Things to watch out for:

Superannuation

• On the 14th February 2012, the Minister for Financial Services and Superannuation released draft legislation which will require employers to report, on employee payslips, the: 
  • amount of superannuation contributions
  • date on which the employer expects to make them
• Currently, emloyers are required to report accrued super entitlements on payslips, however, they are not required to make the contributions until 28 days after the relevant period.
• The new measures are designed to improve employer compliance
• The Fair Work Ombudsman will be responsible for administering the new payslip measures

So whats being said this month around the ATO?

Here are some topics to keep an eye on

• Certain businesses required to report taxable payments made to contractors in the building & construction industry - from July 1, 2012
• For small business tax payers;
  • an initial deduction of $5000 for motor vehicles purchased after July 1, 2012
  • amendments to increase the small business instant asset write off to $6500
  • abolish the entrepreneurs tax offset
• Living Away From Home Allowance - having the LAFHA allowance taxed in the hands of the employees not the employers
• Abolition of upper age limit for making employee SG contributions
• Proportion of the low income tax offset delivered through salaries and wages increased from 50% to 70%
• Private health insurance rebate and the introduction of the 3 tier means testing for the offset
• Increases in the rate of SG (superannuation guarantee) contributions ? From?
• Restructuting the margin scheme provisions
• Director penalty notices (DPNs) considered to be given on the date the commissioner sent it by post - watch out for these
• Hire purchase agreements entered into after July 1, 2012 will be fully taxable, no more apporionment

The above are just items of interest, please consult us for specific advice.

Please read our quarterly business newsletter - some interesting points covering areas such as:

ATOs compliance program for 2012 and its focus areas such as -  

• Employees Vs Contractors
• Personal Services Income
• Government Payments
• Cash Economy
• Internet Trading
• Work Related Expenses
• Overseas Incmoe
• Split Loans
• Refund Fraud
• Executives, directors and other highly paid individuals
• Division 7a
• Fringe Benefits Tax
• Small Business Benchmarks
• Managing Tax Debts
• Car Fringe Benefits Rules Changed
• Excess Super Contributions Tax
• ATOs new CGT Small Business Concession Tool

Its really worth a read, if you have any questions please feel free to contact Make Cents Accounting on 02 96 999 171

MCA Business News - September 2011.pdf (154.97 kb)

Don't forget to update your payroll systems and records to reflect the new PAYG withholding amounts for your employees.

Click here to link to the ATO's webiste

Tip: make sure to use the right tax tables - e.g: "Weekly / Fortnightly / Monthly / Tax Table for commission payments"

If you need further assistance feel free to contact us on 02 96 999 171