Superannuation guarantee payable only on ordinary time earnings
As mentioned in a previous top tax tips, employers are obliged to make contributions to a complying superannuation fund at a minimum of 9.5% of ordinary time earnings (OTE).
Because OTE does not include overtime payments, penalty rates paid for overtime work – as well as the recent proposed changes to penalty rates for overtime work slated to apply from 1 July 2017 – will not be included in the OTE calculation.
Clamp down on cash economy – certain businesses targeted
You may have heard that the ATO is on a campaign against businesses operating in the cash economy. Therefore, businesses that predominantly make cash sales (e.g. restaurants, cafes, hair and beauty salons) may be visited by ATO officers in the near future.
Penalties and interest will be charged on the tax avoided if cash sales were not declared. Penalties can be significantly reduced by making a voluntary disclosure to the ATO and in that event, the ATO is more amenable to arranging a debt repayment plan. The ATO is definitely less amenable if avoided tax is discovered during the course of an audit.
If you are deriving cash income from any such activities, please contact us so that we can help you comply with your tax registration, reporting, lodgement and payment obligations as well as determine if the money earned should be subject to GST.
Let us help your business with tax governance
Many business owners and family owned businesses realise how important a good business governance system is when operating a business.
In addition to helping you with the ordinary day-to-day activities of operating your business, Nexia can assist in managing your tax obligations and risk – both from a tax compliance (e.g. making sure you meet your obligations and that you are paying the right amount of tax in BASs and income tax returns), as well as providing tax advice on what is the best way to structure your business transaction or what new tax developments may have an effect on how you run your business.
Please speak to your Nexia adviser so that we can assist you to manage the tax risks that usually arise when the following business or life events happen to you:
- Starting and finishing a business;
- Business expansion including funding and finance analysis;
- Succession planning;
- Retirement planning;
- Self-managed superannuation fund (SMSF) management;
- Estate planning; and
ATO Warning : Watch out for scams
The ATO is warning against emails purporting to be from the ATO whereby scammers ask for your personal details or offer you a tax refund if you were to click on a link that would take you to a fake ATO website.
If you receive any such suspicious emails claiming to be from the ATO, please do not provide them with any information or open any attachment. Please exercise extreme vigilance and contact us as soon as possible so that we can bring this to the attention of the ATO.