Lodgement Obligations & Tax Update - January 2017
Lodgement Obligations Jan – Mar 2017
As we have entered the third quarter of the 2016/2017 financial year, we would like to take this opportunity to let you know of some important dates relating to your lodgement and compliance obligations for the period 1 January 2017 to 31 March 2017.
21 January 2017
Lodgement and payment of December 2016 monthly Business Activity Statement (BAS) except for small business clients who report GST monthly and lodge electronically.
28 January 2017
Payment of super guarantee contributions for wages paid for the period 1 October to 31 December 2016.
Employers who do not pay the super guarantee by this date, must pay the super guarantee charge and lodge a super guarantee charge statement by 28 February 2017.
21 February 2017
Monthly BAS for the month of January due for lodgement and payment.
28 February 2017
Lodgement and payment of BAS for the quarter ended 31 December 2016.
Quarterly instalment notice (form R, S or T) for quarter ended 31 December 2016 due for payment. Lodgement is only required if you vary the instalment amount.
21 March 2017
February 2017 monthly BAS due for lodgement and payment.
31 March 2017
Taking of odometer reading for companies that lodge or are required to lodge a Fringe Benefit tax return.
Towards the end of March 2017, we will communicate with you again to let you know of your compliance obligations for the period 1 April to 30 June 2017.
Working Holiday Makers
If your business employs (or plans to employ) working holiday makers you are required to register with the ATO by 31 January 2017.
From 31 January 2017, the rules for visa sub class 417 and 462 holders will change.
Provided you register, a withholding rate of 15% applies to the first $37,000 paid to such workers. For every dollar above $37,000 the withholding rate is 32.5%. For every dollar over $80,000 the rate is 45%.
However, if you do not register with the ATO you must withhold tax at 32.5% up to $37,000. Employers who do not register by 31 January 21017 may be penalised by the ATO.
Changes to Superannuation for 2017
The governments Superannuation reforms passed the parliament on 23 November 2016. These changes will come into effect from 1 July 2017.
As it is important to remain on top of changes to Superannuation regulation we have briefly summarised the more impactful changes below. If you would like to discuss the effect of these changes may have on your super, please don’t hesitate to call our office.
Lowering the annual non–concessional contributions cap
From 1 July 2017, the annual non-concessional contributions cap will be lowered to $100,000. Members under 65 will be able to bring forward three years of non-concessional contributions. Previously the non-concessional cap was $180,000 annually for members 65 or over but under 75 or $540,000 over a three-year period for members under 65.
This cap replaces the controversial $500,000 non-concessional cap announced in the 2016-17 budget.
Lowering of the concessional contributions cap
From 1 July 2017, the concessional (before tax) contributions cap will be lowered to $25,000 (currently $30,000 for those under 49 and over $35,000).
Division 293 threshold lowered
From 1 July 2017, the threshold high income earners will pay additional contributions tax (division 293) will be reduced to $250,000 (currently $300,000).
Deductions for personal concessional contributions
Currently only individuals who earn less than 10% of their income from salary or wages are able to deduct personal superannuation contributions. From 1 July 2017, everyone who makes personal concessional contributions up to the concessional contributions cap will be able to claim a tax deduction.
Introduction of a transfer balance cap
From 1 July 2017, a cap of $1.6 million will be put in place on the total amount a member can transfer from accumulated superannuation to the tax-free retirement stage. Savings beyond $1.6 million can remain in in the accumulation account where they are taxed at 15%. Transitional arrangements will apply.
A complete list of changes
- Lowering the annual non–concessional contributions cap
- Lowering the concessional contributions cap
- Division 293 threshold lowered
- The ability to deduct personal concessional contributions expanded
- The Low-Income Superannuation Contribution (LISC) will be replaced with the Low Income Superannuation Tax Offset (LISTO).
- Catch–up concessional contributions allowed
- Extension of the spouse tax offset
- Increased range of financial products able to access tax exemption in the retirement phase
- The tax-exempt status of income from assets supporting TRIS will be removed, this income will now be taxed concessionally at 15%
- The anti–detriment rule will be abolished
- Streamlined administrative processes
Meanwhile, if you have any queries in relation to your taxation and accounting affairs, please do not hesitate to contact us – Wendy, Laura, Nicholas and Dimitri, will be happy to talk to you.