February 2021 Newsletter

Current as of 26 February 2021

 

What is changing with your Superannuation Transfer Balance Cap on 1 July 2021?
The general Transfer Balance Cap ‘TBC’ which limits the amount that can be transferred into the tax-free retirement phase of superannuation will be indexed to $1.7m from 1 July 2021. The original single cap will no longer apply for everyone, instead each individual will have their own TBC. This article will explain how the change in the TBC will affect your specific circumstances.

If you would like further clarification on the new TBC and how it’s relevant to your Account Based Pension, please contact us.

Small Business Insolvency Reforms
Covid-19 has had a significant impact on both Government stimulus packages and legislations such as the new Small Business Insolvency Reforms which have commenced from 1 January 2021. These reforms continue on from the insolvent trading “Covid-19 Safe Harbour” provisions which we have previously mentioned (article here) and have since ceased on 31 December 2020.The purpose of the Small Business Insolvency Reforms is to assist eligible small businesses to transition from the temporary relief of personal liability for insolvent trading to a formal debt restructure plan. This article explains your eligibility, requirements when appointing a Restructuring Practitioner and when both the Restructuring Process and Plan ends.

If you have any doubts on the viability or solvency of your business, please contact us to go through your options.

Getting ready for General Purpose Financial Statements
From 1 July 2021 the for-profit private sector entities producing Special Purpose Financial Statements (SPFS) will now be required to prepare General Purpose Financial Statements (GPFS) in accordance with the Corporations Act. Find out here what types of entities are now required to prepare GPFS and how you can be eligible for transitional relief by early adoption of the new standards.If you are looking for guidance and/or need assistance with transitioning to the new GPFS requirements, please contact us to discuss.

Are you subject to US tax? The answer might surprise you
As Australian tax residents, we assume the US tax system doesn’t really concern us. However, the US tax department’s reach is much further than we think!If you’re a US citizen, you are legally required to pay tax even if you are currently living in another country, or have never lived in the US. This article will explain the ATO and IRS’s current partnership and the substantial penalties that can be imposed when your income tax returns have not been lodged with the IRS, even if you’re permanently living abroad.

If you have any concerns regarding US tax, please contact us as our team can work with one of our colleagues (based in the US) within the Kreston International network to ensure your compliance and longer-term strategies are secure.

Life at S&W
After a year of limited social functions for the hard-working team at S&W, it was great to be able to get together for our first team bonding social function for quite a while. On Thursday 18 February the team hit the greens at The Neutral Bay Club to show their wares at lawn bowls. Other than the odd bowl on the wrong bias, the standard was good, and the team finally enjoying some normal activities again. Here’s hoping we can continue this normality going forward.

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