Under SuperStream, you need to pay super contributions for your employees electronically (EFT or BPAY) and send the associated data electronically.

The data is in a standard format so it can be transmitted consistently across the super system – between employers, funds, service providers and the ATO. It’s linked to the payment by a unique payment reference number.

This means you can make all your contributions in a single transaction, even if they’re going to multiple super funds.

The deadline to be on board with SuperStream was 30 June 2016. However, the ATO will provide compliance flexibility to small businesses that are not yet SuperStream ready until 28 October 2016.

This means the ATO will not be taking compliance action against small businesses that missed the 30 June deadline.

Source: https://www.ato.gov.au/super/superstream/employers/

You may be unsure whether you’re in business, or your activity is just a hobby. A hobby is a spare-time activity or pastime pursued for pleasure or recreation. Unlike a hobby, a business is run with the intention of making a profit and has basic reporting requirements, such as declaring income and claiming expenses. It’s important to know the difference between a hobby and a business.

There is no single rule that determines if you’re in business, but below are indicators that you may be.

• You’ve made a decision to start a business and have done something about it, such as registered a business name or got an ABN.
• You intend to make a profit or genuinely believe you’ll make a profit from the activity, even if you’re unlikely to do so in the short term.
• You repeat similar types of activities.
• The size or scale of your activity is consistent with other businesses in your industry.
• Your activity is planned, organised and carried out in a businesslike manner.

Source: https://www.ato.gov.au/Business/Starting-your-own-business/Business-or-hobby-/

On 9 May 2016 the Australian Government assumed a caretaker role. The continuation of this measure will be a matter for the incoming government to decide.

In the 2016-17 Budget, the Government announced that the marginal tax rate of 37 per cent will now start at $87,000 instead of the current $80,000.

To benefit from this measure your taxable income must be more than $80,000. The maximum amount of tax you can save is $315.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-individuals/Targeted-personal-income-tax-cut/

From 2015–16, an individual is entitled to a tax offset on the tax payable on their share of net small business income earned by a sole trader, partnership or trust that is a small business entity.

Sole traders, partnerships and trusts that are small business entities need to work out their net small business income as well as the partner’s and beneficiary’s share of that income.

Individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $2 million will be eligible for a small business tax discount. The discount will be five percent of the income tax payable on the business income received from an unincorporated small business entity.

The discount will be capped at $1,000 per individual for each income year, and delivered as a tax offset.

The start date for this measure is the 2015–16 income year.

Source: https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-Time-2016/Overview-of-key-changes/

The SuperStream 30 June deadline for small employers is nearly here. If you have clients who have not yet prepared, they have just days remaining to start using a compliant solution.

Solutions your clients can use include upgrading their payroll software, using a super fund’s online system, a messaging portal, or using a clearing house.

Our Small Business Superannuation Clearing House (SBSCH) is a free solution for your small business clients to comply with SuperStream. It is a consistent, simple way to send super payments electronically in a standard format, saving time and money.

Businesses with an annual aggregated turnover of $2 million or less, and 19 or fewer employees can use the clearing house.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Superannuation/30-days-until-the-SuperStream-deadline/?tpissue-21-2016

The small business company tax rate reduced from 30% to 28.5% for income years commencing on or after 1 July 2015. This lower rate also applies to small businesses that are corporate unit trusts and public trading trusts.

The company tax rate remains at 30% for all other companies that are not small business entities.

Source: https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-Time-2016/Overview-of-key-changes/

The government is strengthening the foreign resident capital gains tax (CGT) regime to assist in the collection of foreign residents’ CGT liabilities. New rules will soon apply to sales of taxable Australian property with a market value of $2 million or above.

A 10% non-final withholding tax will be incurred for all contracts entered into on or after 1 July 2016.

If you are selling such property, you will need to obtain a clearance certificate from the ATO prior to settlement to avoid the 10% non-final withholding tax.

The ATO will release detailed guidance and frequently asked questions in the coming weeks.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/New-rules-for-selling-property-over-$2-million/?tpissue-12-2016

Employers with 19 or fewer employees should be SuperStream ready by 30 June 2016 (larger employers should already be using SuperStream).

However, the ATO recommends making your first SuperStream payment no later than March 2016. This will give you time to make several payments and ensure your system is running smoothly before the 30 June 2016 deadline.

Starting sooner also means you can enjoy the benefits sooner.

It may take time to collect the information and get used to the new system. If any information is incomplete or incorrect, the super payment is likely to be rejected.

It’s still up to you to meet your super guarantee obligations by the due dates.

If you’re using a clearing house, check how long they will take to send the money and information to the super fund. Generally an employee’s super contribution is counted as being paid on the date the fund receives it, not the date a clearing house receives it from you.

Source: https://www.ato.gov.au/Super/Superstream/Employers/Employer-checklist–a-step-by-step-guide/

You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return.

If the policy provides for benefits of an income and capital nature, only that part of the premium attributable to the income benefit is deductible.

You can’t claim a deduction for a premium or any part of a premium:

• for a policy that compensates you for such things as physical injury
• where the policy is taken out through your superannuation

For example, you can’t claim a deduction for:

• life insurance premiums
• trauma insurance premiums
• critical care insurance premiums

Source: https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/income-protection-insurance/

If you think your employer isn’t paying your super guarantee contributions, follow the steps below:

• Talk to your employer. You should ask them how often they are currently paying your super, into which fund they are paying it and how much they are paying.
• Check your last Member statement from your super fund or contact them to confirm whether your employer has paid your super contributions.
• Create or log in to your myGov account to access online services including checking how much super has been paid into your super fund, and details of all your super funds including any you have lost track of.
• Lodge an enquiry. If you have completed steps 1 and 2 and still believe your employer is not paying enough, or any, super, or is not paying the super to your chosen fund, you can lodge an enquiry about unpaid super by using the online.

Source: https://griffinassociates.com.au/wp-admin/post-new.php