Month: July 2021

Splitting your Superannuation Contributions with your Spouse – A Way to a Better Retirement for Couples



When your spouse or you have been out of the workforce or have a lower income, then it is likely that one of your superannuation accounts contains a lesser amount than the other. When this is the case, there is an option to split your superannuation contributions to even out the two accounts and ensure that both of you get the most out of your retirement investment.

You may transfer some of your before-tax (concessional) contributions to your spouse’s superannuation account, as well as make regular or one-off spouse contributions. The former is known as super splitting.

If you receive different levels of income or one of you is non-working, then you can enter an agreement between your superannuation fund – if it allows super splitting – and you to divide your contributions between your spouse’s and your superannuation accounts.

Superannuation contribution ‘splitting’ is a strategy you could employ to keep your superannuation account balances below thresholds imposed by the Australian Taxation Office (ATO). Staying under certain thresholds can lead to greater financial outcomes when you reach your retirement.

Who is eligible?

A spouse is defined as someone to whom you are legally married or someone with whom you are in a registered or de facto relationship.

The recipient of the split portion of the contributions must be under their preservation age (even if they are still working) OR between their preservation age and 65 years (and not yet retired).

What are the Benefits of Super Splitting?

Super splitting:

*The bring-forward rule allows under-66s to contribute up to three years’ worth of after-tax (non-concessional) contributions in a single year. If your total superannuation balance is less than the non-concessional threshold and you are deemed an under-66, then you may use the bring-forward rule.

+The pension transfer balance cap refers to the maximum lifetime contribution allowable to be made in to a retirement-phase pension and individuals who have a total superannuation balance of $1.7 million or more will not be eligible for the bring-forward provision.

What can be split and how?

The Australian Government created rules around super splitting and the main one is that only before-tax (concessional) contributions may be split between a couple. Some of these are:

In addition, there is a limit to the amount that you may transfer to your spouse. You may split the lesser of:

The ATO requires an application be submitted ONCE in the financial year following the split of contributions being made, unless the recipient of the contribution split is retiring in a given financial year and then an application must be submitted in the same financial year as the split of contributions is made.

How is Super Splitting taxed?

Split contributions count towards the contributing spouse’s concessional contributions cap. Any deductible amounts that have been split may be claimed in the contributing spouse’s annual tax return.

Next Step

Consult YML Group to help you determine how best to split your superannuation contributions with your spouse. YML’s expertise in superannuation can give you a head start towards a more financially rewarding retirement.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with superannuation splitting. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Virtual Bookkeeping at your Service



YML Group Outsource Manila in The Philippines, a modern, technological hub, is a leader in its field of 24/7 virtual process management for multiple administrative disciplines. YML offers Bookkeeping as a virtual service, with highly qualified, industry-specific personnel – all specially trained in Australian business systems – to partner with your organisation for a streamlined approach within your operation.

We say ‘streamlined approach’ because one of the advantages of being offshore is our staff are proactive, able to call you via video chat or via phone anytime. You too can reach out to them daily, weekly or at a time that suits you.

Whether your organisation runs without a bookkeeper or you yourself feel burdened by doing the bookkeeping, BPO could be the answer. Despite your best intention, it is important to consider the implications of ensuring the books are being kept accurately and compliant with your Australian Taxation Office (ATO) obligations.

To avoid nasty surprises or penalties at tax time or to take advantage of government incentive programs and tax breaks, especially now during the COVID-19 pandemic, a virtual bookkeeper is the assistance you need to stay on top of your organisation’s financials.

Regular, usually weekly, bookkeeping can include but is not limited to tracking transactions, managing receipts and invoices, reconciling costs and income, payroll management (PAYG), preparing and lodging Business Activity Statements (BAS), company taxes, Fringe Benefits Tax (FBT), tax reporting and many other financial tasks requiring timely attention.

A virtual bookkeeping service provides cost-effectiveness and scalability. No office space or technology are needed to house and equip a bookkeeper who generally requires more than a laptop to manage financial spreadsheets. You receive the same level of expertise as an in-house bookkeeper, but you only pay for the work undertaken and not for a full-time employee with all their renumeration benefits and training costs.

YML has a wealth of experience managing energetic, growth businesses. When your business expands, a virtual bookkeeper grows with you and readily and easily attends to an increase in financial service demand.

YML provides you with dedicated virtual staff who will enable you to save time for the essentials like customer service and new business development. Focus on your organisation’s business and your customers whilst knowing that the financials are maintained. Your virtual bookkeeper can provide current information and management-level reports at any given time to keep your internal and external stakeholders abreast of your organisation’s financial health.

Not only will you save time spent stressing and dreading managing the day-to-day financials of your organisation, but you can gain peace of mind that your business may improve its reputation as a credible, professional and efficiently run enterprise.

For a paperless, ‘virtual’ strategy to bookkeeping, for greater productivity, for a prime opportunity to invigorate your business and to empower you to build a better organisation, let YML Group Outsource Manila be ‘at your service’ today.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with BPO Bookkeeping. For more for more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

Property Development – Deed of Partition and Transfers (NSW)



Property ownership is a major asset and when one or more people jointly own land or real estate from the time of purchase, when the time comes to transfer jointly owned, existing land or real estate between its co-owners, it will be necessary for the co-owners to fulfil their financial obligations of property partition.

Chapter 2 of the Duties Act 1997 (NSW) holds that duty is imposed on dutiable transactions of dutiable property. Section 30 (1) and (2) provide for partition – that is, transfer of ownership – between co-owners and for it being a single dutiable transaction. Stamp duty is charged on any single dutiable transaction of dutiable property.

Now, whether two or more people own land as joint tenants – each party owns the whole of the land together, or as tenants in common – each party owns a certain proportion of the land, partitioning is a process of transferring the land between those parties.

A Deed of Partition and Transfers will be drawn up to dissolve the joint ownership of a property, so that each person becomes the sole owner of one portion with its own land title.

By using a Deed of Partition and Transfers, it may be possible to avoid paying ad valorem stamp duty on the full value of the transfer of property (as is usual after a single entity purchases a property or properties for itself). In fact, a Deed of Partition and Transfers, when correctly prepared, results in nominal stamp duty of $50 (NSW) being payable upon the partition and transfer of NSW property between its co-owners.

Although the primary benefit of this deed is the occurrence of a nominal stamp duty charge, there are other benefits for each party. Benefits include clarity of the ownership split between parties named in a deed and a written understanding of expectations and agreements. Another attractive benefit of a Deed of Partition and Transfers is that the information contained therein may also mitigate quarrels from misunderstandings in future transactions.

Upon the creation of A Deed of Partition and Transfers, parties will need to present documentation including but not limited to:
There are other accounting and tax implications that must also be considered. Should additional levies be charged or Capital Gains Tax (CGT), GST or income tax be deemed and/or imposed, it is imperative that co-owners of land and joint property developers seek professional advice prior to partitioning.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your Deed of Partition and Transfers. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Is your lender charging your SMSF a KILLER interest rate?



If you own residential or commercial property in your SMSF portfolio, you need to consider refinancing your SMSF loan this year while interest rates are low – starting at 3.94% per annum. If you are currently being charged around 5.5% - 6.5% per year, that could mean a big saving to your SMSF.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with refinancing your SMSF loan. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Superannuation Increases – Trust Members + Contribution Caps + Guarantee Contribution Base + Pension Caps – from 1 July 2021



SMSF Membership

From 1 July 2021, allowable members in a SMSF will increase from a maximum of four (4) to a maximum of six (6), due to a recent amendment to the Superannuation Industry (Supervision) Act passed by Parliament in June 2021.

This change to the number of members a trustee may unite to form a SMSF will benefit larger families and could provide greater investment choice and investment flexibility. The more members in a SMSF, so too possibly reduce fees paid by its members.

Superannuation Contribution Caps

New legislation has reset Australia’s superannuation contribution caps for the first time since July 2017.

Using the Average Weekly Ordinary Time Earnings (AWOTE) index, the index figure of $1,711.60 at the end of the December quarter 2020 has (finally) triggered the $2,500 increment index. Therefore, from 1 July 2021 the new cap for concessional contributions will rise from $25,000 for all ages to $27,500 for all ages.

Concessional contributions include employer contributions and salary sacrifice contributions, as well as personal contributions claimed as a tax deduction. This new cap means that $27,500 of your concessional contributions will be tax-deductible.

In addition, from 1 July 2021 the new cap for non-concessional contributions will increase from $100,000 to $110,000.

Non-concessional contributions are your after-tax income contributions and are not taxed in your superannuation fund.

The non-concessional contribution cap, set at four times the concessional contribution cap, is $100,000 for 2021-22 OR $330,000 under the bring-forward rule over three years and subject to eligibility requirements.

Parliament has recently passed a Bill enabling individuals aged 65 years and 66 years to access the non-concessional contribution bring-forward rule from 1 July 2021.

The bring-forward rule allows under-66s to contribute up to three years’ worth of after-tax (non-concessional) contributions in a single year. If your total superannuation balance is less than the non-concessional threshold and you are deemed an under-66, then you may use the bring-forward rule.

Superannuation Guarantee

Whilst the current Superannuation Guarantee (SG) rate is already legislated to increase from 9.5% to 10% from 1 July 2021, the ‘maximum contribution base’ will rise from $57,090 per quarter in 2020-21 to $58,920 per quarter for 2021-22. The new quarterly maximum represents a per-annum equivalent of $235,680 for 2021-22.

An employer is not required to provide the minimum SG support for that part of an employee’s Ordinary Time Earnings (OTE) above the quarterly maximum contribution base of $58,920 in 2021-22.

Pension Transfer Balance Cap

‘Pension transfer balance cap’ refers to the maximum lifetime contribution in to a retirement-phase pension and from 1 July 2021 the general transfer balance cap will increase from $1.6 million to $1.7 million. This is based on the All Groups CPI index.

Once this increase occurs, from 1 July 2021 every individual person will have their own personal transfer balance cap of between $1.6 million and $1.7 million, dependent upon their own financial circumstances.

Also, the threshold for making non-concessional contributions will increase from $1.6 million to $1.7 million from 2021-22, thus individuals who on 30 June 2021 have a total superannuation balance of $1.7 million or more will not be eligible for the bring-forward provision.

Consult YML Group to help you determine your contribution amounts and limits within the new superannuation legislation in effect from 1 July 2021. If you are an employer, YML Group has the expertise to help you manage the SG changes from 1 July 2021.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your superannuation opportunities. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.