Dropbox Sign

What happened
Dropbox Sign customer information such as emails, usernames, phone numbers, hashed passwords, multi-factor authentication, and general account settings were obtained. Based on their investigation, there is no evidence of unauthorized access to the contents of customers’ accounts (i.e. their documents or agreements), or their payment information.

What Dropbox has done
When they became aware of this issue, they launched an investigation with industry-leading forensic investigators to understand what happened and mitigate risks to their users. In response, their security team reset users’ passwords, logged users out of any devices they had connected to Dropbox Sign.

What YML has done
When we become aware of this issue, we stopped sending our documents through Dropbox Sign. We conducted our own internal review and audit and can confirm that there is no evidence of unauthorised access to our client documents. We have also changed all our user passwords and are currently in the process of adding multi-factor authentication to all our users. Once this process is complete, we will resume using Dropbox Sign.

What you can do (only applies if you have a Dropbox Sign account)

• Passwords and multi-factor authentication. Dropbox expired your password and logged you out of any devices you had connected to Dropbox Sign to further protect your account. The next time you log in to your Sign account, you’ll be sent an email to reset your password. Customers who use an authenticator app for multi-factor authentication should reset it as soon as possible. Please delete your existing entry and then reset it. If you use SMS, you do not need to take any action.

• If you reused your Dropbox Sign password on any other services, Dropbox strongly recommends that you change your password on those accounts and utilize multi-factor authentication when available.

Refresher : ‘Downsizer’ Superannuation Contribution

‘Downsizing’ by selling your main residential home could be the answer to increasing your superannuation balance and potentially improving your retirement lifestyle by giving you more for your living expenses or for aged care options.

In Australia, eligible individuals who have reached the age of 55 by 1 January 2023 may sell their home and use some of or all the sale proceeds as a non-concessional (after-tax) contribution to their superannuation account.

Sale Property Eligibility

To be eligible to make a ‘downsizer’ contribution, you must have sold a qualifying property in Australia that you or your spouse has owned for at least 10 years – calculated from the date of settlement of purchase to the date of settlement of sale.

The property must be exempt in whole or in part from main residence capital gains tax (CGT).

Superannuation Contribution Amount

An individual may contribute up to $300,000, or the total sale proceeds if less than $300,000. As a couple, you may each contribute up to $300,000, providing up to $600,000 in total as your ‘downsizer’ contribution.

A ‘downsizer’ contribution:

• may only be made once.
• must be made within 90 days of receipt of the sale proceeds.
• does not count towards your non-concessional contribution cap
• can be made even if you reach your total superannuation balance cap.
• is not tax-deductible.

What else do you need to know?

• You do not need to satisfy a Work Test or Age Limit to make a voluntary ‘downsizer’ contribution.
• It is not a requirement nor is it necessary to do so, but you may purchase a new property to live in if you choose after making a ‘downsizer’ contribution.
•  You may invest the sale proceeds from your home for up to 90 days (settlement period) prior to making a ‘downsizer’ contribution.
•  You may use the sale proceeds from your home to commence a new account-based superannuation fund, subject to transfer balance cap availability.
•  You must notify your superannuation fund in an approved Australian Taxation Office (ATO) form before making a ‘downsizer’ contribution that you intend to make a ‘downsizer’ contribution.
•  You must submit your ‘downsizer’ contribution form to the ATO for taxation purposes.

Next Steps

It is important that you contact a professional financial adviser to seek advice about the implications of a ‘downsizer’ contribution for your specific financial situation.

YML Group can help you, depending on your age and your personal financial circumstances, apply a ‘downsizer’ contribution to a recontribution strategy designed to lower your superannuation taxation obligations.

With a ‘downsizer’ superannuation contribution you could look forward to a more rewarding financial future during retirement. Are you ready to ‘downsize’?

How can YML help?

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

NEW Stage 3 Income Tax Cuts from 1 July 2024

The Income Tax Rates Act 1986 has been amended as part of the Australian government’s redesign of the Stage Three tax cuts proposed by the former Liberal government. The new amendments modify the individual income taxation rates and thresholds from the financial year 2024-25 onwards.

These modifications to tax rates and thresholds are deemed by the current government to be justified given the economic climate today. The impact of an increasing cost-of-living on low- to medium-income households is expected to be somewhat alleviated by the new tax rates and thresholds from 1 July 2024.

The former Liberal government’s proposal to create a single 30% tax rate for taxpayers earning between $45,000 and $200,000 was considered weighted towards those on higher incomes receiving a greater tax break. Thus, the Labor government has reassessed the tax rates: those on higher incomes will now receive a lesser benefit and those on lower incomes will be financially aided by the new tax rates.

From 1 July 2024, the key changes to the Income Tax Rates Act 1986 will be:

• A retention of the tax-free threshold for the first $18,200 of annual earnings
• A reduction in the tax rate for incomes between $18,200 and $45,000 – from 19% to 16%
• A reduction in the tax rate for incomes between $45,000 and $135,000 – from 32.5% to 30%
• An increase in the income threshold for the 37% tax rate – from $120,000 to $135,000
• An increase in the income threshold for the 45% tax rate – from $180,000 to $190,000

The newly legislated marginal income tax rate table shows tax payable by individual taxpayers from 1 July 2024:

Additional Medicare Levy Adjustment – Effective 1 July 2024
The Medicare levy is currently 2% of taxable income but is not payable by those annually earning $24,276 or less. Those taxpayers annually earning $30,345 or more must pay the full 2% Medicare levy. The levy increases gradually to 2% for those annually earning between these income amounts.

From 1 July 2024, the threshold for lower income earners will be annual earnings of $26,000 and the threshold for paying the full 2% levy will be annual earnings of $32,500.

YML Chartered Accountants offers you a complete and comprehensive range of resources for navigating the legislation passed by the government to simplify the tax system and adjust the taxation payable by individuals working in Australia.

How can YML help?

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