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News
NEW SUPER REPORTING FOR PAYMENT SUMMARIES:
For the 2009-2010 income year and all future years, if you make employer super contributions to a super fund for an employee, you may need to report those contributions on your employee's payment summary.
EDUCATIONAL TAX OFFSET:
From the 1st July 2008 the Treasurer has advised parents to ‘keep
receipts’ for education expenses. Eligible families will
be able to claim a 50% tax offset every year for key educational expenses
up to:
- $750 for each child undertaking primary studies (i.e. a maximum offset of $375 per child, per year); and
- $1500 for each child undertaking secondary studies (i.e. a maximum offset of $750 per child, per year)
Items covered:
- Laptops
- Home computers and associated costs
- Home internet connections
- Printers
- Educational software
- Trade tools for use at school
- School text books
- Stationery
Are you eligible?
Parents entitled to Family Tax Benefit (FTB) Part A for children in primary or secondary school for the relevant financial year are eligible for the tax offset. In addition parents may be eligible if they are not entitled to FTB Part A, but would be if not for the fact that the relevant child receives certain payments or allowances (such as Youth Allowance, Disability Support Pension, or ABSTUDY Living Allowance).
USING ORDINARY TIME EARNINGS TO CALCULATE THE SUPER GUARANTEE:
From 1 July 2008, you must use ordinary time earnings as defined in the super guarantee law, to calculate the minimum super guarantee contributions required for your employees. This ensures all eligible employees are treated the same for super guarantee purposes.
Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including:
- over-award payments
- commissions
- allowances, and
- paid leave.
Ordinary time earnings do not include overtime (subject to certain exceptions).
CHANGES TO WORKERS COMPENSATION:
From the 1st July 2008, Employers who expect to pay $7,500 or less in annual wages will no longer require a Workers Compensation Insurance Policy. This includes households who employ domestic staff and pay $7,500 or less in annual wages. However, a Workers Compensation Insurance Policy will still be required if an employer engages an apprentice or trainee, or is a member of a group for Workers Compensation purposes.
Employers who paid $7,500 or less in annual wages in 2007/08:
- If you circumstances remain unchanged you will not require a Workers Compensation Insurance Policy from 30 June 2008, unless you engage an apprentice or trainee, or is a member of a group for Workers Compensation purposes. To finalise your policy, complete a declaration of actual wages paid for the 2007/08 Policy period.
- If you expect to pay more than $7,500 in annual wages over the next year you will need to complete and submit a wages estimate and renew your policy. This also applies if you employ an apprentice or trainee – complete and submit your estimated wages declaration, noting which wages are for an apprentice or trainee.
- If at any time in the future you expect to pay more than $7,500 in wages for the financial year (1 July to 30 June), or you become a member of a group for Premium or engage an apprentice or trainee, you will need to contact an Workers compensation company immediately as you will then require a Workers Compensation Insurance Policy.
Employers who paid more than $7,500 in annual wages in 2007/08:
- If you circumstances remain unchanged you will still require a Workers Compensation Insurance Policy, complete and return a declaration of actual wages paid for the 2007/08 Policy period and your wages estimate as usual.
- If you expect to pay $7,500 or less in wages over the next financial year, you will still need to submit a wages estimate. Your policy will not be renewed if you meet the exemption conditions and you will no longer receive renewal notices. However, if at any time your circumstances change and you expect to pay more than $7,500 in wages for the financial year, you will need to obtain a workers Compensation Policy.
What will happen in the event of a claim?
If you are an Employer who no longer requires a Workers Compensation Insurance Policy from 1 July 2008, your workers will still be covered.
If one of your workers makes a claim for Workers Compensation, you will need to contact WorkCover on 13 10 50 to report the claim. WorkCover will allocate a scheme agent to manage your claim. You will have the same obligations as you do now to provide assistance with Injury Management and Return to Work. An administration fee, currently $175, will be payable for any claim.
Incidents involving injury or illness to workers should be reported to WorkCover within 48 hours.
For serious incidents involving a fatality or a serious injury or illness (refer to clause 344 of OHS Regulation 2001): Phone WorkCover immediately on 13 10 50 as an urgent investigation may be needed.
ATTENTION ALL TRUSTEES OF SELF MANAGED SUPERANNUATION FUNDS:
- From the 1st July 2007, the supervisory levy payable by self managed superannuation funds will increase to $150 per annum and will be incorporated into the Income Tax 2008 Notice of Assessment. The previous levy was $45 per annum and payable on a separate payment advice.
- We suggest that you take the time to look at the following Web Site: www.ato.gov.au/super for a guide for trustees running a self managed Superannuation Fund. To access the guide online, select the 'What you can do' link under the Self managed Superannuation funds heading, click on the Fact sheets & Publications option and open the 'General' link.
ASIC CHANGES:
Annual Returns have been replaced by Annual Statements. They are due on the Incorporation Date of the Company. We will send Statements for your perusal when required. The lodgement fee with ASIC remains @ $212.
ENTREPRENEURS TAX OFFSET:
The discount allows businesses operating in the Small Business Entity a 25 per cent discount on the income tax in respect of their business income. Businesses with a turnover up to $75,000 will benefit, while those with turnover of $50,000 or less are able to claim the maximum 25 per cent. The maximum possible benefit depends on the amount of tax that would otherwise be paid. eg. if a company has a turnover of $50,000, the maximum tax it would pay would be $15,000 (ie 30 per cent of $50,000),
although this would usually be reduced by deductions. The 25 per cent discount would reduce the tax liability by $3,750, to only $11,250.
If the business is not a company, such as a sole trader, then the maximum tax it would pay on a $50,000 turnover would be $11,172 (ie the application of the tax free thresholds and lower marginal rates), although again, this would usually be reduced by deductions. The 25 per cent discount would reduce this tax liability by $2793 to $8379.
TAX-FREE BENEFITS FOR PEOPLE AGED 60 AND OVER:
For people aged 65 and over, who receive super benefits from a taxed source, payment of a benefit as a lump sum or income stream (such as a pension) will be tax-free. These payments will also be tax free for those over 60 years of age who have retired from the workforce.
If your super comes from a source that is not taxed (such as public service super funds), your benefits will continue to be taxed when you receive them. However, you may be entitled to a tax offset that will reduce the tax payable on these benefits.
Reasonable benefit limits will be abolished for benefits received from 1 July 2007. These currently limit the benefits you can receive at a concessional tax rate from your super.
SUPER CO-CONTRIBUTION:
The eligibility for the co-contribution has now been widened to include more people. To see if you are eligible for the co-contribution please refer to our Newsletter page and open the document called Super Co-Contribution Newsletter 2008. If you wish to calculate your own Super Co-Contribution please see our links page.
If you are unsure of any of the above matters Please contact this office.