Big Changes to Superannuation Payments from 1 July 2026 The Treasury has released draft legislation for a major change to how employers pay superannuation—known as Payday Super. If the proposed reforms go ahead, employers will need to pay super much sooner than they do now, bringing it in line with employee pay cycles. What’s Changing? From 1 July 2026, employers will be required to pay their employees’ super within seven… Read More »Payday Super Details Released
If you are using a tax agent to lodge your SMSF Annual Return (SAR), know your lodgement date and engage early. If your self-managed super fund (SMSF) had assets, such as super contributions or other investments as of 30 June 2024, you will need to lodge a SMSF annual return (SAR) for the 2023–24 financial year. The SAR is more than a tax return. It’s a requirement to report super regulatory information, member… Read More »Lodging Your SAR Through a Tax Agent
Foreign investors who own residential properties in Australia are required to submit a Vacancy Fee Return annually if their property is unoccupied for 183 days or more during a 12-month period. The return is essential to ensure compliance with Australian regulations regarding vacant properties owned by foreign nationals. What is a vacancy fee return? A vacancy fee return is an online form that you lodge using Online services for foreign… Read More »Vacancy Fee Return for Foreign Property Owners in Australia
The Government has announced a temporary ban on investors buying established homes between 1 April 2025 to 31 March 2027. The measure aims to curb foreign “land banking.” From 1 April 2025, foreign investors (including temporary residents and foreign-owned companies) will be prohibited from acquiring established dwellings unless they qualify for specific exemptions. While exemptions exist, they are limited. In addition, foreign investors purchasing vacant land will be required to meet… Read More »Ban on Foreign Property Purchases
Is there a problem paying your super when you die? The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies? The value of superannuation in Australia is now around $4.1 trillion. When you die, your super does not automatically form part… Read More »Navigating the Complexities of Superannuation Death Benefits
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025. The transfer balance cap – the amount that can be transferred to a tax-free retirement account – is indexed to the Consumer Price Index (CPI) released each December. If inflation goes up, the general transfer balance cap (TBC) is indexed in increments of $100,000 at the start of the… Read More »Threshold for tax-free retirement super increases
The Full Federal Court today handed down its decision in Bendel & Anor v Commissioner of Taxation [2023] AATA 3074. Since December 2009, the ATO has taken the controversial view that when a trustee appoints income to a corporate beneficiary and some or all of this amount is left unpaid, then this amount can be treated as a loan for Division 7A purposes (see TD 2022/11 for the ATO’s latest guidance in this… Read More »ATO loses Federal Court appeal on Division 7A and unpaid trust entitlements
What a bank will never ask you but you should ask yourself when buying a home. At BBB we regularly field questions about borrowing capacity for buying property. I want to raise a key question that banks don’t ask but you should ask yourself especially if you are buying a home. As you’d expect, the banks have a standardised way of assessing someone’s borrowing capacity based on the age, profession, income and… Read More »The Homebuying Questions Banks Don’t Ask (But You Must!)
ATO Investigating 16.5k SMSFs Over Valuation Compliance We would like to bring to your attention an important development from the Australian Taxation Office (ATO). The ATO is currently scrutinising over 16,500 self-managed superannuation funds (SMSFs) that have allegedly reported certain asset classes at the same value for at least three consecutive income years. These assets include: Residential and commercial properties Unlisted companies Unlisted trust investments Why Is This Happening? The… Read More »ATO Investigates 16,500 SMSFs for Valuation Compliance
In November, Australia’s annual Consumer Price Index (CPI) inflation rose to 2.3%, up from 2.1% in October. The timing of electricity rebates contributed to this increase, as electricity prices fell by 21.5% over the year to November compared to a 35.6% drop in October. However, trimmed mean inflation, which excludes volatile items, dropped from 3.5% to 3.2%, aligning more closely with the Reserve Bank of Australia’s (RBA) target range of… Read More »Interest Rate Outlook for 2025