Super contribution caps to rise The big news story for those contributing to super is that the contribution caps are set to increase from the 2025 income year. The concessional contribution cap will increase from $27,500 to $30,000. This ‘CC’ cap is broadly applicable to employer super guarantee contributions, personal deductible contributions and salary sacrificed contributions. The non-concessional contribution cap will increase from $110,000 to $120,000. This ‘NCC’ cap is…  Read more

New 15% super tax to apply from 1 July 2025 The Government recently announced it will be imposing a 15% additional tax on individuals that have more than $3 million in superannuation.  The new measure is expected to commence from 1 July 2025 (i.e., the start of the 2026 income year). The main takeaways from the information provided thus far include the following:     The additional 15% tax will…  Read more

With the FBT year coming to an end, this question pop ups a lot – what is FBT exemption for electric cars and how does it work? Essentially, from 1 July 2022 employers aren’t liable for FBT on eligible electric cars and associated car expenses. What are the basis rules for making your electric car FBT exempt? Car is a zero or low emissions vehicle This covers battery electric vehicle…  Read more

Super guarantee contributions for the December 2022 quarter A reminder to employers that their December 2022 superannuation guarantee (‘SG’) contributions were due by 28 January 2023. Do not forget the two changes to SG that commenced on 1 July 2022:  The rate increased from 10% to 10.5%  Employees no longer need to earn $450 per month to be eligible. Employers now need to make super contributions for all eligible employees,…  Read more

It’s that time of the year again! As we approach the end of 2021, many businesses host Christmas parties and give gifts to their employees as appreciation for a year of hard work. However, some business leaders don’t understand the fringe benefits tax (FBT) implications of such. In order to avoid significant costs to your business, read this article and learn more about your obligations. What is Fringe Benefits Tax…  Read more

What is a Fringe Benefits Tax? Fringe benefits tax (FBT) is completely separate from income tax. It is paid on certain benefits provided to employees or their associates (generally family members), including directors or beneficiaries of a trust, working in the business. Examples of fringe benefits include: allowing an employee to use a work car for private purposes giving an employee a discounted loan paying an employee’s gym membership providing…  Read more

Are you looking after your employees and provide them with a car parking benefits? Don’t get caught out by the fringe benefits rules. Where businesses provide car parking fringe benefits to their employees, the taxable value of these benefits must be calculated correctly to ensure they are meeting their fringe benefits tax (‘FBT’) obligations, regardless of the method used. The ATO has advised they may directly contact businesses who have…  Read more