In April 2011, the Australian Tax Office will be writing to selected employers about exempt vehicles and car fringe benefits.

Australia’s first national Paid Parental Leave (PPL) scheme started on 1 January 2011. This means from 1 July 2011, employers must provide parental leave pay to their eligible long-term employees.

Employers can register at any time to provide parental leave pay to their eligible employees through the Centrelink website at www.centrelink.gov.au

Clients may be interested to know that parental leave pay:

Will be provided to them by the Family Assistance Office in advance of their employee’s usual pay cycle;

Taxation of Family trusts has been a focus of attention for the Australian Taxation Office (ATO) in recent months.

It has issued a number of statements lately, most notably in early June 2010 when it released important documents dealing with two issues:

1. Allocating trust income to company beneficiaries, and

2. The High Court decision in Bamford. As a result, trustees of family trusts should check their trust deeds and income distribution practices.

COMPANY BENEFICIARIES

Cash Sales - New Tax Office Benchmarks!

Are you? - A small business owner?
 
The Tax Office recently released a new category of small business benchmarks which focus on cash sales within a business.
 
You should be aware of the new benchmarks for small business.

- Contact us if you require any clarification or advice. 
 

Changes to Rules Governing Company Dividend Payments are now in Force

Are you? - A company director considering paying dividends?
 
At a glance:  - The Government has made amendments to the Corporations Act to alter the conditions under which dividend payments can be made.
 
You should:  - Consider whether the changes will have an effect on your company's dividend policy.
- Contact us if you require any clarification or advice. 
 

Businesses may have to pay superannuation to contractors in some circumstances after the Australian Taxation Office (ATO) succeeded in three separate actions.

The ATO won its arguments the contractors were actually employees, so their employers were required to pay the compulsory superannuation guarantee (SG) levy on their behalf.

The Australian Tax Office (ATO) is launching a data matching program focusing on individuals and businesses who have sold more than $20,000 in goods and services on the online selling sites eBay and The Trading Post in any of the last three financial years.

If you are running a business through online selling sites, or you have an existing business and are making additional sales through these sites, then you need to include this income in your activity statement and/or tax return.

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

   
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: