Super Stream Deferral
The Super Stream measures that were scheduled to apply from 1 July 2014 have been deferred until 1 July 2015. While the deferral has given employers more time to get ready, employers with 20 or more employees need to review their payroll systems to be compliant by 1 July 2015. Employers with less than 20 employees have until 1 July 2016 to fully comply with the rules.
Pay As You Go (PAYG) Withholding
Employers are reminded the PAYG Withholding rates increased from 1 July 2014 due to changes in Medicare Levy, Budget Deficit Repair Levy and HECS repayment threshold.
Superannuation Guarantee Contribution (SGC)
The SGC rate increased from 9.25% to 9.5% on 1 July 2014. Both employers and employees should check their contributions are being calculated at the new rate.
ATO – “Project Do It”
The ATO is encouraging taxpayers to disclose overseas financial activities by capping penalties on any undisclosed income to 10%. Where the tax on undisclosed foreign income is less than $20,000 in a particular year, the penalties are reduced to nil. The ATO has a range of tools to crack down on offshore tax evasion, ranging from tax treaties with over 100 countries to sophisticated AUSTRAC reports from international banks.
SMSF Penalty Regime
From 1 July 2014, new laws give the ATO greater powers to issue a range of penalties to trustees of SMSF’s that breach superannuation laws. New powers include rectification/education directions and administrative penalties. Such powers will apply not only to contraventions occurring after 1 July 2014, but also to contraventions that occurred prior to that date but continue after.