Melbourne Bookkeeper Blog
A lot of employers are not aware of payroll tax or the thresholds. Payroll tax is payable to the State Revenue Office once you exceed an annual limit however you are required to register once you exceed the monthly limit. The current rate of payroll tax is 4.95% at the time of writing this article.
| Period | Maximum Deduction | Rate | |
|---|---|---|---|
| Annual | Monthly | ||
| 1 July 2008 onwards | $550,000 | $45,833 | 4.95% |
What payments are included as wages?
The definition of wages is broad - encompassing everything from bonuses to termination payments. Wages can be divided into two groups: taxable or exempt wage components.
A superannuation contribution is included as wages under the Payroll Tax Act 2007. This means that all employer superannuation contributions made for employees or deemed employees are taxable.
More information can be found in relation to Payroll Tax by following the link.
Every year a maximum claimable GST amount is set by the ATO on motor vehicles. This year the amount is$5,198.00
Car Limits 2009/10
The car limit for the 2009–10 financial year is $57,180. This limit is reviewed each financial year and may change.
The fuel efficient car limit is $75,000 for the 2009-10 financial year. A fuel efficient car is a car that has a fuel consumption not exceeding 7 litres per 100 kilometres. Luxury car tax does not apply to fuel efficient cars under the fuel efficient car limit.
Generally, if you purchase a car and the price is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of that limit. For 2009-10, the maximum GST credit you can claim is $5,198 (that is, 1/11 x $57,180). This limit also applies to cars which are fuel efficient.
If you purchase a car with a price that is more than the car limit, you include only the amount of the car limit (or the proportion of the car limit relating to business use) at G10.
source http://www.ato.gov.au/businesses/content.asp?doc=/content/18276.htm&page=4&H4
- Employers have Super Choice Obligations set by the ATO.
- New employees must be provided with a Standard Super Choice form which must be kept on file by the employer. There is a downloadable copy of the form if you follow the link to this page.
Here is the link to the Fair Work Information Sheet which must be provided to all new employees.
Effective 1 January 2010 there are several important changes in Australia’s workplace laws that affect all employers and employees in the national workplace relations system.
Here is the link to the ATO's determination of Ordinary Time Earnings Checklist for superannuation purposes.
Employers must use ordinary time earnings (OTE) to calculate the minimum Super Guarantee Contributions (SGC) required for their eligible employees. SGC must be paid to a nominated superannuation fund by the due date being the 28th day after the end of each quarter. If it is late you will need to submit the late super via the ATO and complete a Superannuation Guarantee Charge Statement.
Key Lodgment Dates for 2009/10 from the ATO
If you buy taxable goods or services that cost more than $82.50 (including GST), your supplier must provide you with a tax invoice within 28 days after you request one.
Tax invoices that contain incorrect or incomplete information are not valid. If you receive a tax invoice that is incomplete or incorrect, you should ask your supplier to replace it with a complete and correct tax invoice.
If you wish to claim a GST credit but your supplier does not give you a valid tax invoice within the 28 day period, you can seek our permission to claim the GST credit by providing us with the following information:
A recipient created tax invoice (RCTI) is a tax invoice that is issued by the recipient of the goods and/or services rather than the supplier. RCTIs can only be issued by a recipient if:
- the recipient and the supplier are both registered for GST
- the sales for which the recipient can issue a RCTI are agreed to in writing by the recipient and the supplier either in a separate written agreement specifying the supplies to which each agreement relates or embedding this information or specific terms, as outlined in the Legislative Instrument, in the tax invoices they issue
- the agreement is current and effective when the RCTI is issued
- the goods or services being sold under the agreement are of the type that we have determined can be invoiced using RCTIs.
The ATO have made legislative determinations about the types of sales of goods or services that can be invoiced using RCTIs. For more information, phone on 13 28 66 or visit the legal database at law.ato.gov.au and search using the term ‘RCTI’.
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