Key Dates 1 October 2008 – 31 December 2008
October 2008
Tuesday 21 Annual PAYG instalment notice (form N), due date for payment. Lodgment only required if you are varying the amount or using the rate method to calculate the instalment
September 2008 monthly activity statement – Lodgment and Payment
Tuesday 28 Quarterly instalment notice (form R, S or T) due date for payment. Lodgment only required if varying the instalment amount
Superannuation guarantee – due date for contributions to be paid to a complying super fund for quarter 1, 2008-2009
Friday 31 Final date for appointment of a tax agent for the income tax role for any new client. Appointment by this date ensures that the clients 2008 tax return is covered by your lodgment program
Income tax return due date for all entities where one or more prior year income tax returns were outstanding as at 30 June 2008. If all lodged by this date then system will reset to normal lodgment program
November 2008
Tuesday 11 Quarterly activity statement, September Quarter 2008 – 2009, due date for lodgment and payment – via paper or electronic commerce interface (For Client who Lodge their own BAS)
Friday 21 October 2008 monthly activity statement - Lodgment and payment
Tuesday 25 Quarterly activity statement, September Quarter 2008 – 2009, due date for lodgment and payment – via secure electronic lodgment (For clients lodging their BAS through a tax agent)
December 2008
Monday 1 Income tax for taxable large/medium business, company and superannuation funds, due date for payment (Lodgment of return due 15 January 2009)
Income tax for companies and superannuation funds where lodgment of the income tax return was due 31 October 2008, due date for payment
Sunday 21 November 2008 monthly activity statement - Lodgment and payment
Individual Income Tax Rates
Tax rates 2006-07
|
|
|
|
|
|
|
|
15c for each $1 over $6,000 |
|
|
$2,850 plus 30c for each $1 over $30,000 |
|
|
$17,850 plus 40c for each $1 over $75,000 |
|
|
$47,850 plus 45c for each $1 over $150,000 |
Tax rates 2007-08
|
|
|
|
|
|
|
|
15c for each $1 over $6,000 |
|
|
$3,600 plus 30c for each $1 over $30,000 |
|
|
$17,100 plus 40c for each $1 over $75,000 |
|
|
$47,100 plus 45c for each $1 over $150,000 |
Tax rates 2008-09
|
|
|
|
|
|
|
|
15c for each $1 over $6,000 |
|
|
$4,200 plus 30c for each $1 over $34,000 |
|
|
$18,000 plus 40c for each $1 over $80,000 |
|
|
$58,000 plus 45c for each $1 over $180,000 |
The above rates do not include the Medicare Levy of 1.5%
Child Care Benefit and Child Care Tax Rebate from 1 July 2008
From 1 July 2008, the Child Care Tax Rebate (CCTR) will increase from 30% to 50% of out of pocket costs. The maximum payment will increase from $4,354 to $7,500 per child, and payments will be made quarterly, rather than annually. The first of these payments will be made in October 2008.
Also form 1 July 2008 there will no longer be a minimum rate of Child Care Benefit (CCB) (before that date, the amount of CCB reduced to a minimum rate, depending on the family’s income, but now it will continue to reduce until the family’s rate is zero). The income level at which CCB will cut out completely depends upon the number of children in approved care. For example:
- The rates of CCB a family with one child in approved care receives will be reduced if their combined income is above $111000 and will cut out completely at around $126000
- The rate of CCB a family with two children in approved care receives will be reduced if their combined income is above $119000 and cut out completely at around $131000.
Note: Families who no longer receive the minimum CCB will still be eligible for the CCTR.
Drawing Cash from Your Company – Division 7A
It is important for clients who operate their businesses out of a company to understand that company’s are treated as separate legal entities to their owners. This means that clients, who draw cash from their businesses (companies), other than what is paid to them as a wage, will have to pay interest on any loans owing to the company at 30 June of each year. This is governed by Division 7A and basically means that any unsecured loans outstanding each year will have to be repaid over 7 years at the benchmark interest rate set out by the ATO. If this applies to you please ensure to discuss this with one of our tax agents, as it is important to manage these loans effectively so that you do not end up paying more tax than you have to.
ATO Compliance Program
Each year the ATO release their compliance program which amongst other things provides a guide to tax payers on where the ATO will focus their attention in the 2008/2009 financial year. This is consistent with their ‘prevention is better than a cure’ approach to tax administration. Please be advised that the following areas will be of particular audit/review risk:
- Tax Havens
- Dodgy Tax Schemes
- Cash Businesses – The ATO is currently working with industries to develop reliable bench marks to identify people taking cash from their businesses and not declaring this as income. They will be using information from Centrelink, Child Support Agency, state fair trading agencies, insurance providers, shopping centre operators, product suppliers and the community. In addition, they will be reviewing luxury good purchased, such as cars and boats, to identify lifestyles not readily supported by their reported income
- Wealthy Individuals – In particular executives and directors failing to accurately report on their remuneration packages including equity benefits and cash or share bonuses
- Large businesses – Good corporate governance and global restructures shifting assets off shore
- Compliance for partnership and trust distributions
Changes to Fuel Tax Credits from 1 July 2008
From 1 July 2008 Fuel Tax Credits will be available to businesses and individuals for fuel purchased for use in the following:
- Business Activities
- Machinery
- Plant
- Equipment
- Heavy Vehicles
The rebates are currently set at 18.51c/Litre for fuel used in vehicles with a GVM (Gross Vehicle Mass) of greater than 4.5 tonnes and 19.0715c/Litre for all other activities.
Please note that these rebates do not extend to normal light weight motor vehicles.
To see if you are eligible please contact us or alternatively visit the ATO website for more information.