Simon Flowers 
Following on from our newsletter article last month, the Treasurer has released a tax discussion paper on 30 March 2015. The purpose of the paper is to open the tax reform debate that will lead to the Government providing a more definitive policy direction prior to the 2016 election. The paper gives us the areas that the Government is targeting for reform and those that are no go zones. A summary of these are listed below.
Clearly we will also get an understanding of some of these in the Federal budget which is due to be announced on Tuesday 12 May by the Treasurer.
Tax discussion paper summary:
- Tax on super investment earnings
- Flat rate of tax on superannuation contributions
- 50% discount on sale of property/shares
- Dividend imputation system
- Refining the myriad of tax structures used by accountants
- Reinvesting money in private companies and trusts and the complex tax rules
- Fringe benefits tax system
- GST
No go’s include:
- Salary sacrificing into superannuation
- No tax on withdrawals of super either in pension phase or lump sums when aged over 60 years
- Capital gains tax exemption on principal place of residence
- Estate tax on deceased estates
- Negative gearing
Cathy Walley 
SuperStream is a new set of measures designed to improve the “behind the scenes” workings of the Superannuation system. This is done by employers sending contributions electronically to their employees’ funds, as well as transmitting this data in a standard format.
As part of this, both Employers and SMSF’s will need to take action to ensure that they are fully compliant with the new system.
For employers, this means that any payroll system that is currently being used must be capable of complying with the SuperStream requirements. This may involve the use of a clearing house in order to allocate the relevant contributions to each Fund. The ATO has developed a free Small Business Superannuation Clearing House, which can be used by any employer with 19 or less employees. For more information surrounding this, please speak to your LBW representative for further information. All employers must SuperStream compliance from 1st July 2015.
For Self Managed Super Fund clients, it is essential that all employers are in possession of the fund’s ABN, bank details and Electronic Service Address (ESA). The ESA is established through our software provider, please feel free to contact either Simon Flowers of Cathy Walley in relation to this, as well as any other queries you may have.
Included below are 2 links which will assist with the process. The first link provides information about the ATO’s Clearing House facility, whilst the second link provides a checklist for all employers to ensure compliance with SuperStream.
ATO Links
Small Business Superannuation Clearing House
Superstream Employer Checklist
You will notice some TV adverts that are currently talking about a 2015 Intergenerational Report that the Government has produced which covers off how Australia will change over the next 40 Years. The report covers off on areas such as population growth, workforce participation, workplace productivity, economic projections, environment, Government budgets and how to prepare for the future. If you are not interested in reading the full report or watching the video the TV ad suggests to, then here are some key figures for you:
- Life expectancy of those born today – males 91.1 yrs going to 95.5yrs, females 93.6 yrs going to 96.6 years
- Population in 2055 will be 39.7 million
- 40,000 people will be over 100 yrs in 2055 compared to 5000 now
- Number of people aged between 15-64 for every person over 65 is 4.5 today and will be 2.7 in 2055
- Those 65+ working will increase from 12.9% to 17.3%
- Economic growth will remain constant at 2.8%
- Annual income to rise from $66,400 to $117,300
- Health costs pp expected to rise from $2,800 to $6,500
- Aged care costs pp expected to rise from $620 to $2,000
