The general transfer balance cap (TBC) – the amount of money you can potentially hold in a tax-free retirement account, will increase by
$200,000 on 1 July 2023 to $1.9 million. The TBC is indexed to the consumer price index each December.
The TBC applies individually. If your transfer balance account reached $1.7m or more at any point before 1 July 2023, your TBC after 1 July 2023 will remain at $1.7m. If the highest amount in your account was between $1 and $1.7m, then your cap is proportionally indexed based on the highest ever balance your transfer balance account reached.
That is, the ATO will look at the highest amount your transfer balance account has ever been, then apply indexation to
the unused cap amount.
For example, if you started a retirement income stream valued at $1,275,000 on 1 October 2022 and this was the highest point your account
reached before 1 July 2023, then your unused cap is $425,000 ($1.7m-$1.275m). This unused cap amount is used to work out your unused cap
percentage ($425k/$1.7m=25%).
The unused cap percentage is then applied to the indexation increase ($200k*25%=$50k) to create your new TBC of $1,750,000.
But don’t worry, you don’t have to calculate this yourself, you can see your personal transfer balance cap, available cap space, and
transfer balance account transactions online through the ATO link in myGov.
The caps on the contributions you can make into super however, will remain the same. That is, $27,500 for concessional contributions and
$110,00 for non-concessional contributions. The contribution caps are linked to December’s average weekly ordinary time earnings (AWOTE)
figures.
We want our people to be the best they can be..
Time is ticking with not much time left until SuperStream becomes mandatory, employers are being urged to cross SuperStream off their ‘to-do’ list ahead of the 30 June 2016 deadline.
The ATO has issued a timely reminder before the end of the financial year on the changes announced in last year's Budget.
Listen up! The word on the street is that big changes to superannuation might be introduced on budget night May 3rd. If made they will come into effect as soon as the announcement is made, leaving no time to react to the changes. We’ve got the low down on what’s expected and how it might impact you.
What if you can’t be there? Have you got someone capable of running your business? Do they have the shoes to fit ?
Most people will quite literally earn millions of dollars in their lifetime. Yet many people struggle financially and live from one pay period to the next.
A Trap That Causes Many Businesses To Go Broke, While They’re Making a Profit
There’s a saying in business, “You can go broke making a profit.” And another, “Cash is king. Profit is theory.”
Treat finding an accountant like speed dating. Life is busy, you need your accounts looked after and you don’t have time to wade through all the possible suitors. You know what you’re looking for – someone who is on the same page as you, who’s going to hit the deck running and who’s going to make your life easier with them in it.
Following many requests from clients SMART Business Solutions has now started a dedicated bookkeeping division offering you the opportunity to spend more time on your business and less time with the nitty gritty of bookkeeping
SMART Business Solutions are proud to have been awarded several significant awards recently.
We are extremely proud to announce that Shannon Smit, has been appointed to the Board of Taxation’s Advisory Panel for 2016.
Don’t be left up in the air by traditional IT solutions. Check out our top 10 advantages for small businesses switching to cloud computing.Cloud computing is fast becoming the norm because storing information and using software hosted on the Internet has many advantages.
We are frequently asked questions about obligations for WorkCover and Payroll tax. In this article we explore the details, cutting through the legal jargon so you can gain a greater understanding of how it effects you and your business.
New Year’s Eve is famous for the New Year’s Resolutions people make to better themselves in the coming year. What about your financial future? How can you ensure you stick to your resolution?
Small business owners have a lot to think about: sales, staffing, customer service, vision, growth, the list goes on. In fact, it is hard not to think about your business when you’re a small business owner. Perhaps the one responsibility you would rather not think about is bookkeeping/accounting?
Some business owners try to avoid the hassles of accounting by simply ignoring the problem. “I’m too busy,” they say, but no business can hide from accounting. If late lodgement penalties aren’t motivating enough, hopefully the knowledge that you have basically no visibility into the vital indicators of business health will be.
Sure, there are online tools out there to make the process less burdensome, but could your time be better spent? And while you might think that a part-time bookkeeper might solve your problem, it really depends on your needs, and there are downsides there too.
HERE ARE what we think are THE TOP 5 REASONS TO OUTSOURCE YOUR bookkeeping to SMART Bookkeeping Solutions in Mornington
We often hear from clients “I often forget to send invoice reminders or statements and invoices are falling through the cracks, can Xero help with this?” Easy, of course it can!
It's time to celebrate! SMART Business Solutions are pleased to share with our clients some exciting news. The Finalists in the Australian Accounting Awards have been announced with the team being successful finalists in the following categories
- Best Marketing (you know we always try to be different!) Shannon was also interviewed http://www.accountantsdaily.com.au/breaking-news/8605-accountants-must-touch-their-clients-12-times-a-year
- Accounting Student - Well done Hayden!
- Office Administrator - Awesome effort Nicole!
- Partner of the Year - Shannon Smit for both Transfer Pricing Solutions & SMART Business Solutions
Quality Matters – Independent review with outstanding results for SMART Business Solutions
Paying an accountant to handle all of your financial reporting can be expensive, but if you have several different sources and deductions or if you own a small business, it can be worth it.
Is your business thriving, but you struggle to maintain positive cash flow?
Don’t let it crumble from underneath you
It’s nearly BAS time again - tips to make BAS processing easier
BAS time seems to come around quicker and quicker! Here are some tips to try and make it a little easier!
With June 30 quickly approaching we are pleased to provide our year end checklists and questionnaires to help you get organised.
Tax planning is more than just a financial necessity—it's a strategic advantage for businesses of all sizes. By proactively managing your tax strategy, you can significantly reduce your liabilities, enhance cash flow, and ensure full compliance with ever-evolving tax regulations.
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