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Important changes have been made to the Tax Act impacting on the requirements for Deductible Gift Recipient’s (DGR) to maintain a gift fund.

Background

A fundamental aspect of the requirements for a deductible gift recipient endorsed under Division 30 of the Tax Act has been the obligation applied to the situation where the DGR was endorsed as a whole and also where an organisation was endorsed for a fund, authority or institution which it owned and operated.

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Summary

Recent changes to superannuation have meant that it is probable large sums will be held in many superannuation funds at the time of death of a fund member, with the prospect of significant tax being paid as benefits pass to non-dependent beneficiaries.

This “death duty” can be avoided with careful planning.

The change

Previously, there were limits on the amount of superannuation contributions, strict requirements to “cash out” benefits in retirement, and adverse tax consequences if benefits were received by a “working retiree”

All that has changed. Generous contribution allowances in recent years mean that amounts held in superannuation funds are now measured in billions of dollars. Also, from 1 July 2007 persons over 60 can withdraw superannuation benefits tax free before death. Read more

The St George office of Fox and Thomas recently received the Rotary Balonne Shire Business Awards Excellence in Staff Development Award.

The award recognises the efforts of organisations who demonstrate investment in their staff through training and development.

St George Partner Michael Cowley said he was particularly pleased to receive the award for staff development as it provided some public recognition of the firm’s commitment to investing in training and developing its team members.

Michael said, “We should also recognise that while successful staff development is about providing training and growth opportunities it depends on having team members who are willing to accept those opportunities and challenges.”

“I would particularly like to recognise Candice Twiner who has accepted these challenges many times in the past and was a nominee for the Staff Member of the Year category within these awards.”

The Award was accepted by Michael Cowley at the annual presentation dinner which is a highlight of the social calendar for the St George and district business community.