Annual reporting for departing Australia superannuation payment (DASP) summaries has changed for the 2007-2008 financial year. From 1 July 2008 you must: If you do not report PAYG payment summaries, you can report your DASP payment summaries by 31 October after the end of the financial year.
The ATO has issued Taxpayer Alert TA 2008/12 warning trustees and members to be cautious when moving assets other than cash into superannuation funds. When non-cash assets are transferred to a superannuation fund, the tax commissioner says trustees must make sure the fund accurately reports the 'market value' of the assets and considers any other relevant superannuation regulatory issues. The ATO is concerned about certain transactions designed to manipulate the annual contribution limits to avoid paying excess contributions tax.
According to ASFA research, many self-employed Australians have little or no superannuation, or other retirement savings.
ASFA CEO, Pauline Vamos, said a key finding was 'the significant gap in retirement savings of Australia's self-employed compared with wage and salary earners within the wider Australian labour force'. Ms Vamos said that while the self-employed sector makes up over 10 per cent of the paid labour force, it has relatively low levels of superannuation. Around 28 per cent of the self-employed sector has no superannuation, while a further 53 per cent have super balances of less than $40,000.
The ATO has announced the 2008 - 2009 indexed superannuation rates and thresholds in its publication, Key superannuation rates and thresholds:
Contributions caps are unchanged from 2007 - 2008. The concessional contributions cap is $50,000pa per person (or $100,000 for those aged 50-74). The non-concessional contributions cap is $150,000pa per person (or $450,000 every three years for those under 65).
Superannuation lump sum low rate cap is $145,000 for 2008 - 2009. The untaxed plan cap is $1.045 million.
Employment termination payments (ETPs) made in consequence of termination of employment are subject to an ETP cap amount of $145,000 for 2008 - 2009. The $1 million upper cap amount is not indexed for transitional termination payments made before 30 June 2012.
Superannuation co-contribution: The lower assessable income and reportable fringe benefits threshold to qualify for the maximum co-contribution is $30,342 for 2008 - 2009. The higher income threshold where the co-contribution completely phases out is $60,342.
Superannuation guarantee: maximum contribution base is $38,180 for each quarterly contribution period in 2008 - 2009. An employer does not need to provide the minimum nine per cent support for an employee's earnings above this limit.
Genuine redundancy payment or approved early retirement scheme payment tax-free amount is $7,350 (fixed component) and $3,676 (years of service factor).
The ATO has reminded taxpayers that they need to provide their TFN to their super fund by Monday 30 June 2008, or risk paying extra tax on certain contributions. Assistant commissioner Brett Peterson said while it is not compulsory, it is important people provide their super fund with the
If you’re concerned about unpaid super guarantee contributions you should: Step 1 Talk to your employer. You should ask them how often they are currently paying your super, into which fund they are paying it, and how much they are paying. It’s a good idea to ask these sorts of questions when you start work with an employer. You should also make sure you are eligible to receive super. Usually an employer has to pay super contributions for you if you are over 18 and you are paid at least $450 in salary and wages (before tax) in a month. It doesn’t matter if you work casual, part time or full time hours. You can also be eligible if you are a contractor working primarily for labour (eg. graphic designer).What do I do if I think my employer is not paying my super?
Step 2
Check your last Member Statement from your super fund, or contact them to confirm if your employer has paid your super.
Step 3
If you have completed steps 1 & 2 and still believe your employer is not paying enough or any super, and/or is not paying the super to your chosen fund, you can lodge an enquiry about unpaid super by phoning the Tax Office on 13 10 20.
From 1 July 2008, Employers must use ordinary time earnings as defined in the super guarantee law, to calculate super guarantee contributions for your employees. This ensures all employees are treated the same for super guarantee purposes. Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including: Ordinary time earnings do not include overtime (subject to certain exceptions).What are ordinary time earnings?
If you carry on a business, you must register for GST if your GST turnover is $75,000 or more.
Most SMSFs do not have to register for GST because:
Two common types of input taxed sales are:
However, you may choose to register for GST.
In deciding whether to register voluntarily, we recommend you consider:
Treasury has released a Consultation Paper on Simple Superannuation Advice. In the paper, the Financial Services Working Group is seeking comments on proposals surrounding access to simple advice on choices within an existing superannuation account (intra-fund advice). Comments are due by 15 July 2008.
The Taxation Administration Act 1953 - Variation to the rate of withholding from lump sum superannuation member benefits for certain recipients with a terminal medical condition has been registered on the Federal Register of Legislative Instruments to ensure that withholding is not required from payments made to terminally ill recipients of lump sum superannuation members benefits.
