1st Quarter 2015

NET MEDICAL EXPENSES TAX OFFSET PHASE-OUT

The net medical expenses tax offset is being phased out from 1 July 2013. To be eligible for the offset this year, you must have received the offset in your 2012–2013 income tax assessment. Similarly, those who receive the tax offset in their 2013–2014 income tax assessment will continue to be eligible for the offset in 2014–2015. That is the final year the offset can be claimed.

This does not apply to out-of-pocket medical expenses relating to disability aids, attendant care and aged care. Those expenses can be claimed until 30 June 2019.

CHANGE OF CLIENT NAME

If you need to lodge your return under a name that is not current on ATO records, it will need to be updated with the ATO before you lodge your income tax return.

Even though the 2014 income tax return and returns for previous years asks if there has been a name change, the ATO systems will no longer automatically update this information. The change will only occur once verification has been supplied.

You or your tax agent can update your name with the ATO over the phone by quoting details from an 'identity' document that the ATO will then verify. The record will be updated.

CHANGES TO THE SMSF SUPERVISORY LEVY

On 1 July 2013, the arrangements for paying the self-managed super fund (SMSF) supervisory levy changed. Before 1 July 2013, the supervisory levy was paid in arrears (for the previous income year). The supervisory levy is now paid in advance.

Transitional provisions apply to the levy for the 2013–2014 financial year so that it is payable in two instalments and collected upon lodgement of the 2013 and the 2014 self-managed super fund annual returns.

PENALTIES FOR SMSFS

From 1 July 2014, SMSF trustees can receive penalties of up to $10,200 for contravening certain provisions of the Superannuation Industry (Supervision) Act 1993.

In addition to imposing financial penalties, the ATO can also direct an SMSF trustee, or director of a body corporate SMSF trustee, to take action to correct the contravention or participate in education.

The penalty costs must be paid personally by the trustees. The penalty costs cannot be paid using the assets of the SMSF; and the trustee, or director of a corporate trustee, cannot seek reimbursement for the penalty from the SMSF.

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14 JULY 2014

• Payers must issue 2013-2014 PAYG Withholding payment summaries to payees (that is, employees and other workers).

21 JULY 2014

• June 2014 monthly activity statements - final date for lodgement and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

• Taxable payments annual report – final date for lodgement. Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.

28 JULY 2014

• Superannuation guarantee contributions for Quarter 4 (April - June 2014) are to be made to the fund by this date. If an employer does not pay the minimum superannuation guarantee contributions for Quarter 4 by this date, they must pay the SGC and lodge a Superannuation guarantee charge statement-quarterly by 28 August 2014. The SGC is not tax deductible.

14 AUGUST 2014

• PAYG withholding payment summary annual report – final date for lodgement for payers who have no tax agent or BAS Agent involved in preparing the report. Use this to report amounts withheld from salary and wages and other payments. These amounts are reported at Label W2 of the activity statement.

21 AUGUST 2014

• July 2014 monthly activity statements - final date for lodgement and payment.

25 AUGUST 2014

• Quarter 4 activity statements (April - June 2014) – final date for lodgement and payment for electronic lodgement (ELS, ECI, Tax Agent Portal or BAS Agent Portal). To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

28 AUGUST 2014

• Superannuation guarantee charge statement quarterly – due date and payment if the employer did not pay enough contributions on time.

21 SEPTEMBER 2014

• August 2014 monthly activity statements - final date for lodgement and payment.

30 SEPTEMBER 2014

• PAYG withholding payment summary annual report – final date for lodgement for payers who use a tax agent or BAS Agent to help prepare the report.

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