If you are still paying super contributions to your employees by EFT or BPAY, you may not be meeting the SuperStream standard.

Under SuperStream, businesses now need to pay and send super contribution information electronically (not by email). This allows payments to be tracked and ensures the contributions make it to the right place.

SuperStream is about simplifying the superannuation system. More than 75% of small businesses are already seeing the benefits, including a shorter, more streamlined and efficient process.

Take action now and check your current payment method is meeting the SuperStream standard by using our decision tool. Or, contact your super fund to see if you need to change the way you pay.

Source: https://www.ato.gov.au/Newsroom/smallbusiness/Super/Paying-super-by-BPAY-or-EFT-/

The ATO will send an email or SMS to individuals who will receive their first Division 293 tax assessment or, who will receive it in myGov if they have linked their account to the ATO.

These emails and SMS will only issue during peak assessment periods in November 2016, and between April and early June 2017.

The message advises you to check their assessment as it has important information about tax on your super contributions.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Superannuation/Division-293-assessments—email-and-SMS-alerts/

On 15 September 2016, the Government announced that this measure will commence from 1 July 2018.

Individuals with superannuation balances of $500,000 or less will be allowed to access their unused concessional cap space to make additional concessional (before-tax) contributions.

Individuals will be able to access their unused concessional contributions cap space on a rolling basis for a period of 5 years. Amounts carried forward that have not been used after 5 years will expire.

Only unused amounts accrued from 1 July 2017 can be carried forward.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Super/Allowing-catch-up-concessional-superannuation-contributions/

To help you get things right, you should consider the behaviours, characteristics and tax issues that attract the ATO’s attention.

The ATO have published this information below as the behaviours and characteristics that may attract their attention:

• tax or economic performance is not comparable to similar businesses
• low transparency of your tax affairs
• large, one-off or unusual transactions, including transfer or shifting of wealth
• a history of aggressive tax planning
• tax outcomes inconsistent with the intent of tax law
• choosing not to comply or regularly taking controversial interpretations of the law
• lifestyle not supported by after-tax income
• treating private assets as business assets
• accessing business assets for tax-free private use
• poor governance and risk-management systems

Source: https://www.ato.gov.au/Business/Privately-owned-and-wealthy-groups/What-you-should-know/Transparency/What-attracts-our-attention/

If you own a holiday home you can only claim tax deductions for expenses to the extent the home is rented out or genuinely available for rent.

Even if you don’t rent it out, there are capital gains tax implications when you sell it.

Holiday homes – not rented out

If you own a holiday home and do not rent out the property, you do not include anything in your tax return until you sell it.

You will have to keep records from the time you purchase the property until the time you sell it to be able to work out the capital gain or loss when you sell.

Holiday homes – rented out

The principles that apply to a rental property also apply to a holiday home if it is rented out.

If you rent out your holiday home, you can claim expenses for the property based on the proportion of the income year it was rented out or was genuinely available for rent.

You have to apportion your expenses between periods of:

• genuine rental
• use by family or friends when you charge less than market rent
• use for private purposes – such as when you use it yourself, or allow your family, relatives or friends to use it free of charge

Source: https://www.ato.gov.au/General/Property/In-detail/Holiday-homes/

The ATO have been talking to the small business community to better understand how they can support small business owners who may be experiencing mental health issues.

If you are a small business and experiencing mental health issues, there are a few options available to help.

You can:

• submit a request for hardship priority processing via the Portals
• ask about setting up a payment plan
• apply for a lodgment and payment deferral

Please contact our office for further information and how we can assist.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Small-business-mental-health-initiative/

On 15 September 2016, the Government announced changes to the superannuation measures announced in the May 2016 Budget.

There is now a proposal to lower the existing non-concessional (post-tax) contributions cap from $180,000 to $100,000 per annum with a three-year bring forward period for individuals under age 65 (i.e. $300,000 over three years).

Individuals with a balance of more than $1.6 million will no longer be eligible to make non-concessional contributions.

The new non-concessional contributions cap of $100,000 per annum is intended to begin from 1 July 2017. Until then, the current treatment of non-concessional contributions apply.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Super/Lowering-the-annual-non-concessional-contributions-cap/

As of 28 October 2016 all employers are required to be SuperStream compliant. Employers will send contributions electronically to super funds using the SuperStream standard. This includes self-managed super funds (SMSFs).

All super funds (including SMSFs) that receive employer contributions have a requirement to be able to receive contribution payments and associated data electronically.

Employers will need to collect some new information and update employee records in their payroll file to enable employee contributions to be sent electronically via the SuperStream standard.

For employees with SMSFs this includes providing the fund’s ABN and bank account details and a registered electronic service address to their employer.

Source: https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/News/Provision-of-SMSF-details-to-employers/

If you are a temporary resident working in Australia, your employer has to pay super guarantee contributions for you if you’re eligible.

When you leave Australia, you may be able to claim your super as a departing Australia superannuation payment (DASP).

Please click on the link below for further information:

Source: https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-paying-tax/super-information-for-temporary-residents-departing-australia/

In the 2016-17 Federal Budget, the government announced that it will continue the pause on indexation of the income thresholds for the Medicare levy surcharge and private health insurance rebate for a further three years from 1 July 2018 to 30 June 2021.  This change is not yet law.

Under the current law, indexation of the income thresholds for the Medicare levy surcharge and private health insurance rebate have been paused for three years from 1 July 2015 to 30 June 2018.

A table of the income thresholds can be found at the link below.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-individuals/Medicare-levy-surcharge-and-private-health-insurance-rebate-thresholds-frozen/