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Tag Archive: Greenlight

  1. End of Financial Year 30 June 2025 Updates

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    It is almost the end of another financial year and we just wanted to share some items that you might need to consider prior to 30 June 2025.

    Top 3 action items

    1. Have you taken your minimum pension?
    2. Have you made your Super Contributions before 30 June 2025?
      • Individual – Have you got room in your caps?
      • Employer – To get your tax deduction for employee super.
    3. Do you need to arrange property valuations?

    Minimum Pension Requirements need to be withdrawn prior to 30 June 2025.

    We are currently working through and contacting clients that have pensions in their SMSF to ensure their minimum pension withdrawals have been met. Not taking the minimum pension could result in the fund losing the tax free status on the earnings generated to support the pension accounts. As such it is a crucial item that needs to be considered prior to 30 June 2025.

    Contributions Caps

    Concessional Contributions Cap$30,000                                                             
    Non-Concessional Contributions Cap
    (Tax Free)                                                                  		$120,000 

    Concessional Contribution (CC) Cap
    A member’s CC cap may be higher than the standard CC cap amount if their Total Super Balance was less than $500,000 on 30 June of the previous year. That is a member can access any unused CC cap amounts carried forward (from the previous 5 financial years).
    Non-concessional Contribution (NCC) Cap
    Members under age 75 on 1 July 2024, may trigger the ‘bring-forward’ of up to two years’ NCC cap. This could enable up to 3 x the annual NCC cap to be contributed – subject to Total Super Balance being less than $1.66 million.
    If this is of interest to you, please contact us with any questions.

    If you are an employer
    To get your tax deduction for the superannuation that is payable to your employees, you must ensure that the payment and super stream reporting is approved and processed by the clearing house before 30 June 2025. 

    Given there is usually a 7 – 10 day clearing period, you must attend to this as soon as possible. 

    Valuations for Property (directly held or through other entities)

    As you are aware it is a requirement for SMSF trustees to report their assets at market value in their financial statements every year.  The ATO has now advised that where the value of a SMSF’s asset remains unchanged from the previous year, the SMSF may have contravened the super rules by not reporting the investment at its correct value. This may cause the auditor to lodge an auditor contravention report if they are not comfortable with the supporting evidence.

    In light of the above, the SMSF will need to obtain a valuation for property each and every year. This valuation must include at least 3 recent comparable sales data.
     
    Your property agent or regular valuation contact may be able to help you obtain this valuation at 30 June 2025.  If you do not have an existing contact, some options to source this valuation are:
    True Market –https://truemarket.com.au
    Acumentis Property –https://acumentis.com.au
     
    As the valuation process can take time, we request that you obtain a valuation as soon as possible to allow for the efficient and smooth preparation of the 30 June 2025 financial statements and audit for your fund.
    Division 296 tax – still not law
    Although the intention by the Albanese Government is to go ahead with the tax it has not become law yet.  There are still areas that are uncertain as to how these are going to be included – namely how are defined benefit pensions (CSS, PSS) going to be valued and its inclusion in the $3Mil value.
    Due to this we generally recommend no specific action be taken as the eventual legislation may differ to what is currently proposed.  However, ensuring that you have the most up to date valuations on all your assets will be crucial and would be prudent to start organising these now. 
    Rest assured once the legislation has passed, and we have had a chance to digest it we will be contacting clients affected to discuss how we can assist with managing this tax.

    Reminder about Greenlight Online
    As a reminder you are able to check your pension and contributions by logging into your Greenlight Online account at https://www.greenlightsuper.com.au/ 

    If you have any questions in relation to the above, please do not hesitate to contact us.

    Greenlight Super Team 
    T: 6273 1066
    3/19 Marcus Clarke St, New Acton, ACT 2601
    PO Box 3276 MANUKA ACT 2603 
    www.greenlightsuper.com.au

  2. Insights on the 2025 Federal Budget and Super Related Implications and Farewell to Samantha

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    Dear Greenlight Clients,

    The recently unveiled 2025-26 Federal Budget has introduced a few superannuation-related measures. Here is a brief overview of the key developments.

    Division 296 Tax on Superannuation Balances

    The government has reaffirmed its commitment to implementing the Division 296 tax, which imposes an additional 15% levy on superannuation earnings for balances exceeding $3 million. This initiative, projected to generate an extra $9.7 billion in revenue from commencment to 2028-29.

    Residency Requirements for SMSFs

    Despite previous commitments to relax residency requirements for SMSFs—specifically, extending the central management and control test safe harbour from two to five years and removing the active member test—there has been no progress in this budget. The absence of draft legislation continues to perplex industry stakeholders, given the relative simplicity of implementing these changes.

    Payday Superannuation Implementation

    The budget outlines plans to enforce the “payday super” policy, requiring employers to remit Superannuation Guarantee (SG) contributions concurrently with salary and wage payments, effective 1 July 2026. This measure aims to address issues of unpaid SG contributions and enhance retirement outcomes for employees. Employers are advised to review and potentially adjust their payroll processes to ensure compliance with the forthcoming requirements.

    Cost-of-Living Measures and Tax Adjustments

    Other announcements were made in response to ongoing cost-of-living pressures. The budget introduces several initiatives, including;

    • Tax cuts -the estimated cuts were announced as $268 for the 2026-27 year and $536 for the 2027-28 year,
    • Energy bill relief – $75 per quarter per household extended to 31 December 2025, and
    • Enhancements to Medicare and healthcare services – through additional funding for GP bulk billing, reduction in the cost of PBS-listed medicines, and additional funding for public hospitals, increase in GP training places, nurse and midwife scholarships

    The 2025-26 Federal Budget presents a mixed landscape for SMSFs. While certain anticipated reforms remain unaddressed, the introduction of the Division 296 tax and changes to SG contribution timings warrant close attention. SMSF trustees and members should stay informed and consider seeking professional advice to navigate these developments effectively.

    If you have any questions or concerns regarding the above budge,t please don’t hesitate to contact us, keeping in mind that they are announcements and not legislated.  

    You can read more about the budget here https://budget.gov.au/ ​

    Farewell Samantha

    Samantha unfortunately, will be leaving Greenlight as of 4 April 2025. She is off to pursue her career in teaching. While we are sad to see her go, we truly appreciate the dedication and service she has provided to you and all of our clients.

    Moving forward, instead of emailing Samantha, you could send any queries to info@glss.com.au, and Clare and Rene will be able to assist you.

    Please join us in thanking Samantha for her contributions and wishing her all the best in her next endeavours.

    If you have any questions or concerns, feel free to contact the office.

    Kind regards,

    Greenlight Team

    T: 02 6273 1066

    3/19 Marcus Clarke St, New Acton, ACT 2601

    PO Box 3276 MANUKA ACT 2603 

    www.greenlightsuper.com.au

    Liability limited by a Scheme approved under Professional Standards Legislation

  3. Cyber Security

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    With the growth of the online world, the importance of strong cyber security and cyber awareness is becoming increasingly important. Cyber security is not just important for businesses but also for individuals and families. Scams are becoming more and more common, and it is important to be aware of the signs of a scam to safe online.

    What are Cyber Scams?

    A cyber scam is when someone uses emails, messages, phone calls and any other online platform to pretend to be another individual or organisation. This could be someone you think you know or someone you think you should trust. They do this to try and get you to send them usually some sort of currency or personal information.

    ATO Impersonation Scam

    There has been a recent email being sent impersonating the ATO. This email mentions a security update and asks for you to update your multifactor authentication through scanning a QR code. This then leads you to a fake myGov page designed to steal your sign in details. It is important to note that the ATO will never send you an email with a QR code or a link to log into the portal.

    Some Signs of a Scam

    • The message is unexpected and comes out of the blue.
    • The message is not the same formatting or written as it normally would be.
    • Theres an unreasonable deadline or sense of urgency.
    • There is a promise of a benefit or threat of punishment (debt, fine, jail).
    • There are links to follow, QR codes to scan.
    • They may be asking for money, gift cards, log in details and other personal details.

    If You Think You Have Received a Scam

    1. Go Straight to the Trusted Source – Visit the official website, log on to your account, call the official phone number and discuss what you have received to confirm if it was real. Do not get this contact information from the scam.
    2. Do Not Click on Links, Open Attachments or Reply – Scammers may try to trick you into giving personal information. They may ask for your bank account details, passwords or credit card numbers. They may also ask you to download files, software, or allow remote access to your computer. Do not click on these!
    3. Use Identification to Confirm if Genuine. – You can check website links by looking at them if they are claiming to be a government body and the link does not end in “.gov.au” it is a sign it is fake. You can also confirm phone numbers on official websites.

    As always, don’t hesitate to contact one of the friendly Greenlight Super Services team members if you require further assistance on (02) 6273 1066 or info@glss.com.au.

    This newsletter is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The newsletter has been prepared without taking in to account any personal objectives, financial situation or needs. The information contained is correct as of 11 December 2023.

  4. Super Budget 2023

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    Welcome to our latest newsletter, Budget Edition, in which we provide a brief summary of the few super related measures that were in the budget.

    Please remember that the following budget announcements are not yet law.

    Better Targeted Superannuation Concessions

    The Government will be going ahead with its previously announced measure to reduce the tax concessions available to individuals with a total superannuation balance exceeding $3million, from 1 July 2025.

    This reform is intended to ensure that superannuation concessions are better targeted and sustainable. It will bring the headline tax rate to 30 per cent, up from 15 per cent, for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million.

    Unless this proposed approach is modified, unrealised gains, accounting adjustments, and/or book entries and tax refunds will potentially be subject to this new tax.

    Stay tuned to further developments.

    Superannuation Guarantee – Changes to payment frequency

    From 1 July 2026, employers will be required to pay their employees’ compulsory SG entitlements on the same day that they pay salary and wages. Currently, employers are only required to pay their employees’ SG on a quarterly basis.

    This measure will increase the payment frequency of superannuation to align with the payment of salary and wages, ensuring employees have greater visibility over whether their entitlements have been paid and better enable the ATO to recover unpaid superannuation amounts.

    Non-arm’s length income (NALI)

    The Government is proposing to amend the non-arm’s length income (NALI) provisions that apply to certain expenses incurred by superannuation funds.

    Specifically relevant to SMSF trustees, the Government is proposing to limit the level of a fund’s income that is potentially taxable as NALI to twice the level of the shortfall amount of the expense (it was previously proposed that it would be five times the level of the shortfall amount of the expense).

    Additionally, fund income taxable as NALI will exclude contributions.

    30 June 2023 Year End Reminder – Pension drawdowns and contributions

    With 30 June 2023 fast approaching, here is a timely reminder of two very important issues to consider:

    1. If you are in pension mode, please ensure that you have withdrawn at least the minimum pension drawdown by 30 June 2023.
    2. For those taxpayers that are in accumulation mode and contributing to superannuation – please make sure that contributions are received by the super fund by 30 June 2023. This means that payments should be made several business days before then, to ensure that funds are cleared.

    Also, just a quick reminder that the concessional contribution cap is $27,500 per member and the non-concessional contribution cap is $110,000 per member.

    Minimum pension drawdowns from 1 July 2023

    Minimum pension payments will no longer by reduced by 50% and will return to normal levels in 2023/24. Please bear in mind the need for extra cashflow when planning for the year ahead.

    Also, it may be that some members considering making extra pension payments now (above the minimum required for 2022/23) may wish to consider holding off until July 2023 to make up some of next year’s payments.

    As always, don’t hesitate to contact one of the friendly Greenlight Super Services team members if you require further assistance on (02) 6273 1066 or info@glss.com.au.

    This newsletter is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The newsletter has been prepared without taking in to account any personal objectives, financial situation or needs. The information contained is correct as of 10 May 2023.

  5. Budget Edition

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    Welcome to our latest newsletter, Budget Edition, in which we provide a brief summary of super and retirement related measures.

    Please remember that the following budget announcements are not yet law.

    Reducing the eligibility age for downsizer contributions

    The eligibility age to make downsizer contributions into superannuation is set to be reduced from 60 to 55 years of age. All other eligibility criteria will remain unchanged.

    This change will provide a boost to the number of individuals eligible to make a one-off, post-tax contribution to their superannuation of up to $300,000, using the sale proceeds of their family home – regardless of their superannuation balance.

    Relaxing residency requirements for SMSFs

    Previously announced in the 2021/2022 Budget, the residency requirements applicable to SMSFs and small APRA funds were set to be relaxed through:

    • The extension of the central management and control test “safe harbour” from two to five years, and
    • The removal of the “active member” test – which would allow members who are temporarily absent from Australia to continue contributing to their SMSF.

    The Government has confirmed that these changes, broadly aimed at allowing greater flexibility for SMSF members who are temporarily overseas, are still set to go ahead. However, the start date for both measures has been deferred.

    Increased Commonwealth Seniors Health Card income threshold

    The Government has confirmed its commitment to increase the income threshold for Commonwealth Seniors Health Card eligibility from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

    This change will increase the number of individuals eligible to benefit from a Commonwealth Seniors Health Card.

    Incentivising Pensioners to Downsize

    The current Centrelink asset test exemption for proceeds from the sale of a family home, intended for the purchase of a new home, will be extended from 12 months to 24 months.

    Additionally, for income test purposes, only the lower deeming rate (currently 0.25%) will apply to these exempted proceeds over the 24-month period. These changes will allow pensioners more time to purchase, build or renovate a new home before their pension is affected

    Freezing of deeming rates

    The Government has also confirmed that it will freeze the social security deeming rates at their current levels until 30 June 2024.

    This change will support older Australians who rely on income from deemed financial investments, as well as the pension, to deal with the rising cost of living.

    As always, don’t hesitate to contact one of the friendly Greenlight Super Services team members if you require further assistance on (02) 6273 1066 or info@glss.com.au.

    This newsletter is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The newsletter has been prepared without taking in to account any personal objectives, financial situation or needs. The information contained is correct as of 26 October 2022