Indirect Budget impacts for SMSFs
In the wake of the release of this year's Federal Budget, Peter Hogan, national manager of self-managed superannuation fund (SMSF) advice for MLC, has said that while the Budget hasn't specifically targeted SMSFs, there are likely to be a number of indirect impacts.
"The phased-in introduction of monthly PAYG instalments, which will impact some larger superannuation funds from 1 January 2017, will have no impact on SMSF trustees," he said.
"They will continue to meet their PAYG obligations on an annual basis, which keeps administration simple and provides a deferral of their obligation to pay tax until lodgement of their annual tax return eight to 10 months after year end."
However, Hogan said that there were a number of earlier superannuation announcements that were affirmed.
Listing those announcements, Hogan said that the cap on superannuation guarantee, salary sacrifice and other concessionally-taxed super contributions would increase to $35,000 per annum from 1 July 2013 for people aged 60 or over, and from 1 July 2014 for people aged 50 and over.
"From 1 July 2012, the tax concession on concessional super contributions will (also) reduce from 30 per cent to 15 per cent for people who earn $300,000 per annum or over," he said.
"Tax may be payable on earnings exceeding $100,000 pa from assets held in a member's superannuation pension."
"(And) the excess contribution tax regime is to be amended to tax excess contributions at the member's marginal rate (plus a time penalty) rather than at current penalty tax rates, with an option to withdraw excess contributions from superannuation arrangements," Hogan added.
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