ATO Debt Refinancing – Ask us, How?

If you have a large ATO debt and need to avoid a credit default, or you want to consolidate multiple debts, and you need to free up cash flow for your business, you might want to consider ATO debt refinancing.

Benefits of Refinancing your ATO Debt

You may be able to:

• Consolidate your tax debt into a single mortgage repayment;
• Avoid the ATO’s General Interest Charge (GIC), which is often higher than a home loan rate;
• Prevent credit defaults, as overdue ATO debt repayments can now be reported.

Refinancing to pay an Australian Taxation Office (ATO) debt, if the ATO will not extend terms, may be possible through specialist lenders using your property as security.

Speak to us about your refinancing options by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

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

Trustee Distribution Resolutions – Don’t miss the 30 June Deadline

A well-prepared trustee distribution resolution for those of you who are currently operating a discretionary (family) or private trust helps support your taxation planning for the trust, as well as demonstrates good governance, helping to avoid costly disputes with the Australian Taxation Office (ATO).

What is a trust distribution resolution?

A trust distribution resolution is a trustee’s formal decision about how a trust’s financial year income will be distributed among its beneficiaries. This resolution ensures that beneficiaries become “presently entitled” to trust income. And this resolution is a part of the planned taxation strategy of any discretionary trust.

Why does a trust distribution resolution matter?

For Australian discretionary trusts and other private trusts, trustee distribution resolutions are one of the key documents that evidence trustee decisions. They help demonstrate that the trustee acted properly, in accordance with the trust deed and relevant tax law, and at the correct time.

Governance of a trust distribution resolution

It is important that a resolution complies with the trust deed, which sets out who may receive distributions, how the trust income is defined, the procedures for trustees to follow, and deadlines for trustees to meet. A resolution must operate within the trust deed’s rules; it may not override the trust deed’s rules.

Trustees should review their trust deed well before year-end, estimate trust income, determine proposed distribution of the estimated trust income, and ensure their resolution is properly documented and signed before 30 June 2026.

There are numerous and common mistakes made by trustees – when preparing their trustee distribution resolutions – which can lead to adverse taxation consequences:

• Missing the 30 June deadline
• Failing to comply with the trust deed
• Incorrectly dealing with capital gains or franked dividends
• Recording financial records incorrectly
• Not keeping minutes and evidence of a trustee’s decision-making
• Improperly executing resolutions, including no signature

If a trustee does not make a valid resolution by the due date, the consequences could be that the trust deed’s default provisions apply – and any new decisions made by a trustee are disregarded, or the trustee may be assessed on undistributed financial year income at the top marginal taxation rate.

Next Steps

Early planning of your trust distribution resolution can help mitigate taxation penalties and ensure your planned taxation strategy is underpinned by decisions made in the best interest of the trust and its beneficiaries.

As trust deeds vary, if you are a trustee, reach out to YML Chartered Accountants for advice specific to your trust.

Act now. Review your trust deed and prepare and sign your resolution before 30 June 2026.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your 2026 trust distribution resolution. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website

Incoming! Higher Superannuation Contribution Caps

Recent inflation and wage growth data released by the Australian Bureau of Statistics have confirmed that several important superannuation thresholds will increase from 1 July 2026. These changes will create opportunities for many of you to boost your retirement savings and might influence the timing of your future superannuation strategies.

Let’s look at the three main cap increases:

     1. Transfer Balance Cap (TBC)

The increase in the General Transfer Balance Cap (TBC) from $2 million to $2.1 million represents the maximum amount of superannuation that can be transferred into the tax-free retirement phase. This latest increase follows previous adjustments in 2021, 2023 and 2025 as part of the indexation process.

For those of you who have not yet commenced a retirement phase pension by 1 July 2026, the full $2.1 million TBC will generally be available when you start drawing a retirement income stream. However, for those of you who have already commenced a retirement phase pension, only a partial increase might be received due to the proportional indexation rules that apply to personal TBCs.

If you have already fully utilised your personal TBC before 1 July 2026, you will not benefit from the increase at all. And those of you who are receiving a Transition to Retirement Income Stream (TRIS) need to understand what effect the conversion to retirement phase will have on any future TBC entitlement.

Those of you who are yet to start an account-based pension might wish to delay until after 1 July 2026, after first seeking professional financial advice.

The increase in the TBC also triggers increases to the two main superannuation contribution caps.

     2. Concessional Contribution Cap

From 1 July 2026, the concessional contribution cap will rise from $30,000 to $32,500 each year. Concessional (before tax) contributions generally include employer superannuation guarantee contributions, salary sacrifice arrangements and personal contributions claimed as a tax deduction.

     3. Non-Concessional Contribution Cap

From 1 July 2026, the non-concessional contribution cap will rise from $120,000 to $130,000 each year. Non-concessional (after tax) contributions are generally personal contributions made from after-tax money where no tax deduction is claimed.

The maximum Total Superannuation Balance (TSB) threshold determines eligibility for non-concessional contributions and the bring-forward contribution rules. If you were previously prevented from making further non-concessional contributions because of your superannuation balance exceeding the existing threshold, from 1 July 2026, you may be able to make additional after-tax contributions into your account.

However, caution is required for anyone considering triggering a bring-forward arrangement before 1 July 2026. Once a bring-forward period has commenced, the contribution limits and timeframes are locked in based on the rules that applied when it was triggered. This means if you are already in a bring-forward period, you will not benefit from the higher contribution caps or thresholds that commence from 1 July 2026.

Next Steps

With these major changes approaching – and the possibility of future legislative changes, ask us now at YML Super Solutions to review your SMSF strategy, especially if you want to make use of the bring-forward rule.

Decisions regarding pension commencements, contribution timing and bring-forward arrangements made over the next 12 months could have a substantial impact on your retirement savings opportunities.

How can YML help?

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