As we start the new financial year it is important to recognise a number of changes that have occurred in respect to ATO benchmarks, rates, rulings and determinations. We summarise a few important changes for your business.
Flash Updates - ATO Determinations and Rulings
As an update of recent ATO Rulings and Determinations refer as follows:
1. Private Company loans to associates (TD 2014/20)
Commencing 1 July 2014 for the purpose of the benchmark interest rate for Division 7A of Part III of the Income Tax Assessment Act 1936 has decreased from 6.05% to 5.95%. The interest rate will apply to loans with associates as at 30 June 2014, not repaid prior to lodgement of the company’s 2014 income tax return
2. Reasonable Travel Allowances (TD 2014/19)
Commencing 1 July 2014 this Determination sets out the amounts that the Commissioner considers are reasonable (reasonable amounts) for the substantiation exception in Subdivision 900‑B of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2014‑15 income year in relation to claims made for:
a. Overtime meal allowance expenses – for food and drink in connection with overtime worked and where a meal allowance has been paid under an industrial instrument
b. Domestic travel allowance expenses – accommodation, food and drink, and incidentals that are covered by the allowance
c. Travel allowance expenses for employee truck drivers – food and drink that are covered by the allowance, and
d. Overseas travel allowance expenses – food and drink and incidentals that are covered by the allowance.
Refer tabled in appendix one.
3. Luxury Car Limit (TD 2014/19)
Commencing 1 July 2014 the car limit under section 40-230 of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2014-15 financial year is $57,466 for depreciation purposes.
4. Fringe Benefits Car Parking Rates (TD 2014/11)
Fringe benefits tax: for the purposes of s 39A of FBTAA 1986 the car parking threshold for the fringe benefits tax (FBT) year commencing on 1 April 2014 is $8.26. This replaces the amount of $8.03 that applied in the previous year commencing 1 April 2013. There are certain exemptions for car parking fringe benefits for SME’s for more information please contact us.
5. Superannuation Guarantee Charges
Commencing 1 July 2014 the SGC rate will increase from 9.25% to 9.50%, it is important to ensure your payroll system is updated to reflect the change in the SGC rates. The SGC upcoming due dates for payment of employee liabilities are as follows;
- Quarter end 30 June 2014 28th July 2014
- Quarter end 30 September 28th October 2014
- Quarter end 31 December 28th January 2015
- Quarter end 31 March 28th April 2015
- Quarter end 30 June 28th July 2015
Lodgement deadlines - Upcoming dates for July and August 2014
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14 August |
PAYG Withholding |
Due date for lodging the PAYG withholding payment summary annual report for:
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|
21 August |
Activity Statement |
July 2014 monthly activity statement – due date for lodging and paying. |
|
25 August |
Activity Statement |
Quarterly activity statement, quarter 4, 2013–14 – tax agents and BAS agents – due date for lodging and paying if you are lodging using one of the following:
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|
28 August |
Superannuation Guarantee |
Due date for lodging the Superannuation guarantee charge statement – quarterly, and paying the super guarantee charge for quarter 4, 2013–14, if the employer did not pay enough contributions on time. |
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21 September |
Activity Statement |
August 2014 monthly activity statement – due date for lodging and paying. |
|
30 September |
PAYG Withholding |
Due date for lodging the PAYG withholding payment summary annual report for payers whose registered agent (BAS agent or tax agent) helped prepare the report. If a payer has only closely held payees and their tax agent helps prepare their report, they may be eligible for a concession to lodge this report by the due date of their tax return. |
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TFN Report |
Annual TFN withholding report 2014 – due date for lodgment when a trustee of a closely held trust has been required to withhold amounts from payments to beneficiaries. |
Appendix one - Reasonable Travel Allowances (TD 2014/19)
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Table 1: Employee’s annual salary – $112,610 and below |
||||
|
Place |
|
Food and drink |
Incidentals |
Total |
|
Adelaide |
157 |
102.55 |
18.70 |
278.25 |
|
Brisbane |
201 |
102.55 |
18.70 |
322.25 |
|
Canberra |
168 |
102.55 |
18.70 |
289.25 |
|
Darwin |
216 |
102.55 |
18.70 |
337.25 |
|
Hobart |
132 |
102.55 |
18.70 |
253.25 |
|
Melbourne |
173 |
102.55 |
18.70 |
294.25 |
|
Perth |
233 |
102.55 |
18.70 |
354.25 |
|
Sydney |
185 |
102.55 |
18.70 |
306.25 |
|
High cost country centres |
See Table 4 |
102.55 |
18.70 |
Variable – see Table 4 |
|
Tier 2 country centres (see Table 5) |
132 |
B-‘fast 22.70 Lunch 25.95 |
18.70 |
244.10 |
|
Other country centres |
110 |
B-‘fast 22.70 |
18.70 |
222.10 |
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Table 2: Employee’s annual salary – $112, 611 to $200,290 |
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|
Place |
|
Food and drink |
Incidentals |
Total |
|
Adelaide |
208 |
121.45 |
26.75 |
356.20 |
|
Brisbane |
257 |
121.45 |
26.75 |
405.20 |
|
Canberra |
223 |
121.45 |
26.75 |
371.20 |
|
Darwin |
287 |
121.45 |
26.75 |
435.20 |
|
Hobart |
176 |
121.45 |
26.75 |
324.20 |
|
Melbourne |
228 |
121.45 |
26.75 |
376.20 |
|
Perth |
260 |
121.45 |
26.75 |
408.20 |
|
Sydney |
246 |
121.45 |
26.75 |
394.20 |
|
High cost country centres |
See Table 4 |
121.45 |
26.75 |
Variable – see Table 4 |
|
Tier 2 country centres (see Table 5) |
152 |
B’fast 25.35 |
26.75 |
280.60 |
|
Other country centres |
127 |
B’fast 25.35 |
26.75 |
255.60 |
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Table 3: Employee’s annual salary – $200,291 and above |
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|
Place |
|
Food and drink |
Incidentals |
Total |
|
Adelaide |
209 |
143.25 |
26.75 |
379 |
|
Brisbane |
257 |
143.25 |
26.75 |
427 |
|
Canberra |
246 |
143.25 |
26.75 |
416 |
|
Darwin |
287 |
143.25 |
26.75 |
457 |
|
Hobart |
195 |
143.25 |
26.75 |
365 |
|
Melbourne |
265 |
143.25 |
26.75 |
435 |
|
Perth |
299 |
143.25 |
26.75 |
469 |
|
Sydney |
265 |
143.25 |
26.75 |
435 |
|
Country centres |
$190, or the relevant amount in Table 4 if higher |
143.25 |
26.75 |
Variable – see Table 4 if applicable |
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Table 4: High cost country centres – accommodation expenses |
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|
Country centre |
$ |
Country centre |
$ |
|
Albany (WA) |
179 |
Jabiru (NT) |
192 |
|
Alice Springs (NT) |
150 |
Kalgoorlie (WA) |
159 |
|
Bordertown (SA) |
135 |
Karratha (WA) |
347 |
|
Bourke (NSW) |
165 |
Katherine (NT) |
134 |
|
Bright (VIC) |
152 |
Kingaroy (QLD) |
134 |
|
Broome (WA) |
233 |
Kununurra (WA) |
202 |
|
Bunbury (WA) |
155 |
Mackay (QLD) |
161 |
|
Burnie (TAS) |
149 |
Maitland (NSW) |
152 |
|
Cairns (QLD) |
140 |
Mount Isa (QLD) |
160 |
|
Carnarvon (WA) |
151 |
Mudgee (NSW) |
135 |
|
Castlemaine (VIC) |
133 |
Newcastle (NSW) |
152 |
|
Chinchilla (QLD) |
143 |
Newman (WA) |
195 |
|
Christmas Island (WA) |
150 |
Norfolk Island (NSW) |
329 |
|
Cocos (Keeling) Islands (WA) |
285 |
Northam (WA) |
163 |
|
Colac (VIC) |
138 |
Orange (NSW) |
149 |
|
Dalby (QLD) |
144 |
Port Hedland (WA) |
295 |
|
Dampier (WA) |
175 |
Port Pirie (SA) |
140 |
|
Derby (WA) |
190 |
Queanbeyan (NSW) |
133 |
|
Devonport (TAS) |
135 |
Roma (QLD) |
139 |
|
Emerald (QLD) |
156 |
Thursday Island (QLD) |
200 |
|
Exmouth (WA) |
255 |
Wagga Wagga (NSW) |
141 |
|
Geraldton (WA) |
175 |
Weipa (QLD) |
138 |
|
Gladstone (QLD) |
187 |
Whyalla (SA) |
145 |
|
Gold Coast (QLD) |
149 |
Wilpena‑Pound (SA) |
167 |
|
Gosford (NSW) |
140 |
Wollongong (NSW) |
136 |
|
Halls Creek (WA) |
199 |
Wonthaggi (VIC) |
138 |
|
Hervey Bay (QLD) |
157 |
Yulara (NT) |
244 |
|
Horn Island (QLD) |
180 |
|
|
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Table 5: Tier 2 country centres |
|
|
Country centre |
Country centre |
|
Albury (NSW) |
Kadina (SA) |
|
Ararat (VIC) |
Launceston (TAS) |
|
Armidale (NSW) |
Mildura (VIC) |
|
Ayr (QLD) |
Mount Gambier (SA) |
|
Bairnsdale (VIC) |
Muswellbrook (NSW) |
|
Ballarat (VIC) |
Naracoorte (SA) |
|
Bathurst (NSW) |
Nowra (NSW) |
|
Benalla (VIC) |
Port Augusta (SA) |
|
Bendigo (VIC) |
Portland (VIC) |
|
Broken Hill (NSW) |
Port Lincoln (SA) |
|
Bundaberg (QLD) |
Port Macquarie (NSW) |
|
Ceduna (SA) |
Queenstown (TAS) |
|
Charters Towers (QLD) |
Renmark (SA) |
|
Coffs Harbour (NSW) |
Rockhampton (QLD) |
|
Cooma (NSW) |
Sale (VIC) |
|
Dubbo (NSW) |
Seymour (VIC) |
|
Echuca (VIC) |
Shepparton (VIC) |
|
Esperance (WA) |
Swan Hill (VIC) |
|
Geelong (VIC) |
Tamworth (NSW) |
|
Goulburn (NSW) |
Tennant Creek (NT) |
|
Gunnedah (NSW) |
Toowoomba (QLD) |
|
Hamilton (VIC) |
Townsville (QLD) |
|
Horsham (VIC) |
Tumut (NSW) |
|
Innisfail (QLD) |
Warrnambool (VIC) |
Comment