Lever Group accounting news and tax updates

Taxation Services

We regularly deal with a broad range of personal and corporate taxation issues and make a point of understanding the individual needs of every client. Whether you need advice on company tax, personal tax effectiveness or indirect taxation including payroll tax and GST, our team will identify the best solutions for you.

Our taxation services include:

  • Preparation and lodgement of taxation returns
  • Capital gains taxation planning
  • Fringe benefits tax returns
  • Land tax returns
  • Payroll tax returns compliance
  • Tax planning and minimisation
  • PAYG and superannuation compliance

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Category: Superannuation

  1. WHAT TO CONSIDER WHEN CONSOLIDATING YOUR SUPER

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    The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

    Before consolidating your super, it is important to do the following:

    Research your funds’ policy
    Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

    • Exit fees
    • Insurance policies
    • Investment options
    • Ongoing service fees
    • Performance of the funds

    Check employer contributions
    Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

    Gather the relevant information
    When consolidating your super, you will need to have the following details ready:

    • Your tax file number.
    • Proof of identity. This could include your driver’s license, birth certificate or passport.
    • Your fund’s superannuation product identification number (SPIN).
    • Your fund’s unique superannuation identifier (USI).
    • Details of your previous fund.
  2. WHAT CIRCUMSTANCES PERMIT EARLY ACCESS TO YOUR SUPER?

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    Early access to your superannuation is permitted under a few limited circumstances outlined by the ATO. In the case that you are experiencing financial struggle and would like to withdraw from your super, be aware of the particular circumstances that will allow you to do so.

    Compassionate grounds:

    Withdrawing super on compassionate grounds is permitted in the event that you need money to pay for:

    • medical treatment and medical transport for you or your dependant,
    • palliative care for your or your dependant,
    • making a payment on a home loan or council rates so that you don’t lose your home,
    • accommodating a disability for you or your dependant, or
    • expenses associated with the death, funeral or burial of your dependant.

    Severe financial hardship:

    You can also be permitted access to your superannuation due to severe financial hardship. However, when requesting withdrawals under severe financial hardship, individuals need to contact their super provider for access rather than the ATO.

    Both of the following conditions must be met for you to be eligible to withdraw some of your super:

    • you have received eligible government income support payments continuously for 26 weeks, and
    • you are unable to meet reasonable and immediate family living expenses.

    Superannuation that is withdrawn due to severe financial hardship is taxed as a super lump sum. You can withdraw up to $10,000 from your superannuation (minimum of $1,000) and in the case that you have less than $1,000 in your super funds, you can withdraw up to your remaining balance after tax.

    Terminal medical condition:

    You may be eligible to request access to your super (approval by your super fund) in the event that you have a terminal medical condition and all the below conditions are met:

    • two registered medical practitioners have certified that you suffer from an illness or injury that is likely to result in death within 24 months of the date of signing the certificate,
    • at least one of the two registered medical practitioners is a specialist in the area related to your illness or injury, and
    • the 24-month certification period has not ended.

    Temporary incapacity:

    Those who are temporarily unable to work as a result of physical or mental medical conditions may be eligible for early access to superannuation. Access is dependent on the insurance benefits linked to your super account. Any withdrawals you receive are taxed (with regular rates) as a super income stream.

    Permanent incapacity:

    Permanent incapacity, also known as disability super benefit, allows for early access to super in the case that a permanent physical or mental condition is likely to stop you from ever working again, in a job you were previously qualified for.

    Individuals can choose to receive permanent incapacity super withdrawals as regular payments (income stream) or as a lump sum. Unlike temporary incapacity, permanent incapacity super withdrawals are subject to different tax components, based on:

    • the tax-free component of your super funds,
    • the taxable component your super provider has paid tax on (tax element), and
    • the taxable component your super provider has not paid tax on (untaxed element).

    To receive concessional tax treatment, your permanent incapacity must be certified by least two medical practitioners.

    Keep in mind that the ATO has also announced a new set of rules for the early release of superannuation due to COVID-19. Individuals who have been adversely affected by the pandemic may be eligible to access some of their superannuation early.