SURVEY
Thank you to all members who participated in our last survey.  We are currently compiling all your comments and will send you updates and results in the coming months.  We also anticipate on contacting you individually if there is a need to discuss any of your comments.

SMSF DEED OF VARIATIONS?
It is important that SMSF trust deeds are reviewed and upgraded or amended accordingly, to ensure they are consistent with (and reflect) the new rules (where appropriate). A deed that reflects current superannuation law will offer more flexibility and reduce the risks of any breach of the SIS Act and its Regulations.

The key superannuation changes which may affect an SMSF deed include the following:
(a) Deductible contribution limits – deductible employer and self-employed contributions into an SMSF will be capped at $50,000 (indexed) per person each year. Also, up until 30 June 2012, deductible contributions for those aged 50 or more will be capped at $100,000 (unindexed) per person each year.
Excess contributions will be taxed to the individual at 46.5%. However, an SMSF may be required to ‘release’ sufficient moneys to enable the individual to pay their liability.
(b) Undeducted contribution limits – from 10 May 2006 to 30 June 2007, undeducted contributions into an SMSF will generally be capped at $1 million. From 1 July 2007, a cap of $150,000 will generally apply each year, subject to a 3-year averaging system (which will allow individuals under age 65 to contribute up to $450,000 in the one year).
(c) Acceptance of contributions up to age 75 – an SMSF will be able to accept salary sacrificed (employer) contributions in respect of a member up to the age of 75 (where a ‘work test’ is generally satisfied from age 65).
(d) Tax-free benefits at age 60 and above – lump sum and pension payments from an SMSF will be tax-free when paid to those aged 60 or more. Reasonable Benefit Limits (‘RBLs’) will also be abolished.
(e) Simplified benefits paid to those under 60 – lump sum and pension benefits paid to people under 60 will basically contain only two components, a ‘tax-free component’ and a ‘taxable component’.
(f) New pension standards – pensions which commence from 20 September 2007 will be subject to a new single set of minimum standards (i.e., in effect, only one standard type of pension will be payable under the new rules).

The Assistant Treasurer’s press release regarding the regulations can be found here.

COMPANY NAME RESERVATIONS
Some facts you may not be aware of when reserving a company name:      
Only the person who originally applied for a company name reservation with ASIC has the power to un-reserve that name.

If you (as an individual) reserved a name - you must write a letter to ASIC asking them to un-reserve that name (including the reference number originally given to you by ASIC) and post this letter to ASIC. BUT, be aware: as soon as this is processed, that name becomes available to anyone! SO, we suggest you send this letter to us - we would then personally take the letter to ASIC, and in the process of that name un-reserving, we coordinate with staff back at our office to register that name before anyone else can take it.

If you asked us to reserve the name, the process is much easier. We apply for company reservations electronically and therefore can also un-reserve and register a company name simultaneously, electronically to ASIC. Thus saving time for both parties and restricting your company name from ever becoming available for other people to take!

If you have any questions as to how you need to reserve or un-reserve a company name, please contact one of our friendly staff members on 1800 700 666.

PUBLIC OFFICER
In response to some common queries regarding public officers, we have included some information about them below. 
The requirement to have a public officer is not found in the Corporations Act 2001 - it is a requirement of the tax law. Section 252 of the Income Tax Assessment Act 1936 (ITAA 1936) requires every company carrying on business in Australia, or deriving in Australia income from property to be represented for the purposes of the tax law “by a public officer duly appointed by the company or by its duly authorized agent or attorney”. 

What is the point of a public officer?
Basically, the tax law requires companies to have a public officer in case they ever have a problem contacting the company directly. This person is the Tax Office's official point-of-contact in relation to the company. 

For example, the ITAA 1936 states that the public officer “shall be answerable for the doing of all such things as are required to be done by the company under this Act or the regulations, and in case of default shall be liable to the same penalties.” 

In addition, “(e)verything done by the public officer which he is required to do in his representative capacity shall be deemed to have been done by the company.”

The ATO can also serve documents on, or give notices to, the public officer, and this will be taken to be sufficient service upon the company. 

The public officer is also answerable for other tax-related actions of the company, such as record keeping and submitting company tax returns. 

Who can be a public officer?
The public officer must be a natural person at least 18 years old, and must generally be an Australian resident (though there are some exceptions for, e.g., foreign companies). Also, since the ITAA 1936 only refers to “the public officer” in the singular, you can only appoint ONE public officer.

How do I appoint the public officer?
If the instruction sheet tells us who the public officer will be, we will ensure that this appointment is recorded in the first directors' resolution.

However, the company still needs to inform the ATO of the identity of its public officer within 3 months of commencing business or deriving income in Australia. This can normally be done when the company submits its ABN/TFN registration.
 
Note that, if the company is not intending to apply for an ABN or TFN it will still need to notify the Commissioner of the identity of its public officer, unless the company will not be carrying on business in Australia, or deriving income from property (for example, interest, rent or dividends) in Australia.  Please contact the ATO for how best to do this.

NEW ORDER FORMS
We are still receiving a lot of orders on our old order forms. We request that everyone please download our PDF order forms from the link below, which will actually allow you to type directly onto the order form, print off and fax to 1300 361 816 as usual. This will save having to decipher handwriting and phone calls. Link: http://www.interprac.com.au/html/corporate_index.htm.

A small reminder... we have introduced a New Company order form which has changes regarding the way in which we accept the appointment to director.  Download your new copy today! Link: http://www.interprac.com.au/html/corporate_index.htm

Yours sincerely

Brent Jones
General Manager
InterPrac Limited

C/- InterPrac Limited
NTAA Corporate
Level 3, 29-33 Palmerston Crescent
South Melbourne, VIC 3205
Phone: 03 9209 9799, OR Free Phone: 1800 700 666
Fax: 1300 361 816 (NB: this fax number will safely direct your order straight to NTAA Corporate's email - the best option)
Email: ntaacorporate@ntaa.com.au 
Web: www.interprac.com.au/corporate 

NTAA Corporate is a service provided by InterPrac Ltd
InterPrac also offers the following services

• Leasing & Finance

• Mortgage Lending

• Financial Planning

• General Insurance

• PS 146 Training

www.interprac.com.au