The benefits of a binding death nomination

Signing a binding death nomination can help your beneficiaries make the most of tax savings in super. A binding death nomination compels your super fund’s trustees to direct your super to the chosen dependent beneficiary upon your death. It also means your beneficiaries can receive any assets within the tax-effective structure of super. This is…

Tax deductions misconceptions

Wrongly claiming tax deductions can result in heavy penalties from the tax office. Despite this, many Australian taxpayers continue to attempt claiming invalid tax deductions that are rejected by the tax office. While some are not quite so obvious, below are some common misconceptions about deductions that many taxpayers believe. Driver’s licence: While claiming deductions…

Splitting superannuation

When a marriage or de facto relationship breaks down, any property can be divided between the parties. Under the Family Law Act 1975, superannuation is also treated the same way. Parties must enter a superannuation agreement or obtain a court order to allow the splitting of their superannuation. A spouse may seek a court order…

Employee reimbursements and GST

Business owners registered for GST may be able to claim GST credits for an employee-reimbursed expense. A reimbursement occurs when a business repays an employee for the price (or part of the price) of a purchase they have made. There are three conditions that an owner must meet in order to claim GST credits: the…

Avoiding SMSF death benefit disputes

Recent family disputes over superannuation death benefits carry an important warning to current SMSF trustees. The disputes have highlighted the need for trustees to have appropriate and binding death-benefit directions planned while members are still alive, in order to reduce the risk of a dispute arising. When there are clear death-benefit directions, surviving trustees have…

Small business CGT concession common errors

The ATO recently reported that small business owners were repeatedly making common mistakes when applying for capital gains tax (CGT) concessions eligibility tests. A taxpayer may qualify for the CGT concessions if they: – own a business with an annual aggregated turnover of less than $2 million; – are involved in a partnership that owns…

Refund of excess non-concessional contributions

The Government recently made changes to excess¬†non-concessional contributions, bringing the treatment of excess non-concessional contributions into line with the treatment of excess concessional contributions. The changes eliminate double taxation, where individuals were being taxed at the top marginal tax rate even though they paid income tax on contributions prior to making contributions to their fund.…