Video: Land Tax and Superannuation Guarantee Amnesty Update

By Peter Vickers Business Group | small business, Accounting, tax, News Highlights |

Land Tax and Super Guarantee Amnesty Update

Hi and welcome to our brief tax and super update from Peter Vickers Business Group. I’m Naomi...

...and I’m David. We wanted to bring you a very brief update on some important tax and super news that is currently affecting many of our clients.

And just quickly before we start we just want to note that the advice in this video is general only and does not take into account your individual circumstances or needs. If you have any questions or want further information about any of the advice in this video please get in touch via phone or email.

Thanks Naomi, so firstly let’s touch on land tax.

Yes, so David can you explain what land tax is?

Land tax is an annual tax payable by owners of land. Land tax is administered by your state or territory government and is applicable everywhere except for the Northern Territory however today we are focusing specifically on NSW land tax.

In general, your principal place of residence and primary production land are exempt – for example your house and your farm. Like all taxes there are extra complex rules in respect of trusts, boarding houses and low cost accommodation, foreign ownership, related companies and SMSFs.

And what are the latest changes?

Revenue NSW have introduced their online system for managing your land tax. They have been emailing clients asking them to register, meaning that Revenue NSW wants to now deal directly with clients.

And what does this mean for our clients?

Whilst this may initially seem appealing to clients, be warned that this has already created a variety of issues and many clients have been incorrectly charged.

The list of rules that I previously mentioned suggest that land tax is more complex than clients initially perceive and it may be best to ask a tax expert for advice. Over the years our accountants have identified and resolved issues, and helped our clients from being charged unnecessary fees.

If you need assistance or want to discuss your land tax please just get in touch.

Ok, so next topic, talk to us about super. So what is the super amnesty?

Yes, the government has just re-introduced its “Super Guarantee Amnesty” measure to Parliament. If the bill is passed it will provide business owners with a one-off amnesty to encourage employers to self-correct historical Super Guarantee non-compliance dating from 1 July 1992.

What would this mean for our clients?

The bill would allow employers up to 6 months to disclose if there is unpaid Super for an employee from July 1 1992. If you do this, you will still have to pay the Super Guarantee shortfall with interest and any associated general interest charge.

However, you will not be liable for the administration component, which is $20 per employee per unpaid quarter, or any penalties that would normally apply to late super payments. As an added incentive, you can also claim a tax deduction for any catch-up payments made during the amnesty period. Normally you cannot claim a deduction for super guarantee if it is paid late.

If you’re an employer in this situation, it is advisable to talk to your adviser or accountant.

That is correct. As is often the case this will be more complex and most business owners will need professional support. Your accountant can help you identify your unpaid super and they can walk you through the process for claiming the amnesty, provided it is passed by Parliament.

Thanks David. Well the good news is that there is plenty of support available for our clients, not just for land tax and super but for any of your financial business queries. We work with you to understand your specific business needs so please don’t hesitate to get in touch to speak to one of our bookkeeping and accounting experts.

Not lodging your tax return in time can be a costly mistake. We've outlined the crucial dates you need to remember here.

If you’d like more information on how to grow your business, please contact one of our accounting and tax experts using the button below.

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