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Important information regarding your employer superannuation contributions
The ATO has recently implemented changes to employer super contributions that will affect
you. This new reform is known as SuperStream.
We are conscious of the time involved and possible disruption to your business in
attempting to comply, so we are working with our SMSF software provider BGL Corporate
Solutions Pty Ltd to provide a solution.
What is SuperStream?
SuperStream is a government reform aimed at improving the efficiency of the
superannuation system. Under SuperStream, employers must report super contributions on
behalf of their employees by submitting data and payment details electronically in
accordance with the SuperStream standard. All superannuation funds, including SMSFs,
must receive contribution details electronically in accordance with this standard.
Is there a fee?
The Electronic Service Address provider charges a fee of $25 per annum. Our once off fee
for the implementation is $250, so for the first year the total fee will be $275 and then $25
per annum thereafter.
Please don’t hesitate to contact us if you have any queries.
Proposed changes to tax treatment of LAFHA - Attention 457 VISA holders
The Federal Government has recently outlined changes to the Living Away From Home Allowance (LAFHA) from 1 July 2012. Currently, the allowance has not been taxable to the employee and is generally exempt from Fringe Benefits Tax.
The government intends to change the legislation from 1 July 2012 to include the accommodation and food component as assessable to the employee. This will result in a reduction in the employee take home pay.
The change in legislation does not apply to employees who have a residence in Australia and are required to relocate within Australia for a period of time (under ‘fly-in, fly-out arrangements).
Whilst legislation has not been passed, the announcement represents the intended law from 1 July 2012. As such, we recommend that the remuneration packages of those employees who are currently receiving a LAFHA and who have transferred from an overseas country to Australia be reviewed. Employers should consider the impact of this change to the salary package of those expatriate individuals as from 1 July 2012 and manage the changes to salary packages, salary agreements and salary commitments which will result.
If you have any queries in relation to the above please do not hesitate to contact John Fara of our office.
New ATO property resource
The Australian Taxation Office has put together a new property resource page!
They have grouped together various pieces of information that you may find handy here: http://www.ato.gov.au/corporate/pathway.aspx?pc=001/001/047
Please call us on 02 9810 5368 if you are thinking of purchasing, selling, renovating, or developing property. Our tax consultants are more than happy to have a confidential discussion.
Temporary Flood and Cyclone Reconstruction Levy
The government has introduced a Temporary Flood and Cyclone Reconstruction Levy (flood levy) applying to income for the 2011-12 year only.
It is designed to assist affected communities recover from the recent floods by providing additional funding to rebuild essential infrastructure. For example, the rebuilding of roads, bridges and schools.
The flood levy will only apply from 1 July 2011 to 30 June 2012.
How much will you pay and how?
Taxable income Flood levy on this income $0 to $50,000 Nil $50,001 to $100,000 Half a cent for each $1 over $50,000 Over $100,000 $250 plus 1c for each $1 over $100,000
Follow the link to the ATO website for more information, or call our office on 02 9810 5368.