http://www.afr.com/p/national/budget/super_funds_trusts_to_pay_monthly_4NvctPN8d03gFevYvzPCeL I realize Australia's media landscape is still counting the wreckage in the aftermath of last nights ALP kamikaze attack on the Australian working public (budget night 2013); But I'm more than a little surprised I can't find more info on the new monthly 'pay as you go' tax requirements for trusts & superannuation funds. Like does anybody know if this affects SMSF?
Oh turtle! Confirmed here: http://www.brw.com.au/p/business/budget_monthly_tax_may_mean_cash_AsoRwq98rDHlkapz7YIWQI
More oppression. I knew they did this to trusts, I thought this didn't extend to super trusts, just...other...trusts... Thanks for finding this Emanance. Got some reading to do. What is annoying is the tax not being paid after the financial year means many cash etc investments will be robbed of some of the capital used to compound all year, and then pay tax. All for the gubbermint to enjoy the marginal benefit of having the money they want to spend each month rather than once a year. This whole situation looks like more work for BAS agents. I should go do the course.
Do Labor understand anything at all?? They're well on the way to putting any business or commercial entity under the size of Woolworths over a barrel with their pants down.
This only confirms the ALP's close ties to big finance in Australia. They paint themselves as the party for workers when in reality they are the party for bludgers. Not only do we have a cozy arrangement thanks to labors super reforms for retail superfunds to charge by default unsolicited death & TPD insurance on all newly employer established superannuation accounts, milking billions of dollars from millions of unaware workers. But now also a free kick to banks who will collect interest on the overdrafts of employers everywhere who are forced to employ these banks 'services'.
It wont affect Discretionary Trusts etc.. As you need to distribute income to beneficiaries which will be either individuals or companies. Super funds and a couple of other trusts like death trusts etc.. will only be affected. But still its going to affect the compounding rates of return. Just another way for them to sneak more funds in early. Snake would be a nice word to describe them.
Took a little finding in the Budget papers, but I don't think it will actually affect that many due to the very high threshholds.... Gravy/Sauce: http://www.budget.gov.au/2013-14/content/bp2/html/bp2_revenue-10.htm
huh? The inclusion of trusts and self-managed super funds into a requirement that businesses with a turnover above $20 million pay their tax liabilities monthly will not only add an administrative burden and crimp cash flow, but will have knock-on effects throughout the business chain, ACCI chief economist Greg Evans says.
The flow on effect of this will be people will arrange their affairs so that they have no trusts/SMSF over the threshold, just numerous trusts of lesser amounts. More work for lawyers, more work for accountants. Less sizeable investments with lower returns may be more beneficial than large investments with the compliance burden and lack of compounding under this unfortunate new tax arrangement. The class of people called Sophisticated Investors will still find more elaborate ways around all this. Of course with more work for lawyers and accountants.
Yay!!! I apologize sincerely for leading anyone astray with my presumptions on this topic. Still as AngSax said, these changes can't be good for the bottom line of businesses affected by these changes. In the end this costs us all and will only feed an army lawyers & accountants, just what the world needs more of .
