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Top Tax Tips – 13 February 2019

BAS Lodgement Dates

Quarterly Business Activity Statements (BAS) are usually due on the 28th day of the month following the end of the reporting period. However, for the quarter ended 31 December 2018 the BAS is due on 28 February 2019.

The BAS due dates for the year ending 30 June 2019 are:

Quarterly lodgment obligation Original due date Lodgment and payment concession date
Quarter 1, September 2018 28 October 2018 25 November 2018
Quarter 2, December 2018 28 February 2019 N/A
Quarter 3, March 2019 28 April 2019 26 May 2019
Quarter 4, June 2019 28 July 2019 25 August 2019 (to be confirmed by the ATO.

The above lodgment and payment concession dates are only available for electronic lodgment of eligible quarterly activity statements. Quarterly activity statements lodged by paper must be lodged by the original due date.

Proposed Changes in the Superannuation Guarantee Law

High income earners with earnings over $263,157 are at risk of breaching the annual concessional superannuation contribution cap of $25,000, particularly if compulsory superannuation contributions are made by multiple employers. Under current laws employers are required to pay 9.5% of an employee’s salary/wage into a complying superannuation fund. Failure to do so results in the imposition of the superannuation guarantee charge.

Under the soon to be enacted new law, qualifying employees will be able to apply to partially or wholly opt out of the super guarantee regime in respect of one or more employers.

The new law will apply retrospectively from 1 July 2018. Eligible employees whose superannuation guarantee contributions will exceed the $25,000 concessional contributions cap due to their high salary/wage, will need to apply to the ATO for an employer exemption certificate which will notify the ATO that their salary/wage should not be subject to superannuation guarantee contributions. Provided the gross salary/wage threshold is exceeded, the ATO will issue an employer exemption certificate, which releases the employer from the obligation to pay superannuation guarantee. Exemption certificates can be issued for multiple quarters within a financial year but will not extend beyond the end of the financial year. The employee and employer are free to negotiate additional cash or non-cash remuneration in place of the super guarantee contribution. The exemption certificates cannot be varied or revoked after issue.

The new law will assist high income earners by releasing additional cash flow and reduce paperwork for employers and employees in respect of superannuation guarantee compliance. This amendment will also prevent unintended concessional caps breaches caused by excess contributions over the $25,000 cap.

If an employee exceeds the contribution cap, the excess concessional contributions are included in the individual’s assessable income and taxed at marginal rates , but the employee is entitled to a 15% tax offset to reduce their tax payable.

The proposed new law was passed by the House of Representatives on 20 June 2018 and is awaiting consideration by the Senate.

How can Nexia Edwards Marshall NT help you?

For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall NT Adviser.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall NT. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall NT Adviser.

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