Commsec Broker Link

If you use Commsec, please read the following update.

As you may be aware our data processing team have been having had long ongoing discussions with Commsec in regards to their trade notification system either deleting the nominated email address or not sending contract notes by email to our batch processing centre.

We are still awaiting a definite answer and yet to receive evidence to confirms their reasons as to why this occurs.

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Super Co-contribution

The Super Co-contribution is a helping hand from the Australian Government to assist eligible individuals to save for their retirement. If you are eligible and make personal super contributions, the government will match your contribution with a Super Co-contribution up to certain limits.

Co-contribution Income Thresholds

Contributions made from 1 July 2007 but before 30 June 2008

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ATO sends warning to super fund trustees

Michael D’Ascenzo, ATO tax commissioner has sent out a warning to remind trustees to ensure the value of any asset transfer correct. Trustees must ensure they aren’t moving assets into their funds and failing to report the total value of their portfolio to avoid raising their tax costs.

D’Ascenzo, said the ATO was concerned that superannuation assets are not being properly valued and expenses are not being recorded correctly.

“We are concerned about contributions of assets made to a fund where the market value of the asset is not properly accounted for in an attempt to avoid paying excess contributions tax,” said D’Ascenzo.

“It is also a concern that people may try to avoid the excess contributions tax by paying expenses on behalf of the fund, or by making improvements to a fund asset without reimbursement for the work.

“We follow up on excess contributions to superannuation so people need to make sure they don’t exceed the cap or they will receive an excess contribution tax assessment.”

He said super fund trustees must consider any income, capital gains and fringe benefits tax implications when transferring assets.

D’Ascenzo also reminded trustees to ensure the value of the property is up to date.

“What trustees must be doing that’s been picked up by the ATO, is they would be accepting a valuation which wouldn’t be its true market value, so that might be the purchase price or it might be its most recent valuation might be quite old,” he said.

The ATO is urging trustees of superannuation funds seek advice to ensure they comply with contributions tax regulations. If you are a client of Your Super Admin, you can email us any time with your queries and we will provide the guidance necessary to ensure you remain compliant.

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Your Portfolio Online - Asset Valuations

To ensure the value of our ongoing administration offering, we have made arranged for your non listed assets to be valued at the end of each month. For many of these assets not much will change as we source these prices directly from the issuers who only update their web pages either monthly or quarterly. Some assets, like unlisted property, will still require trustees to forward these to our office for processing.

Please email any updated valuations of assets that do not have an updated valuation in your account to admin@yourportfolioonline.com.au.

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Macquaire Bank and Credit Suisse release Global Themes 100

Global Themes 100 is an exciting new investment strategy that offers capital protection at maturity and access to 11 investment themes that may reflect the future of world growth for now and the next five years. Global Themes 100 offers investors choice, flexibility and access to one or all of our unique investment themes. The themes include:

• China Growth Trust
• India Opportunities Trust
• Agriculture Trust
• Emerging Markets Infrastructure Trust
• Global Resources Trust
• Asian Property Trust
• Eastern Europe and Russia Trust
• Global Warming Trust
• World Gold Trust
• Australian Equities Trust
• Market Neutral Trust

Investors can choose each trust individually or choose one of four blended portfolios pre-selected by Macquaire.

For more information please call Will Becker from Macquarie Equities on 02 8232 1021 or click here.

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30 June is approaching what to I need to do?

As 30 June approaches as trustees of your fund you must ensure you have fulfilled all your requirements to your members for the year that has just past.

Following is a checklist;

• Have all member contributed within the contributions caps?
• Have all members accessed funds within their preservation limits?
• Have all pensions payment been taken as per the minimum requirement?
• Has each member’s employer contributing to their fund met the Superannuation guarantee minimums?
• Has each member with employer contribution received a letter from that employer stating they intend to claim a tax deduction for those contributions?

For your benefit we have provide a list of Key Superannuation Rates and thresholds.

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Key superannuation rates and thresholds

Concessional contributions cap

Concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person.

Note: In accordance with section 960-285 of the Income Tax Assessment Act 1997 (ITAA 1997), the concessional contributions cap is indexed in line with AWOTE, in increments of $5,000 (rounded down).

Transitional arrangement for the concessional contributions cap

A transitional concessional contributions cap applies until 30 June 2012 for people aged 50 or over. If you are aged 50 or over the annual cap will be $100,000. If you have more than one fund, all concessional contributions made to all your funds are added together and count towards the cap.

Non-concessional contributions cap

Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.

(Note the ‘bring-forward’ option available, meaning that people under 65 years of age can make non-concessional contributions of up to $450,000 over a three-year period.)

Note: In accordance with subsection 292-85(2) of the ITAA 1997, the non-concessional cap for an income year is 3 times the concessional contributions cap.

Transitional arrangement for the non-concessional contributions cap between 10 May 2006 and 30 June 2007

Between 10 May 2006 and 30 June 2007, you could contribute up to $1 million of non-concessional contributions to your super fund. This limit is referred to as the transitional non-concessional contributions cap. If you had more than one fund, all non-concessional contributions made to all your funds are added together and count towards the cap.

However, the following contributions are excluded from the $1 million transitional non-concessional contributions cap:

• contributions arising from personal injury payments, or
• up to $1 million of contributions derived from the disposal certain small business assets (it should be noted that these contributions were subject to the capital gains tax (CGT) cap).

CGT cap amount

Under the CGT cap, you can only exclude up to the CGT cap amount in non-concessional super contributions from the non-concessional contributions cap during your lifetime. The CGT cap applies to all excluded CGT contributions, whether they were made between 10 May 2006 and 30 June 2007 or after 30 June 2007.

Note: In accordance with section 960-285 of the ITAA 1997, the CGT cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down).

For more information see the ‘Exclusion from the transitional non-concessional contributions cap’

Preservation Age

Generally, you must reach preservation age before you can access your super. Use the following table to work out your preservation age.

Minimum annual payments for superannuation income streams

Once you start a pension or annuity on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account. The following table shows the minimum percentage factor for each age group:

Superannuation guarantee

The superannuation guarantee charge
percentage (%)

The superannuation guarantee requires employers to provide sufficient superannuation support for their employees. You are obliged to contribute a minimum of 9% of an eligible employee’s earnings base to a complying superannuation fund or retirement savings account (RSA). Your contributions need to be made at least every quarter (that is, every three months).

The charge percentage is set out in the law. For 2002–03 and subsequent years, the rate is 9% of each employee’s earnings base.

If you need percentages for prior years, please refer to former sections 20 and 21 of the Superannuation Guarantee (Administration) Act 1992, available from the Legal Database.

Maximum superannuation contribution base

The maximum superannuation contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. You do not have to provide the minimum support for the part of earnings above this limit.

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For further information contact Your Super Admin Pty Ltd

Copyright © 2007 - 2012 Your Super Admin Pty Ltd

Disclaimer: The material contained in this publication is in the nature of general comment and information only and neither purports nor is intended to be advice on any particular matter. Readers should not act or rely upon any matter or information contained in or implied by this publication without taking appropriate professional advice.