Employers Must Become Super Stram Compliant

 

Are you super stream ready?

With the SuperStream deadline of 30 June rapidly approaching, ATO Deputy Commissioner James O’Halloran says now is the time for employers who are not yet using SuperStream to cross is off their-to-do list.

SuperStream is the new way employers must pay super. It means paying Super and sending employee information electronically. More than 60% of all Australia’s small business are now using SuperStream.

‘’Employers who are using SuperStream have reduced the time they spend on Super by an average of around 70%, each cycle, says Mr O’Halloran. ‘’We are encouraging the remaining employers who have not yet adopted SuperStream to do so before 28 April. ‘’By taking action now employers will have a change to test their SuperStream solution and ensure things are running smoothly and eliminate any stress around the 30 June deadline’’ says Mr ‘O’Halloran.

The ATO has identified the following industries as high risk of not meeting their super guarantee obligations for eligible employees:

High Risk industries for Super Guarantee

  • Bakeries
  • Supermarkets
  • Car Retailers
  • Computer System Designers

If you are in these industries you need to ensure that:

  • you pay the correct super contributions for employees and eligible contractors
  • you comply with Superstream
  • you offer employees a choice of super fund
  • you provide employees a choice of super fund
  • you provide employee TFN’s to their super funds within 14 days of receiving a Tax File Number Declaration form
  • you meet the quarterly due dates for super payments and
  • you keep up to date records of all super payments

ATO AUDIT HOT SPOTS 2016

Work related Expense Claims- The ATO has advise that it will be paying particular attention to the following claims:

  • Unusually high work –related expense claims
  • Travel between home and work
  • Travel reimbursed by an employer
  • Rental Property expenses with a focus on repairs to newly acquired property and Interest
  • CGT issues with backyard developments

SMALL BUSINESS TAX TIPS

  • 5% Small Business Income Tax Offset available for Small Business up to an offset of $1,000. To qualify turnover must be less than $2million
  • Up to 30 June 2017 Small Business can get a write off for Capital Items under $20,000. The Item must be installed and ready for use.
  • From 1 July 2015 there are only 2 ways to claim car expenses. You must keep a log books for 12 weeks and establish a business percentage of keep a record of your kilometres and claim at a set rate of 66 Cents up to 5000Kms.
  • The Net Medical expenses offset has now been abolished
  •   From 1 July 2015 the Zone tax offset can only be claimed by people genuinely living in the Zone. Fly in Fly out workers are excluded
  • If you are claiming home and internet expenses you must keep a 4 week diary for claims over $50
  • If you are purchasing property form an overseas resident values at over $2million you are required to withhold 10%. If you
  • are purchasing from an Australian Resident you must obtain an ATO clearance certificate

NEW RULES FOR SELLING PROPERTY OVER $2 MILLION

THE ATO Has released an information sheet providing details of a new 10% withholding tax originally intended to apply to non-residents acquiring Australian property

HOWEVER IT APLLIES EQUALLY TO AUSTRALIAN RESIDENT VENDORS and forces them to obtain a clearance certificate

From 1 July 2106 new rules apply to sales of taxable Australian property with a mrket value of $2million or above.

A 10% non-final withholding tax may be applied to all contracts to sell such property entered into on or after 1 July 2016.

Australian resident vendor clients selling such property need to obtain a clearance certificate from the ATO prior to settlement to avoid the 10% non-final withholding tax.

THE ATO says it will release a fact sheet in the coming weeks.