Question:
Super - increases
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Question from Greg: Do you have any views on how the increase in superannuation guarantee levy will be applied to "total cost" employment contracts?
Where the total remuneration package is defined, will the increase in superannuation levy be borne by the employer or will it reduce the employee's cash salary?
Answer from Andrew: Great question! There are two separate superannuation issues identified with this question: First, subject to the new Superannuation Bill being passed by the Parliament, superannuation guarantee will increment from 9% to 12% over the years through to July 2019. This is a statutory rule and will supersede any contractual agreement between employer and employee.
Accordingly, an employer will have to pay the nominated rate for the particular year based on the ordinary time earnings of the employee.
There will also be contracted total remuneration packages that have not taken into account the possibility of an increase in superannuation guarantee. There will need to be a review of the legal drafting of those contracts to determine whether the total cost to the employer increases, or the cash component for the employee reduces.
From a practical perspective, it will most likely require a "good faith" discussion and negotiation between the employer and employee to amend the employment contract.
