Need reminding to lodge your monthly or quarterly BAS on time?

Then join the AFYF mailing list and receive ongoing information, news and updates on the latest tax, business, marketing and accounting developments. We’ll even remind you to lodge your BAS on time!

Out Sourcery

  • Bookkeeping
  • MYOB Setup and Training
  • Business Systems and Management

MYOB | Professional Partner learn more »
 

Disclaimer

This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.

 

Super news valuable

There have been two recent changes to superannuation guarantee law that will have an impact on all employers.

First, from July 1 this year all employers must use “ordinary time earnings” as the earnings base to calculate superannuation guarantee contributions for employees.

Before this, some employers were using a different earnings base contained in an industrial award, or an existing agreement that was entered into with the employee.

The purpose of this change is to standardise the earnings base across all industries so that no employees are disadvantaged. The other important and long-awaited change, which applied from June 24, removes an extremely unfair burden placed on employers who paid their superannuation guarantee contributions after the due date.

In this situation, employers were previously required to pay the contributions a second time to the ATO together with interest and penalties in the form of the superannuation guarantee charge.

The change now allows a late payment of superannuation guarantee contributions to be applied against the superannuation guarantee charge and therefore removes this double contributions burden.

However, the late contribution is not tax deductible and the employer will still need to lodge a superannuation guarantee statement with the ATO and will incur interest and penalties.

The best strategy for employers is to pay the superannuation guarantee contributions on time so that the payment is tax deductible.

This also relieves the employer of the additional burden of having to complete and lodge a superannuation guarantee statement with the ATO.

Joe Kaleb, 29 September 2008
Business Owner, The Daily Telegraph

 


« Back