On March 29, 2022, the government of Australia released an amended version of the SMSF Federal Budget for the years 2022 and 2023. The budget has been brought up to date in order to provide assistance regarding the cost of living, employment growth, and the safety of women. For your convenience, the most important precautions that you, as a trustee of an SMSF, need to be aware of have been explained here.
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Extension of the temporary reduction in superannuation minimum draw down rates.
The Government has extended the 50 percent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products by a year, to 30 June 2023. The minimum drawdown requirements determine the minimum amount of pension that a retiree has to draw from their superannuation in order to qualify for tax concessions.
As a result of the continuous volatility, retirees will be able to circumvent the need to sell assets in order to fulfil the minimum drawdown criteria as a result of this move.
Digitalising the trust income reporting and processing.
The federal government intends to digitalize the reporting and processing of trust and beneficiary income by granting all filers of trust tax returns the option to also file income tax returns, increasing the amount of information that can be pre-filled, and digitally automating ATO assurance processes. This action will begin to take effect on or after the first of July 2024, provided that software vendors offer feedback regarding their level of delivery capability.
Since the processes for reporting income and calculating assessments associated with trusts have not been automated to the same extent as those associated with individual or corporate tax returns, the processing of trust tax returns typically takes longer and offers fewer opportunities for pre-filling. This step will lessen the burden of compliance on SMSF trustees, who are also taxpayers. Moreover, it will shorten processing times and improve ATO processes. For the purpose of finalising the policy’s scope, design, and specifications, the government will hold consultations with relevant parties, tax practitioners, and digital service providers.
How can Mint Super Audits help?
Wondering how the change in SMSF federal budget may impact your personal circumstances or retirement plans? Have questions that may need further clarification in regards to any of the above measures outlined in the 2022-23 Federal Budget? Our super fund auditor team at Mint Super Audits are ready to answer those questions, and also to assist with all your SMSF auditing needs. Contact us, today!