Government Super Co-Contribution and Government Low income Super Contribution

You might be entitled to up to $500.00 per annual of super from Australia Government if you meet the criteria.

Low income super contribution applies to concessional contribution i.e. you or your employers are entitled to tax deductions in tax returns; while super co-contribution non concessional contribution i.e. personal after tax deductions.

It might be relevant to tax payer income under $48,516 and $37,000, one of the other criteria is you must me Australia resident, not temporary resident visa, also age of tax payers are also relevant.

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SUPER – Excess Concessional Contribution

 Excessive super contribution might mean too much tax

For 2012-13 and earlier years, any amount over the concessional contributions cap will be taxed at an additional 31.5%. You’re personally liable for this tax, but you can use the release authority we give you to ask your super fund to release money up to the amount of this tax. The excess amount will also count towards your non-concessional contributions cap.

For 2013-14 and later years, any amount over the concessional contributions cap will be included in your assessable income and taxed at your income tax marginal rate. You will also be liable for the excess concessional contributions charge. You will receive a non-refundable tax offset equal to the 15% tax paid by your fund on this amount. You can elect to have 85% of your excess concessional contributions released from superannuation, and the released amount will not count toward your non-concessional contributions cap.

It’s important to regularly monitor the contributions made to your super fund if you don’t want to inadvertently exceed a cap.

Timing of your contributions can also be important. Contributions are counted towards the caps in the year in which they are received and credited by your super fund. For example, your employer may send contributions to the fund in the month after each quarter, which means that contributions for April–June will be received by the super fund in July and will therefore count towards the next financial year caps.

Property & GST

 Many people are actually carrying on an enterprise when making property transactions but do not register for GST when they are required to do so. If you do not register for GST and you are required to do so, you may have to pay GST on the sales you have made since the date you became required to register – even if you did not include GST in the price of those sales. Penalties and interest may also apply.

 

Even if you are not in business, you may still be required to register for GST as one-off property transactions may be an ‘enterprise’.

 

If you buy property with the intention to sell at a profit or develop property to sell, you may be considered to be conducting an enterprise. If your turnover from these activities is more than the GST registration threshold you may be required to register for GST. 

Generally, you are not considered to be carrying on an enterprise if your property transactions are for private purposes, for example you are constructing or selling your family home. If your property activities are considered to be an enterprise and you need to register for GST, you do not include any of the following activities when calculating your GST turnover for registration purposes:

■ the sale of a residence that is not new residential premises

■ sales you make that are for no payment (unless they are

made to an associate)

■ other property sales you make that are private and not

connected to your enterprise (such as your family home)

■ residential rental income.

If you construct new residential premises and you sell it in the course of your enterprise, it will be included in your GST turnover calculations to determine whether you should register.

ABN and business

ABN is a unique ID for business enterprise in Australia

·         Great reasons to have an ABN

The ABN is a unique 11 digit identifier which:

  • helps you claim goods and services tax (GST) credits
  • lets you claim fuel tax credits you qualify for
  • if not quoted to businesses you deal with, may result in amounts being withheld from payments to you under pay as you go (PAYG) withholding
  • Allows businesses to easily confirm your details for ordering and invoicing.

 

 

  • How is an enterprise defined?

For tax purposes, enterprise means a business and also includes such activities as:

  • a service provided to you by a contractor
  • the rent of a commercial property, and
  • most other things in the nature of trade.

Enterprise does not include an activity carried on as:

  • an employee or a labour hire worker, or
  • a private recreational pursuit or hobby (for example, where someone sells you handicrafts they make as a hobby).On what other documents can an ABN be quoted?

 

On what other documents can an ABN be quoted

A supplier may quote their ABN on another document. For example, their ABN can be quoted on:

  • a quotation notice that relates to the supply
  • a renewal notice for insurance or subscriptions
  • an order form that you used to order the supply
  • a contract or lease document
  • a catalogue produced by the supplier
  • a voluntary withholding agreement

 

BUSINESS NAME

What is a business name?
A business name is simply a name or title under which a person or entity conducts a business. In Australia, unless you fall within an exemption, you must register your business name.

On 28 May 2012, this register became a national register of business names. The purpose of the register is to provide a way to identify the entity that is carrying on business under a business name.

When should I register a business name?

Generally, you will need to register a business name if you carry on a business or trade within Australia and you are not trading under your own name.

Exceptions to this include:

  • if you are operating as an individual and your operating name is the same as your first name and surname
  • if you are in a partnership and your operating name is the same as all of the partners’ names, or
  • if you are an already registered Australian company and your operating name is the same as your company’s name.

The law does not allow any changes from the business holder’s name if you wish to rely on the above exemptions. For example, if your name is John Smith, and the name of your business is ‘John Smith & Co’, you will need to register the business name ‘John Smith & Co’..

What business name registration doesn’t provide

While registering a business name with ASIC is an important part of setting up and running your business, it does not provide exclusive ownership of your business name.
Instead, registering a business name is a legal obligation if you plan to carry on business or trade in Australia using a name other than your own. Through business name registration – and the Business Names Register – consumers are provided with a greater degree of transparency, and the ability to easily see who owns a business name.
It’s important to remember that registering a business name doesn’t mean you own it, or that you are preventing other people from being able to register and use similar names. Generally, the only way to gain exclusivity over a particular business name is to register it as a trade mark with IP Australia.

Small Business Concessions

Concessions for small business entities – overview 

Small businesses with an aggregated turnover of less than $2 million have been called small business entities and have been eligible, subject to conditions, for a range of tax concessions.

 Small business tax break

You can claim a tax deduction of 100% of the cost of eligible new assets costing $6,500 or less.

You can claim an initial accelerated tax deduction of $5,000 for the cost of motor vehicle purchase during the year; this is in addition to deductions available under the simpler depreciation rules or the normal depreciation rules (uniform capital allowances).

 Simpler depreciation rules

Generally, you can pool your assets to make depreciation calculations easier and also claim an immediate deduction for most assets costing less than $6,500 each. 

Capital gains tax (CGT) 15 year asset exemption

If you are aged 55 or older and retiring, and your business has owned an asset for at least 15 years, you won’t pay CGT when you sell the asset. 

CGT 50 per cent active asset reduction

If you’ve owned an asset to conduct your business (an ‘active asset’) you’ll only pay tax on 50% of the capital gain when you sell the asset. 

CGT retirement exemption

There is a CGT exemption on the sale of a business asset, up to a lifetime limit of $500,000. If you are under 55, money from the sale of the asset must be paid into a complying superannuation fund or a retirement savings account. 

CGT roll-over

If you sell a small business asset and buy a replacement, you can roll over your CGT liability, to the value of the replacement asset. This means you won’t pay any CGT owing until you sell the replacement asset.