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FBT and Payroll – Remote area tax concessions and payments

Heads up, there may be some changes to remote area tax concessions and payments. The Productivity Commission has suggested reforms. The Productivity Commission has called for significant reforms to the tax concessions and payments to residents and businesses in remote Australia, so they are better targeted and fairer. The Commission was asked to review three …

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Payroll – Lifting the age limit for genuine redundancy and early retirement scheme payments

Employers contemplating redundancies or early retirement schemes should be aware of the Government’s action to lift the age limit for genuine redundancy and early retirement scheme payments with effect from 1 July 2019. This will give employers marginally greater scope to package payments which are tax-free for redundant/retiring employees and potentially marginally greater flexibility in …

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Payroll Q&A – What is the treatment of an allowance paid for the use of an employee’s truck?

Are there any PAYGW or superannuation issues in relation to allowances paid for use of an employee’s truck? Question Council pays an employee an allowance for the use of the employee’s truck. It is understood the employee provides services to 3rd parties as an owner driver (using the truck) on weekends. The allowance is set …

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Payroll – Superannuation – exception to ‘opt in’ insurance

Persons in certain dangerous occupations should be aware of the opt-out/opt-in status of insurance through their superfunds. A Bill which provides for insurance to apply only if certain super fund members choose to have insurance through their super fund has been passed with an exception that is likely to especially interest our readers. This article …

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Payroll Q&A – PAYGW requirements: Cents per kilometre allowance

Are we required to withhold PAYGW from allowances paid to employees for work related travel and based on the ATO’s recommended cents/km rates? Should the allowances be shown in their payment summaries? Question When employees are required to use their own vehicle for work related travel, we pay them an allowance based on the ATO’s …

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Payroll Q&A – What name should be shown on the payment summary – is it possible for a name other than the Public Officer’s to appear?

Can a public officer delegate the function of reviewing Payment Summaries prior to their issue? Question As the Public Officer will be on annual leave and not able to review Payment Summaries prior to issue, is it possible for the Public Officer to delegate the function? Answer Ordinarily the primary person for signing things like …

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Payroll Q&A – Mayor and councillor allowances

Question Councillors receive an allowance which is determined by each council within limits set by the Victorian Government. Mayors and councillor allowances are also subject to the addition of 9.5% superannuation. Is the allowance taxable to the mayor and councillors? Answer Any remuneration, sitting fee or allowance paid to a local government elected member is …

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Payroll – Director Penalty Notice: ASIC records used as evidence

A recent Western Australia case (DCT v Lim [2019] WADC 106 (26 July 2019)) illustrates  that directors penalty notices (DPNs) can be validly served by being posted to addresses obtained from ASIC records. We have considered the facts of this case through a worked example scenario. Worked example Background Mr Jones is the sole director …

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Payroll Q&A – Telecommunications allowance paid to councillors

Our councillors receive an annual telecommunications allowance that is paid fortnightly towards their telecommunications needs. How should this allowance be treated from a salary/wages, pay-as-you-go withholding (PAYGW) and superannuation perspective? Question Our councillors receive an annual telecommunications allowance that is paid fortnightly towards their telecommunications needs. How should this allowance be treated from a salary/wages, …

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