How to ensure that an SMSF meets the residency test?

It is very important that your SMSF meets the residency test because the consequences of non-compliant status can be harsh. If in case, your SMSF fails the residency test requirements, you as an SMSF owner will have to pay the tax at the rate of 45% on the entire amount of SMSF asset less non-concessional contributions in the non-compliant year (the tax rate was increased to 47% during temporary budget repair levy financial years of 2014-2015, 2015-2016 and 2016-2017). The non-compliant status of the fund strips it essentially from all the tax concessions it had for years. Read more about this topic visit website

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SMSF Investment Strategies

Nearly 18,000 SMSF trustees received a letter in September 2019 from the ATO...with love...about SMSF investment strategy. It pointed out a lack of diversification. The question is: What should an SMSF investment strategy look like? How should it look? ATO Letter :> What did September 2019's ATO letter about SMSF investment strategies say? The ATO wrote, Our records show that 90% of your SMSF investment strategy's funds may be held in one asset or one class. Your fund could be at risk of not meeting the... the SIS Regulations diversification requirement. You, as trustee, are responsible for ensuring that your investment strategy conforms to the needs of the law em> The ATO then gets the big stick. They might have been worried about not being taken seriously. They continue to do so. If your investment strategy does not meet these requirements, you could be subject to an administrative penalty of $4,000. The ATO then concludes by getting the auditors involved. ...

A Complete Guide To Business Setup

Having a business idea is great but what next? To turn your business idea into reality you must have a concrete plan that could help you take realistic steps towards your business setup. It is better to be prepared when you are planning to set up your own business or things might not move as expected. Many entrepreneurs have sound business ideas but they are unable to figure out what all it takes for the business setup. Amongst the various tasks that you need to consider while setting up your business, the most difficult task that you would need to do is decide the type of structure for your business. While there are different structures that you can choose for your business, every structure has its own pros and cons. If you are not sure which business structure might be right for you, don’t worry as this article will help you out with each such structure. Not only business structures, but you will also get to know everything you need to know about business setup in Australia....

Business Bookkeeping

Reasons why you should focus on keeping your bookkeeping effective We all know that for the successful running of a business, keeping records of all the daily transactions is really important. But still, there are many businesses that do not truly understand the value of bookkeeping. Sometimes, they consider it as too much work and ask, why they should focus on bookkeeping? Well, to answer this question once and for all, we would say that bookkeeping is very important and necessary for every business irrespective of their size or industry to achieve transparency in the business results. Imagine running your business for a year and at the year-end realizing your accounts depict results that are far from reality. That is why you should focus on timely and accurate bookkeeping. Want to know how exactly effective bookkeeping helps business? Let's see! For everyone’s sake, before moving to the importance of bookkeeping, let us reiterate what bookkeeping means? Bookkeeping in layman t...

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