Superannuation – Pay Day Changes Looming

Superannuation – Pay Day Changes Looming

Businesses and Industries will soon get their say on looming superannuation changes requiring Employers to pay contributions at the same time as a worker’s salary.

This change is aimed at reducing the risk of unpaid superannuation debts when a company collapses into bankruptcy and making it easier for workers to track when their super is not being paid.

“The non-payment and underpayment of superannuation guarantee contributions by employers risks the retirement income of millions of employees”

The start date will provide employers, superfunds and payroll providers, and other parts of the superannuation system with sufficient time to prepare for the change. The Government has released a new consultation paper seeking feedback on these changes.

Along with the super pay day changes, the Government is also looking to beef up the ATO to detect and recover super payments that have not been placed in the funds of the employees.

Consultation on the proposed changes will be open for Businesses and Industries to suggest improvements until November 3.

R&D Tax Incentive Closes on 30 April

R&D Tax Incentive Closes on 30 April

What is R&D Tax Incentive?

The R&D Tax Incentive allows Australian businesses that undertake research and development to be refunded 43.5% of the R&D spend.

 

You Might Be Eligible!

The definition of R&D is broad in order to support as many different businesses and industry sectors. If your company is undertaking the following activities

  • developing new knowledge in the form of new or improved materials, products, devices, processes or services; and
  • seeking to resolve technical challenges in order to develop this knowledge and the answer is not identifiable based on currently available knowledge, and
  • undertaking experimental activities to bridge this knowledge gap and resolve these technical challenges.

 

READ MORE

 

OR

Contact us below for a free eligibility assessment.

Extension to Asset Writeoff for small business

Extension to Asset Writeoff for small business

New laws have passed that allow small businesses to claim an immediate deduction for assets they start to use – or have installed ready for use – provided each item costs less than $20,000. This will temporarily replace the previous instant asset write-off threshold of $1,000.

If you maintain a general small business pool, this can be immediately written-off if the balance is less than $20,000.

Assets that cost $20,000 or more (which can’t be immediately deducted under other provisions) are deducted over time using the general small business pool. Under the pooling mechanism a deduction for 15 per cent of the cost is allowed in the first income year with a diminishing value rate of 30 per cent deduction on the opening pool balance allowed for each income year thereafter.

This measure starts 7.30pm (AEST) 12 May 2015 and will end on 30 June 2017.

Come and talk to us on how to tax effectively purchase and make investments in your small business.

Salary Packaging and You

Salary Packaging and You

Most of my articles to date have concentrated on small business owners. So here’s one for those who are employed.

As most of you know I’ve worked in the salary packaging industry for a number of years so I’ve seen and implemented a fair number of salary package benefits to know what works and at what income levels. Keep in mind that tax savings are culminating. A $50 a week saving here and there adds up through the course of a year.

So these are my top 5 in order of least to most tax effective:

5. Car parks – for some of you who are unfortunate enough to have to pay for parking at work. It’s a little known fact that there is a small saving to be had, usually around $20-30 a week, to salary package car parking due to the concessional valuation rules for car parking.

4. Cars – on the subject of cars, salary packaging cars is one of the most popular perks. Having a novated lease through your employer mean not only do you save on your tax but also the GST on purchasing and running your car. Further, you don’t have to prove business use.

3. In-house dining – if your work has an in-house dining facility whether they be a canteen or third party cafe you can salary package the cost of lunch as these are considered income tax deductible.

2. Superannuation – salary sacrificing super is effective as the ATO consider these as payments made by the Employer. However before you do this just check with the employer as some count this towards the superannuation guarantee limit.

1. Health workers and those in charities/PBIs – workers in these organisations get special dispensation from FBT in the form of either a rebate or exemption. So for example an ambulance worker can sacrifice their rent, school fees up to a certain limit and not be subject to FBT.

 

So as you can see from above there are still lots of things you can do with your salary in order to effectively give yourself a pay rise without actually getting a pay rise.

And always check with your accountant before getting yourself into one of these arrangements as your mileage will vary.