Frequently Asked Questions (Issue 117)
By Gavin Moreira on July 28, 2021
Questions asked by members to the Secretariat to improve communication with readers.
| QUESTION | RESPONSE |
| What is the current rate for compulsory superannuation? | On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate. For salary and wage payments made on or after 1 July 2021, the minimum superannuation guarantee contribution rate of 10% will need to be applied. It is important you pay your workers the correct amount of super. The ATO has a superannuation guarantee eligibility decision tool which can help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes. The super rate is scheduled to progressively increase to 12% by July 2025. |
| What are the key changes and new measures to be aware of when completing your 2021 tax returns? | Specific measures and support available for individuals impacted by COVID-19 include: • early access to superannuation which is not assessable income • the introduction of an optional simplified method to claim 80 cents for each hour you work from home (from 1 March 2020 and extended through to 30 June 2021) to cover all deductible running expenses. Measures for businesses and employers impacted by COVID-19 include: Cash flow boost credits – if an employer or business received a cash flow boost credit, the amount is tax free (non-assessable non-exempt income). However, you may need to report the amounts in their tax return for other purposes. You are still entitled to claim a deduction for the PAYG withholding paid. Assets – Temporary full expensing of depreciating assets – and enhanced instant asset write off for assets first used or installed ready for use between 12 March 2020 until 30 June 2021 and purchased by 31 December 2020. Backing business investment – accelerated depreciation – for businesses with an aggregated turnover of less than $500 million to accelerate depreciation deductions on the purchase of certain new depreciable assets. Job Keeper – businesses may have been eligible to receive Job Keeper Payment for eligible employees an individual who is an eligible business participant. Any amount received is assessable income of the business. |
To ask a question that could be shared amongst all members in the association please contact the CMPA:
Phone: 03 5781 6055 – Fax: 03 5782 2021
Email: enquiries@cmpavic.asn.au
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