The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;
8. Throw in some automatic consolidation as well
July 1 also sees the ATO gain new powers to automatically consolidate inactive accounts with balances under $6000. The ATO’s powers do not extend to accounts that hold insurance but, should insurance lapse due to the account being inactive, clients could also find that, shortly thereafter, the account no longer exists. The ATO aims to roll inactive low-balance accounts into the super account held by that client that has the highest balance.
This provision does not apply to SMSFs, small APRA funds or defined benefits.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.