Peter Dutton
The Australian Taxation Office (ATO) has announced its plans to provide approximately 740,000 employers across the nation with a fact sheet explaining the implications of the new superannuation rules going forward from July 1.
The fact sheet has been designed to make the rules clearer for not only employers but for self-employed individuals and employees as well.
According to the Assistant Treasurer, Peter Dutton, a few of the main issues of note include the deductibility of contributions and the new rules regarding Reasonable Benefit Limits.
“From July 1, 2007, all employer contributions to complying superannuation funds will be fully tax deductible. Employers will no longer need to worry about age-based deduction limits which meant that the tax deductions they could claim depended on the age of their employee,” he said.
“Employers will also no longer need to report termination payments to the ATO for Reasonable Benefit Limit purposes. This is one less form that employers need to worry about,” Dutton added.
He also highlighted the obligation of employers to pass on the tax file numbers for employees commencing their employment term after July 1, 2007, to their superannuation funds. Previously they only had to do this if the employees had indicated that way on their tax file number declaration form.
Dutton also pointed out that the self-employed are entitled to full tax deductions for personal super contributions from July 1, and that the Government’s co-contribution scheme will be available to them from this date.
“The Government is working to make sure that Better Super is an easier process to understand all round,” he said.
