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Focus on wealthy Australians

The ATO has received additional Government funding to continue their focus on improving the voluntary compliance of wealthy Australians until 30 June 2017.

The ATO began focusing on wealthy Australians in 2009-10 with the ultimate goal of influencing all wealthy Australians to pay their fair share of tax. The ATO hoped to do this by changing attitudes and behaviours associated with tax manipulation, avoidance and schemes.

Wealthy Australians are defined as Australian residents who control net assets of between $5 million and $30 million.

The ATO’s strategy to influence wealthy Australians includes:

-gaining a greater and more detailed understanding of wealthy Australian’s

-treating systematic tax risk

-heightening ATO visibility in the community through education

The ATO has undertaken direct enforcement action, including comprehensive reviews and audits, as well as engaging with individuals through letter and phone campaigns.

The ATO has also recognised that many people who fall into the category of ‘wealthy Australian’ are asset rich but cash poor. This has led the ATO to work on managing disputed, collectable and insolvent debt.

As a result of their compliance activities, the ATO have exceeded liability targets.

Posted on 15 May '14 by , under Tax.

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Transition to retirement

The transition to retirement (TTR) strategy allows you to access some of your super while you continue to work.

You are able to use the TTR strategy if you are aged 55 to 60. You can use it to supplement your income if you reduce your work hours or boost your super and save on tax while you keep working full time.

  • Starting a TTR pension: To start your TTR pension, transfer some of your super to an account-based pension. You have to keep some money in your super account so that you can continue to receive your employer's compulsory contributions as well as any voluntary contributions you may be making.
  • Government benefits and TTR: The benefits you or your partner receive might be impacted if you choose to opt for this strategy. How and what exactly will change might become clearer upon discussing this with a Financial Information Service (FIS) officer.
  • Life insurance and TTR: In some cases, the life insurance cover you have with your super may stop or reduce if you start a TTR pension – check this before making any decisions or changes.

TTR can help ease your mind as you transition into retirement but it can be a bit complex. Before you choose whether you want to use TTR to reduce work hours or save on tax, or even if you want to use TTR altogether, you should figure out how this will impact all aspects of your finances.

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