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APRA's Latest Updates to Superannuation Data Transformation FAQs

In a bid to enhance transparency and streamline reporting, APRA (Australian Prudential Regulation Authority) has introduced fresh updates and insights into the Superannuation Data Transformation project. These changes aim to provide a clearer understanding of the reporting requirements and help superannuation entities navigate the evolving landscape.

Bills to Establish fiscal Responsibility Regime Now Law A Game Changer for Banking, Insurance, and Superannuation diligence"

In a significant move aimed at enhancing fiscal responsibility within the banking, insurance, and superannuation sectors, the Fiscal Responsibility Regime( FAR) has officially come law. On the 14th of September 2023, the Fiscal Responsibility Regime Bill 2023 and the Fiscal Responsibility Regime( Consequential emendations) Bill 2023 entered assent, marking a vital moment in fiscal assiduity regulation and oversight. These two bills, Act No 67 of 2023 and Act No 68 of 2023, independently, bring with them sweeping changes that will impact how these diligences operate.

Superannuation Guarantee Amnesty (7) – Contributions Made Under the SG Amnesty (2)

 

 

 

 

 

 

Contributions made under the SG amnesty will not cause/increase a Division 293 tax liability

Under the SG amnesty, contributions made won't trigger or increase Division 293 tax liability for employees. Division 293 tax applies when an individual's income for surcharge purposes plus their low tax contributions exceed $250,000. Low tax contributions include concessional contributions except excess ones.

To prevent Division 293 tax liability from SG amnesty contributions:

  1. Contributions made by the Commissioner or the employer under the SG amnesty, to offset SGC liability, are excluded from an individual's low tax contribution amounts if the employer qualified for the amnesty (new S.293-30(4)(c) and (d) of the ITAA 1997).

  2. This exclusion ensures SG amnesty contributions don't trigger Division 293 tax or increase it for other low tax contribution amounts.

For example:

Tom's income for Division 293 tax is $240,000, including low tax contributions of $21,000. In June 2020, Tom's employer makes a $60,000 contribution under the SG amnesty to offset their SGC liability. Without the exclusion, Tom's income would increase to $300,000, triggering Division 293 tax liability of $7,500. But since the contribution is under the SG amnesty, it won't be a low tax contribution, keeping Tom's income below the $250,000 threshold.

For further assistance, you can reach out to Tax Ideas Accountants & Advisers at

+61 2 83181545 or book an appointment via live calendar.

Superannuation Guarantee Amnesty (6) – Contributions Made Under the SG Amnesty (1)

 

Superannuation Guarantee Amnesty (5) – Increased Minimum Penalty for Employers Ignore the SG amnesty

ATO's Enhanced Powers: What Employers Need to Know

As the Superannuation Guarantee (SG) amnesty wraps up, the Australian Taxation Office (ATO) is gearing up with more tools to ensure compliance from employers. Here's what's new:

1. Single Touch Payroll (STP)

Employers must now report tax and superannuation info to the ATO through STP whenever they pay salaries or wages to employees, except for limited exceptions.

2. Member Account Transaction Service (MATS)

Under MATS, superannuation funds report contributions received to the ATO through SuperStream. This includes employer contributions, helping the ATO track employer compliance.

3. Direction Orders

The Commissioner can now direct employers to pay unpaid superannuation guarantee, with non-compliance becoming a criminal offense. Employers might also be required to undergo superannuation guarantee education courses.

4. Director Penalty Regime

Directors of companies failing to pay SGC liabilities in full by the due date may be personally liable for the unpaid amount. This applies to SGC liabilities from June 2012 onwards.

5. Security Deposits

The ATO can demand security deposits from entities at risk of ceasing business operations, ensuring future superannuation liabilities are covered.

Implications After the SG Amnesty

If a disclosure is made after September 7, 2020 (the end of the amnesty period), the Commissioner's ability to reduce Part 7 penalties may be limited. Penalties may not be reduced below 100% of the SGC payable if certain conditions are met, particularly if the employer failed to disclose relevant information during or before the amnesty period.

However, exceptions may apply in cases of exceptional circumstances preventing disclosure or for SG shortfalls from April 1, 2018, onwards.

For any questions or assistance, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

 

Superannuation Guarantee Amnesty (4) – Benefits from The SG Amnesty

 

Superannuation Guarantee Amnesty (3) – Eligibility for The SG Amnesty

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Qualifying for the SG Amnesty: What Employers Need to Know

If you're an employer in Australia, understanding the criteria for qualifying for the Superannuation Guarantee (SG) amnesty is crucial. This beneficial treatment can help you rectify any SG shortfall issues. Let's break down the requirements outlined in Section 74 of the Superannuation Guarantee (Administration) Act 1992:

Superannuation Guarantee Amnesty (2) – Consequences for Not Meeting SG obligations

 

Superannuation Guarantee Amnesty (1) – Employers’ Obligations

 

PAYG tax and superannuation of non-executive directors

Q: A client, who is the chairman of a medium-sized not-for-profit (NFP) organization in the employment service sector, received conflicting advice about whether non-executive directors (NEDs) should be considered employees. Can you clarify the situation regarding their employment status and the organization's super contribution obligations?

A: To determine if a non-executive director (NED) is an employee, we need to consider factors outlined in taxation ruling TR 2005/16 and superannuation Guarantee ruling SGR 2005/1. However, regardless of their status, both PAYG tax and superannuation may apply to the remuneration paid to the director (TAA 1953 Sch 12-40(1); SGAA s12(2)). So, whether the NED is an employee or not, tax and superannuation obligations still apply.

 If you have any questions, feel free to contact Tax Ideas Accountants & Advisers. You can also book an appointment through our live calendar.

 

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