A reminder to all contractors that Salary sacrificing superannuation is a part of the PayMe service.
Please get in touch with our salary experts today if you want to contribute extra to your fund this financial year.
Please remember due to the legislative changes passed by parliament in 2016 the amount of concessional contributions will be lowered to $25,000 per financial year from 1st July 2017.
For more information please see the ATO website, https://www.ato.gov.au/individuals/super/super-changes/change-to-concessional-(pre-tax)-contributions-cap/
Alliance Leasing Pty Ltd has recently been appointed to the Queensland Government novated leasing panel. An Australian owned and operated company, Alliance Leasing will provide novated leasing services to Queensland Government employees from November 7, 2016. Since winning a Telstra Business Award in 2015, the organisation has relocated its head office to Creek Street in Brisbane. We congratulate both the Canberra and Brisbane offices who continue to deliver outstanding service to their customers.
WHAT IS LAFHA?
It is a “Living away from home allowance”
Not everyone who leaves their home residence for work is eligible to receive LAFHA.
To receive LAFHA you must;
Relocate to another town or city for work purposes (for longer than 21 days)
Maintain your primary residence whilst you work away (cannot lease or sell the property)
Return home after the work has been finished
If you are looking into our services please get in touch for further information to see how it will benefit you. There is no extra cost for this service if you are a PayMe contractor.
For further information, please visit the below link.
The ATO has issued new PAYG withholding tax schedules to reflect the lower personal tax rate.
Changes will increase the middle income tax bracket from $80,000 to $87,000. The rate will now be 32.5% instead of 37%. Employers will be required to lower the amount of tax withheld for affected taxpayers effective from 1 October 2016.
Any tax overpaid beforehand will be refunded by the ATO on assessment after the end of the 2016/17 financial year. Good news for those in this bracket!
From 1 July 2017 Individuals with an adjusted taxable income above $250,000 will pay an additional 15% tax on contributions that aren’t in excess of their annual superannuation contribution cap.
Additionally, the mandatory super contributions cap will be lowered to $25,000 for all individuals. (They are currently $30,000 for those under age 50; $35,000 for those aged 50 and over.)
Legislation is currently being developed for this measure.
As we hear more we will update you…
ANDREW Barr says the 2016/17 ACT Budget will provide further support for Canberra businesses by lifting the payroll tax threshold to $2 million.
“This latest change means that any Canberra business that generates less than $2 million per year will be exempt from payroll tax,” Andrew said.
“This means about 40 local businesses will no longer have to pay payroll tax. (These are businesses with payrolls of between the current threshold of $1.85m and the new threshold of $2.0m, who are currently paying the tax).
“In addition, lifting the payroll tax threshold will give a $10,000 a year tax cut to every business with a payroll of over $2m. Since 2012, the total amount of tax the ACT Government has removed for a firm with a payroll over $2m is $34,250.”
Super concessional contributions for financial year 15 – 16
As the end of another financial year is fast approaching, it’s a good time to check your superannuation contributions. The concessional or pre-tax contributions capped amounts are:
* $30,000 cap for anyone aged 48 or under as at 30 June 2015.
* $35,000 cap for anyone aged 49 year or over as at 30 June 2015.
It is important to note the 9.5% Superannuation Guarantee is also included in the cap.
For all PayMe clients please check your superannuation contribution total provided on your payslip and also check your current balance with your superfund as they will be different due to timing of payments. Once you have your current balance and want to reach you full cap amount PayMe’s salary experts can then assist you to reach this amount.
Now we have returned to work after the festive season, some of us are starting 2016 with a new set of goals.
If your goals are not in writing, they are dreams. Dreams don’t often come true, but goals in writing do. – Jack Daly.
Make a start today and put your goals in writing and share them with a colleague to keep you on track. It may be life changing!