Employers: Are you ready for the new ‘stapling of super’ rules?

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

Is it really an effective salary sacrifice arrangement?

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

Superannuation Guarantee Charge and remission of penalties – the state of play

Despite the best of intentions, employers will from time to time find that they have underpaid/late paid employee superannuation entitlements. Once an underpayment or late payment is identified, corrective action is required. One of the unfortunate consequences is the potential imposition of penalties. It has been almost a year since the super guarantee (SG) amnesty … Read more

Pooled cars and the Reportable Fringe Benefits exclusion

Pooled cars and the Reportable Fringe Benefits exclusion – when does it apply? One of more frequent Reportable Fringe Benefit questions we receive around June and July each year is whether the taxable value of car fringe benefits is excluded from reporting under the ‘ pooled or shared car’ exclusion. In this article we explore … Read more

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