and could change as legislation passes through parliament.

Once these changes are passed we recommend you strategically review how these changes impact your current circumstances.

If you require assistance with this do not hesitate to contact myself or Susan Stainwald.

Sunshine Coast: 07 5474 8955

JOHN SIEMON

John Siemon

(Partner)


Lifetime cap on non – concessional contributions

Applies to all non – concessional contributions made on or after 1 July 2007
Date of effect: 7.30 pm (AEST) on 3 May 2016

  • The current contributions cap will reduce to $25,000 from 1 July 2017.

A lifetime $500,000 non-concessional contributions cap will be introduced from Budget night.

The current system of annual non-concessional contributions of up to $180,000 per year (or $540,000 every three years for individuals aged under 65), will be replaced with this new lifetime cap.

The lifetime cap will take into account all non-concessional contributions made on or after 1 July 2007 and will commence at 7.30 pm (AEST) on 3 May 2016.  Contributions made before commencement will not result in an excess.  However, excess contributions made after commencement will need to be removed or will be subject to penalty tax.  The cap will be indexed to average weekly ordinary time earnings.

The lifetime cap is available up to age 74.


 Concessional contributions cap reduced

Date of effect: 1 July 2017

  • The current concessional contributions cap will reduce to $25,000 from 1 July 2017.

Age: Under 50
Current concessional gap: $30,000
From 1 July 2017: $25,000

Age: 50 & over
Current concessional gap: $35,000
From 1 July 2017: $25,000


30% tax on super for high income earners

Date of effect: 1 July 2017

At present, individuals with combined income and superannuation contributions of more than $300,000 pay an additional  contributions tax of 15% on concessional contributions. From 1 July 2017, this income threshold will reduce to $250,000.


Tax free super balances capped at $1.6m

Date of effect: 1 July 2017

A new $1.6 million cap will apply to how much can be transferred into a retirement phase account. Earnings on amounts within the account will continue to be tax-free.  Transfers in excess of this $1.6 million cap (including earnings on these excess transferred amounts) will be taxed in a similar way to the tax treatment that applies to excess non-concessional contributions.

Where an individual accumulates amounts in excess of $1.6 million, they will be able to maintain this excess amount in an accumulation phase account (where earnings will be taxed at the concessional rate of 15%).

Members already in the retirement phase with balances above $1.6 million will be required to reduce their retirement balance to $1.6 million by 1 July 2017.  Excess balances for these members may be converted to superannuation accumulation phase accounts.

The amount of cap space remaining for a member seeking to make more than one transfer into a retirement phase account will be determined by apportionment.


Tax deductions on super contributions expanded

Date of effect: 1 July 2017

All individuals up to age 75 will be able to claim an income tax deduction for personal superannuation contributions from 1 July 2017.  This effectively allows all individuals, regardless of their employment circumstances, to make concessional superannuation contributions up to the concessional cap – partially self employed, employees whose employers don’t offer salary sacrifice arrangements, etc.This is a sensible move, which means that it will no longer be necessary for individuals to pass a 10% test in order to be able to claim a deduction for personal superannuation contributions.  Currently, an individual can only claim a deduction for personal contributions where less than 10% of their adjusted income for the year relates to employment activities.  The 10% test can make it difficult for people who have started their own business to make deductible superannuation contributions where they also have part-time work.

(Source: The Knowledge Shop)

I trust my Accountant: why can’t they advise me about an SMSF?

I trust my Accountant: why can’t they advise me about an SMSF?

Written for McAdam Siemon Pty Ltd, by Eric Walters FCPA(FPS) FAICD

 

 

The short answer is – they can, BUT….

Over the past several years, particularly following the Global Financial Crisis (also popularly referred to as: the GFC, the Great Recession, the global credit crunch), the rules and regulations around the provision of advice in relation to financial products have been tightened somewhat: and the regulations dealing with the necessary qualifications and experience of those delivering such advice have resulted in changes in licensing for Accountants as well as increased regulation for financial planners generally.

Whilst the previous provisions (the ‘Accountants’ exemption’) were more often recognised in the breach (‘ignored’) than complied with, the new rules which come into full effect on 1 July 2016 are far more onerous on accountants. Hence it is likely that there will be some reluctance on the part of most accountants to provide even the most basic of advice about whether to start, or indeed to continue, a self-managed superannuation fund (an SMSF) – once they understand how these new rules apply.

Under the Accountants’ exemption, accountants could advise about forming an SMSF – but could not advise about rolling existing superannuation accounts into that SMSF; nor about how to invest the contributions received by the SMSF.

In a change that took effect on 1 July 2014, this exemption is being phased out in favour of a limited licensing regime: accountants who extend their already broad range of expertise to qualify for the granting of the limited licence will need to undertake additional study – and maintain their new skills and knowledge with ongoing professional education.

Under the limited licence, accountants will be able to (amongst a limited range of compliance and associated ‘administrative’ matters) –

  • Advise on the establishment of an SMSF;
  • Advise on the formulation of an Investment Strategy;
  • Provide general information about investment assets – but NOT any specific shares, property of managed fund products; and
  • Provide general information about the various types of personal life insurance – but NOT about any particular insurance company’s product offering.

….and so, in view of the onerous conditions applicable to attaining the limited licence; and the justifiable approach of ASIC in supervising this rapidly expanding area of their responsibility – it is not surprising that many accountancy practices elect to outsource their SMSF advisory tasks to comprehensively-licensed financial planners.

Our position

McAdam Siemon Pty Ltd has operated under the Accountants’ exemption in the past, but since the incorporation of SmartChoice SMSF Administrators Pty Ltd (‘SmartChoice’, as an associated entity of the accountancy practice), refers all requests for advice in relation to SMSFs and their administration to that company.

One of the partners, John Siemon, is a director of SmartChoice: he is qualified and holds a limited advice licence. John will be supported by Susan Stainwald (who works in SmartChoice) who is currently undertaking the requisite licensing process. Under this arrangement, investment advice is often referred to financial planning specialists as appropriate to the circumstances of each SMSF.

ASIC: the Regulator for Financial Advice participants

Whilst the administration compliance of SMSFs is monitored by the ATO, financial planning advice generally is regulated by ASIC. As SMSFs are considered a financial product, advisers dealing with such an entity – whether accountants holding a limited advice license, or comprehensively-licensed financial planners, must be mindful of ASIC’s requirements in administering the legislation and regulations prescribed by the Federal Parliament.

In a couple of recent information papers (INFO 205 and INFO 206), ASIC has provided detail as to what they will be checking on in relation to advice that is provided to trustees of SMSFs, regardless of the license status of the person providing the advice: respectively they deal with the disclosure of ‘risks’ and ‘costs’ to trustees and the members of SMSFs.

Summaries of the above-referenced Information Sheets are attached below: for full details – and for related reading on the ASIC website, refer to the following links: INFO205 and INFO206.

All of the matters covered by these Information Sheets from ASIC are able to be dealt with by a comprehensively – licenced financial planner and/ or by an Accountant holding a limited financial planning licence: the Accountants’ exemption will not allow the provision of such advice by an unlicensed Accountant.

Review of your SMSF decision

If you have been considering either –

  • moving your superannuation accumulations into a self-managed environment, or
  • wanting to review the wisdom of continuing with your SMSF,

John Siemon, is a director of SmartChoice: he is qualified and holds a limited advice licence. John is supported by Susan Stainwald, who is currently undertaking the requisite licensing process. Under this arrangement, investment advice is often referred to financial planning specialists as appropriate to the circumstances of each SMSF.

Call our office on 1300 366 316 to make an appointment to meet with John to gather the information necessary to formulate advice on the matter:

Eric is a Director and Financial Planner at Continuum Financial Planners Pty Ltd: their website has articles on superannuation matters and SMSF particularly – click the link to access these.

 

DISCLAIMER: The information contained in this article is general in nature and does not take into account personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and any relevant product having regard to your objectives, financial situation and needs. In particular, you should seek appropriate financial advice and read relevant Product Disclosure Statements or other offer documents prior to acquiring any financial product.

 

 

Top Things To Do and Review Before 30 June

Here’s our list of the top things you need to do and review before 30 June arrives:

1. Write-off bad debts. To be a bad debt, you need to have brought the income to account as assessable income, and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a director’s minute confirming the write-off is a good idea.

2. Trading Stock. Write off any stock that is damaged or obsolete. Complete a stock take (if you are not using the simplified trading stock rules) and remember that stock can be valued at the lower of cost, replacement, or net realisable value. You can use different methods for different stock items.

3. Review your asset register and scrap any obsolete plant. Check to see if obsolete plant and equipment is sitting on your depreciation schedule. Rather than depreciating a small amount each year, if the plant has become obsolete, scrap it and write it off before 30 June. Small Business Entities can choose to pool their assets and claim one deduction for each pool. This means you only have to do one calculation for the pool rather than for each asset. It also allows you to claim an immediate deduction for depreciating assets that are bought for less than $1,000.

4. Repairs, consumables (office stationery etc), trade gifts or donations. To claim a deduction for the 2014/2015 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.

5. Pay June quarter employee super contributions if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2015. However, some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months.

6. Superannuation. Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your wealth position. Your personal or company sponsored contributions need to be received by the fund before June 30 to ensure deductibility.

7. Capital gains and losses. Neutralise the tax effect of any capital gains you have made during the year by realising any capital losses that you have. These need to be genuine transactions in order to be effective for tax purposes. It may be possible to contribute assets with unrealised losses to superannuation in order to do this.

8. Directors’ fees and bonuses. Declare them before 30 June and providing the company is absolutely committed to them, you are entitled to the deduction even if they have not been paid. Again, a director’s minute is a good idea. The directors and employees only need to declare this income in the year of receipt although they need to be formally notified of their entitlements by 30 June.

9. Management fees. Where management fees are being charged between related entities, make sure that the charges have been raised by June 30. Where management charges are used, make sure they are commercially reasonable and there is documentation to support this position. If any transactions are being undertaken with international related parties then the transfer pricing rules need to be considered and the ATO’s expectations in relation to documentation will be much greater. This is an area that the ATO are placing under greater scrutiny.

For Your Business

Trustees must make a decision on distributions by 1 July

Trustees need to decide on distributions of trust income by 30 June (at the latest) to ensure that beneficiaries are presently entitled to trust income for tax purposes. Trustees used to have until 31 August to make a decision but this administrative concession has been removed. If the ATO is not satisfied that the resolutions have been made in time then the risk is that the trustee or default beneficiary will be taxed on all of the trust income.

Defer your income

If possible, defer your income until the new financial year. In particular this can work for service based businesses or where you are billing your clients on a progress payment basis. Make sure that you can manage any cash flow effects that come with this one.

Manage your capital gains and losses

Remember that capital gains trigger on the date of the contract not the date of payment. Also, capital losses can only be written off against capital gains. So, if you are selling assets that will trigger a capital gain try and delay the contract until 1 July unless you have some capital losses that you are able to offset against.

Please contact either John, Rob or Sam, if you would like further information.

Are you interested in Self Managed Super Funds (SMSF)?

SMSF Strategic Advice

We are excited to announce that McAdam Siemon is expanding its service offering and are now able to provide a much wider range of advice, including SMSF advice.

To date our SMSF advice offer (via Smart Choice SMSF Administrators) has been structured to provide administration and accounting services to our clients. This is largely a compliance service to ensure your fund is established correctly and meets all the legal requirements. Due to Government regulatory changes accountants are now required to be licensed to provide any SMSF advice. (via Smart Choice SMSF Strategies Pty Ltd)

As we are always looking for a way to improve our service offering, we have decided to become fully licensed. This will not only enable us to provide SMSF advice but expand our advice services more generally.

So what does this mean for you?

This will be different for every client, dependant on your individual needs and circumstances. It essentially means we now have a wider range of services we can offer you. This doesn’t mean we will be selling you financial advice products, it simply means we now have the ability and expertise to provide strategic advice if it’s of interest to you.

We have included a table of how our services will be structured in future. You might notice some services previously provided by the accounting business have moved across to the advice area. This enables us to provide more comprehensive advice and ensures we are compliant with any legal requirements.

As part of the regulatory change we were required to either hold the license ourselves or become authorised with another license holder, we chose to affiliate ourselves with SMSF Advice, a leading licensee in the market.

Our licensee, SMSF Advice, is a subsidiary of the AMP Group and in partnering with them we are able to draw on in-depth knowledge of the financial services industry. We can leverage a wide range of plans, tools and training to ensure we deliver the best possible advice to you in the most efficient way.

Are you interested in Self Managed Super Funds (SMSF's)?

What’s next?

If you have any specific questions or would simply like to know more about the options available to you, please contact the Partner or Client Manager who looks after you for a confidential discussion regarding your needs.

Superstream Update

Superstream update

SuperStream is a government reform aimed at improving the efficiency of the superannuation system.

Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically in accordance with the SuperStream standard. All superannuation funds must receive contribution details electronically in accordance with this standard.

The new rules apply to employers that have 20 or more employees from 1 July, 2014.

Employers that have less than 20 employees have until 1 July, 2015 to comply with the new regulations.

It is the employers’ responsibility to collect the required information and ensure that their payroll software can cater for SuperStream.

Employers will have to:

  1. Make contributions electronically to employees’ nominated super funds, and
  2. Provide details of the payment transaction, e.g. employee name, TFN and super fund member number electronically to the relevant super fund via an electronic service address

Super funds will need to provide the below information to the employer:

  1. ABN
  2. Bank account details where the contributions should be paid to, and
  3. Electronic service address (ESA)
  4. Bank account details where the contributions should be paid to

Please contact the team at McAdam Siemon if you would like further information regarding Superstream.