What's Changing on 1 July 2012
Superannuation contribution caps
Concessional contributions are employer based contributions (including contributions made under a salary sacrifice arrangement), and if you are self employed, personal contributions claimed as a tax deduction. Non-concessional contributions are contributions that are made with post tax dollars.
|Taxable Income||Rate %|
|0 - $18,200||0|
|$37,001 - $80,000||32.5|
|$80,001 - $180,000||37|
The low income tax offset will reduce to $445 for the year starting 1 July 2012. This means the effective tax-free threshold is $20,542.
If you use a payroll software package to calculate the withholding amount from salary and wages, please ensure your tax rates are updated.
From 1 July 2012, Small Business Entities (operational businesses with an aggregated turnover below $2 million) have access to a much more generous system for claiming depreciation deductions on the purchase of plant and equipment. Key changes that apply to assets first used or installed ready for use from 1 July 2012 include:
Let us know if you are considering buying any new assets in the near future so we can calculate the cash flow impact for you and determine whether you are better off acquiring the assets before 30 June 2012 or waiting until the new financial year.
From 1 July 2012, there will be a new reporting regime for certain businesses in the building and construction industry. The main aim of these rules is to assist the ATO tackle the ‘cash economy’ by requiring these businesses to lodge an annual report setting out details of payments made to contractors.
The reporting rules apply to companies that carry on a business primarily in the building and construction industry. If these rules could potentially apply to your company, then it is a good idea to start recording the following details of all payments made to contractors from 1 July 2012 for building and construction services:
Over the last 6 months or so the Government has released information on proposed changes to the living away from home allowance (LAFHA) rules. While the changes are not yet law, the main points to be aware of are:
If you are already providing LAFHA or similar benefits to employees then it’s important to consider the impact of these new rules as soon as possible. Please let us know if you would like to discuss the changes to these rules in more detail.