superannuation and trusts

Chartered Accountants ANZ is providing comprehensive updates and resources for its members in response to COVID-19. This includes government announcements on lockdowns, stimulus packages, and assistance from both New Zealand and Australian governments. The organization is also actively engaged in advocacy efforts, offering support for practice sustainability, member wellbeing, and ethical considerations during the pandemic. Resources are available to help businesses navigate the crisis, including information on stimulus packages and tax reporting.

Chartered Accountants Australia and New Zealand (CA ANZ) has launched a new hub for its members residing outside of Australia and New Zealand. This platform will provide updates on CA ANZ campaigns and initiatives, feature profiles of 'Difference Makers' among international members, and list upcoming CPD events in various global locations. Members can also access a new international store for learning resources and connect with other CA ANZ members through social media community groups.

The SMSF Association has submitted feedback on the draft legislation for the Better Targeted Super Concessions policy, acknowledging the government's intent but highlighting significant practical and equity concerns. While welcomed changes to the earnings calculation methodology have been made, the association argues the draft bills still lack balance and could lead to unintended and unfair outcomes, including individuals being liable for tax without being ultimate beneficiaries or inappropriate attribution of earnings. They propose alternative, simpler solutions and advocate for amendments to minimize inequitable results and reduce complexity, particularly regarding Capital Gains Tax (CGT) adjustments.

The SMSF Association has announced the graduation of 37 professionals from its newly structured SMSF Specialist Advisor (SSA®) accreditation course. This redesigned program, featuring a cohort-based model with multiple intakes per year, aims to enhance the learning experience while maintaining the program's rigour and flexibility. The SSA® designation is widely recognized as the peak credential in the SMSF industry, signifying specialist competence and building client confidence in high-quality SMSF advice. Graduates have reported positive feedback on the practical, real-world focus and the benefits of structured learning and peer support.

SMSF practitioners face potential legal repercussions if they fail to ensure clients genuinely meet retirement criteria before accessing superannuation. Lyn Formica from Heffron warns against pressure from employers to falsely declare retirement to enable tax-exempt pension access. She emphasizes that practitioners must adhere to ethical standards and codes of conduct, which require ensuring clients comply with the law. Misrepresenting a client's retirement status to the ATO or fund trustee could lead to false and misleading statements, and breaches of Superannuation Industry (Supervision) covenants, potentially exposing them to legal action from other fund members.

Revised draft legislation for Division 296, released on December 19, has altered how an individual's Total Super Balance (TSB) determines liability for the new tax. Previously, only the TSB at June 30 was considered; now, it's the higher of the TSB at the start or end of the income year. This change invalidates strategies that relied on withdrawing benefits to reduce the TSB below the $3 million threshold by June 30 to avoid the tax. The "integrity design measure" by Treasury ensures that if a TSB is above $3 million at the start of the income year, the individual will be subject to the tax, even if their TSB falls below the threshold by year-end. While withdrawals after July 1, 2027, will not be effective for avoidance, steps can still be taken before July 1, 2026.

New research from AMP reveals a significant gap in retirement confidence between men and women, with women expressing more concerns about having enough superannuation for retirement and affording their desired lifestyle. This disparity is strongly linked to lower levels of financial literacy and engagement with superannuation among women. Factors such as lower super balances due to pay gaps and career breaks contribute, but AMP highlights that women also demonstrate less understanding of concepts like compounding returns and are less confident in the superannuation system compared to men. The study suggests that improving financial literacy through education and support from super funds can empower women to build wealth and confidence for retirement.

HUB24 has announced a significant increase in the number of financial advisers using its platform, reaching 5,277. As part of its growth strategy, HUB24 has also brought its superannuation trustee functions in-house. This move indicates a consolidation of services and a deeper integration of superannuation operations within the HUB24 ecosystem.

The proposed "total super balance integrity measure" under Division 296 is emerging as a significant point of contention. The Financial Planning Association of Australia (FPA) has voiced concerns that this measure is unfair, particularly in its impact on individuals and their superannuation balances.

The "total super balance integrity measure" is emerging as a significant point of contention in the reshaped Division 296 of Australia's tax laws. This proposed measure, which could affect individuals with superannuation balances exceeding $3 million, is being criticized by the IFA (Industry Funds Forum) as unfair. The IFA argues that the measure is not reflective of Australians underspending their superannuation and could disproportionately impact certain individuals.