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Payslip reporting of superannuation contributions

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SuperannuationAs of 22 February, 2013, the ATO is waiting on a further announcement by the Government to confirm requirements of the Super Reform measure that will change the way super contributions are reported on an employee’s payslip.

In late June 2012 legislation was passed for this change, however details of the change and commencement date are still under consideration by the Government. Recommendations by a House Standing Committee on Economics and feedback from Treasury consultation with employers and software developers, form part of the Government’s consideration of this change and its implementation date. Following the expected announcement by Government about these changes, regulations would be released to prescribe what employers will be required to do.

It is unlikely that employers and software developers will be able to make any changes without knowing what is in the Government announcement and the regulations.

Timing of the expected announcement by Government is not known at this stage.

Tasmanian bush fires – automatic BAS deferrals

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TasmaniaIn January 2013, bush fires caused significant damage to some areas of Tasmania.

If your business or residential address is in one of the identified affected postcodes listed on the ATO below, the ATO will automatically make arrangements to defer the following taxation obligations – you don’t need to apply for a deferral:

  • lodgement and payment of the December monthly activity statement from the original due date of 21 January 2013 to 28 April 2013
  • lodgement and payment of the January monthly activity statement from the original due date of 21 February 2013 to 28 April 2013
  • lodgement and payment of the February monthly activity statement from the original due date of 21 March 2013 to 28 April 2013
  • lodgement and payment of December quarterly activity statements from the original due date of 28 February 2013 to 28 April 2013.

Exclusions to the above deferrals:

  • large withholders (previously withheld >$1 million annually or part of a corporate group that has) are not eligible for the above deferrals
  • the Commissioner cannot vary the contribution due date or waive the nominal interest on late super guarantee payments.

The dual-cab FBT ‘trap’

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Dual Cab UteDon’t be fooled into thinking that because a vehicle is a dual cab ute that it is automatically exempt from FBT and it can be salary sacrificed.

Firstly it must meet the criteria of MT2024 or being specifically listed on the ATO list of exempt dual cab utes. Secondly, private use must be limited to:

  • travel between home and work
  • travel that is incidental to travel in the course of duties of employment
  • non-work related use that is minor, infrequent and irregular (for example, occasional use of the vehicle to remove domestic rubbish).

If the your employee’s use of the car exceeds this limit BEWARE. The car is represents a car fringe benefit and all of the private use of the car, including travel between home and work, is taken into account in determining the business percentage in the operating cost method for calculating FBT.

If no log book records are maintained, the percentage of private use will be 100%. FBT would be payable using the statutory formula.

You are not required to keep special records to be eligible for this exemption. However, you must be able to demonstrate that at all times the use of the vehicle meets the eligibility criteria. This could be done, for example, by comparing at regular periods the opening and closing odometer readings of the vehicle with the total distance you expect the employee to travel between home and work during that particular period. Alternatively, you may require more detailed records of the vehicle usage during the FBT year such as a log book together with opening and closing odometer readings.