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Welcome to the July newsletter.
PAYG Withholding Payment Summaries
The annual reports for the pay as you go withholding payment summary are due by 30 September 2008.
However if you are not a large withholder and meet the following criteria you may have until the due date of lodgment of your income tax return to lodge the reports. To be eligible for the concession, you must have:
• Only closely held employees (non-arms length e.g. family, directors, shareholders)
• Lodged their 2007 payment summary annual report by 30 June 2008, and
• Lodged their 2007 income tax return by 30 June 2008 and did not receive a failure to lodge on time penalty for that return.
If this applies to you we must ensure the ATO have been notified by 15 September 2008. We are currently preparing a list for the ATO. If you would like to be added to this list or wish to discuss further your eligibility then please call your usual contact at the firm.
Employee Superannuation Contributions
A reminder all employer superannuation contributions due for the quarter 1 April to 30 June 2008 for employees are due by 28 July 2008.
This is 9% of the employee’s notional earnings base for the quarter and if not paid by 28 July the employer will lose the ability to claim those amounts as a tax deduction. The amounts due would then have to be paid to the ATO with interest and administration penalties calculated when completing appropriate forms.
Additionally if the required employer contributions are not paid by 28 July they cannot be subsequently paid direct to the employees fund of choice. The contributions must be paid to the ATO.
We recommend you review your records and ensure the required payments have been made. If you are unsure of the method to calculate the contributions required please contact us at Macquarie Partners for clarification.
Medical Expenses Rebate
We have noticed an increase in the number of our clients entitled to a medical expense rebate. This may in part be a reflection of the rising cost of health related services.
Essentially, for the 2008 tax year the medical expense rebate is available to any taxpayer whose net medical expenses exceed $1,500. Note it is net medical expenses and therefore any reimbursement from medicare or a private health fund must be deducted from any gross payments made.
Net medical expenses incurred for a dependant can also be included. A dependent for these purposes include a spouse, a child under 21 years of age or a child under 25 years of age who is a full time student.
Medical expenses is widely defined and covers payments to doctors, nurses, chemists, dentists, opticians and optometrists. It does not include payments to private health funds.
The rebate is 20% of the excess over the $1,500 amount.
If you think this rebate may be available to you, we suggest you obtain for the relevant financial year:
• A Medicare tax statement (available from
www.medicareaustralia.gov.au);
• A statement of claim from your private health fund; and
• A summary of prescriptions purchased from your chemist
You should then contact us to discuss your eligibility or provide the details when handing over your tax documents at the time of preparation of your return.
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ATO Key Dates
Monday 28 July
• Quarterly instalment notice (form R, S or T) for quarter 4, 2007-08 – sue date for payment
– lodgment only required if varying the instalment amount.
• Superannuation guarantee – due date for contributions to be paid to a complying superannuation fund or retirement savings account (RSA) provider for quarter 4, 2007-08.
Monday 11 August
• Quarterly activity statement for quarter 4, 2007-08 – due date for lodgment and payment if lodging via paper or ECI
- self-assessed deferral request is available.
Thursday 14 August
• PAYG withholding payment summary annual report – due date for lodgment for
- large withholder (annual withholding greater then $1 million), or
- payers who have no agent involvement in preparing the repost.
• Due date for reporting departing Australia superannuation payment (DASP) data records for the 2007-08 year that form part of the pay as you go (PAYG) withholding payment summary annual report.
Thursday 21 August
• July 2008 monthly activity statement – due date for lodgment and payment
- self-assessed deferral request is available.
Monday 25 August
• Quarterly activity statement for quarter 4, 2007-08 – due date for lodgment and payment if lodging via ELS or the Tax Agent Portal
- self-assessed deferral request is available
Thursday 28 August
• Due date for lodgment of the superannuation guarantee charge statement – quarterly and payment of the superannuation guarantee charge for quarter 4, 2007-08 if sufficient contributions were not paid on time. The superannuation guarantee charge is not tax deductible.
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