Month: September 2026

How and why would you choose to split your Superannuation with your Spouse?

When it comes to superannuation, where your retirement savings are can be just as important as how much you have. Superannuation contribution splitting between spouses can place both parties in a better financial position for their joint retirement.

For eligible couples, depending on your circumstances, transferring certain concessional (before-tax) contributions from one spouse’s superannuation account to the other can support a more effective retirement strategy; balancing superannuation between partners as you move collectively into the tax-free retirement phase.

How does Superannuation Contribution Splitting work?

Superannuation contribution splitting can be useful where one spouse’s balance is approaching and likely to exceed their individual general transfer balance cap, currently $2.1 million.

The ability to carry forward unused concessional contribution caps is generally available only where your total superannuation balance was below $500,000 at the previous 30 June. Therefore, if one spouse’s super balance is approaching $500,000, splitting eligible contributions to the other spouse may help preserve access to the carry-forward concessional contributions rules in future years.

For 2026–27, the general concessional contributions cap is $32,500. Generally, up to 85% of eligible taxed concessional contributions can be split with a spouse, subject to applicable limits and eligibility requirements.

The receiving spouse generally needs to be under 60, or aged 60-65 and not retired.

If one partner is older than the other, keeping more super in the younger spouse’s name may help maximise the older partner’s Age Pension entitlement while the younger spouse is below Age Pension age, currently 67.

Generally, superannuation held by someone under Age Pension age is not counted in Centrelink’s income and assets tests. This may reduce a couple’s assessable assets and potentially increase the older partner’s Age Pension entitlement.

The key is timing. Superannuation and Centrelink rules can be complex, and the right strategy will depend on your ages, superannuation balances, other assets, and your retirement plan.

Important:

Ask us at YML Super Solutions for a review of your superannuation and retirement strategies. We can help you to identify opportunities for potential superannuation contribution splitting for a healthier financial retirement for your spouse and you.

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.

Important: Value your Property around 1 July 2027 for future CGT

Australia’s proposed Capital Gains Tax (CGT) changes will affect your future CGT liability if you sell your property after 1 July 2027.

Under the proposed transitional arrangement, a property asset held prior to 1 July 2027 may have its capital gain calculation separated into two components: pre-1 July 2027 and post-1 July 2027. Therefore, a property’s value on 1 July 2027 will become an important reference when you eventually sell.

Establishing your property’s market value may be done in two ways:

A Formal Valuation might be worthwhile if your property is of high value, has had significant improvements made, is difficult to compare without similar properties in the same area, or you expect to hold onto the property for a long time beyond 1 July 2027.

An ATO-prescribed Calculation might be considered if your property is a simpler, unimproved or lower-value property where there are numerous comparable properties, or if you might not hold the property for long past 1 July 2027.

Finding reliable evidence of your property’s value if you sell your property years after 2027 could provide difficult if you haven’t valued it around 1 July 2027 in readiness for the proposed incoming CGT changes.

Remember, it is worth considering the timing of a property asset sale in terms of your retirement, your cash flow and your investment strategy, therefore record-keeping is something you can do now to assist you in the years to come.

Keep the following documentation, including but not limited to, to assist you in the future:

Doing this while the information is readily available can be much easier than trying to reconstruct it years later.

There is no rush yet but start planning to undertake a valuation and mark the date 1 July 2027 in your diary now.

Further details and guidance are expected from the Australian Taxation Office (ATO) before the CGT changes are formally introduced. Seek professional financial advice before arranging a property valuation or making decisions based on the current proposed CGT changes.

Contact us at YML Group to discuss how your property portfolio fits into your retirement strategy and how the proposed 1 July 2027 CGT changes may need to be factored into your future decisions.

How can YML help?

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

Payday Super commenced on 1 July 2026 – Have you complied?

On 1 July 2026 the Australian Taxation Office (ATO) introduced its new Payday Super system of paying employees their employer superannuation entitlements. Australian businesses are now required to pay Superannuation Guarantee (SG) contributions each payday, rather than on the former quarterly payment cycle.

Previously, an employer was required to pay the SG contribution into their employees’ superannuation funds quarterly – on time, in full and to the correct fund – or become liable for the Super Guarantee Charge (SGC). The SGC was more than simply paying any missing SG contribution; it also included interest and administration fees that were not tax-deductible.

The new Payday Super system is designed to put employer superannuation amounts into employees' retirement accounts sooner and make missed or late payments easier to identify by the Australian Taxation Office (ATO).

The key aspects Australian employers need to know about Payday Super are:

For employers, SG contributions have become a more frequent payroll and cash flow obligation. Businesses that previously relied on holding SG contributions until the quarterly due date need to ensure sufficient cash is available with each payroll cycle.

The ATO has indicated that it understands businesses might need time to adjust during the first year, but employers should still make genuine efforts to pay their employees correctly and promptly and keep records of any errors and corrections.

Next Steps

Payday Super can affect your payroll, administration and reporting systems. Contact us to review your payroll and superannuation payment processes to help ensure your business meets its Payday Super compliance requirements.

How can YML help?

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

30% Trust Tax: What Trustees Need to Know 

The proposed 30% minimum tax on discretionary trusts has created uncertainty for many Australian families and business owners. However, the draft legislation also provides potential alternatives, including fixed trust elections and restructuring relief.

Before making any major decisions, it is important to understand how the proposed rules may apply to your circumstances and what options may be available.

For generations, discretionary trusts have been a cornerstone of Australian family wealth, business ownership, and investment planning. They have provided flexibility, supported succession planning, and helped families respond to changing circumstances and opportunities.

That is why the Federal Government’s proposed Minimum Tax on Discretionary Trusts has attracted so much attention. The exposure draft proposes a 30% minimum tax for many discretionary trusts from 1 July 2028, together with alternative pathways, including an election regime and transitional restructuring relief.

The headlines have understandably created uncertainty. However, the legislation is still in draft form. Even if it proceeds substantially as proposed, families and business owners will have options. At YML Group, we believe this is not a time for panic. It is a time to understand your position and plan ahead.

What is being proposed?

Under the draft rules, the trustee of an affected discretionary trust would generally pay a minimum 30% tax on trust income. Non-corporate beneficiaries may receive a non-refundable tax offset, while corporate beneficiaries would generally not receive that offset.

Importantly, not every trust would be affected. The draft excludes various structures and income categories, including fixed trusts, deceased estates, complying superannuation entities, special disability trusts, qualifying primary production income, and certain testamentary trust arrangements. It also proposes a broader definition of a fixed trust, which may place some existing arrangements outside the new regime.

Every family group is different. The potential impact will depend on the trust deed, the assets and income involved, the beneficiary structure, and the family’s long-term objectives.

Three potential pathways

Option 1: Continue with the existing structure

For some families, the impact may be limited. Certain income streams are excluded from the minimum tax calculation, and some existing arrangements may continue to deliver acceptable outcomes. The focus may simply be on understanding the future tax cost and managing it appropriately.

Option 2: Elect into a more fixed structure

The draft introduces an Excluded Election Trust regime. Eligible trusts existing on 1 July 2028 could nominate beneficiaries and fixed proportions of income and capital. If the conditions are met, the trust would not be subject to the minimum tax.

This may provide greater certainty without transferring assets or undertaking a large-scale restructure. The accompanying fact sheet indicates that the election is intended as an alternative to restructuring and is not expected to trigger state stamp duties.

Option 3: Restructure

The Government has also proposed a dedicated roll-over relief regime. Subject to eligibility requirements, affected discretionary trusts could transfer assets to alternative structures, such as companies or fixed trusts, during a three-year transition period from 1 July 2027 to 30 June 2030 without immediate income tax consequences.

For some families, this may be an opportunity to review structures established many years ago and determine whether they still support current business, investment, asset-protection, and succession objectives.

Every trust has a different purpose

Trusts are often discussed as though they are all the same. They are not. Some hold operating businesses. Others hold investment portfolios or property accumulated over decades. Some form part of complex succession arrangements involving several generations.

That is why no article, government announcement, or social media post can determine what your trust should do. The right approach starts with understanding:

Only then can the available pathways be assessed properly.

Why planning now matters

Trust advisory is not new to YML Group. We work with family groups, business owners, and investors through tax reform, succession events, restructures, and changing regulatory requirements. The proposed minimum trust tax is a significant development, but it is not an unsolvable problem.

The draft itself recognises that families need choices through elections, restructuring relief, and expanded fixed-trust rules. The families best positioned will not necessarily be those who react first. They will be those who understand their current structure, objectives, and available options before making a decision.

Our recommendation

Do not make major decisions based solely on headlines. Do not assume your structure is affected, and do not assume it is not. Use the period before the proposed commencement date to understand where you stand.

YML Group can help clients:

The rules may change, and the legislation may evolve. What will not change is the value of clear, considered advice.

How can YML help?

Talk to our YML Chartered Accountants team today to see how YML Group can help you assess the potential impact of the proposed rules, review your trust structure, and consider the available planning pathways. For more information,  view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website