Tax Update

Date: 01/04/2010

Make sure you're up-to-date with the new rules on superannuation contributions, as you approach the end of the financial year

Changes to tax law which took effect on July 1 last year will mean extra work for employers as they produced employees' end-of-year PAYG notices. Tax expert Michael Jones, of Cummings Flavel McCormack, says they'll need to include, for the first time, figures for Reportable Employee Super Contributions for those employees who've arranged a salary sacrifice to super. And it would be wise to remind employees that this is happening - it may affect their personal tax position. It's also important for all contributors to super funds to remember the new limits on concessional contributions now in effect: reduced to $25,000 p.a. for people under 50, and $50,000 if you're 50 or over. If you over-contribute, you'll pay tax at 46 and a half percent on the excess amount.