Need to know
Stuart Sheary, Senior Technical Manager
Outlined below is all the latest news you 'need to know'.
|Issue||What it means||What do you need to be thinking about?|
|Australian Taxation Office|
Employers wishing to participate in the SG amnesty are required to apply by 7 September 2020.
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest owed to their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.
Eligible disclosures will not incur the administration component ($20 per employee per quarter) or the Part 7 penalty (up to 200% of the SGC).
The Australian Taxation Office (ATO) has warned that underpaid SG amounts for a quarter that was covered by the amnesty but have not been disclosed will be liable for the SG shortfall as well as:
In addition to the above it will not be possible to claim a tax deduction for the SGC paid.
Payments of SGC made to the ATO after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible.
|Department of Social Security|
Indexation increase for Age Pension unlikely on 20 September 2020
The Department of Social Security typically increases pensions twice per year (on 20 March and 20 September). Pensions are increased by the greater of the movement in the Consumer Price Index or the Pensioner and Beneficiary Living Cost Index (PBLCI). The indexed amount is then benchmarked to a percentage of Male Total Average Weekly Earnings (MTAWE).
The Prime Minster has suggested that Age Pensioners may receive further stimulus measures. TechConnect will advise of any developments in relation to this.
|Recently passed legislation|
The Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 passed the Senate and awaits Royal Assent. The new legislation amends the Superannuation Guarantee (Administration) Act 1992 to give employees under workplace determinations or enterprise agreements the ability to choose their super fund.
The measure will now apply to workplace determinations and enterprise agreements made on, or after, 1 January 2021.
The change was originally intended to apply to employees under an enterprise agreement made on, or after, 1 July 2020.
|Bills in the House of Representatives|
The Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 proposes to increase the age at which people can access the non-concessional bring-forward rules from age 64 to 66 from 1 July 2020.
Under current legislation, only clients who were age 64 or under at the start of the financial year are eligible to access the bring-forward rule. Furthermore, clients also need to have a total super balance of less than $1.4 million as at 30 June 2020 to access the full $300,000 bring-forward amount.
Parliament resumes on Monday 31 August 2020. We will issue a TechAlert if this measure is passed.
|Bills in the Senate|
The Bill will extend the JobKeeper scheme until 28 March 2021. The JobKeeper Payment is currently scheduled to cease on 27 September 2020.
The Government has announced several other changes to the JobKeeper scheme which is implemented through the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020.
After 27 September 2020, the JobKeeper Payment is proposed to reduce to $1,200 per fortnight (pf) for full-time workers and $750 pf for part-time workers, with a further reduction from 4 January 2021. There may be circumstances where your client is eligible for the JobSeeker Payment. Please see our article JobSeeker Payments for couples for more information.
For more information, please see Treasury’s updated JobKeeper Fact Sheet.
If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.
The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.