You may have clients who wish to make new applications or additional contributions/deposits into their IOOF superannuation or investment products, and have these contributions/deposits processed in the current financial year (2009/10).
If this is the case, you will have to ensure that all applications and contributions arrive at one of the following addresses before 3.00pm (AEST) on Wednesday 30 June 2010.
| Melbourne |
|
By mail |
GPO Box 264, Melbourne VIC 3001 |
In person |
Ground floor, 303 Collins Street, Melbourne VIC 3001 |
| Sydney |
|
By mail |
GPO Box 264, Melbourne VIC 3001 |
In person |
Level 22, 207 Kent Street, Sydney NSW 2000 |
| Brisbane |
|
By mail |
GPO Box 264, Melbourne VIC 3001 |
In person |
Ground Floor, 33 Park Road, Milton QLD 4064 |
| Perth |
|
By mail |
GPO Box 264, Melbourne VIC 3001 |
In person |
Level 1, 673 Murray Street, West Perth, WA 6005 |
| Adelaide |
|
By mail |
GPO Box 264, Melbourne VIC 3001 |
In person |
Via Melbourne office |
Our Business Development Managers and Business Support Officers will be waiting to take your last minute applications and deposits/contributions in person until 3.00pm (AEST) or 1.00pm West Australian time.
Making year end contributions by BPAY®
If your client wishes to make contributions by BPAY for the 2009/10 year, the contributions must be received by IOOF by 5.00pm (AEST) Wednesday 30 June 2010. Please check with your BPAY provider for information about their processing turnarounds, as payments may take some time to be transferred to IOOF. If there are any concerns, then please process BPAY contributions prior to 5.00pm (AEST) Friday 25 June 2010.
Superannuation guarantee (SG) contribution deadline (for tax deductions for 2009/10) – 3.00pm (AEST) on Wednesday 30 June 2010
With the quarterly SG system, employers need to pay SG contributions within 28 days after the end of each quarter. That means, for the quarter 1 April 2010 to 30 June 2010, employers need to make their SG contributions by 28 July 2010.
However, if the employer intends to claim a tax deduction in 2009/10 year, we must receive their SG contributions in our Sydney or Melbourne offices by 3.00pm (AEST) on Wednesday 30 June 2010.
If we receive SG contributions between 3.00pm (AEST) on 30 June 2010 and 28 July 2010, the contributions will still count for SG purposes, but the employer won't be able to claim a tax deduction in 2009/10. However, the employer can still claim a tax deduction in 2010/11.
We accept three methods of payment for SG contributions. These are:
Payment method |
Deadline to receive SG Contribution |
|---|---|
BPAY |
5.00pm (AEST) Wednesday 30 June 2010* |
Cheque |
3.00pm (AEST) Wednesday 30 June 2010 |
Transact (online payment) |
3.00pm (AEST) Wednesday 30 June 2010 |
*Please check with your BPAY provider. We cannot guarantee these will make the deadline if processed just before 5.00pm (AEST) 30 June 2010. If there are any concerns, please process BPAY contributions prior to 5.00pm (AEST) Friday 25 June 2010.
Where to go for more information
If you have any questions about the end of financial year processing deadline, please contact our Adviser Services team on 1800 659 634 or by email at adviserservices@ioof.com.au.
As you would be aware, for the 2008/09 and 2009/10 tax years, the Government halved the minimum pension rates for allocated (account-based) pensions and term allocated pensions (TAPS). This was to alleviate hardship arising from the downturn in the investment markets due to the Global Financial Crisis.
As the investment markets have turned around, the Government’s pension minimum rates will return to normal from 1 July 2010. Normal rates are set out in the table below.
Minimum allocated (account based) pension rates from 1 July 2010 |
|||||||
|---|---|---|---|---|---|---|---|
Age |
% acct |
Age |
% acct |
Age |
% acct |
Age |
% acct |
To 64 |
4% |
75 - 79 |
6% |
85 - 89 |
9% |
95+ |
14% |
65 - 74 |
5% |
80 - 84 |
7% |
90 - 94 |
11% |
|
|
IOOF/Lifetrack TAPs and IOOF/Lifetrack allocated (account-based) pension clients receiving the minimum pension will have their payments automatically adjusted to meet the normal minimum rates from 1 July 2010. For pensioners receiving fixed dollar pensions, these payments will be checked against the normal minimum rates to ensure they meet minimum requirements for 2010/11. More information will be provided to pensioners in the regular pension information packs sent out to all pensioners in July.
A number of situations arise at this time of year where a client can trip the concessional contributions cap by accident. Advisers need to keep these in mind when clients are making contributions over the June/July period. These include:
1. Contributions are sent to the fund on or before 30 June but aren’t received by the fund until after 30 June
If concessional contributions intended for one financial year are received in the next, the caps can be breached inadvertently for the next year if other concessional contributions are being received in that year. This can arise through:
Solution – Don’t leave making contributions to the last minute. Where possible, plan for contributions to be sent/processed by Friday 25 June 2010.
2. Contributing 2010 employee performance bonuses to super
Most performance bonuses will be determined on the basis of an employee’s work performance during the 2009/10 financial year and also the employee will make the election to have the bonus paid into super before 30 June 2009.
However, the bonus will (ordinarily) be paid to the fund in the 2010/11 financial year and will be counted under the concessional contribution cap for 2010/11. Advisers need to make sure that the 2010/11 cap will not be breached given that SG contributions etc will also be expected during 2010/11.
Applies to former members of Personal Choice Master Fund (PCM) and IOOF Global One Superannuation Fund transferred to IOOF Portfolio Services Superannuation Fund.
On 24 March 2010, legislation passed through Parliament providing merging superannuation funds with rollover relief for capital and income losses. The relief provided that where a successor fund transfer occurred, the transferring fund could transfer certain revenue and capital losses to the receiving super fund. IOOF took advantage of this relief when the PCM fund and the IOOF Global One Superannuation Fund were transferred into the IOOF Portfolio Services Superannuation Fund.
The legislation also included relief for s.290-170 Tax Deduction Notices. Under this relief, if merging super funds elected to take the loss rollover relief, a transferred member could send into the receiving fund an s.290-170 Tax Deduction Notice in respect of personal contributions made during the current financial year to the transferring fund. The receiving fund could then process the s.290-170 Notice to the member’s account in the receiving fund. Ordinarily, to be valid, an s.290-170 Notice must be provided before benefits are transferred to another super fund. This relief only applies where there is a successor fund transfer.
The legislation had not passed before the PCM and IOOF Global One transfers to IOOF Portfolio Services. Consequently, IOOF provided s.290-170 Notices to PCM and IOOF Global One members to complete before their benefits were transferred. Now that the legislation has been passed, IOOF Portfolio Services can accept both new and variations to previously provided s.290-170 Tax Deduction Notices for contributions made during 2009/10 to PCM and IOOF Global One. Advisers and clients wishing to take advantage of this relief can contact Client Services for a new Tax Deduction Notice or variation form.
Item |
2010/2011 |
2009/2010 |
Has this changed? |
|---|---|---|---|
Concessional contributions cap (CCC) |
$25,000 pa |
$25,000 |
No |
Non-concessional contributions cap (NCC) |
$150,000 pa |
$150,000 pa |
No |
CGT cap amount |
$1,155,000 |
$1,100,000 |
Yes |
Low rate threshold |
$160,000 |
$150,000 |
Yes |
Untaxed plan amount |
$1,155,000 |
$1,100,000 |
Yes |
Employment termination payment (ETP) Transitional ETP |
$160,000
160,000 $1,000,000 |
$150,000
$150,000 $1,000,000 |
Yes
Yes Yes |
Tax free redundancy/early retirement scheme payments |
Not available yet |
$7,732 plus $3,867 per year service |
Yes |
Super Guarantee |
Not available yet |
$40,170 per quarter ($160,680 pa) |
Yes |
Super co-contribution |
$1000 |
$1000 |
No* *Announced 2010 Budget |
Viewpoint
Contents
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Newsflash: Super System Review releases phase three preliminary report: Self Managed Super Solutions
Technical Strategy: Timing of concessional contributions for employees: If you think you have control then think again!
Technical Strategy: End of year adviser superannuation update
Technical Strategy: Super splitting: Back from relative obscurity
Product Spotlight: Addition of Exchange Traded Funds on Pursuit Select
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