Issue 32 | 17 November 2016
Welcome to ESUPERFUND’s November Newsletter.
In this issue, we summarise some frequently asked questions about the 2016 Online Checklist.
We also explain the Work Test Requirement for members aged 65 to 74 to make voluntary super contributions. Lastly, we introduce the email and sms alerts for you to check your Division 293 tax assessments.
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: 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 2016 accounts for your Fund.
Q: I missed the Checklist submission due date of 31 October 2016. 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 February or 15 May).
Work Test Requirement for Members Aged 65 to 74
If you are 65 to 74 years old, you must satisfy a work test in each financial year in order to make contributions other than the 9.5% Superannuation Guarantee Contributions (SGC) into your SMSF.
The ‘work test’ requires you to be ‘gainfully employed’. To satisfy the work test, you must work at least 40 hours in a period of 30 consecutive days in each financial year in which the contributions are made.
If you are turning 65 during the financial year, you must ensure the contributions are made before your 65th birthday if you cannot pass the work test.
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.
For more information on the work test requirement, please visit the ATO website.
Do You Know?
Email and SMS Alerts for Division 293 Assessments
Division 293 tax was introduced from the 2012–13 year to reduce the tax concession on superannuation contributions for individuals with income greater than $300,000 a year.
Division 293 tax is charged at 15% of an individual’s taxable concessional contributions above the $300,000 threshold.
The ATO will send an email or SMS to you in situations where you will receive your first Division 293 tax assessment or you will receive it in myGov if you have linked your account to the ATO.
These emails and SMS will only issue during peak assessment periods in November 2016, and between April and early June 2017.
The message advises you to check your assessment as it has important information about tax on your super contributions.
More Information about Division 293 tax can be found on the ATO website.
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