June 2013 Newsletter 

In this edition:

Welcome

Retirement Villages and Aged Care: Is there a Difference?

End of year Superannuation tax planning

Fuel tax credits - Changes from 1 July 2013

Superannuation and Powers of Attorney: Part 1

With the end of the financial year looming, now is a good time to be thinking about your end of year superannuation strategies. It may also help you to avoid some common traps and tax penalties.

Off-market transfers
Late last year the government announced proposals to ban off-market transfers effective from the 1 July 2013. Last week these proposals were scrapped. Consequently members can continue to either sell or contribute listed equities they personally hold to their super fund as they have done in the past.

If you are considering transferring shares into your fund as an in specie (non-cash) contribution, be careful not to exceed your contribution caps and ensure the acquisition of the listed securities is consistent with your fund's investment strategy. You should also ensure the necessary off-market transfer forms are completed and lodged with the necessary share registry in a timely basis.

Government co-contribution
Take advantage of the Government co-contribution by making a non-concessional (after tax) super contribution before the end of the financial year. For every dollar of eligible contributions, the Government contributes 50 cents to your superannuation up to a maximum government co-contribution of $500. For 2012/13, the maximum government co-contribution is payable for individuals on incomes at or below $31,920 and reduces by 3.33 cents for each dollar above this, cutting out completely once an individual's total income for the year exceeds $46,920.

Beware of excess contributions tax
Investors who want to make large superannuation contributions should exercise extreme care regarding the amount and type of contribution they make to avoid excess contributions penalties. For example, any type of contribution made during the two preceding financial years may impact on the contributions that can be made this financial year.

Payment of minimum Pension Reminder
For members in the pension phase, ensure that you have received the required minimum pension amount by 30 June otherwise the investment income derived from the assets supporting that pension may no longer be exempt from tax.

For SMSF members in the accumulation phase, fund deductions are usually not significant, but it's important to ensure expenses are actually incurred or paid before 30 June in order to be deductible in that year.

How can we help?
If you need assistance with any aspect of your end of year superannuation tax planning, please feel free to call our office to discuss your particular requirements in more detail.