The dust has settled on the Federal Budget for 2017-2018, and now the implementation of the changes is coming through. The big changes coming from 1 July 2017 are the budget announcements from last year’s budget relating to superannuation. If you’re not aware of the changes, the major announcements to take note of include:
- $1.6 million cap on tax free pension balances – this will affect anyone taking a pension who has a total balance of more than $1.6 million
- Reduction of concessional contributions cap to $25,000 from 1 July 2017 – anyone salary sacrificing should review their situation and speak with their payroll office to ensure they don’t exceed the $25,000 cap
The other big announcement is the extension of the immediate write-off for small businesses with turnover under $10 million who purchase assets costing less than $20,000 ($21,999 or less including GST if you are registered for GST). If you are unsure of where you sit in relation to your tax position for the 2017 financial year, contact us to make a time to go over the numbers and work out the best options before 30 June.
Super Guarantee Health Check
The payment of employee’s superannuation is a major focus of both the ATO and Fairwork Australia at the moment, with talk of restructuring reporting and payment obligations in a bid to protect employee’s entitlements to superannuation. Given that late payment of your superannuation guarantee means the contributions are not tax deductible, there is great incentive for employers to understand their obligations and meet the deadlines. The key requirements to pay super are:
- Super is payable where an employee earns more than $450 per month
- Super is payable at 9.5% of ordinary times earnings – in most cases this will be all wages, set allowances and even bonuses that are pre-agreed with the employee
- Super is payable within 28 days of the end of each quarter i.e. 28 July, 28 October, 28 January and 28 April
- Super is tax deductible to the employer at the time that the contribution is paid, not when it is incurred
- Directors of companies can be held personally liable for any underpayment of employer superannuation entitlements
The ATO has a number of resources available to assist employers, including a super guarantee health check.
If you have any uncertainty as to what you are supposed to be doing or how to make sure you are meeting your obligations, contact us at Value Beyond and learn about the systems and tools which we use to help make superannuation an easy to manage part of your business and cashflow.
Levelling the Playing Field For Small Business
Government agencies are working to level the playing field for small business, and this includes current and future initiatives.
A free interactive webinar is being held, with the agencies who are participating including ATO, ACC, ASIC, and Fairwork Ombudsman.
To register for the webinar click here.
How Your Next Property Sale Could Cost You 12.5%?
In the recent Federal Budget, the government announced an extension to the Foreign Resident CGT Withholding tax.
The existing rules require anyone selling a property to have a tax clearance certificate to verify they are an Australian resident for tax purposes.
If that certificate is not obtained, then 10% is withheld from the sale price for any property sale over $2 million.
From 1 July 2017, the withholding will increase to 12.5% and the threshold will drop to $750,000. Therefore anyone selling a property for $750,000 or more will be required to either have a tax clearance certificate, or face having 12.5% of the sale price withheld and paid to the ATO.
How do I avoid losing 12.5% of my property sale?
The easiest way is to contact Value Beyond (or have your solicitor contact us) and let us know that you need a tax clearance certificate.
These certificates can be applied for with the ATO online, and the certificate is then sent via email, which makes it more efficient to get the relevant information to your solicitor to ensure that no amount is withheld from your property sale.
If you have any questions about how this withholding operates or how it might affect your next property sale, contact us at Value Beyond to discuss.
Simpler BAS Is Coming Soon
From 1 July 2017, Simpler BAS will be the default GST reporting method for small businesses with a GST turnover of less than $10 million. This new simpler BAS will only require reporting of:
- Total sales
- GST on sales
- GST on purchases
The ATO will automatically transition eligible small businesses to this simpler BAS reporting method from 1 July 2017.
If you are unsure of what this change may mean to you, or how it affects your records keeping processes, contact us at Value Beyond to review your systems and processes.
This review can also be a good opportunity to determine whether there are better ways to save you time and effort in your record and account keeping, and put more time into your business.
5 June 2017
Lodgement of income tax returns that are not required earlier and are non-taxable or have a credit assessment in the latest year lodged
21 June 2017
Lodgement and payment of monthly May 2017 activity statements
25 June 2017
Lodgement of 2017 Fringe Benefits Tax Annual Return for tax agents
30 June 2017
Superannuation guarantee contributions must be paid by this date to qualify for a tax deduction in the 2016- 2017 financial year
14 July 2017
Last day to provide 2017 PAYG Payment Summaries to employees
21 July 2017
Lodgement and payment of monthly June 2017 activity statements
28 July 2017
Deadline for paying superannuation guarantee contributions on behalf of employees for the June 2017 quarter