Not many people know that there is more than $16 billion in lost and unclaimed superannuation across Australia. This is an increase of $2.1 billion since the previous financial year. Lost super is superannuation money held by superannuation funds that people have lost touch with. You become a “lost member” and your superannuation becomes “lost” if you are: Uncontactable – the fund has lost contact with you and your account hasn’t received a contribution or rollover for at least 12 months or; Inactive – your account hasn’t received a contribution or rollover in the past five years. The good news is that finding lost or unclaimed super is easy, and can be done in a matter of minutes.
Do you operate your business via a family trust? If so, there is now slightly more clarity around the law on distributions after much uncertainty throughout the year, following the full Federal Court’s decision in the case of Commissioner of Taxation v Guardian. While the Commissioner may have been disappointed with the full Court’s finding that there was no reimbursement agreement, he would be quite pleased with the application of the anti-avoidance rules to the arrangement in question. What does this all mean for family trust distributions as we head towards the end of the financial year?
Meanwhile, a new ATO fact sheet shines more light on the FBT exemption for electric vehicles. Recently passed legislation exempts from FBT the private use, or availability for use, of cars to employees that are zero or low emissions vehicles with a value at first retail sale below the luxury car tax threshold for fuel efficient vehicles. This is aimed at making electric cars more affordable, thus encouraging a greater take-up of electric cars by Australian road users to reduce Australia’s carbon emissions from the transport sector. The new law applies to fringe benefits in this space provided on or after 1 July 2022.
We hope you will find the topics interesting and thought provoking.
Please contact us if you wish to discuss how the points raised in this newsletter specifically affect you.