Several Bills relating to the Budget Repair Levy passed the Senate this week which will have an impact on superannuation, including the non-complying super fund tax rate.
The Budget Repair Levy doesn’t just apply to the highest marginal tax rate, AMP SMSF’s Peter Burgess told SMSF Adviser, it also applies to a number of other tax rates which are based on the highest marginal tax.
“For example, the rate that applies to non-complying super funds will increase from 45 per cent to 47 per cent and the rate that applies to excess non-concessional contributions and non-arm’s length income, will also increase from 45 to 47 [per cent],” Mr Burgess said.
“[Advisers] need to ensure these increased tax rates are factored into their tax calculations and strategies from 1 July 2014,” he added.
The Departing Australia Superannuation Tax Payments (DASP) will also be affected, said the SMSF Academy’s managing director Aaron Dunn, with two rates increasing to incorporate the levy.
DASP payments from a taxed super fund will be subject to a tax rate of 38 per cent during the period that a levy applies, Mr Dunn said, and DASP payments from an untaxed super fund will be subject to a rate of 47 per cent.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 26 Sep 2017ATO set to add new items to SMSF watch listBy Katarina Taurian
- 26 Sep 2017ATO tipped to scrutinise property development and unit trustsBy Jotham Lian
- 26 Sep 2017Statistics reveal full impact of events-based reportingBy Staff Reporter
- 26 Sep 2017Tax advice exemption discrepancy driving away accountantsBy Jotham Lian
- 26 Sep 2017Consultant flags strategies to negate complex ECPI calculationsBy Miranda Brownlee
- 25 Sep 2017Survey results point to major concerns with new reportingBy Miranda Brownlee
- view all
- ATO tipped to scrutinise property development and unit trusts
One big four accounting firm says the ATO has started to zoom in on property development in unit trusts being held in SMSFs and the calculat...read more
- Statistics reveal full impact of events-based reporting
Analysis conducted by SMSF software provider BGL Corporate Solutions has indicated that around 290,000 SMSFs will be affected by the events-...read more
- Tax advice exemption discrepancy driving away accountants
A discrepancy in ASIC’s treatment of licensed and unlicensed accountants in relation to the tax advice exemption instrument is driving acc...read more
- view all