In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Super reforms from 1 July 2017
If you are a member of a self managed super fund (an SMSF) you may need to take action to avoid exceeding the new $1.6 million transfer balance cap.
For example, rolling back some of your pension to accumulation or withdrawing a lump sum.
If you have more than $1.6m in superannuation and need assistance, please contact us.
Minimum wage increase
The Fair Work Commission has announced a 3.3% increase to minimum wages from 1 July 2017.
For more information, see the Fair Work Ombudsman’s website.
Employers are also reminded that certain penalty rates in the Hospitality, Restaurant, Fast Food, Retail & Pharmacy Awards are changing from 1 July.
Bill to reduce corporate tax rate
The Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 has been introduced to progressively extend the lower 27.5% corporate tax rate to all corporate tax entities by the 2023–2024 income year.
The corporate tax rate will then be cut for all corporate tax entities, phasing down to a 25% tax rate for the 2026–2027 and later income years.
Export Market Development Grants
Does your business promote goods or services (including inbound tourism) outside of Australia? If so, you may be eligible for the EMDG.
For more information, check out the Austrade website.
Applications open on 1 July and must be submitted by 30 November.
Car expenses for transporting equipment disallowed
A taxpayer working as a stevedore has been denied a deduction for car expenses incurred in transporting equipment to and from work.
The Administrative Appeals Tribunal (AAT) decided that it was not necessary for the taxpayer to take home her hard hat, safety glasses, hearing protection or headlight to clean them, and her overalls were laundered by the employer.
Accordingly, she could only justify transporting her shirts, trousers and occasional wet weather gear, which were not bulky. The car expenses were therefore not deductible.
With work related expenses to be one of the ATO’s main focus areas this year, this case highlights the need to understand the rules to claim deductions correctly.
How is your super going?
Super Ratings have recently released their findings on the top 10 performing superannuation funds as at 31 May 2017.
When was the last time you reviewed your super’s performance? How does it compare to the top 10?
If you need help to review your super, or want to see it grow faster, get in contact with us.
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