Superannuation Increase


SUPERANNUATION GUARANTEE INCREASES TO 10%

 

From 1 July 2021 the Superannuation Guarantee rate will increase from 9.5% to 10%. It is planned to increase by 0.5% each year until it reaches 12% on 1 July 2025.

 

If you have employees, it is important that you ensure your payroll systems are up to date to incorporate the new increased super rate.

 

If you need assistance with working out how much super you need to pay your employees after the super rate increases, the ATO has created a super guarantee contributions calculator which can be found at the following link: (https://www.ato.gov.au/Calculators-and-tools/Super-guarantee-contributions/)

 

For any salary and wage payments made on or after 1 July 2021, the minimum superannuation guarantee contribution rate of 10% will need to be applied.

 

It is important that you pay your employees the correct amount of super as penalties may be applied!

 

If you have any questions about how the increased super rate affects you, or for any other queries, feel free to contact our office.

 

The team at V I Partners are always here to help you and your business!

 

 


In the lead up to 30 June 2021, we want you to know why using a "bucket company" can be a great strategy for saving tax on trust profits distributed.

Do you have a Discretionary or Family Trust that generates profits? If yes, then this strategy may apply to you.

 

A "bucket company" allows you to "cap" the tax on profits distributed by a trust to 30% or 26%. This is much less than the individual top marginal rate of 47%!


 The cash in a "bucket company" can be used to invest in shares, property, or to lend to other entities at a specific interest rate.

 

But: You need to discuss this with us BEFORE you do it. There are different tax laws that affect the use of this strategy, and whether your "bucket company" can use a tax rate of 30% or 26%.

 

As your Accountants, we are very aware of these tax laws and can make this easy for you.

Contact us today! The sooner we get started, the sooner we can help you save tax using a "Bucket Company" - well before 30 June 2021 for enough time to implement tax saving strategies.


Minimise Your 2021 Business Tax


With the end of financial year approaching quickly, NOW is the time to discuss with us the actions you can take before 30 June 2021 to reduce your tax and grow your wealth.

For 2021, key priorities are likely to include:

 

  • Maximizing superannuation contributions without exceeding the relevant limits
  • Bringing forward deductible expenses
  • Deferring taxable income
  • Managing capital gains
  • Using a Family Trust or a "bucket company" to cap your tax at 26% or 30%

 

To find out how these strategies may help your business save tax contact us today! For more information check out our tax minimization guide at: Minimise Your 2021 Buisiness Tax Guide

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