Changes in tax for the new financial year

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

14 August

PAYG Withholding

Due date for lodging the PAYG withholding payment summary annual report for:

  • large withholders whose annual withholding is greater than $1 million
  • payers who have no tax agent or BAS agent involved in preparing the report

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:

  • electronic lodgment service (ELS)
  • electronic commerce interface (ECI)
  • Tax Agent Portal
  • BAS Agent Portal
  • Standard Business Reporting (SBR).

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.

Employers who lodge a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They will still have to pay the remaining super guarantee charge to us.

Note: The super guarantee charge is not tax deductible.

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.

 

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)

Table 1:  Employee’s annual salary – $112,610 and below

Place


  1. $

Food and drink
$
B-‘fast 25.35
Lunch 28.55 
Dinner 48.65

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
Dinner 44.75

18.70

244.10

Other country centres

110

B-‘fast 22.70
Lunch 25.95
Dinner 44.75

18.70

222.10

 

Table 2:  Employee’s annual salary – $112, 611 to $200,290

Place


  1. $

Food and drink
$
B-‘fast 27.60
Lunch 39.10
Dinner 54.75

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
Lunch 25.95
Dinner 50.55

26.75

280.60

Other country centres

127

B’fast 25.35
Lunch 25.95
Dinner 50.55

26.75

255.60

 

Table 3:  Employee’s annual salary – $200,291 and above

Place


  1. $

Food and drink
$
B’fast 32.55
Lunch 46.10
Dinner 64.60

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

 

Table 4:  High cost country centres – accommodation expenses

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

 

 

 

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)

New China company law – Good news for small to medium size foreign investors
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Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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