GPB Partners Pty Limited
General Tax Figures & Details – 2013
TableofContents
GENERAL TAX FIGURES AND DETAILS – 2013 ................................................................... 3
GENERAL RATES – INDIVIDUAL ................................................................................................ 3
LOW INCOME TAX OFFSET (LITO) ............................................................................................ 3
CHILDRENS TAX............................................................................................................................... 3
MEDICARE LEVY ............................................................................................................................... 4
INDIVIDUAL & FAMILY THRESHOLD .................................................................................... 4
MEDICARE LEVY SURCHARGE .................................................................................................... 4
PRIVATE HEALTH INSURANCE REBATE: ................................................................................ 5
SENIORS AND PENSIONERS TAX OFFSET (SAPTO) .......................................................... 6
MEDICARE LEVY THRESHOLD FOR PERSONS QUALIFYING FOR THE SENIORS
AND PENSIONERS TAX OFFSET ................................................................................................. 7
MATURE AGE WORKER TAX OFFSET ....................................................................................... 7
TAX OFFSETS .................................................................................................................................... 8
MEDICAL EXPENSES TAX OFFSET ........................................................................................ 9
SCHOOL KID’S BONUS ............................................................................................................ 10
STUDENT FINANCIAL SUPPLEMENT SCHEME (SFSS) ..................................................... 10
HIGHER EDUCATION LOAN PROGRAMME (HELP) ............................................................ 11
SMALL BUSINESS ENTITY REGIME (SBE) ........................................................................... 12
MOTOR VEHICLE RATE PER KILOMETRE .............................................................................. 12
TAX VALUE OF GOODS TAKEN FOR PRIVATE USE FROM BUSINESS ....................... 13
PRIMARY PRODUCERS ................................................................................................................. 13
STOCK VALUE ............................................................................................................................. 13
PROPOSED FARM MANAGEMENT DEPOSIT CHANGES FROM 1 JULY 2014 ........ 14
TRAVEL ALLOWANCES – DOMESTIC AND OVERSEAS .................................................... 14
BENCHMARK INTEREST RATES (for Div 7A debit loans) ............................................... 14
FRINGE BENEFITS TAX................................................................................................................ 14
BENCHMARK INTEREST RATES (for FBT purposes) ..................................................... 15
DEEMED DEPRECIATION RATES .......................................................................................... 15
SUPERANNUATION ........................................................................................................................ 15
SMSF – New Obligations from 7 August 2012 ............................................................... 15
ATO Annual Supervisory Levy .............................................................................................. 15
KEY AGES AND DATES ............................................................................................................ 16
QUARTERLY SUPERANNUATION CONTRIBUTIONS ...................................................... 17
AGE BASE LIMITS ...................................................................................................................... 17
Definition of Income for Super Contributions Tax Rate (High Income Earners)
.......................................................................................................................................................... 18
HOW TAX-EFFECTIVE ARE YOUR CONTRIBUTIONS? .................................................. 19
LOW INCOME SUPER CONTRIBUTIONS TAX REFUND ................................................ 19
SELF-EMPLOYED ........................................................................................................................ 19
GOVERNMENT SUPERANNUATION CO-CONTRIBUTION............................................. 19
WITHDRAWALS FROM SUPER FUNDS ................................................................................... 20
LUMP SUM WITHDRAWALS.................................................................................................... 20
PENSION PAYMENTS ................................................................................................................ 21
MINIMUM ANNUAL PENSION RATES .................................................................................. 21
EMPLOYER COMPULSORY SUPERANNUATION GUARANTEE CONTRIBUTIONS
(SG) ................................................................................................................................................ 22
This Schedule is to be read in conjunction with the disclaimer.
1
Liability is limited by a scheme approved under Professional Standards Legislation
GPB Partners Pty Limited
General Tax Figures & Details – 2013
MAXIMUM EARNINGS BASE .................................................................................................. 23
EMPLOYMENT TERMINATION PAYMENTS ............................................................................. 23
Post 1/7/2007 – Life Benefit Employment Termination Payments ........................ 25
Post 1/7/2007 – Death Benefit Employment Termination Payments ................... 25
TAX FREE LIMIT OF GENUINE (BONA FIDE) REDUNDANCY PAYMENTS .............. 25
NSW OFFICE OF STATE REVENUE .......................................................................................... 26
PAYROLL TAX – NSW ............................................................................................................... 26
NSW LAND TAX .......................................................................................................................... 26
STAMP DUTY - NSW ................................................................................................................. 27
CORRECTING GST MISTAKES .................................................................................................. 28
PENALTIES ....................................................................................................................................... 29
TAX SHORTFALL PENALTIES ................................................................................................. 29
FAILURE TO LODGE (FTL) PENALTIES .............................................................................. 29
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
2
GPB Partners Pty Limited
General Tax Figures & Details – 2013
GENERAL TAX FIGURES AND DETAILS – 2013
Disclaimer:
Details provided below are based on information available at the time of preparation and are
subject to revision from time to time. They should not be relied upon as specific advice. Neither
the firm nor any of its employees accepts any liability for any loss or damage to any person as a
result of reliance on the rates and information set out on this schedule.
GENERAL RATES – INDIVIDUAL
Taxable Income
$
$0 - $18,200
$18,201 - $37,000
$37,001 - $80,000
$80,001 - $180,000
$180,000 +
Tax Payable
2012/2013
$
Nil
Nil + 19%
$3,572 + 32.5%
$17,547 + 37%
$54,547 + 45%
Taxable Income
$
$0 - $18,200
$18,201 - $37,000
$37,001 - $80,000
$80,001 - $180,000
$180,000 +
Tax Payable
2013/2014
$
Nil
Nil + 19%
$3,572 + 32.5%
$17,547 + 37%
$54,547 + 45%
Note: Tax rates the same for 2012/2013; 2013/2014 & 2014/2015
LOW INCOME TAX OFFSET (LITO)
Maximum tax offset
*Maximum offset
applies if taxable
income equal to or less
than:
No offset if taxable
income exceeds
$445
$37,000
$66,667
*$445 offset is reduced by 1.5 cents for every dollar of taxable income above $37000
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $20542.
CHILDRENS TAX
2013/14; 2012/13 & 2011/12
Eligible Income*
Nil - $416
$417 - $1,307
Over $1,307
*Excludes ‘excepted income’.
Tax Payable
Nil
66% of the excess over $416
45% of the total income that is not excepted income
From 1 July 2011, minors are no longer able to access LITO to reduce tax payable on unearned
income such as dividends, interest & rent.
This measure does not impact income earned by minors from work. Unearned income of minors
who are orphans or disabled, and compensation payments and inheritances received by minors,
are also not impacted.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
3
GPB Partners Pty Limited
General Tax Figures & Details – 2013
MEDICARE LEVY – 1.5% of taxable income
Note: To be increased to 2% from 1 July 2014 to fund National Disability Insurance Scheme
(NDIS)
INDIVIDUAL & FAMILY THRESHOLD
Category of
Taxpayer
Individual Taxpayer
Married taxpayer* with
the following children
and/or students:
0
1
2
3
4
No levy payable Reduced levy payable if
Ordinary rate of
if Taxable
levy levy payable
Taxable Income (or
Income (or
where Taxable
Family Income) is within
the range …
Family Income)
Income (or Family
10% of excess
does not exceed
Income) exceeds …
…
$20,542
$20,543 - $24,167
$24,167
$33,693
$36,787
$39,881
$42,975
$46,069
$33,693
$36,787
$39,881
$42,975
$46,069
-
$39,639
$43,279
$46,919
$50,559
$54,199
$39,639
$43,279
$46,919
$50,559
$54,199
* The figures applicable to married taxpayers also apply to taxpayers who would be entitled to a
sole parent, child-housekeeper or housekeeper rebate if entitlement to such rebates had not
been restricted from 1 July 2000.
- For each dependent child add $3,094 to lower limit.
- For each dependent child add $3,640 to upper limit.
Note: See Seniors and Pensioners Tax Offset section for Medicare levels for senior
Australians and pensioners.
MEDICARE LEVY SURCHARGE
Medicare Levy Surcharge (MLS) Is applied to taxpayers whose income for the year is higher
than the thresholds below and where the person(s) are not covered by private patient hospital
cover.
The test to determine who is liable to pay the Medicare levy surcharge is called the ‘income for
MLS purposes’. Income for MLS purposes is the sum of: Taxable Income, Exempt Foreign
Employment Income, Reportable Fringe Benefits, total net investment losses (including rental
losses) and Reportable Super Contributions.
Note: This test is only used to determine who is liable to pay the surcharge, it is not used to
calculate how much surcharge they pay – this is still based on the total of your taxable income &
reportable fringe benefits.
From 1 July, 2012
You will have to pay the surcharge for any period during the year that you or any of your
dependants did not have private patient hospital cover and you exceeded the thresholds
below.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
4
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Note: Even if one spouse has personal cover they are both still liable to pay the surcharge if
any of their dependants are not covered.
For this purpose, a dependant (regardless of their income) includes:
• Your spouse
• Your children under 21
• Your children who are 21 or older and under 25 who are full time students
• Dependants must have been Australian residents and you must have contributed to their
maintenance.
2012/2013
Income for MLS
purposes Single
2012/2013
Income for MLS
purposes Couples *
Surcharge
Rate
$84,000
$168,000
0%
$84,001 - $97,000
$168,001- $194,000
1%
$97,001 - $130,000
$194,001 - $260,000
1.25%
>$130,000
>$260,000
1.5%
2013/2014
Income for MLS
purposes Single
2013/2014
Income for MLS
purposes Couples
Surcharge
Rate
$88,000
$176,000
0%
$88,001 - $102,000
$176,001- $204,000
1%
$102,001 - $136,000
$204,001 - $272,000
1.25%
>$136,000
>$272,000
1.5%
*Note: The family surcharge threshold of $168,000 for 2012/13 and $176,000 for 2013/14 is
increased by $1,500 for each dependent child after the first. Where the single person has dependants,
the levy surcharge is payable if their income is greater than the Couples’ threshold.
PRIVATE HEALTH INSURANCE REBATE:
From 1 July 2012 the rebate will be means tested. The new rebates based on the age of the person
and income for MLS purposes is as follows:
For 2012/2013
Singles
Families*
Under 65
65-69
70 or over
$84,000
$168,000
30%
35%
40%
$84,001 - $97,000
$168,001 - $194,000
20%
25%
30%
$97,001 - $130,000
$194,001 - $260,000
10%
15%
20%
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
>$130,000
>$260,000
0%
0%
0%
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GPB Partners Pty Limited
General Tax Figures & Details – 2013
For 2013/2014
Singles
Families*
Under 65
65-69
70 or over
$88,000
$176,000
30%
35%
40%
$88,001 - $102,000
$176,001 - $204,000
20%
25%
30%
$102,001 - $136,000
$204,001 - $272,000
10%
15%
20%
>$136,000
>$272,000
0%
0%
0%
Note: For couples use the age of the oldest person covered by the policy. If the oldest person
moves into the next age group during the year, the rebate is based on the number of days that
person was in each group. Health funds will calculate this automatically.
SENIORS AND PENSIONERS TAX OFFSET (SAPTO)
From 1 July 2012 the Senior Australian Tax Offset (SATO) is combined with the Pensioner Tax
Offset (PTO). The new offset is called the Seniors and Pensioners Tax Offset (SAPTO).
From 1 July 2012 the Pensioner Tax Offset is no longer available and all individuals who would
otherwise have been eligible for the Pensioner Tax Offset will instead receive the SATO, which is
now known as SAPTO.
Eligibility – You may be entitled to SAPTO if you meet all of the following conditions:
•
•
•
•
Condition 1 – You are of Age Pension or Service Pension age
Condition 2 – You are eligible or would be eligible for the Australian Government age
pension or similar payments, if not for failing the Assets Test or Income Test. In
addition, residency tests must be satisfied.
Condition 3 – You are below the rebate income threshold (see below)
Condition 4 – You are not in prison.
If your combined rebate income is equal to or more than the relevant upper threshold then
neither you nor your partner is eligible
If your rebate income is less than the threshold, then your actual entitlement to the tax offset
depends on:
•
•
Your rebate income, and
Whether you are eligible to transfer any unused portion of your spouse’s SAPTO
Note:
If your marital status changed during the year, you are entitled to the SAPTO
circumstance that gives you the greatest benefit. However, you will still need to meet the
relevant rebate income threshold.
Rebate income includes:
- Taxable Income
- Adjusted fringe benefits (total reportable FB amount x 0.535)
- Total net investment loss
- Reportable superannuation contributions
The ‘Maximum Offset’ reduces by 12.5 cents for every dollar of taxable income over the ‘Lower
Threshold’ and reduces to nil for taxable income levels at or above the ‘Upper Threshold’.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
6
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Category
Single, Widowed,
Separated, Sole Parent
any time during the year
Married, living apart due
to illness, both eligible for
SAPTO
Married, living apart due
to illness, spouse not
eligible for SAPTO
Married, living together,
both eligible for SAPTO
Married, living together,
spouse not eligible for
SAPTO
Maximum
Offset
(Each)
Lower
Threshold
(Each)
Upper
Threshold
(Each)
Lower
Threshold
(Combined)
Upper
Threshold
(Combined)
$2,230
$32,279
$50,119
N/A
N/A
$2,040
$31,279
$47,599
$62,558
$95,198
$2,040
$31,279
$47,599
$62,558
$95,198
$1,602
$28,974
$41,790
$57,948
$83,580
$1,602
$28,974
$41,790
$57,948
$83,580
MEDICARE LEVY THRESHOLD FOR PERSONS QUALIFYING FOR THE
SENIORS AND PENSIONERS TAX OFFSET
Category of
Taxpayer
Individual Taxpayer
Married taxpayer with
the following children
and/or students:
0
1
2
3
4
No levy payable Reduced levy payable if
Ordinary rate of
if Taxable
levy payable where
Taxable Income (or
Income (or
Family Income) is within Taxable Income (or
the range …
Family Income)
Family Income)
10% of excess
exceeds …
does not exceed
…
$32,279
$32,279 - $37,975
$37,975
$46,000
$49,007
$52,014
$55,021
$58,028
$46,000
$49,007
$52,014
$55,021
$58,028
-
$54,117
$57,655
$61,193
$64,731
$68,269
$54,117
$57,655
$61,193
$64,731
$68,269
MATURE AGE WORKER TAX OFFSET
The mature age worker offset will be phased out for people born on or after 1 July 1957. This
means it will continue to be available only to anyone aged 55 or over on 30 June 2012.
To be
•
•
•
eligible for the mature age worker tax offset the taxpayer must:
Be an Australian resident for tax purposes
Be 55 years or more at the end of the income year; and
Have received net income from working
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
7
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Year
2007/08
& Beyond
Net Income from
Working*
<$10,000
$10,000 - $53,000
$53,001 - $62,999
Mature Age Worker Tax Offset
5 cents per dollar from 0 - $9,999
$500
$500 max is reduced by 5 cents per dollar
over $53,000
>$63,000
Nil
* Net income now includes reportable super contributions
TAX OFFSETS
From 1 July 2012 the following tax offsets are consolidated into a single non-refundable tax
offset – The Dependant (Invalid and Carer) Tax Offset (DICTO):
•
•
•
•
•
•
•
•
Housekeeper
Housekeeper (with child)
Invalid Spouse
Carer Spouse
Child-Housekeeper
Child-Housekeeper (with child)
Invalid Relative
Parent/Parent-in-law
Offset
Maximum Offset
The Dependant (Invalid
and Carers)
$2,423
Maximum Adjusted
Taxable Income
$9,973
Spouse/de facto with no
dependent child **
$2,423
$9,973
$1,607
N/A
Reduced by $1 for
every $4 where net
income exceeds $286
$376
$1,785
*One non-student
under age 21
$376
$1,785
*Each other nonstudent under age 21
$282
$1,409
Reduced by $1 for
every $4 where net
income exceeds $286
Reduced by $1 for
every $4 where net
income exceeds $286
Reduced by $1 for
every $4 where net
income exceeds $286
Spouse/de facto with
dependent child
(notional) **
Sole Parent (notional)
Notional tax offsets for
children:
*Each full-time student
under age 25
Shading out Taxable
Income
Reduced by $1 for
every $4 where net
income exceeds $282
Reduced by $1 for
every $4 where net
income exceeds $282
Reduced by $1 for
every $4 where net
income exceeds $282
** From 1 July 2012 the dependant spouse tax offset will no longer be available for spouses
born after 30 June 1952.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
8
GPB Partners Pty Limited
General Tax Figures & Details – 2013
The offset will still be available if:
ƒ
ƒ
ƒ
the dependant is a carer, invalid, or permanently unable to work
the taxpayer has children eligible for FTB Part B
the taxpayer is eligible for zone, overseas forces or overseas civilian tax offsets
MEDICAL EXPENSES TAX OFFSET
The net medical expenses tax offset of 20% applies to net medical expenses above the annual
threshold. There is no upper limit to the amount you can claim.
•
•
Year
Threshold
1 July 2012 to 30 June 2013
$2,120
1 July 2011 to 30 June 2012
$2,060
1 July 2010 to 30 June 2011
$2,000
From 1 July 2012, for people with adjusted taxable income above the Medicare levy
surcharge thresholds, the offset threshold is to be increased to $5,000 (indexed annually
thereafter) and the rate of reimbursement will be reduced to 10% for eligible out-ofpocket expenses incurred. Taxpayers with adjusted taxable income below the surcharge
thresholds will be unaffected by this measure.
From 1 July 2013 – The net medical expenses tax offset will phase out, with
transitional arrangements for those currently claiming the offset. However, the offset will
continue to be available for out-of-pocket medical expenses relating to disability aids,
attendant care or aged care until 1 July 2019. The transitional measures are as follows:
o From 1 July 2013, those taxpayers who claimed the offset in 2012-2013 will
continue to be eligible in 2013-2014 if they have eligible out-of-pocket medical
expenses above the relevant thresholds.
o In addition, those who claim the offset in 2013-2014 will be eligible to claim it in
2014-2015.
The medical expenses must be for:
•
•
•
You;
Your spouse (married or de facto) regardless of their income;
Your children who were aged under 21 years, including adopted and stepchildren,
regardless of their income;
• Any other child aged under 21 years (not a student) who you maintained and whose
Adjusted taxable income (ATI) was <$1,786 for the first child and <$1,410 for the
second and any subsequent children;
• A student aged under 25 years who you maintained and whose ATI was <$1,786;
• A child-housekeeper but only if you can claim a tax offset for them;
• An invalid relative, parent or spouse’s parent but only if you can claim a dependant tax
offset.
You and your dependants must be Australian residents for tax purposes but you can claim
medical expenses paid while travelling overseas.
Medical expenses which qualify for the tax offset include:
• expenses relating to an illness or operation paid to legally qualified doctors, nurses or
chemists and public or private hospitals;
• to dentists, orthodontists or registered dental mechanics;
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
9
GPB Partners Pty Limited
General Tax Figures & Details – 2013
•
•
•
•
•
•
•
•
to opticians or optometrists, including for the cost of prescription spectacles or contact
lenses
to a carer who looks after a person who is blind or permanently confined to a bed or
wheelchair
for therapeutic treatment under the direction of a doctor
for medical aids prescribed by a doctor
for artificial limbs or eyes and hearing aids
for maintaining a properly trained dog for guiding or assisting people with a disability
(but not for social therapy)
for laser eye surgery
for treatment under an in-vitro fertilisation program.
Expenses which do not qualify for the tax offset include payments made for:
• cosmetic operations for which a Medicare benefit is not payable;
• dental services or treatment that are solely cosmetic;
• therapeutic treatment not formally referred by a doctor - a mere suggestion or
recommendation by a doctor to the patient is not enough for the treatment to qualify;
the patient must be referred to a particular person for specific treatment;
• chemist-type items, such as tablets for pain relief, purchased in retail outlets or health
food stores;
• inoculations for overseas travel;
• non-prescribed vitamins or health foods;
• travel or accommodation expenses associated with medical treatment;
• contributions to a private health fund;
• purchases from a chemist that are not related to an illness or operation;
• life insurance medical examinations;
• ambulance charges and subscriptions; and
• funeral expenses.
SCHOOL KID’S BONUS
(Replaces the Education Tax Refund)
From 1 January 2012 (effectively) a ‘School Kids Bonus’ will automatically be paid to the parent
who is eligible for Family Tax Benefit Part A.
- $820 p.a. for each child at High School
- $410 p.a. for each child in Primary School
For 2012 the full payment will be made in June 2012.
From 2013 half of the payment will be made in January 2013 and the other half in July 2013.
STUDENT FINANCIAL SUPPLEMENT SCHEME (SFSS)
The Student Financial Supplement Scheme (SFSS) closed on 31 December 2003 but students
are required to repay their loans through the tax system. It was a voluntary loan scheme to
help tertiary students cover their expenses while studying. Five years after the loan was taken
out, the Tax Office takes responsibility for collecting the balance of the outstanding loan, which
becomes an accumulated Financial Supplement debt.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
10
GPB Partners Pty Limited
General Tax Figures & Details – 2013
SFSS repayment
income (RI) 2012/13
Repayment
rate
(of RI)
SFSS repayment income
(RI) 2012/13
Repayment rate
(of RI)
$0 - $49,095
$49,096 - $60,279
$60,280 - $85,564
$85,565 +
Nil
2%
3%
4%
$0 - $49,095
$49,096 - $60,279
$60,280 - $85,564
$85,565 +
Nil
2%
3%
4%
RI = Taxable income + any net investment losses (including net rental losses) + total reportable
fringe benefits + exempt foreign employment income + reportable super contributions.
An exemption applies for taxpayers whose family income is below the Medicare Levy upper
threshold.
HIGHER EDUCATION LOAN PROGRAMME (HELP)
On 1 January 2005 Higher Education Loan Program (HELP) replaced Higher Education
Contribution Scheme (HECS). Existing HECS debts were rolled over into HELP.
HELP repayment
income (HRI)
$
2012/13
Repayment
rate
(of HRI)
HELP repayment
income (HRI)
$
2013/14
Repayment rate
(of HRI)
$0 - $49,095
$49,096 - $54,688
$54,689 - $60,279
$60,280 - $63,448
$63,449 - $68,202
$68,203 - $73,864
$73,865 - $77,751
$77,752 - $85,564
$85,565 - $91,177
$91,178 +
Nil
4%
4.5%
5%
5.5%
6%
6.5%
7%
7.5%
8%
$0 - $51,308
$51,309 - $57,153
$57,154 - $62,997
$62,998 - $66,308
$66,309 - $71,277
$71,278 - $77,194
$77,195 - $81,256
$81,257 - $89,421
$89,422 - $95,287
$95,288 +
Nil
4%
4.5%
5%
5.5%
6%
6.5%
7%
7.5%
8%
HRI = Taxable income + any net investment losses (including net rental losses) + total
reportable fringe benefits + exempt foreign employment income + reportable super
contributions
Note: On 1 June each year indexation is applied to the part of accumulated HELP/SFSS debts
which have remained unpaid for 11 months or more. Indexation rate for 2013 is 2%. The
indexation rate for 2014 is expected in May 2014.
Discounts on upfront and voluntary contributions
From 1 January 2012
• the discount available to students electing to pay their student contribution up-front has
been reduced from 20% to 10%, and
• the bonus on voluntary payments of $500 or more has been reduced from 10% to 5%.
From 1 January 2014
• the discounts available to students electing to pay their student contribution up-front
and the voluntary payments are scrapped.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
11
GPB Partners Pty Limited
General Tax Figures & Details – 2013
SMALL BUSINESS ENTITY REGIME (SBE)
From 1 July 2007 the Small Business Entity (SBE) regime replaced the Simplified Tax System
(STS).
A small business entity is an individual, partnership, company or trust, which:
• carries on a business for all or part of the income year, and
• has less than $2 million aggregated turnover.
A small business entity is eligible for the following concessions:
Income tax concessions
• Entrepreneurs' tax offset (ceased 1 July, 2012)
• Simplified depreciation rules
• Simplified trading stock rules
• Capital gains tax concessions
o 50% active asset reduction
o 15-year exemption
o Retirement exemption
o Roll over Relief
Pay as you go instalments concessions
• GDP adjusted PAYG and GST instalment amounts
Goods and services tax concessions
• Cash accounting
• GST and annual private apportionment
• GST instalments
A small business entity does not need to elect to enter the small business entity regime and may
select those concessions it wishes to use.
CHANGES FROM 1 JULY 2012
•
•
•
the small business instant asset write-off threshold has been increased from $1,000 to
$6,500
the long-life small business pool and the general small business pool have been
consolidated into the general small business depreciation pool to be written off at the
rate of 30%.
small businesses can claim an accelerated initial deduction for motor vehicles acquired in
2012-13 and subsequent years. An immediate write off of the first $5,000 of any motor
vehicle purchased after 1 July 2012 will be available. The remainder of the purchase price
can be transferred into the general business depreciation pool.
Note: From 1 July 2012 the Entrepreneurs Tax Offset (ETO) has been abolished.
MOTOR VEHICLE RATE PER KILOMETRE
Ordinary Cars
Rotary Drive Cars
Up to 1600 cc
Up to 800 cc
1601 – 2600 cc
801 - 1300 cc
2601 - + cc
1301 - + cc
Luxury Car Limit (DCL)
Rate per kilometre
2011/2012
2012/2013
63.0 cents
63.0 cents
74.0 cents
74.0 cents
75.0 cents
75.0 cents
$57,466 (Fuel Efficient
$57,466 (Fuel Efficient
$75,375)
$75,375)
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
12
GPB Partners Pty Limited
General Tax Figures & Details – 2013
TAX VALUE OF GOODS TAKEN FOR PRIVATE USE FROM BUSINESS
(to be included as taxable income)
Taxation Determination TD 2013/3
This determination updates the schedule of amounts that the Tax Office will accept as estimates
of the value of goods taken from stock for private use for certain industries for the 2012/13
income year. The basis for determining values of goods taken from stock was derived from the
latest Household Expenditure Survey (HES) results issued by the Australian Bureau of Statistics
adjusted for Consumer Price Index (CPI) movements for each category of items.
This method can NOT be used for companies as actual sale values of goods used is required
in this situation.
The Tax Office says it intends to adjust the values annually to reflect the most recent HES data
or the HES data uplifted for CPI movements, and reissue the schedule at the commencement of
each income year.
The Schedule for the value of goods taken from trading stock for private use for 2012/13 is:
Type of business
Bakery
Butcher
Restaurant/cafe (licensed)
Restaurant/cafe (unlicensed)
Caterer
Delicatessen
Fruiterer/greengrocer
Takeaway food shop
Mixed business (includes
milk bar, general store, and
convenience store)
Amount (excluding GST)
for adult/child over 16
years
$
$1,310
$780
$4,350
$3,390
$3,670
$3,390
$760
$3,270
Amount (excluding GST) for
child 4-16 years
$
$4,070
$2,035
$655
$390
$1,695
$1,695
$1,835
$1,695
$380
$1,635
PRIMARY PRODUCERS
STOCK VALUE
Tax assessed on average income – can elect out
Sheep
Cattle
Emus
Goats
$ 4
$20
$ 8
$ 4
Horses
Pigs
Poultry
Deer
$20*
$12
$0.35
$20
* Minimum of “service” fee paid if appropriate - See Regulation 1997 70/55.01
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
13
GPB Partners Pty Limited
General Tax Figures & Details – 2013
PROPOSED FARM MANAGEMENT DEPOSIT CHANGES FROM 1 JULY 2014
From 1 July 2014:
FMD owners will be allowed to consolidate their existing accounts that have been held for longer
than 12 months, without triggering tax liabilities.
The non-primary production threshold for FMDs will increase from $65,000 to $100,000.
TRAVEL ALLOWANCES – DOMESTIC AND OVERSEAS
Each year the ATO publish limits of amounts expended on travel by employees that do not have
to be substantiated:
Year Ended 30 June
2012
2013
TD
2011/17
2012/17
BENCHMARK INTEREST RATES (for Div 7A debit loans)
Year ended 30 June
2014
2013
2012
%
6.20
7.05
7.80
FRINGE BENEFITS TAX
Grossed up taxable values of fringe benefits provided to employees during the FBT year, where
the value exceeds $2,000 must be shown on PAYG Withholding Payment Summaries. If a
taxpayer’s FBT liability last year was $3,000 or more, they will need to pay four quarterly
instalments.
Gross Up Rates
From 1 April 2014
Gross Up Rate – Type 2 – No GST
1.8868
Gross Up Rate – Type 1 – employer entitled to GST Input Tax Credit
2.0802
From 1 April 2006 to 31 March 2014
Gross Up Rate – Type 2 – No GST
1.8692
Gross Up Rate – Type 1 – employer entitled to GST Input Tax Credit
2.0647
FBT tax rate for
Year ended 31 March
2015
2014
2013
%
47.0%
46.5%
46.5%
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
14
GPB Partners Pty Limited
General Tax Figures & Details – 2013
BENCHMARK INTEREST RATES (for FBT purposes)
Year ended 31 March
2014
2013
2012
%
6.45
7.4
7.8
Statutory Formula Method - Contracts after 7.30pm, 10 May 2011
Before
From
From
From
From
Distance Travelled
10 May
1 April
1 April
1 April
10 May 2011
2011
2012
2013
2014
0 – 15,000 km
26%
20%
20%
20%
20%
15,000 to 25,000
20%
20%
20%
20%
20%
25,000 to 40,000
11%
14%
17%
20%
20%
Over 40,000
7%
10%
13%
17%
20%
DEEMED DEPRECIATION RATES
Date car purchased
Up to and including 30 June 2002
From 1 July 2002 to 9 May 2006
On or after 10 May 2006
Rate
22.5%
18.75%
25%
SUPERANNUATION
SMSF – New Obligations from 7 August 2012
New regulations for self-managed super funds (SMSFs) took effect on 7 August 2012.
They require SMSF trustees to:
•
•
•
regularly review their fund’s investment strategy
consider insurance for members as part of their fund’s investment strategy
value assets at market value for reporting purposes.
In addition, the ATO are now able to enforce the requirement that the fund keep its money and
assets separate to that held by trustees personally, or standard employer-sponsors.
ATO Annual Supervisory Levy
Payment of the SMSF levy will be brought forward so that it is levied and collected in the same
year of income. This change will be phased in over the 2013/14 and 2014/15 years.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
15
GPB Partners Pty Limited
General Tax Figures & Details – 2013
In 2013/14, SMSFs must pay the $191 levy for the 2012/13 year and half the $259 levy for the
2013/14 year (eg $321 – included in the 2013 tax return).
In 2014/15, SMSFs must pay the other half of the $259 levy for the 2013/14 year and the $259
levy for the 2014/2015 year (eg $389 – included in the 2014 tax return).
From 2015/16, SMSFs pay the full levy in the relevant income year ie the levy will be included in
the 2015 tax return and will be paid in the 2016 year.
Tax Year
2013/2014
2012/2013
2011/2012
Annual Levy
$259
$191
$200
KEY AGES AND DATES
PRESERVATION AGE
1
1
1
1
Date of birth
Before 1 July 1960
July 1960 – 30 June 1961
July 1961 – 30 June 1962
July 1962 – 30 June 1963
July 1963 – 30 June 1964
After 30 June 1964
Preservation age
55
56
57
58
59
60
ACCESSING BENEFITS
Relevant Age
Between Preservation Age & Retired
Between Preservation Age & 65 & Not Retired
Age 65 (retired or not)
Age 60 and over
Benefits
Can receive both lump sums and/or pension
Can receive transition to retirement pension
Can receive both lump sums and/or pension
All pension payments are tax-free
SUPERANNUATION CONTRIBUTIONS
Relevant Age
Under 65 and not retired
Under 65 & retired
Between 65 & 75
Types of Superannuation Contributions
Concessional employer OR member contributions; NCC Contributions
Concessional or Non-Concessional member contributions
Contributions provided the ‘work test’ is met
Under 65
Between 65 & 75
Contribution Amounts
NCC Contributions - $150,000 per year or $450,000 every 3 years
$150,000 per year NCC provided work test is met
*Planning tip – Contribute $150,000 NCC in the year the member turns 64 then contribute
$450,000 in the year the member turns 65. The ‘work test’ will need to be met if contribution
made after the 65th birthday.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
16
GPB Partners Pty Limited
General Tax Figures & Details – 2013
QUARTERLY SUPERANNUATION CONTRIBUTIONS
From 1 July 2003 employers are required to remit superannuation guarantee contributions
quarterly. The contributions are required to be made within 28 days of the end of the quarter
with ATO reporting by the 28th of the next month.
Advisors should identify those small businesses which employ its owners as staff and as such
are required to comply with the SG legislation. While in the past contributions made on an
adhoc basis met SG requirements this will need to be more co-coordinated to ensure compliance
with the quarterly regime.
The SG reporting requirements have changed; employer SG contributions made on or after 1
January 2005 no longer have to be reported to employees however some employers under the
new Workplace Relations Regulations 2006 and employers under award agreements that require
them to report superannuation contributions to employees must still comply with SG reporting
requirements.
The super choice initiative has been extended to workers under state awards from 1 July 2006.
From 1 July 2008 you must use ordinary times earnings (OTE) as defined in the superannuation
guarantee law, and not employment awards, to calculate the superannuation guarantee.
TIMETABLE
SG Quarter
Due date for payment
1 July – 30 September
1 October – 31 December
1 January – 31 March
1 April – 30 June
28 October
28 January
28 April
28 July
Due date for lodgement of
SGC statement
14 November
14 February
14 May
14 August
AGE BASE LIMITS
Concessional Contributions Cap**
Non-Concessional Contributions Cap
Lump Sum Low Rate Cap (Lifetime
limit no tax)
Capital Gains Tax Cap
Untaxed Plan Cap
Over 50 Concessional Cap **
2011/12
$25,000
$150,000
$165,000
2012/13
$25,000
$150,000
$175,000
2013/14
$25,000**
$150,000
$180,000
$1,205,000
$1,205,000
$50,000
$1,255,000
$1,255,000
-
$1,315,000
$1,315,000
-
** Changes to Concessional Contributions Cap (if passed by parliament):
From 1 July 2013 - increases to $35,000 for individuals aged 59 or more on that date
From 1 July 2014 – increases to $35,000 for individuals aged 49 or more on that date
From 1 July 2014 – increases to $50,000 for individuals aged 49 or more on that date and the
fund balance is less than $500,000.
Excess contributions tax is to be paid if concessional (31.5%) or non-concessional (46.5%) caps
are exceeded.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
17
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Proposals
From 1 July 2014, all pension asset earnings above $100,000 will be taxed at 15%. Special
arrangements will also apply for capital gains on assets purchased before 5 April 2013. There
will be a 10-year period where realised capital gains on assets purchased prior to 5 April 2013
will not be included as earnings in the year of disposal. For assets purchased between 5 April
2013 and 30 June 2014, members will have the choice of including the whole of a realised
capital gain in earnings in the year of disposal, or only the gain accrued from 1 July 2014
onwards. For assets acquired after 30 June 2014, the whole of any realised capital gain will be
included in earnings.
From 1 July 2014, the Excess Concessional Contributions Tax Rate will be 32% and the Excess
Non-Concessional Contributions Tax Rate will be 47%.
From 1 July 2014, tax payable on Concessional Super Contributions, by anyone with ‘income’
plus ‘low tax super contributions’ of $300,000 p.a. or more, will increase from 15% to 30%.
Definition of Income for Super Contributions Tax Rate (High Income
Earners)
Note: This definition is not the same as originally announced.
Division 293 of ITAA 1997 –
Individuals are taxed when the aggregate of:
• ‘Income’ plus ‘Low tax contributions’ exceeds $300,000
‘Income’ means:
• Taxable income
• Reportable fringe benefits
• Total net investment income
• Less: Taxable component of super LS withdrawal between 55 and 59, less the low rate
cap amount.
‘Low tax contributions’ means:
• Contributions included in assessable income of the fund. This includes contributions
rolled over, but excludes any growth on transferred foreign funds, and any untaxed
element of the rollover.
• Add: Reserve allocations taxed as Concessional Contributions
• Less: Excess Concessional Contributions not disregarded and not refunded.
Super Contributions High Income Earners
Income
Concessional Contributions
Less:
Excess Concessional Contributions*
TOTAL
Lower of:
Low Tax Contribution
Excess over $300,000
Example 1
$350,000
$55,000
Example 2
$290,000
$55,000
($30,000)
$375,000
($30,000)
$315,000
$25,000
$75,000
$25,000
$15,000
Div 293 contributions
$25,000
$15,000
Tax Rate
15%
15%
Div 293 Contributions Tax**
$3,750
$2,250
*Not disregarded and not refunded
**Option to pay personally, have super fund pay or pay personally and seek reimbursement
from super fund.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
18
GPB Partners Pty Limited
General Tax Figures & Details – 2013
HOW TAX-EFFECTIVE ARE YOUR CONTRIBUTIONS?
For years 2012/13; 2013/14 & 2014/15
Adjusted Taxable
Marginal Tax Rate
Income
(Excl Medicare
Levy)
Under $18,200
0%
$18,201 - $37,000
19%
$37,001 - $80,000
32.5%
$80,001 - $180,000
37%
$180,001 - $300,000
45%
$300,001 +
45%
Super Contributions
Tax Rate
0% - after refund
0% - after refund
15%
15%
15%
30%
Tax Saving on
Concessional
Contributions
0%
19%
17.5%
22%
30%
15%
LOW INCOME SUPER CONTRIBUTIONS TAX REFUND
From 1 July 2012, superannuation contributions tax will be refunded, up to $500 per annum, for
workers with adjusted taxable incomes of $37,000 or less.
• The government contributions will be paid in the year after the concessional contributions.
• Low earners who receive less than 10% of their income through employment or business will
not be eligible.
• The contribution amount is calculated by multiplying concessional contributions by 15%
(maximum payment $500).
• To receive the maximum annual payment of $500 an individual needs to receive
concessional contributions of $3,330 – calculated as 9% x $37,000.
• The contribution will form part of the tax-free component within the fund.
SELF-EMPLOYED
Self employed persons are eligible to claim a tax deduction for personal superannuation
contributions. From 1 July 2007 self employed persons are eligible for the government co–
contribution as specified below.
GOVERNMENT SUPERANNUATION CO-CONTRIBUTION
From 1 July 2007, a taxpayer is eligible for the co-contribution in a year of income if:
•
•
•
•
•
they make a personal superannuation contribution by 30 June each year into a complying
superannuation fund or retirement savings account
their total assessable income is less than the amount specified below (this is indexed
annually to reflect changing average wages)
10% or more of their total income is from eligible employment, running a business or a
combination of both
they are less than 71 years old at the end of the year of income
they do not hold an eligible temporary resident visa at any time during the year
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
19
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Limits table
Year
01.07.08 – 30.06.09
Assessable
Income
$30,342
01.07.09 – 30.06.12
$60,342
$31,920
01.07.12 onwards
$61,920
$31,920
$46,920
Maximum Co-Contribution
$1,500 (limited to150% of contribution)
$1,500 reduced by 5 cents per dollar where
assessable income is over $30,342
Formula: $1,500 - [(AI- 30342) x 0.05]
Nil
$1,000 (limited to 100% of contribution)
$1,000 reduced by 3.333 cents per dollar where
assessable income is over $31920
Formula: $1,000 – [(AI – 31920) x 0.03333]
Nil
$500 (limited to 50% of contribution)
$500 reduced by 3.333 cents per dollar where
assessable income is over $31920
Formula: $500 – [(AI – 31920) x 0.03333]
Nil
WITHDRAWALS FROM SUPER FUNDS
LUMP SUM WITHDRAWALS
Tax-Free Component
This is made up of:
The Crystallised segment as at 30 June 2007 PLUS the total of Government Co-contributions,
Spouse Contributions and Non-concessional Contributions made from 1 July 2007.
The Crystallised segment includes the following components held in a superannuation account as at
30 June 2007:
•
•
•
•
•
pre-July 83 component
undeducted contributions
post-June 94 invalidity component
concessional component
the CGT exempt component
Taxable Components
Taxable Benefits paid as a lump sum (excluding terminal illness payments, death benefits and
departing Australia superannuation payments), will be taxed as follows:
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
20
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Tax Rate
Tax Rate
Taxed Element
Untaxed Element
- Up to Untaxed plan cap
20% (Max)
30% (Max)
- Excess over Untaxed plan cap
20% (Max)
Top marginal tax rate
Nil
15% (Max)
- Low rate cap to untaxed plan
cap
15% (Max)
30% (Max)
- Excess over Untaxed plan cap
15% (Max)
Top marginal tax rate
- Up to Untaxed plan cap
0%
15% (Max)
- Excess over Untaxed plan cap
0%
Top marginal tax rate
Age
Age under 55*
Age 55 to age 59*
- Less than Low rate cap
Age 60 and over
*Included in Taxable Income for Medicare Levy purposes except for the taxed element of the ETP
low rate threshold.
PENSION PAYMENTS
Note: Tax-free component is calculated as above to determine the tax-free percentage of the pension
payments.
MINIMUM ANNUAL PENSION RATES
Age
Normal
2012 & 2013
2014
Under 65
4.0%
3.00%
4.0%
65-74
5.0%
3.75%
5.0%
75-79
6.0%
4.50%
6.0%
80-84
7.0%
5.25%
7.0%
85-89
9.0%
6.75%
9.0%
90-94
11.0%
8.25%
11.0%
95 or more
14.0%
10.50%
14.0%
The amount of the minimum annual pension, calculated using the above percentages, is
rounded up or down to the nearest whole $10.
In the first tax year that a reversionary pension is paid, the deceased’s minimum pension, as
calculated at 1 July in that year, continues to apply. The reversionary pensioner’s age only
becomes relevant from 1 July in the second tax year (the first full tax year).
*The relevant age and account balance is the age and account balance at 1 July of the current
year for existing pensions and the balance on the start date for pensions commencing during the
current year.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
21
GPB Partners Pty Limited
General Tax Figures & Details – 2013
The minimum annual payment is prorated in the first year (include the commencement date).
But if the commencement day of the pension is on or after 1 June, no payment is required to be
made for that financial year.
Effective 1 July 2012, legislation will be amended to allow the income from superannuation
pension assets to continue to be tax-exempt after the death of the member up until the death
benefit is paid from the fund. This will include gains made on the disposal of assets prior to the
death benefit being paid. This contrasts with TR 2011/D3.
Paying a pension in specie – CGT Exemption lost
The tax exemption for capital gains made when a superannuation fund is in pension mode does
not apply when the capital gain occurs as a result of paying a pension in specie. Normal
accumulation mode tax rates apply to an asset paid out in specie.
To avoid this, the member can purchase the asset from the Pension Fund and then the Pension
Fund can use the cash proceeds to pay the pension.
EMPLOYER COMPULSORY SUPERANNUATION GUARANTEE
CONTRIBUTIONS (SG)
Employers do not have to provide superannuation support for:
•
•
•
•
•
•
•
•
•
•
•
employees paid less than $450 in a calendar month (although they must still provide
superannuation support for any month in which the employee is paid $450 or more)
employees over 70 year of age. This exemption ceases on 30 June 2013. From 1 July
2013 employers cannot avoid paying SG Contributions simply because an employee is 70
or over
employees under 18 years of age working 30 hours or less per week
non-resident employees paid for work performed outside Australia
resident employees paid by non-resident employers for work performed outside Australia
some foreign executives who hold certain visas or entry permits under the migration
regulations
employees paid to do work of a domestic or private nature for not more than 30 hours a
week (for example, a part-time nanny or housekeeper)
employees who receive payments under the Community Development Employment
Program
members of the Army Reserve (the Army Reserve is not required to provide
superannuation support)
employees who have elected not to receive superannuation guarantee support because
their accumulated superannuation benefits are more than the pension reasonable benefit
limit, or
employees temporarily working in Australia for an overseas employer who is covered by
a bilateral superannuation agreement (as certificate of coverage must be presented in
order to receive the exemption)
Notes:
• Employers are still required to provide superannuation support for employees who are
receiving their superannuation in the form of a non-commutable income stream while
they are working.
• Working people, aged 70 to 74 inclusive, can make personal superannuation
contributions if they pass the ‘Work Test’. Prior to 1 July 2013, employers could not
provide superannuation guarantee support for them. This prohibition ceased on 1 June
2013.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
22
GPB Partners Pty Limited
General Tax Figures & Details – 2013
The SG rate will increase gradually from 9% to 12% by 1 July 2019 as follows:
Year
SG Rate
2012/13
9%
2013/14
9.25%
2014/15
9.5%
2015/16
10%
2016/17
10.5%
2017/18
11%
2018/19
2019/20
onwards
11.5%
12%
Note: From 1 July 2013 employers are required to report the amount and expected date of
contribution payments on employee payslips.
MAXIMUM EARNINGS BASE
Employer superannuation contributions are a minimum of the SG Rate multiplied by the
employee’s earnings base (Ordinary Time Earnings) up to an indexed maximum amount as
follows:
YEAR
2013/14
2012/13
2011/12
MAXIMUM EARNINGS
$192,160 ($48,040 per quarter)
$183,000 ($45,750 per quarter)
$175,280 ($43,820 per quarter)
EMPLOYMENT TERMINATION PAYMENTS
From 1 July 2012 ETP’s will be added to the taxpayer’s other taxable income.
Only that part of an ETP which takes a taxpayer’s total annual taxable income (including the
ETP) to no more than $180,000 will receive the ETP tax offset.
Any amount of the ETP that causes taxable income to exceed $180,000 will be taxed at the
usual marginal tax rates.
The tax treatment of employment termination payments is now covered by ITAA97 – Part 2-40.
Employment Termination Payment Caps (Post 1/7/2007)
Year
Cap
2013/2014
$180,000
2012/2013
$175,000
2011/2012
$165,000
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
23
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Note: The taxable components of all life benefit employment termination payments received in
an income year are counted towards this cap.
Also counted towards the cap are the taxable components of any life benefit employment
termination payments which have been received in an earlier income year for the same
employment termination.
The death benefit cap is independent of the life benefit termination payment (i.e. a recipient can
get both).
Post 1/7/2007 Rules - Employment Termination Payments
Traditional employer Eligible Termination Payments no longer exist after 30 June 2007.
Lump sums paid to an employee in consequence of termination of employment from 1 July 2007
are known as ‘Employment Termination Payments’.
There are only 2 components for tax purposes:
•
•
Tax-free component – includes Invalidity & pre-July 1983 component
Taxable component – the rest
Significantly, Employment Termination Payments:
•
•
•
Must be paid out within 12 months of termination
Can no longer be rolled over into superannuation
No longer have a tax-free component except on death.
Employment Termination Payments can include:
•
•
•
•
•
•
Amounts in respect of unused rostered days off;
Amounts in lieu of notice;
A gratuity or ‘golden handshake’;
An employee’s invalidity (permanent disability, other than compensation for personal
injury);
Redundancy and approved early retirement amounts in excess of the tax-free
component; and
Certain payments after the death of an employee.
Employment Termination Payments do not include:
•
•
Payments in respect of unused annual leave or unused long service leave;
The tax-free portion of approved redundancy and early retirement payments.
The tax treatment of such amounts is unchanged under the reforms.
The taxation of an Employer Termination Payment will depend on whether it is:
•
•
A death benefit termination payment; or
A life benefit termination payment
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
24
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Post 1/7/2007 – Life Benefit Employment Termination Payments
The tax treatment of the Taxable Component can be summarised as follows:
Employees Age
Under preservation age# on the
last day of the income year in
which the payment is made*
Preservation age# or over on the
last day of the income year in
which the payment is made*
Within Employment
Termination Payment
Cap **
Maximum Rate
30%
Excess above Employment
Termination Payment
Cap
45%
Maximum Rate
15%
45%
#Preservation age is the age at which retirees can access their superannuation benefits. This
depends on their date of birth.
*Included in Taxable Income for Medicare Levy purposes.
**The Employment Termination Payment Cap will be indexed to Average Weekly Ordinary Time
Earnings (AWOTE) annually.
Post 1/7/2007 – Death Benefit Employment Termination Payments
The tax treatment of the Taxable Component can be summarised as follows:
Recipient
Dependant
Within Employment
Termination Payment Cap
Tax-free
Nondependant
Maximum rate of
30%
Excess above Employment
Termination Payment Cap
Recipient’s top marginal tax
rate plus Medicare Levy
Recipient’s top marginal tax
Rate plus Medicare Levy
TAX FREE LIMIT OF GENUINE (BONA FIDE) REDUNDANCY PAYMENTS
Income year
Base limit
Per complete year of service
2014-15
Due May 2014
Due May 2014
2013-14
$9,246
$4,624
2012-13
$8,806
$4,404
2011-12
$8,435
$4,218
These thresholds are increased in line with movements in AWOTE.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
25
GPB Partners Pty Limited
General Tax Figures & Details – 2013
Generally –
1. The tax-free component:
•
•
•
•
•
Is recorded at Label D on the PAYG Payment Summary
Is not recorded on the income tax return
Cannot be rolled over
Is not an ETP
Only applies if termination is prior to age 65 or normal retirement age.
2. The amount in excess of the tax-free component:
•
•
•
•
Is treated as an employer-financed ETP (taxable)
Could be rolled over up until 30 June 2007
Employer ETP’s rolled over on or after 1 July 2004 are preserved
Cannot be rolled over from 1 July 2007 (transitional rules may apply)
NSW OFFICE OF STATE REVENUE
PAYROLL TAX – NSW
Threshold
$689,000 Yearly
>$689,000
1 July 2012 – 30 June 2013
Nil
5.45%
Threshold
$750,000 Yearly
>$750,000
1 July 2013 – 30 June 2014
Nil
5.45%
NSW LAND TAX
Land tax is calculated on the combined value of all the taxable land you own above the land tax
threshold. The rate of tax is $100 plus 1.6% of the land value between the threshold and the
premium rate threshold of $2,482,000 and 2% thereafter.
If land is owned by a trustee of a special trust the land tax threshold does not apply and land
tax will be charged at a flat rate of 1.6% of the taxable land value up to the premium threshold
of $2,482,000 and then 2% thereafter.
The Valuer General used the average of the following indexed amounts to determine the
threshold for 2013.
Year
For the 2011 land tax year
For the 2012 land tax year
For the 2013 land tax year
Average
Indexed Amount
$401,000
$408,000
$409,000
$406,000
Threshold
$387,000
$396,000
$406,000
Premium Threshold
$2,366,000
$2,421,000
$2,482,000
Note: Principal place of residence and primary production land are exempt.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
26
GPB Partners Pty Limited
General Tax Figures & Details – 2013
STAMP DUTY - NSW
SHARE TRANSFERS IN UNLISTED COMPANIES
•
The rate of duty chargeable is 60 cents per $100, or part, of the dutiable value of the
shares or units.
•
The dutiable value is the greater of the market value or consideration paid for the shares
or units.
•
A minimum duty of $10 per transfer applies.
•
The transferee is the person liable to pay the duty.
•
Duty must be paid within 3 months of the date of first execution of the agreement or
transfer.
Note: Landholder duty may also be payable in certain circumstances.
LANDHOLDER DUTY
From 1 July 2009 landholder duty replaced land rich provisions
Acquisition of interests in landholders
The provisions relating to Acquisition of interests in landholders apply to relevant
acquisitions in private landholders made on or after 1 July 2009 and in public landholders on or
after 1 October 2009. These provisions are contained in Chapter 4 of the Duties Act 1997.
Where a company or unit trust scheme holds land in NSW valued at $2,000,000 or more, an
acquisition of shares in the company or units in the unit trust scheme, may attract duty at the
general rate as if it were an acquisition of the land held by such entity.
To be a landholder prior to 1 December 2009, the unencumbered value of the land holdings in
NSW must be $2,000,000 or more. From 1 December 2009 if a land holding consists of an
estate in fee simple in land, the value of the land (as determined under the Valuation of Land
Act 1916), rather than the unencumbered value of the land, is used to determine whether the
$2,000,000 threshold is met. (However, once a liability arises, duty will still be calculated with
reference to the unencumbered value of the land holdings in NSW).
A liability at the general rate arises whenever a person or persons makes a relevant acquisition
in a landholder.
When a relevant acquisition is made, the person or persons acquiring the interest must complete
an Acquisition Statement and submit it to the Office of State Revenue for assessment of duty.
Duty is calculated at the general rate, on the amount calculated by multiplying the
unencumbered value of all the land holdings and goods of the landholder in New South Wales by
the proportion of that value represented by the interest acquired.
Generally duty is calculated on both the current acquisition and any other acquisitions made by
the person and any ‘associated person’ in the period commencing three years before the date of
the relevant acquisition and ending on the date of the relevant acquisition.
Exemptions and concessions apply to certain acquisitions.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
27
GPB Partners Pty Limited
General Tax Figures & Details – 2013
NSW STAMP DUTY TRANSFER OF LAND OR BUSINESS
Dutiable Value
$0 - $14,000
$14,001 - $30,000
$30,001 - $80,000
$80,001 - $300,000
$300,001 - $1m
over $1m
over $3m
Rate of Duty
$1.25 for every $100 or part of the dutiable value
$175 plus $1.50 for every $100 or part, by which the dutiable
value exceeds $14,000
$415 plus $1.75 for every $100 or part, by which the dutiable
value exceeds $30,000
$1,1290 plus $3.50 for every $100 or part, by which the dutiable
value exceeds $80,000
$8,990 plus $4.50 for every $100 or part, by which the dutiable
value exceeds $300,000
$40,940 plus $5.50 for every $100 or part, by which the dutiable
value exceeds $1,000,000
$150,490 plus $7.00 for every $100 or part, by which the dutiable
value of the residential property exceeds $3,000,000
CORRECTING GST MISTAKES
(ATO Publication: NAT4700-07.2004)
The Tax Office notes that while the normal way to correct mistakes is to revise the previous
BAS, in some cases taxpayers can make corrections on a later BAS. The table below sets out
when businesses can use a later BAS to correct mistakes made on an earlier BAS. Corrections
may be made to decrease or increase GST payable or to decrease input tax credits. There is no
time limit for corrections that increase your input tax credits – these can be corrected on any
BAS at any point in the future.
Annual turnover
Less than $20m
$20m or more
Annual turnover
Less than $20m
$20m to less than $100m
$100m to less than $500m
$500m to less than $1bn
$1bn and over
Time limit in which you can correct errors
Up to 18 months (18 monthly BASs, 6 quarterly BASs or 1 annual
GST return)
Up to 3 months (3 monthly BASs)
Dollar Value Correction limits
$4,999
$9,999
$24,999
$49,999
$299,999
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
28
GPB Partners Pty Limited
General Tax Figures & Details – 2013
PENALTIES
TAX SHORTFALL PENALTIES
Summary of Rate of Penalty
Culpable behaviour
Base
Base penalty % increased/decreased to:
penalty
%
If
If disclosure made
hindrance
During audit
Before audit
Intentional Disregard (s 284-90)
75
90
60
15
Recklessness (s 284-90)
50
60
40
10
Tax avoidance/Scheme benefit (s
50 (25)*
60(30)*
40(20)*
10(5)*
284-160)
Profit shifting (no dominant tax
25(10)*
30(12)*
20(8)*
5(2)*
avoidance purpose) (s 284-160)
No reasonable care (s 284-90)
25
30
20
5
No reasonably arguable position (s
25
30
20
5
284-90)
Private Ruling disregarded
25
30
20
5
Failure to make statement
75
90
N/A
N/A
Profit shifting (tax avoidance
50(25)*
60(30)*
40(20)*
10(5)*
purpose)
* The rates of penalty in brackets apply if the position adopted by the taxpayer is reasonably
arguable.
FAILURE TO LODGE (FTL) PENALTIES
From 1997 to 27 December 2012
Culpable behaviour for
failure to lodge
Income tax returns
Base penalty for a
Medium
Large
small entity
withholder/entity withholder/entity
1 penalty unit
Maximum penalty
Twice the base
(currently $110) per
being 5 times the
penalty
28
day
period
or
part
base penalty
i.e.
$220
per
28
day
FBT returns
thereof
i.e.
$550
per 28 day
period
or
part
thereof
Business Activity Statements
period or part thereof
Other tax returns
From 28 December 2012
On November 2012, the Crimes Legislation Amendment (Serious Drugs, Identity Crime and
Other Measures) Bill 2012 received royal assent.
This Act increases the value of a penalty unit from $110 to $170.
The new value of a penalty unit will apply prospectively, that is, where the matter giving rise to
the penalty occurs on or after 28 December 2012.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
29
GPB Partners Pty Limited
General Tax Figures & Details – 2013
FTL penalty is an administrative penalty which may be applied if you are required to lodge a
return, notice, statement or other approved form with the ATO by a particular day and you do
not do so.
Number of days
overdue (or part
thereof)
0 - 28
29 - 56
57 - 84
85 - 112
113 +
Penalty Amount
Small Taxpayer
$170
$340
$510
$680
$850
Medium Taxpayer
$340
$680
$1,020
$1,360
$1,700
Large Taxpayer
$850
$1,700
$2,550
$3,400
$4,250
Large taxpayer
• Assessable income (or a current annual turnover) of $20 million or more, or ‘large’ for
PAYG Withholding purposes
Medium taxpayer
• Assessable income (or a current annual turnover) of more than $1 million, but less than
$20 million, or ‘medium’ for PAYG Withholding purposes,
Small taxpayer
• The rest.
Generally, penalty will not be applied to a late lodged income tax return, annual GST tax
return or activity statement where the lodgement results in:
•
•
A refund, or
A nil result, that is, neither a debt nor a refund.
However, if an FTL penalty has already been applied (because the document was not lodged),
the fact that the subsequent lodgement of the document may result in a refund or nil result will
not be sufficient reason for the penalty to be remitted.
Approved forms include:
•
•
•
•
•
•
Quarterly activity statements (but not monthly)
Income tax returns
Fringe benefits tax returns
Pay as you go (PAYG) withholding annual reports
Annual goods and services tax (GST) returns, and
Annual GST information reports.
It does not apply to documents required to be lodged under Superannuation Guarantee
legislation.
This Schedule is to be read in conjunction with the disclaimer.
Liability is limited by a scheme approved under Professional Standards Legislation
30