New superannuation changes 

A number of changes to the superannuation system announced by the Australian Government in the 2016-17 Federal Budget to improve the sustainability, flexibility and integrity of Australia’s superannuation system are now law and will take effect from 1 July 2017. 

While the changes will primarily impact the personal tax affairs of employees, all employers need to be aware that the changes may have flow on impact for a business’s existing payroll systems and processes in supporting the needs of its employees. As an example, the new carry-forward of unused concessional contributions from 1 July 2018 will be best used by employees when they are able to easily access information from their employer in relation to their concessional superannuation contributions made in earlier financial years

Changes to NSW payroll tax provisions

The State Revenue Legislation Amendment Bill 2017 (NSW) was passed by both Houses of Parliament during the month without amendment.

The purpose of the measures enacted by this Bill is to remove any doubt that wages paid under an employment agency contract to a service provider who is a common law employee of the employment agent will be exempt from payroll tax, as long as the wages would be exempt from payroll tax had the service provider performed the services as an employee of the client. This would typically be the case where the client is a not-for-profit entity that is not liable for payroll tax.

Other legislative changes brought about by this Bill include the creation of a payroll tax exemption for wages paid under the Supporting Leave for Living Organ Donors Programme, and updates to the cents-per-kil0metre motor vehicle allowance exemption to reflect recent changes in Commonwealth legislation. 

Submission on the impact of non-payment of Superannuation Guarantee

The Inspector-General of Taxation (IGOT) has released its submission to the Senate Economics References Committee’s Inquiry into the impact of non-payment of the Superannuation Guarantee. The submission explores some of the challenges and potential solutions in contrast to previous IGOT reviews on the Australian Taxation Office’s administration of the superannuation guarantee charge and its employer obligations compliance activities which provide more detailed discussion and analysis.