June 2018 Newsletter
IN THIS ISSUE:
- Changes to SUPERANNUATION deductibility rules
- Employer super contributions amnesty
- 2018 Tax time
Changes to super deductibility- limited time to act
In the 2016–17 Budget, the government announced a number of changes designed to improve the sustainability, flexibility and integrity of Australia’s superannuation system. One of the changes was to extend the eligibility rules for claiming a tax deduction for personal super contributions.
This is general information and examples. It may omit details that could be significant in your personal circumstances.
What has changed?
In 2016–17, an individual (mainly those who are self-employed) can claim a deduction for personal super contributions where they meet certain conditions. One of these conditions is that less than 10% of their income is from salary and wages.
This is known as the 10% maximum earnings condition.
From 1 July 2017, the 10% maximum earnings condition will be removed. This means most people under 75 years old will be able to claim a tax deduction for personal super contributions (including those aged 65 to 74 who meet the work test).
The intent of this change is to improve the flexibility of the super system so that more Australians can use their concessional contributions cap.
Please note if you are going to make use of this change you have limited time to act,
June 30 is fast approaching! Contact this office should you require a ‘Notice of intent to claim a deduction form’ (can be downloaded from ATO or your fund directly) and send it off to them asap to give your fund time to process and send you a written acknowledgment.
Employer super amnesty- Is your business behind on the compulsory 9.5 super contributions for employees ? ATO is offering a last chance reprieve to get your obligations to employee super in order.
The Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018
Employers who voluntarily disclose previously undeclared SG shortfalls during the Amnesty and before the commencement of an audit of their SG will:
not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
be able to claim a deduction for catch-up payments made in the 12-month period.
Employers will still be required to pay all employee entitlements. This includes the unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).
This is fabulous news for struggling businesses. The time to act is NOW
2018 Tax time – There are a few changes in this years tax season – from investment property claims for deduction to super contribution changes being just 2 of the big news items this year.
Now is the time to start sorting thru your receipts for deductions and keep them handy for your return preparation. Is your motor vehicle log book up to date in order to maximise your mileage deductions?
ATO expects to start processing tax returns on 6 July with refund processing to commence 17 July.
Prefill– Please note if you rely on pre-filling for most of your return data – some of this info may not be available straight away so please provide hard copies of things like bank interest dividends etc to avoid ATO clawing back part of your tax refund or adding more to your tax payable.
ATO expects most pre-filling data to be available by mid August
If you have any questions regarding tax time or any other tax matter – call bennetts tax & bas service on 0421 074 952 or send an email.