Insurance in your Superannuation Policy



Do you have personal – Life, Total and Permanent Disability (TPD), Income Protection – insurance? If you think ‘No’, then you might want to think again and check your superannuation policy. Australians are afforded a cost-effective means of having insurance cover within their superannuation policies. This is important because Australians have historically been fundamentally underinsured, if not uninsured.

What do you get from having insurance cover in your superannuation policy?

There are many advantages:

What insurance cover is included?

For most Australians, insurance in superannuation provides a valuable safety net with most superannuation funds automatically providing cover for Death (Life) and TPD. Whilst some cover levels and the calculation of premiums are individual to a fund, generally three insurances are included for (default) specified levels of cover without requiring medical assessments:

LIFE

Life insurance, sometimes called Death insurance, means your superannuation account will receive a lump sum payout in the event of your death or a terminal illness. Life cover usually ends when you are 70 years of age.

TPD

Total and Permanent Disability insurance means your superannuation account will receive a benefit amount in the event of your suffering a disability that prevents you from working, or that you are unlikely to ever work, post-disability. TPD cover usually ends when you are aged 65 years.

INCOME PROTECTION

Income Protection insurance, also known as Temporary Disability (TD) insurance, means you will continue to receive a substantial portion of your pre-disability salary for a period – up to a determined number of years or up to a certain age – to assist you to maintain your financial responsibilities whilst you recover.

Do you need more insurance than what is offered?

Some extra insurances like Trauma insurance or a more comprehensive Income Protection insurance might be something you need for your personal circumstances. If you buy any of these insurances, including the main three mentioned above, from external insurers – that is, beyond the scope of your superannuation, then cover generally continues until you no longer pay the premiums to the insurer.

Are all superannuation fund members automatically insured?

No. There are some exceptions for younger members (under 25s) and superannuation accounts with low balances.

What can you do to ‘know YOUR insurance in superannuation’?

Consult YML Group to help you review and assess your insurance requirements and how your superannuation policy provides insurance for you. YML’s expertise in superannuation will give you a clear understanding of the insurance in your superannuation policy.

How can YML help?

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

Single Touch Payroll (STP) Phase 2: What Your Business Will Have to do to Comply and How YML can Help



YML offers your business YML’s specialist Australian-focused Bookkeeping Service via Business Process Outsourcing (BPO). As the latest Federal Government reforms expand the financial reporting requirements of all Australian businesses, you can have a dedicated virtual Bookkeeper – ready to chat with you anytime you want and as often as you need – to keep your business on track with the ATO’s reporting protocols.

Single Touch Payroll (STP) – Phase 2: Compliance

STP Phase 2’ is an anticipated expansion of the current STP system, initially announced in the 2019-20 Federal Budget. Phase 2 is all about centralising and requiring more detailed information from employers via STP.

In one way, Phase 2 will reduce the reporting burden on those employers who currently need to provide information to multiple government agencies because Phase 2 will require employees’ payments information to be provided only via STP.

It will no longer be adequate to report remuneration totals

The major adjustment for businesses will be ‘Disaggregation of Gross’. Currently, businesses report a gross amount of remuneration paid to employees, essentially a total of many different payment categories, which will be required in Phase 2 to be split into separate category components.

This gross salary/wage figure will require a business, in the first instance of data entry, to accurately classify all payments made to an employee. Where previously, one figure reported was satisfactory, the ATO will require – under Phase 2 – a breakdown of all specific payment types. This comprehensive breakdown is expected to ensure that those payment types that affect social security are treated properly.

Payment types to be separately reported are Gross, Paid Leave, Allowances, Overtime, Bonuses and Commissions, Directors’ Fees, Lump Sum W, and Salary Sacrifice.

When does Phase 2 start?

You will need to transition from Phase 1 to Phase 2 by the mandatory start date, 1 January 2022.

Your Digital Services Provider (DSP) will need to ensure your software is Phase 2-enabled.

For more information, see STP Phase 2 employer reporting guidelines

Your Future, Your Super: Compliance

In the 2020-21 Federal Budget, the Federal Government announced superannuation reforms under the program, ‘Your Future, Your Super’. This new 4-element reform will include another system check to be undertaken by employers.

From 1 November 2021, if a new employee does not stipulate a superannuation account for the deposit of compulsory employer contributions, then an employer must check with the ATO whether an existing superannuation account exists for the new employee. Such an existing account is known as a ‘stapled super fund’ and is to be used by an employer to deposit the superannuation guarantee where no other superannuation fund is named by a new employee.

How can YML help you to meet your STP Phase 2 and ATO reporting obligations?

YML’s Bookkeeping Service is a leading virtual process manager of all aspects of bookkeeping. A high qualified, specially trained, Australian-focused bookkeeper is available to partner with you and your business to streamline all reporting via STP, especially the new Phase 2. Our staff will manage your bookkeeping and stay connected with you via video chat or via phone as often as you choose.

Let YML take the burden of complying with the ATO’s reporting protocols of you. We will ensure that your STP reporting is completed accurately and in full compliance with your ATO obligations. This Phase 2 is all about accuracy, classification and timely reporting. With YML Bookkeeping Service, you will save time spent stressing over the day-to-day financials and gain peace of mind as ‘STP Phase 2’ advances to a more expansive bookkeeping exercise.

 How can YML help?

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

YML Finance – LOOK at these loan Interest Rates…



SMSF Loan

YML Finance can offer you a Self-Managed Superannuation Fund (SMSF) loan starting at a low interest rate of 3.99% per annum. If you own commercial or residential property in your SMSF portfolio, that could mean a big saving to your SMSF.

Home Loan

Buying a home or refinancing your current home loan, YML Finance is offering you interest rates from 1.89% per annum. What a way to head into summer and 2022, by reducing the interest in your mortgage repayments.

Your Next Step

Contact YML Finance about interest rate options to improve your financial outlook. We are here to help you process an application and throughout the life of a loan.

How can YML help?

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

Deduction of Interest on Vacant Land – Draft Ruling



If you are an individual property investor or developer, there are times when a land holding lies dormant and cannot be occupied or rented due to demolition, a renovation or construction of a residential dwelling on the property.

Expenses deductions, including interest, relating to holding vacant land have been denied or limited under section 26-102 of the Income Tax Assessment Act 1997 by the Australian Taxation Office (ATO) since 1 July 2019.

What does the section 26-102 say?

Since 1 July 1997 when there is no income during the time land remains vacant, this ruling currently applies. Loss or outgoing relating to holding land – Section 26. Subsection 26-102(1):

“…clarifies that any interest or borrowing costs to acquire land are included as a cost of holding land. Examples of other costs of holding land include council rates, land taxes and maintenance costs.

And Section 27:

In the context of section 26-102, we do not consider the costs of constructing a substantial and permanent structure on the land, or any interest or borrowing costs (to the extent they are associated with construction), to be a loss or outgoing related to holding land.”

Due to the COVID-19 pandemic, the ATO has had to re-prioritise its work. This included delaying public advice and guidance rulings. One of those rulings is the Draft Taxation Ruling TR 2021/D5 which addresses the vacant land expenses rules in section 26-102 of the Income Tax Assessment Act 1997.

What does the Draft Taxation Ruling TR 2021/D5 say?

The draft ruling sets out proposed compliance approaches for various holding circumstances and when finalised and implemented would ideally give landowners greater scope to deduct interest on their vacant land holding.

The draft ruling also outlines key inclusions for interest deductions, such as land held by a company, or a business where the land is used to carry on a business. However a  Self-Managed Superannuation Fund (SMSF) is not able to claim interest deductions for holding vacant land.

There are examples of various situations to illustrate the extent of other key exclusions, such as land being bought and there being a delay until the dwelling on it can be lawfully occupied or leased. In such a circumstance, the landowner would not be prevented from claiming interest under section 26-102 because a deduction could be claimable under section 8-1 (General Deductions) of the ITAA 1997.

The draft ruling outlines its compliance approach towards short periods of vacancy between residential leases due to, for example, maintenance and/or repair work being required. In such a vacancy situation, the land could be considered not vacant and therefore interest deduction would not be denied under section 26-102, so long as deductibility could otherwise fall under section 8-1.

In addition, borrowing costs and interest on construction loans taken out to build a residential dwelling on vacant land would be exempt under section 26-102 and therefore borrowing costs and interest could be claimed by the landowner.

The draft ruling was released in December 2020 for consultation and stakeholders may provide feedback until 17 September 2021. The draft ruling will thereafter be available for public comment.

How can YML help?

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

Buy your own Premises NOW – Business Loans at 2.45% per annum



Business Loan

Buying premises for your organisation is a big investment that can pay off in the long run. A business loan of up to $2 million at a 2.45% per annum interest rate, discounted for the first three years, could see you setting up your own premises to take your business towards future growth and expand your business investment value.

SMSF Loan

Refinancing your SMSF loan this year could see you paying less interest. Interest rates are currently low, starting at 3.94% per annum. If you own commercial or residential property in your SMSF portfolio, 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 mortgage loans. 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.

Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?



NSW Small Business Fees and Charges Rebate

Financial incentives offered by the NSW Government include eligible businesses being offered up to $1500 in rebates to offset the cost of specific NSW state and local government fees and charges incurred during the running of a business.

Sole traders and small business owners must: Whilst running a business, NSW state and local government fees and charges befall most small business owners and sole traders: costs such as council rates, outdoor seating fees, event fees, food authority and liquor licences and tradesperson licences.

Eligible applicants can lodge multiple claims – as these types of expenses arise and are paid – until the $1500 rebate cap is reached.

The NSW Government stipulates that for a fee or a charge to be eligible, it must be due and paid from 1 March 2021.

There are some costs that may NOT be claimed:             Click on the link below if you are a business owner for you to receive the NSW Small Business Fees and Charges Rebate

            https://app.hellosign.com/s/C14bVnW3

            Applications end on 30 June 2022.

SME Recovery Loan Scheme 

The SME Recovery Loan Scheme was developed to aid small- and medium-sized enterprises that have an annual turnover of less than $250 million. All applicant businesses must have accessed JobKeeper during the first quarter between 4 January 2021 and 28 March 2021.

A loan under the SME Recovery Loan Scheme may be used for a broad range of business means, including but not limited to:             What is on offer? Loans issued under this scheme may NOT be used for purchasing residential property, for purchasing financial products, to lend to another entity nor to lease, rent or hire existing assets that are more than 50 per cent depreciated.

            Phone YML Finance on (02) 83834466 if you are a business owner for you to receive a SME Recovery Loan

            Applications end on 31 December 2021.

2021 COVID-19 NSW Business Grant

NSW businesses, sole traders and not-for-profit organisations who have experienced financial hardship due to public health ordered restrictions may be eligible for a one-off business grant to assist you with paying business expenses incurred from 1 June 2021:

Total Grant Amount Decline in Turnover
Minimum 2-week Period from 26 June 2021 to 17 July 2021 compared to:
  • the same period in 2019, or
  • the same period in 2020, or
  • the 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).
$7500 30 per cent or greater
$10,500 50 per cent or greater
$15,000 70 per cent or greater
 

To receive this business grant, it is expected that organisations maintain their staffing level – full-, part-time and casual – as of 13 July.

Businesses, non-employing and employing, with an annual turnover of between $75,000 and $50 million on 30 June 2020, as well as having total annual Australian wages of $10 million or less may apply.

            Click on the link below if you are a business owner for you to receive the 2021 COVID-19 Business Grant

            https://app.hellosign.com/s/FAUESBBG

            Applications end on 13 September 2021.

JobSaver Payment

JobSaver is a payment to support cash flow for impacted businesses and enable those employers to maintain their NSW employee headcount (as of 13 July 2021).

Eligible employers may receive fortnightly payments backdated to cover costs from week 4 (from 18 July 2021) of the Greater Sydney lockdown.

A minimum $1500 per week to a maximum $10,000 per week is available and is equivalent to 40 per cent of the weekly NSW payroll as determined by your most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) by 26 June 2021 compared to: Eligibility criteria include having a national aggregated annual turnover of between $75,000 and $50 million for the year ended 30 June 2020.

Individuals running a business with no employees must show that they are the sole earner of that business may also be eligible for $1000 per week from week 4 (from 18 July 2021) of the Greater Sydney lockdown.

            Click on the link below if you are a business owner for you to receive JobSaver

            https://app.hellosign.com/s/8VFDXz2Z

            Applications end on 18 October 2021.

2021 COVID-19 Micro-business Grant

The Federal Government will support eligible NSW micro-businesses with a fortnightly payment of $1500 per fortnight during the current Greater Sydney lockdown. To receive a cash flow boost to assist you with paying business expenses incurred from 1 June 2021, you must meet certain reduction-in-turnover criteria.

Businesses, non-employing and employing, holding an Australian Business Number (ABN) and with an annual turnover of between $30,000 and $75,000 on 30 June 2020, may be eligible if they show a two-week period within the period of restrictions (commenced 26 June 2021 where turnover reduced by at least 30 per cent or more compared to:             Click on the link below if you are a business owner for you to receive the 2021 COVID-19 Micro-business Grant

            https://app.hellosign.com/s/3b5wKxxM

            Applications end on 18 October 2021.

JobMaker Scheme

The JobMaker Scheme offers an incentive for small- and medium-sized businesses to expand their workforce and employ younger Australians in need of a job and, in turn, deliver growth potential for those businesses.

Eligible employers must register with the Australian Taxation Office (ATO) who are administering the scheme. JobMaker Hiring Credits are paid each quarter – from 1 February 2021 – for each eligible additional employee hired from 7 October 2020 until 6 October 2021.

Eligible employers may receive a JobMaker Hiring Credit of $200 a week for an employee aged 16 years to 29 years of age AND $100 a week for an employee aged 30 years to 35 years of age.

            Click on the link below if you are a business owner for you to receive JobMaker

            https://app.hellosign.com/s/8qkWmCLT

            Payment applications deadline ends on 6 October 2022.

2021 COVID-19 Land Tax Relief

NSW residential and commercial landlords who provide rent relief – between 1 July 2021 and 31 December 2021 – for tenants experiencing financial hardship can apply for up to 100 per cent land tax deduction for the 2021 land tax year. This financial relief is intended to reduce a landowner’s land tax payable for 2021.

A commercial landowner must be leasing land to a commercial tenant with an annual turnover of up to $50 million and who is eligible to receive a COVID-19 Micro-business Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver Payment.

            Click on the link below if you are a landowner to receive 2021 COVID-19 Land Tax Relief. 

            https://app.hellosign.com/s/HXQwUBL9

            Applications end on 31 January 2022.

Small Business COVID Hardship Fund | Business Victoria

The Victorian Government’s Small Business COVID Hardship Fund will assist eligible small and medium businesses: The program offers grants of $14,000 to eligible small and medium businesses, including employing and non-employing businesses. This program will allow more businesses who have previously not received support, to receive financial relief now.

            Click on the link below if you are a business owner to receive Small Business COVID Hardship Fund | Business Victoria.

            https://app.hellosign.com/s/CseyEPmy

            Applications end on 10 September 2021.

NSW Performing Arts COVID-19 Support Package

Urgent financial assistance is available now for the performing arts industry, including venues, producers, promoters who have had to postpone or cancel performances due to public health ordered restrictions from 26 June 2021 to 30 September 2021.

For eligibility criteria, please see the NSW Government’s guidelines: Guidelines_NSW-Performing-Arts-COVID-Support-Package.pdf (kinstacdn.com)

            Click on the link below if you are a business owner to receive NSW Performing Arts COVID-19 Support Package.

            https://app.hellosign.com/s/9y05aJr8

            Applications are now open (since 23 July 2021).

Dine & Discover NSW Vouchers

The NSW Government continues its Dine & Discover NSW voucher program. These vouchers can be used at participating NSW businesses in the hospitality industry. Any NSW resident aged 18 years and over may apply for the vouchers.

Each applicant may receive:

2 x $25 Dine NSW vouchers for takeaway meals, restaurants, cafes, bars, wineries, pubs and clubs, as well as,

2 x $25 Discover NSW vouchers for entertainment, recreation, cultural institutions, live music events and arts venues.

Vouchers are available to all NSW residents aged 18 or over and are valid to 30 June 2022.

Takeaway businesses are now eligible to register for the scheme. For more info visit the link below.

https://www.service.nsw.gov.au/transaction/register-business-dine-discover-nsw

NSW Payroll Tax Relief

NSW payroll tax liabilities are currently deferred for all NSW employers until 7 October 2021.

            Phone YML Chartered Accountants on (02) 83834400 for precise reinstatement to ensure you resume your payments on time.

The NSW Government has announced – not yet finalised – a financial incentive to assist businesses with payroll tax during the 2021-22 financial year. For payroll tax customers with a total 2021-22 Australian wages amount of up to $10 million and whose annual turnover can be shown to have declined by at least 30 per cent, their annual payroll tax liability would be reduced by 25 percent.

The NSW Government will provide full more information on this 25 per cent reduction when the 2021/2022 annual reconciliation becomes available.

NSW Support for Accommodation Providers

Accommodation provider support payments will be available in late September 2021 for eligible tourism accommodation providers that have lost business during the school holiday period. Assistance will be based on the number of cancelled room nights.

How much Eligibility
2021 COVID-19 Business Support Grants for lockdown-impacted businesses in Queensland

A joint Queensland and Australian Government support package for Queensland businesses has been announced. The package includes support for non-employing sole traders and expands on support for eligible small and medium businesses, and large tourism and hospitality businesses.

Successful applicants will receive the total value of the boosted grants ranging from $1,000 to $30,000 depending on your business or not-for-profit organisation.

            Phone YML Chartered Accountants on (02) 83834400 if you are a business owner for you to receive a 2021 COVID-19 Business Support Grants for lockdown-impacted business in Queensland.

            Applications end on 16 November 2021.

How can YML help?

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

Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?

NSW Small Business Fees and Charges Rebate

Financial incentives offered by the NSW Government include eligible businesses being offered up to $1500 in rebates to offset the cost of specific NSW state and local government fees and charges incurred during the running of a business.

Sole traders and small business owners must:

Whilst running a business, NSW state and local government fees and charges befall most small business owners and sole traders: costs such as council rates, outdoor seating fees, event fees, food authority and liquor licences and tradesperson licences.

Eligible applicants can lodge multiple claims – as these types of expenses arise and are paid – until the $1500 rebate cap is reached.

The NSW Government stipulates that for a fee or a charge to be eligible, it must be due and paid from 1 March 2021.

There are some costs that may NOT be claimed:



SME Recovery Loan Scheme

The SME Recovery Loan Scheme was developed to aid small- and medium-sized enterprises that have an annual turnover of less than $250 million. All applicant businesses must have accessed JobKeeper during the first quarter between 4 January 2021 and 28 March 2021.

A loan under the SME Recovery Loan Scheme may be used for a broad range of business means, including but not limited to:

Loans issued under this scheme may NOT be used for purchasing residential property, for purchasing financial products, to lend to another entity nor to lease, rent or hire existing assets that are more than 50 per cent depreciated.

2021 COVID-19 Micro-business Grant 

The Federal Government will support eligible NSW micro-businesses with a fortnightly payment of $1500 per fortnight during the current Greater Sydney lockdown. To receive a cash flow boost to assist you with paying business expenses incurred from 1 June 2021, you must meet certain reduction-in-turnover criteria.

Businesses, non-employing and employing, holding an Australian Business Number (ABN) and with an annual turnover of between $30,000 and $75,000 on 30 June 2020, may be eligible if they show a two-week period since 26 June 2021 where turnover reduced by at least 30 percent compared with the same period in 2019.


2021 COVID-19 NSW Business Grant

NSW businesses, sole traders and not-for-profit organisations who have experienced financial hardship due to public health ordered restrictions may be eligible for a one-off business grant to assist you with paying business expenses incurred from 1 June 2021:
 
  Total Grant Amount   Decline in Turnover
  Minimum 2-week Period from 26 June 2021   compared with same period in 2019
  $7500   30 per cent or greater
  $10,500   50 per cent or greater
  $15,000   70 per cent or greater

To receive this business grant, it is expected that organisations maintain their staffing level – full-, part-time and casual – as of 13 July.

Businesses, non-employing and employing, with an annual turnover of between $75,000 and $50 million on 30 June 2020, as well as having total annual Australian wages of $10 million or less may apply.


JobSaver Payment

JobSaver is a payment to support cash flow for impacted businesses and enable those employers to maintain their NSW employee headcount (as of 13 July 2021).

Eligible employers may receive fortnightly payments backdated to cover costs from week 4 (from 18 July 2021) of the Greater Sydney lockdown.

A minimum $1500 per week to a maximum $10,000 per week is available and is equivalent to 40 per cent of the weekly NSW payroll as determined by your most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) by 26 June 2021.

Eligibility criteria include having a national aggregated annual turnover of between $75,000 and $50 million for the year ended 30 June 2020.

Individuals running a business with no employees must show that they are the sole earner of that business may also be eligible for $1000 per week from week 4 (from 18 July 2021) of the Greater Sydney lockdown.


JobMaker Scheme

The JobMaker Scheme offers an incentive for small- and medium-sized businesses to expand their workforce and employ younger Australians in need of a job and, in turn, deliver growth potential for those businesses.

Eligible employers must register with the Australian Taxation Office (ATO) who are administering the scheme. JobMaker Hiring Credits are paid each quarter – from 1 February 2021 – for each eligible additional employee hired from 7 October 2020 until 6 October 2021.

Eligible employers may receive a JobMaker Hiring Credit of $200 a week for an employee aged 16 years to 29 years of age AND $100 a week for an employee aged 30 years to 35 years of age.


Dine & Discover NSW Vouchers

The NSW Government continues its Dine & Discover NSW voucher program. These vouchers can be used at participating NSW businesses in the hospitality industry. Any NSW resident aged 18 years and over may apply for the vouchers.

Each applicant may receive:

2 x $25 Dine NSW vouchers for takeaway meals, restaurants, cafes, bars, wineries, pubs and clubs, as well as,

2 x $25 Discover NSW vouchers for entertainment, recreation, cultural institutions, live music events and arts venues.

Vouchers are valid until 31 August 2021, an extension given the recent restricted movement periods.

2021 COVID-19 Land Tax Relief

Residential and commercial landlords who provide rent relief – between 1 July 2021 and 31 December 2021 – for tenants experiencing financial hardship can apply for up to 100 per cent land tax deduction for the 2021 land tax year. This financial relief is intended to reduce a landowner’s land tax payable for 2021.

A commercial landowner must be leasing land to a commercial tenant with an annual turnover of up to $50 million and who is eligible to receive a COVID-19 Micro-business Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver Payment.

NSW Performing Arts COVID-19 Support Package

Urgent financial assistance is available now for the performing arts industry, including venues, producers, promoters who have had to postpone or cancel performances due to public health ordered restrictions from 26 June 2021 to 30 September 2021.

For eligibility criteria, please see the NSW Government’s guidelines: Guidelines_NSW-Performing-Arts-COVID-Support-Package.pdf (kinstacdn.com)

            Applications are now open (since 23 July 2021).

NSW Payroll Tax Relief

NSW payroll tax liabilities are currently deferred for all NSW employers until 7 October 2021.

The NSW Government has announced – not yet finalised – a financial incentive to assist businesses with payroll tax during the 2021-22 financial year. For payroll tax customers with a total 2021-22 Australian wages amount of up to $10 million and whose annual turnover can be shown to have declined by at least 30 per cent, their annual payroll tax liability would be reduced by 25 per cent.

The NSW Government will provide full clarification by the end of August 2021 of this payroll tax incentive.

How can YML help?

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

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.