Now is the time to consider just how compliant your SMSF is.
On 1 July 2014 the ATO has introduced new penalty provisions for trustees of a SMSF which breaches the rules:-
- A direction for the trustees to complete an education course,
- An order to rectify any breaches of the superannuation rules, and
- An administrative penalty (fine) for breaching the superannuation rules.
Financial penalties will be applied to each trustee. Funds with multiple trustees will face multiple fines. If the fund has a corporate trustee, then one fine is effectively shared between its directors.
Now is also the time to consider a corporate trustee.
How can we help?
Essentia Partners are passionate about Self-Managed Superannuation Funds, and we believe they often hold a very important place in a family’s retirement plans.
Our approach to SMSF compliance:-
- Assisting our clients to understand the rules in a practical way,
- Guide our clients through particular transactions, and
- Preparation of a pre-audit review of the fund – any compliance issues are identified and managed before the fund is sent to the auditor.
In the 2013 financial year our approach assisted over 97% of our client’s superannuation funds in meeting the applicable superannuation rules.
If you have any questions surrounding your own SMSF’s compliance or the new ATO penalty regime, please call Essentia’s Superannuation Director, Amanda Egan on 02 9843 0999 to discuss your particular circumstances.
Have you considered your concessional Superannuation Contributions?
Up to 30 June 2014, eligible individuals over 60 are subject to a $35,000 concessional superannuation cap, rather than the standard $25,000. The non-concessional cap remains at $150,000 this year.
From 1 July 2014 these caps are set to increase. However, each year’s cap is essentially a “use it or lose it” concession, so if you want to maximise your contributions before 30 June you should speak Essentia Partners to ensure you contribute correctly, effectively and avoid excess contributions tax.
Technology and innovation has positively shaped accounting information systems over recent times. Mainstream benefits include the adoption of the ‘cloud’ to host data files online and the use of electronic data feeds to prepopulate many transactions that would have been manually entered in the past. Business owners, accountants and bookkeepers now have the ability to access quality financial information on a timely basis from any location with an internet connection.
At Essentia Partners we strive to help our clients embrace the technology they believe will benefit themselves and their business. Already 10% of Australian businesses have adopted Cloud Accounting with the growth expected to triple in the coming year.
We recently appointed two internal consultants (Vicki Connolly & Mel Hevey) to work with our clients to assist with their future bookkeeping needs as well as discuss the exciting opportunity of Cloud Accounting. These ladies have extensive expertise in numerous Accounting software systems and are keen to assist with client transitions.
For those of our clients where we are regularly involved in your accounting information systems we will be in contact with you in the near future to discuss your particular circumstances and introduce one of our experienced consultants.
In the interim if you would like to find out more about how technology could shape your accounting information system please do not hesitate to contact our office