Superannuation guarantee

12-Dec-2017

Crackdown on employer non-compliance The Government has announced a package of reforms to give the ATO near-real-time visibility over employers’ superannuation guarantee (SG) compliance. The package includes measures to: require super funds to report contributions at least monthly to the ATO; roll out Single Touch Payroll (STP); and give the ATO the ability to seek court-ordered penalties in severe cases of non-payment. Salary sacrifice integrity Legislation has also been introduced to prevent employersfrom using an employee’s salary sacrifice contributions to reduce the emplo..

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Foreign equity distributions to corporate entities

06-Dec-2017

Two recent taxation determinations from the ATO deal with how the foreign equity distribution rules in the Income Tax Assessment Act 1997 apply where the distribution recipient is a corporate partner in a partnership or a corporate beneficiary of a trust. Under the rules, a foreign equity distribution is treated as non-assessable, non-exempt income if the recipient is an Australian corporate tax entity that holds a participation interest of at least 10% in the foreign company making the distribution. The ATO’s view is that a partnership or trust can hold a direct control interest in a ..

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Total superannuation balances and pension transfer balance account reports

05-Dec-2017

The concept of a person’s “total superannuation balance” is now being used to determine whether you are eligible for various super concessions, including the $1.6 million balance limit for non-concessional contributions, Federal Government co-contributions, the spouse contributions tax offset, carrying forward unused concessional contributions and self managed superannuation fund (SMSF) segregation. The ATO has recently agreed to modify the reporting obligation for total superannuation balances, recognising that some funds are not in a position to correctly report their correct accum..

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New passive income test for lower corporate tax rate

05-Dec-2017

The Federal Government has recently introduced a Bill into Parliament to ensure that companies with more than 80% passive income will not qualify for the reduced company tax rate. Under the Bill’s changes to the Income Tax Rates Act 1986, calculations of a business’s “passive income” would include:         Distributions by corporate tax entities (other than non-portfolio dividends); Franking credits attached to such distributions; Non-share dividends; Interest; Royalties; Rent; Gain on qualifying securities; Net capital gains; and ..

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