As employers prepare 2021/22 FBT returns it is normal practice to simultaneously prepare Reportable Fringe Benefits data attributable to individual employees. Some timely reminders as you go about this task: only where an employee has the requisite more than $2,000 in taxable value of Reportable Fringe Benefits (pre gross up at 1.8868) does an amount … Read more
Employee work related car expense deductions and employer cents per KM reimbursements The ATO has released draft legislative instrument LI 2022/D8 setting the cents per KM rate commencing 1 July 2022 at $0.75 per KM (the current rate is $0.72 per KM for the period ending 30 June 2022). It is important to note that … Read more
We note below a few important changes to the Superannuation Guarantee system that take effect on 1 July 2022. Removal of the $450 per month salary or wages threshold On 22 February 2022 the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, received Royal Assent. The bill, among … Read more
In August 2021, the NSW Office of Local Government published draft guidelines for ‘audit, risk and improvement committees’ (ARIC’s) for local councils in NSW. In broad terms, the draft guidelines consider (amongst other things) how frequently members of the ARIC must meet, the ability for ARIC members to be involved with multiple ARICs, whether ARIC … Read more
In recent years, there has been a steady flow of Court and Tribunal cases law dealing with whether a person is an employee or independent contractor for the purposes of the Superannuation Guarantee (Administration) Act 1992 (‘SGAA’). The definition of employee for SGAA is wider than its ordinary meaning and includes workers contracted wholly or … Read more
Question Our organisation conducts a business activity in an entity for which we are required to pay payroll tax in Victoria. This business activity is conducted from our business premises in Victoria near the NSW border. A number of our employees live in NSW. Some of these employees work from home two or three days … Read more
It is not uncommon for an employee to be overpaid salary and subsequently enter into a repayment arrangement with their employer whereby post-tax deductions are made from fortnightly/monthly salary payments until the amount is repaid. In many of these arrangements, no interest is charged by the employer. In this article we look at whether a … Read more
Under the current super choice rules, employers are required to offer eligible new employees a choice of superannuation fund in order to meet their superannuation obligations. If a new employee fails to nominate their preferred superannuation fund, an employer can comply with the choice of fund rules, by making superannuation guarantee (SG) contributions on behalf … Read more
It is a fact of life that not all employment arrangements end amicably and sometimes this results in the employer making a payment in settlement against alleged actions of the employer (e.g. wrongful dismissal etc.). Where such a payment is made, a question arises as to the nature of that payment. Is it an Employment … Read more
The concept of ‘salary sacrifice’, or ‘salary packaging’, has been a part of modern remuneration arrangements for many years now. In Taxation Ruling TR 2001/10 (issued way back in 2001) – the ATO outlines what it considers is an ‘effective’ salary sacrifice arrangement. In this article, we explore a recent case that involved a far … Read more