Superannuation
Compliance
New legislation to amend laws relating to Super and PAYG withholding compliance have become effective from 1st April 2019:

• The ATO are now able to disclose information to employees:

1. the non-payment of superannuation by employers (past and present) including the actions they can take to get their superannuation paid.
2. Advising if there is reasonable doubt superannuation not been paid
3. Any action the ATO has or is taking in relation to the non payment.

• STP reporting will apply to all employers making identification of employers who are not compliant easier.

Superannuation Contribution Caps

• Superannuation Guarantee maximum contributions required to be paid by the employer has increased to $55,270 per quarter from 1 July 2019
• Superannuation concessional contribution, which is super calculated before tax, the cap remains at $25,000 from 1 July 2019
• Superannuation Guarantee which is the minimum of superannuation an employee must pay to their employee, remains at 9.5%

Thresholds
Employment Termination Payment Cap (ETP)
Employment termination payment (ETP) is a lump sum payment rather than a wage payment made as a result of termination.
From 1st July 2019 the ETP cap threshold for taxing the lump sum payment for both life and death benefits will increase to $210,000 and the Whole of income cap remains at $180,000
Redundancy Threshold (Lump Sum D)
From 1st July 2019 redundancy tax free threshold Increases to $10,638 + $5,320 for each year of service
Tax Rates
PAYG Withholding Tables
Legislation for changes to income tax thresholds including following offsets:

• low- and middle-income earners for 2018 to 2022
  • Increase 32.5% top bracket threshold $87,000 to $90,000

Additional Low and Middle Tax Offset (LAMITO)
New low- and middle-income tax offsets apply for 2018–19 through and including years to 2021–2022
Australian resident employees (and certain trustees) that do not exceed a taxable income of $125,333 are entitled to the new low and middle tax offset. This is in addition to the existing low-income tax offset. It is calculated during the preparation of an income tax return.
Calculated as follows. If taxable income:

• does not exceed $37,000 you are entitled to $200
• exceeds $37,000 but does not exceed $48,000, you are entitled to $200 plus 3% of the amount of the income that exceeds $37,000
• exceeds $48,000 but not $90,000, you are entitled to $530
• exceeds $90,000 you are entitled to $530 less 1.5% of the amount of the income that exceeds $90,000.

Higher Education Loan Program (HELP)
A new set of repayment thresholds for 2019/2020
From 1 July 2019, the new minimum HELP repayment threshold will be when taxable income is $45,881 or above, with a 1% repayment rate, with a further 17 thresholds and repayment rates, up to a top threshold of $134,573 at which 10% of income is repayable.
Source: Department of Education and Training

• Higher Education Loan Program (HELP) changes - Sustainability Act
• HELP repayment rates and thresholds from 1 July 2019 for 2019-20

Payroll Tax
New South Wales payroll tax threshold to increase on 01 July 2019 to $900,000 annually.

• See below table
• South Australia’s payroll tax threshold increased to $1,500 000 annually or $125,000 monthly on 1 January 2019
• Queensland’s payroll tax threshold increased to $1,300 000 annually, $108,333 monthly or $25,000 weekly on 01 July 2019.
  • Qld tax rate is 4.75% for employers under $6.5m was and $4.95% for employers with wages over $6.5m
  • Regional employers may be entitled to a 1% discount on the rate
• All other states are unchanged.

Motor Vehicle GST Limit
The current motor vehicle GST limit is $57,581 (GST $5,234). No changes advised at this time.
Living Away from Home Allowance (LAFHA) 2020
Living Away from Home Allowance (LAFHA) is an allowance to compensate an employee who is required to live away from their usual place of residence to do their job. This allowance compensates their additional non-deductible expenses. The LAFHA allowance will increase for 2019/2020 financial year for reasonable food and drink within Australia. Children are those aged under 12 at the beginning of the year. Australian and Overseas LAFHA figures are available on the ATO website
Instant Asset Write off
The instant asset write off for income tax purposes has been extended to 30th June 2020 and now includes businesses up to $50 million turnover. The threshold that can be claimed is:
All business up to $50 million turnover:

• $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020

Businesses up to $10 million turnover

• $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020
• $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
• $20,000, before 29 January 2019.

 

There are caps on the amount you can contribute to your super each financial year to be taxed at lower rates. If you contribute over these caps, you may have to pay extra tax.
The cap amount and how much extra tax you have to pay may depend on your age, which financial year your contributions relate to, and whether the contributions are:

• concessional (before tax)
• non-concessional (after tax)

To find out how much you contributed into your super fund to ensure you don't go over the caps, contact your super fund.
Concessional contributions cap
Concessional contributions include:

• employer contributions (including contributions made under a salary sacrifice arrangement)
• personal contributions claimed as a tax deduction.

If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.

Excess concessional contributions from 2013–14 onwards are included as taxable income, taxed at the marginal tax rate plus an excess concessional contributions charge.
For 2012–13 and earlier years, excess concessional contributions were taxed at 46.5% (15% levied in the super fund, with an additional 31.5% payable).
Unused concessional cap carry forward
From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.
The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.

​Note: This Table assumes no indexing of general cap.
General concessional contributions cap
From 1 July 2017 the general concessional contributions cap is $25,000 and is indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $2,500 (rounded down). From the 2017–18 financial year, the general concessional contributions cap is not calculated based on age.
The thresholds currently sit at $25,000 for all age levels, but it important to remember that the current threshold have only been in place in recent times.
Please also remember to review your unused concessional cap carry forward thresholds.