News / SMSF Accounting News
Now the end of the calendar year is fast approaching, and many businesses shut down or partially close over the Christmas and New Year period, it is a good time for business owners to focus on areas they would normally put to the bottom of the pile. These may include:
The Financial System Inquiry recently released its recommendations. Headed by Mr David Murray, the panel aims to lay out a blueprint for the financial system over the next decade. Previous inquiries (Campbell report in 1981, and Wallis report in 1997) were the catalysts for major reform in the Australian financial sector, including floating of the Australia dollar and deregulation of the financial sector, changes to financial services regulations, the creation of Australian Prudential Regulation Authority (APRA), and changes to ASIC.
A recent study by Xero, a cloud based accounting software provider, showed 14 percent of small businesses in Australia are already using a cloud-based accounting package. Also, the study showed almost half of small businesses who do not currently used cloud-based accounting packages are considering doing so.
The superstream changes start from 1 July 2014 for employers with 20 or more employees, and from 1 July 2015 for employers with fewer than 20 employees. Large employers have until 30 June 2015 to start using the new measures. Failure to do so will not incur penalties before 30 June 2015.
Those employees earning a contracted wage, inclusive of superannuation, will find that their take-home pay is reduced from 1 July 2014.
This is because the medicare levy has gone up from 1.5% to 2.0%, which is to pay for the National Disability Insurance Scheme. The Superannuation Guarantee has also gone up from 9.25% to 9.5%.
From 1 July 2014, a legislative change will allow the ATO to apply a broader range of penalties and directions for SMSF breaches.
These penalties will be imposed on each trustee.
As an example, for an SMSF with four individual trustees, the ATO will impose a penalty on each trustee.
Recent changes to superannuation legislation, called Superstream, effects all employers and superannuation fund trustees. From 1 July 2014, employers with 20 or more employees are required to send contributions electronically to all superannuation funds, including self-managed superannuation funds. For employers with less than 20 employees, the new legislation starts on 1 July 2015.
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