Issue 20 | 16 November 2015
Welcome to ESUPERFUND’s November Newsletter.
In this issue, we have summarised some frequently asked questions about the 2015 Online Checklist. We also provide you with an update on the Government’s policy regarding SMSF borrowing. Lastly, we explain the Work Test and highlight the benefits of claiming property depreciation in your SMSF’s tax return.
Client Services Manager
We have received many queries from clients regarding the submission of the online checklist, so we have summarised the most common queries below.
Q: How long will it take to process my Annual Compliance Documentation?
The average completion time is 3 to 4 months from the day you submit the Checklist depending on your Fund’s circumstances. However, if your Checklist is submitted in the peak season (September - October), the waiting period may exceed 4 months due to the high amount of Checklists received during that time.
If you have not received any communication from our office within 4 months of submitting your Checklist, please do not hesitate to contact our office.
Q: I have already provided the requested additional information via email/fax/mail. Why are the requested items still showing in red on the Additional Information Upload page?
We advise that the documentation sent to our office via email/fax/mail will be kept on file by us upon the receipt of the documentation. However, it will not be uploaded to the Checklist page.
If you have provided the information, please kindly disregard the “Additional Info” requested on the Checklist page. Our office will contact you via email if we require further information from you to finalise the 2015 accounts for your Fund.
Q: I missed the Checklist submission due date of 31 October 2015. What can I do?
Please submit your Checklist via the Client Portal at your earliest convenience. We kindly remind you to check the "ITR Status" under the Checklist History Page, which indicates the due date for your Fund's Annual Tax Return (i.e. 28 Feb or 15 May)
Government confirms green light on SMSF borrowing
On 20 October 2015, the Liberal government confirmed that SMSF borrowing, through the use of limited recourse borrowing arrangements, continues to remain a legitimate financing option for SMSFs. While the Government notes that there are anecdotal concerns about LRBAs, at this time the government does not consider the data sufficient to justify policy intervention.
Learn more about limited recourse borrowing arrangements.
Do You Know?
What is the Work Test?
If you are 65 to 74 years old, you will need to satisfy a work test in each financial year that a voluntary super contribution is made to your fund. The work test requires you to be gainfully employed. To satisfy the work test, you must work for at least 40 hours during a consecutive 30-day period each financial year in which contributions are made.
If you are 65 or over and contribute to your SMSF without first meeting the work test, the amount must be returned to you by your SMSF within 30 days.
More information about the Work Test can be found on the ATO’s website.
You can claim a depreciation expense for property held by your SMSF
Are you aware of the benefits that come from claiming property depreciation on your SMSF’s tax return?
As a building and its fixtures & fittings grow older, the natural wear and tear that gradually takes place is called depreciation. The Australian Taxation Office (ATO) allows property investors to claim a tax deduction for this depreciation.
If you would like to claim depreciation expense for property held by your SMSF, you are required to provide an Official Depreciation Schedule prepared by a Quantity Surveyor to our office.
Learn more about property depreciation
We have just faxed the completed Declaration Forms for lodgement and paid the PAYG Income Tax Instalment. We feel the need to comment on the standard of service and client assistance we have received in the completion of the Tax Return and associated matters. The standard of service received has been exemplary and provided a level of assistance that far exceeded our expectations.
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