Currently, if a new employee does not choose their own fund, their employer can pay contributions for them to a default fund.
From 1 November 2021, if a new employee does not choose a specific fund, their employer may need to request the employee’s ‘stapled super fund’ details from the ATO.
A stapled super fund is an existing account that is linked (or ‘stapled’) to an individual employee, so it follows them as they change jobs.
Businesses will be able to request stapled super fund details for new employees using ‘Online services for business’, or by asking their registered tax or BAS age
The ATO is concerned that first-time investors often do not understand their tax obligations in relation to reporting capital gains from the sale of shares and income in the form of dividends and distributions.
This could result in errors when they lodge their tax return and delay tax refunds.
While the ATO pre-fills data from third parties into individual tax returns, investors are urged to check that all relevant data has been included, or make sure their registered tax agent has all the necessary information before lodging.
Investors should also keep good records.
Genuine gifts or loans received from related overseas entities (including family members and friends) are sometimes used to fund businesses or to acquire income-producing assets.
In this context, a genuine gift or loan is one where:
The ATO has published detailed information to help taxpayers properly document genuine gifts or loans received from related overseas entities that are used for income purposes.
The information can be accessed from the ATO website by searching for Gifts or loans from related overseas entities.
Available support includes the following
Lodgment or payment support options – for example, payment plans or remitting interest and penalties
Varying PAYG installments – The ATO will not apply penalties or charge interest on varied installments that relate to the 2022 income year where taxpayers have taken reasonable care to estimate their end of year tax liability
Moving from quarterly to monthly GST reporting for quicker access to refunds
Applying for administrative relief for Division 7A minimum yearly repayments.
If you are struggling with your tax or super obligations, we can assist with identifying your options and apply to the ATO on your behalf.
Many people who would otherwise have qualified for PPL, may no longer meet the ‘work test’ condition to be eligible for payment because of continued lockdowns across much of Australia.
For example, this could apply to a person who has been stood down, had their hours of work reduced, or ceased work entirely as a result of a lockdown.
The changes to the PPL ensure that the period a person receives an Australian Government COVID-19 payment or the COVID-19 Disaster Payment (that is, because their work has been impacted by lockdowns) counts towards the work test, so that they may still receive Parental Leave Pay or Dad and Partner Pay.
From 1 July 2021, the minimum contribution required is 10% (up from 9.5%) of an employee’s Ordinary Time Earnings base, up to a maximum quarterly contribution base of $58,920 for 2021/22.
Employers are reminded that the due date for making SG contributions for the September 2021 quarter is 28 October 2021.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. You are welcome to contact our office on 03 9587 7316 or email email@example.com for further advice and assistance.