A Grade Tax is a leading providor of taxation advice to property investors in the Penrith region.

Anyone considering property investment would be well advised to consider as one of their options, the tax advantages of establishing a Self Managed Super Fund to acquire the property investment.

We are receiving enquiries from employers and employees regarding the amount to include on the 2010 PAYG Payment Summary for "Reportable Empoyer Superannuation Contributions".

Reportable employer super contributions are those contributions you make for an employee where all of the following apply:

• your employee influenced the rate or amount of super you contribute for them
• the contributions are additional to the compulsory contributions the employer must make under any of the following
◦ super guarantee law
◦ an industrial agreement

Australians are being warned to steer clear of sophisticated tax time phishing emails that purport to come from the ATO but are really designed to steal people's banking emails and passwords.

The MessageLabs Intelligence unit, part of computer security company Symantec, has observed an increase in the fraudulent emails as the end of the financial year approached. This year, the scams are more sophisticated than ever before.

"Scammers have mastered the art of making these emails look legitimate, often including the ATO logo and links to the ATO website," Symantec said.

   
What super obligations do I have for contractors?

If you pay your contractors under a contract that is wholly or principally for labour, you have to pay super contributions for them. This is even if the contractor quotes an Australian business number (ABN). These contractors are considered your employees for Superannuation guarantee purposes.

Generally, a contract is principally for labour if more than half of the value of the contract is for the person’s labour, which may include:  

 As a self-employed business person, you are not required to contribute to a super fund. However, you may wish to consider super as a way of saving for your retirement.

 From 1 July 2007, most self-employed people will be able to claim a full tax deduction for contributions they make to their super until age 75. You may also be eligible for the Super Co-contribution payment.

You also need to make sure you give your super fund (or ensure your super fund has) your tax file number, otherwise:

You are generally only entitled to an ABN if you are carrying on an enterprise in Australia or have a clear business intent.

Contractors differ from employees and holding an ABN means that you:

•have entered the business tax system and are now responsible for reporting your income and paying your tax and super entitlements

•may be responsible for your own workers compensation.

Just having an ABN doesn’t make you a contractor.

Employers must pay super contributions to a complying super fund for all eligible employees by the quarterly deadlines. These contributions are in addition to the employees’ salaries and wages, and must be calculated based on ordinary time earnings.

Employers also need to pay super contributions for contractors you pay under a contract for labour, because they are considered employees for the purpose of super guarantee. This includes contractors who quote an Australian business number (ABN).