Another ‘contractor’ entitled to superannuation

Over recent years, we have produced numerous articles dealing with situations involving whether a ‘contractor’ may be an ’employee’ and entitled to superannuation under superannuation guarantee (SG) rules. Two recent cases Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (see September 2020 TaxEd Update) and MWWD v Commissioner of Taxation [2020] AATA 4169 (see … Read more

ATO announces novated lease data matching project

ATO announces data matching program on novated leases – employer implications? The ATO has advised it will be undertaking a data matching program with information sourced from novated lease providers in respect of the years 2018-19 to 2022-23. The ATO will source data from the following novated lease providers: Eclipx Group; LeasePlan; LeasePLUS; McMillan Shakespeare … Read more

Removing the $450 per month threshold below which superannuation guarantee is not required to be provided by the employer

As part of the 2021–22 Federal Budget, the Government announced that it will remove the current $450 per month minimum income threshold, below which employees do not have to be paid the superannuation guarantee by their employer. This is to take effect as of the first income year after Royal Assent of the enabling legislation … Read more

Employers: Don’t forget the superannuation guarantee (SG) rate rise to 10% takes effect on 1 July 2021

It is common knowledge that employers must make minimum superannuation guarantee (SG) contributions for their eligible employees. Currently, the minimum SG contribution is calculated based on the prescribed rate of 9.5%. The SG rate was originally set to increase to 10% in July 2015, however the Federal Government legislated to slow the gradual increases, delaying … Read more

ATO releases guidance on the income tax and FBT treatment of cost of travelling, accommodation, food and drink

The ATO has recently released a set of guidance documents (i.e., TR 2021/D1, PCG 2021/D1 and TR 2021/1) which outline the income tax and FBT treatment of the cost of travelling on work, as well as the distinction between travelling on work and living at a location. TR 2021/D1 explains the ATO’s preliminary views on … Read more

JobMaker hiring credit: What is it & how does it work?

What are the proposed details of the JobMaker Scheme? Can your organisation utilize the Scheme? Is a particular prospective employee within the ambit of the Scheme?   The JobMaker Hiring Credit scheme that was announced as part of the 2020-21 Federal Budget (‘Scheme’) is designed to improve the prospect of young individuals getting employment in … Read more

Payroll Q&A – Late payment of superannuation

Question My organisation was not able to pay its employees superannuation by the due date. What happens now? Answer Before outlining the consequences of missing a superannuation payment, we note the due dates for payment of superannuation, as outlined on the ATO website, are as follows: *When a due date falls on a weekend or … Read more

Payroll Q&A – Additional Paid Leave Provided for COVID Testing and Self-Isolation

Question Our organisation has decided to provide employees with paid days off when they are required to get tested for COVID and self-isolate. These paid days off will be provided by our organisation without a corresponding reduction in the employee’s leave entitlements and will be provided regardless of whether they are full-time, part-time or casual … Read more