In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Super Guarantee (SG) Amnesty
Legislation to introduce a 12-month Superannuation Guarantee Amnesty has been introduced to Parliament. If and when passed, the Amnesty is an opportunity for employers to correct previous super guarantee non-compliance without penalty from the 24th of May 2018 to 23rd of May 2019.
Employers who voluntarily disclose and pay previously undeclared SG shortfalls will:
- not be liable for the administration component and penalties that would ordinarily apply; and
- be able to claim a tax deduction for catch-up payments which would ordinarily be non-deductible.
If you would like more information on the amnesty, please get in touch.
With 30 June fast approaching, businesses should be making final arrangements to complete routine EOFY processes including cash counts, stocktakes and issuing employee Payment Summaries.
The processes are particularly important for businesses in the clubs, pubs and tourism industries where they deal with large volumes of cash and fast moving stock.
These items are not only important to meet compliance requirements, but are also vital to getting a true understanding of the performance and financial position of the business.
If you need any last minute advice on the procedures to follow, please get in touch.
GST changes on settlement of property transactions starting soon
From 1 July 2018, buyers of new residential premises or potential residential land will be required to withhold an amount of the contract price and pay it directly to the ATO as part of the settlement process.
Vendors are required to give written notice to purchasers when they need to withhold. At settlement, the purchaser will then need to:
- Pay the GST exclusive price to the vendor; and
- Pay the GST component direct to the ATO.
Further information is available on the ATO website.
If you need assistance to navigate the new rules, please get in touch.
Tax Time 2018
For the early birds, please note that the ATO will start processing 2018 income tax returns from 6 July 2018 with refunds starting to issue from 17 July 2018.
Updated checklists to assist you to compile your tax information will be available on our website shortly.
In the meantime, we remind you to take care when working out your tax deductions as the ATO has signaled a crack down on those claiming more than they are entitled to. In particular, there will be a focus on car claims and work related clothing and laundry claims.
Minimum Wage Increase
The Fair Work Commission has announced a 3.5% increase to minimum wages, which will apply from the first full pay period starting on or after 1 July 2018. The new national minimum wage will be $719.20 per week or $18.93 per hour.
The Fair Work Ombudsman (FWO) is in the process of updating their Pay Guides which will reflect the increased wage rates under industry awards. Be sure to check regularly for updates to ensure that you apply the correct rates from 1 July.
As we mentioned in the May Sky Update, the FWO has their sights set on cleaning up the non-compliance that is rife in the hospitality industry. Businesses operating in this space should take extra care to ensure that they apply the new wage rates correctly.
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