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ATO Latest Target
The ATO have advised that they believe baby boomer Australians are planning and structuring to dispose of assets in a way that may have unfavourable tax outcomes according to their standards.
Succession planning is primarily done by group heads who are approaching retirement. They typically own groups that family members are a part of, and wealth is transferred to the next generation via trusts and other means. So what is wrong with that?
Transferring assets to family members via the creation of trusts or other entities have legal and tax implications that need to be carefully considered if you want to avoid an ATO headache.
Read more here or speak with us if you’d like to find out more about the ATO’s scutiny on succession.
The debate over credit card surcharges still looms
Customers dislike surcharges and would be happy to see them go however that leaves small business to absorb those costs. While we all suffer from cost of living increases, there seems to be an unreasonable perception that small business can weather that storm.
In Australia, it is not a level playing field when it comes to card transaction fees with a large disparity between fees paid by small and large merchants – small merchants pay around three times the average per transaction fee than larger merchants.
Our newsletter discusses the RBA’s stance on surcharges and what kinds of surcharges are considered reasonable and what is considered excessive.
Death and Taxes.. on Super?
Death benefits are a complex area. The superannuation fund trustee has discretion over who gets your super benefits unless you have made a valid death nomination. If you don’t make a decision, or let your nomination lapse, then the fund has the discretion to pay your super to any of your dependants or your estate. This can be costly if done incorrectly with untoward tax outcomes. It can also lead to allocation of your super to an unintended individual.
Death nomintaions are important, and there are 4 types that can be made. Read about death benefits in this months newsletter. The bottom line is, young or old, check your nominations with your superannuation fund and make sure you have the right type of nomination in place, and it is valid and correct. While there still might be a delay in getting your super where it needs
to go if you die, the process will be a lot quicker and less onerous for your loved ones, while also avoiding unwanted tax consequences.
Please feel free to contact us anytime if you’d like to explore or discuss any items in this months newsletter.
Kerrily and Louise – Directors
