P J BEDDOW & CO
Accountants & Registered Tax Agents
ABN 83 441 523 120
Postal Address –
PO Box 568
Castle Hill NSW 1765
Office Address –
59/15-17 Terminus Street
Castle Hill NSW 2154
Lynette J Beddow NTAAF
Peter J Beddow NTAAF
Tele – 02 9659 8174
Email – beddowco@iprimus.com.au
JUNE 2014 – TAX RATES, DEFINITIONS, DUE DATES, ETC
INCOME TAX RATES
PERSONAL – 2013/2014 (Excl Medicare)
$0 - $18,200
Nil
$18,201 - $37,000
19% excess > $18,200
$37,001 - $80,000 $ 3,572 + 32.5% excess > $37,000
$80,001 - $180,000 $17,547 + 37% excess > $80,000
$180,000 +
$54,547 + 45% excess > $180,000
Medicare Levy – 1.5% Taxable Income
(2.00% from 1/7/14)
A Medicare levy surcharge is applied where no Private
Hospital Health Insurance cover held & “ATI” exceeds –
-Single > $88,000, Joint > $176,000 = 1%
-Singles $102,000-$136,000, Joint $204,000-$272,000 = 1.25%
-Singles >$136,001, Joint > $272,001 = 1.5%
To be approved Hospital cover the excess must be less
than – $500 for Singles & $1,000 for Families.
If you suspend Health Cover while overseas you may be
liable for the surcharge for that period.
COMPANY TAX RATE
30% of Taxable Income (28.5% from 1/7/15)
DEFINITIONS
Adjusted Taxable Income (“ATI”) =
- current taxable income +
- salary sacrificed & reportable superannuation
- reportable fringe benefits
- losses on investments & rentals
- tax free pensions & benefits
- foreign employment income
This “ATI” is used in a wide range of surcharge,
rebate & benefits calculations.
“Ordinary Times Earnings” for Superannuation
Includes –
- bonuses
- commissions
- allowances not fully expended
- shift loadings
- casual loadings
- holiday pay when taken
- sick leave when taken
- long service leave when taken
- directors fees
- payment in lieu of notice
Excludes –
- fully expended allowances
- reimbursed expenses
- simple overtime
- workers compensation payments including top-ups
- annual leave loading
- accured annual, long service & sick leave taken as
lump sum on termination
“ETP” – Eligible Termination Payment
OTHER RATES
Superannuation Employee Superannuation (On Ordinary Times Earnings)
9.25% - from 1 July, 2013.
Remains at 9.25% for year ending 30 June, 2015
Superannuation – Maximum Annual Contribution
Deductible/Concessional -
Year Ended 30/6/14 - $35,000 – Age 60 - 75
-$25,000 – Age less than 60
Year Ended 30/6/15 - $35,000 – Aged 50 & over
-$30,000 – Aged less than 50
Non-Deductible/Non-Concessional –
$150,000pa – if aged over 65 must satisfy work test
If aged less 65 may contribute $450,000 in one year
then nothing for 3 years
Superannuation Co-Contribution
$1,000 after tax contribution will receive –
$500 CoContribution were “ATI” < $33,516 &
NIL where “ATI” > $48,516. Phasing between.
-------------------------------------------------------------------------------Motor Vehicles
-Luxury Car threshold for 2014 is $57,466
-Per KM Rate for 2013/2014 Year
0-1600 cc
1601-2600 cc
2601 +
.65c
.76c
.77c
-FBT Statutory Rate – Motor Vehicles
Km’s
Contracts .
New Contracts
.
Travelled
Pre 10/5/11 10/5/11 1/4/12 1/4/13 From
to
to
to
31/3/12 31/3/13 31/3/14 1/4/14
Less15,000
26%
20%
20% 20%
20%
15,000-25,000 20%
20%
20% 20%
20%
25,000-40,000 11%
14%
17% 20%
20%
More 40,000
7%
10%
13% 17%
20%
-Business vehicles other than cars – e.g. Utes
Where used privately the FBT Rate is 0-2500 cc
< 2500 cc
1/4/13-31/3/14
$0.49
$0.59
-Complying Log Books –
-Less 5 years old
-Kept for 13 consecutive weeks
----------------------------------------------------------------------------------Interest Benchmark Rates –
Year ended 31 March, 2014
6.45%
Year ended 31 March, 2015
5.95%
-----------------------------------------------------------------------------------Payroll Tax – Wages, Superannuation & Contractors
Exceeding $750,000 – 5.45%
Land Tax – Land held at 31/12/13 (NSW)
Value below $412,000 = NIL
Value $412,000-$2,519,000=$100+1.6% value >$412.000
Value >$2,519,000 = 2% of taxable
-----------------------------------------------------------------------------HELP Repayment Threshholds - based on “ATI”
< $51,309 – Nil
>$51,309 is 4% rising to 8% > $95,288
-----------------------------------------------------------------------------
Health Insurance & Medical
HEALTH INSURANCE REBATE - For Year Ended 30 June, 2014 –
INCOME “ATI
INCOME”ATI”
NEW PRIVATE HEALTH INSURANCE REBATE
Tier Singles
Families
Age < 65 Age 65-69 Age 70 & Over
$0-$88,000
$0-$176,000
30%
35%
40%
1 $88,001-$102,000 $176,001-$204,000
20%
25%
30%
2 $102,001-$136,000 $204,001-$272,000
10%
15%
20%
3 $136,001 +
$272,001 +
0%
0%
0%
If you continue to claim the 30% Rebate & are not entitled to,
you will have a tax debt at year end.
-----------------------------------------------------------------
-Medicare Levy Surcharge – where no Private Health Cover
“ATI” as per above Tiers –
Tier 1 Tier 2 Tier 3
Surcharge
1.0%
1.25% 1.5%
----------------------------------------------------------Out of Pocket Medical Expenses Offset
(This Offset only available if you made a claim in the
2012/2013 year).
“ATI” <$86,000 Singles & <$176,000 Families
20% of net expenses above $2,162
“ATI” >$88,000 Singles & >$176,00 Families
10% of net expenses above $5,100
Offset still available to 1/7/19 for disability aids, attendant
care & Aged care.
----------------------------------------------------------Definition of Medical Expenses –
(Net for Family after all refunds – Medicare & Health Fund)
Doctors
Hospital
Optical
Dental
Prescriptions
Therapeutic treatments under direction of doctor
Medical & surgical appliances
Excludes – Cosmetic, Travel, Dietary Foods, Vitamins
& supplements, not covered above.
OTHER IMPORTANT INFORMATION
SUB CONTRACTORS V EMPLOYEE
Many sub-contractors (particularly where for the supply
of Labour only) are classified by the ATO, Payroll Tax
& Workers Compensation as defacto Employees, with
all the attaching liabilities for the Employer.
The ATO has developed a calculation tool to assist you
in determining if a contactor is a deemed employee –
http://www.ato.gov.au/businesses/content/00095062.htm?
This area is attracting a lot of ATO attention & we strongly
recommend that you review all current Contractors to ensure
they are correctly classified.
It is YOU the Employer who will have to pay the PAYG
Withholding not deducted, 9.25% Superannuation & Workers
Compensation if your current Contractors are deemed to be
Employees.
Property Transactions - ALL
ATO developed a webpage that covers all tax related
matters concerning property – GST, CGT, Income Tax.
Using Property to run Business, Residential Rental,
Property Development and Building & Renovation.
www.ato.gov.au/property
Please ask or check this website BEFORE entering
Into property transactions
RETENTION OF RECORDS
- normal retention of records for tax purposes is 5 years
- statute of limitations for being sued is normally 6 years
however may be more under certain jurisdictions
- workers compensation is 7 years
- capital assets - purchase documents must be retained for
5 years from date of final sale
- tax losses - you may need the records to prove the tax loss
for 5 years from the date the losses are fully absorbed.
Do not be too anxious to throw out records and remember
to always dispose of your records safely – shredding.
Remember there are penalties for reckless claims
DISCLAIMER
Information is current at time of printing
No person should rely on the contents of this Memorandum without
first obtaining advice from a qualified professional. The publisher
expressly disclaims all and any liability and responsibility to any
person in respect of anything and of the consequences of anything,
done or omitted to be done by any such persons in reliance,
whether partially, upon the whole or any part of the contents of this
Memorandum.
GST
- Registration threshold $75,000
- Tax invoice threshold $75 GST exclusive
---------------------------------------------------------------------------------
DUE DATES
-PAYG Summaries to Employees due 14/7/14
-PAYG Summary to ATO due 14/8/14
- Employee Superannuation Due –
Qtr Ended
Due for Payment
30/6/14
Before 28/7/14
OR 30/6/14 for tax deduction in 2014 Year
30/9/14
28/10/14
31/12/14
28/1/15 (Not 28/2/15)
31/3/15
28/4/15
-Sub-Contractor Reporting – due 21/7/14
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