Employer Superannuation Contributions

[Duckman#72]

Hmm, i thought the medicare levy and medicare levy surcharge rates and thresholds are set by the Medicare Act 1986, administered by the Health Insurance Commission.

The ATO is just the collection agency.

Now for my general comment:

I see TAX as the cost of living in a society.
If you don't like it, you have a choice - bugger off to a different country!

(hope i can say bugger)

Yes - the ATO advise the of the limits and collect the tax. No arguments here.

As for your comments to bugger off to another country - thanks for contributing to the debate in such an intelligent and insightful way.

Hmmm, i thought living in a democratic country we could discuss, debate and vote in and out of Office those policies that affect our taxes without having to leave the country.

I don't think anybody on this thread is seriously suggesting that we can do without paying taxes - more like questioning the amount of tax people pay and the various "forms" and "disguises" it comes in (payroll, income, medicare levy/surcharge, fringe benefits,capital gains, GST, compulsory super(ha))

 

[KaiserBun]

I see a few small business owners on here are worried about ML.
Another headache maybe on its way.

I've been told that a government department (mentioned within this thred) is currently in negotiations for a new EBA.

It is expected that PAID adoption leave will be given for a 6 to 12 week period for employees. Reason: parents need time to bond with their adopted child!

If this gets a hold within the public sector, it will force the private sector (inlcuing small businesses, to offer a similar scheme in order to attract the necessary staff.

Whats the point of More Choices which is suppose to help us, when the government offers conditions that we know we will have to match in the end.

 

[anon]

Were not wage rises bargained away for superannuation contributions by the employer?

That was the case - some 15 years back, and the rate if I recall correctly was 4.5%. Now it is 9% and will go higher, and it is still a compulsory contribution by the employer only.

Employment conditions are changing rapidly with a lot of manufacturing previously done here going to countries with cheaper labour costs. Add to it maintenance jobs (Qantas), IT jobs from a growing list of companies, Call Centres (I really object to getting frequent calls from India), etc.

We just got to get smarter, leaner and hungrier if we want to retain our prosperity. There has to be a rethink on the way we do things, something that the new IR laws have made a start on. Superannuation needs to be looked at as well.

No, I am not an employer and have never been one.

Have a look at Europe. In France and Germany the older generations provided themselves with good pensions and retirement conditions which they refuse to change in order to meet the curent employment situation. The younger generation is faced with big unemployment.

We got to be smarter than that.

anon

 

[crackaton]

That was the case - some 15 years back, and the rate if I recall correctly was 4.5%. Now it is 9% and will go higher, and it is still a compulsory contribution by the employer only.

Employment conditions are changing rapidly with a lot of manufacturing previously done here going to countries with cheaper labour costs. Add to it maintenance jobs (Qantas), IT jobs from a growing list of companies, Call Centres (I really object to getting frequent calls from India), etc.

We just got to get smarter, leaner and hungrier if we want to retain our prosperity. There has to be a rethink on the way we do things, something that the new IR laws have made a start on. Superannuation needs to be looked at as well.

No, I am not an employer and have never been one.

Have a look at Europe. In France and Germany the older generations provided themselves with good pensions and retirement conditions which they refuse to change in order to meet the curent employment situation. The younger generation is faced with big unemployment.

We got to be smarter than that.

anon

Outsourcing maybe wanning:

http://money.cnn.com/2006/03/01/magazines/business2/costofoutsourceing/index.htm

 

[Prospector]

I see a few small business owners on here are worried about ML.
Another headache maybe on its way.

I've been told that a government department (mentioned within this thred) is currently in negotiations for a new EBA.

It is expected that PAID adoption leave will be given for a 6 to 12 week period for employees. Reason: parents need time to bond with their adopted child!

If this gets a hold within the public sector, it will force the private sector (inlcuing small businesses, to offer a similar scheme in order to attract the necessary staff.

Whats the point of More Choices which is suppose to help us, when the government offers conditions that we know we will have to match in the end.

Well, as an adoptive parent, if birth parents are entitled to it, why not adoptive.

 

[Prospector]

Hmm, i thought the medicare levy and medicare levy surcharge rates and thresholds are set by the Medicare Act 1986, administered by the Health Insurance Commission.

The ATO is just the collection agency.

Now for my general comment:

I see TAX as the cost of living in a society.
If you don't like it, you have a choice - bugger off to a different country!

(hope i can say bugger)

I just cannot agree with that!!! Did you know great reforms have resulted from people refusing to pay inequitous taxes - as well as Wars! Like the American Revolution, the French Revolution to name a couple. As a thinking society we should not put up taxes that are unfair or unjust, and not have to move countries! Good grief. That is just stupid.

 

[KaiserBun]

Well, as an adoptive parent, if birth parents are entitled to it, why not adoptive.

There is a major difference between the two.

Paid ML was introduced for health reasons for the birth mother.
Even now, most businesses do not give paid ML to fathers when their partner has their child.

The paid adoption leave that a government body is looking at introducing is for bonding time between the child and the parent of between 6 to 12 weeks.

I do not believe business (especially small businesses) should have to pay for adoption leave. The government gives other sorts of finanical assistance such as the $3000 maternity allowance (soon to be $5000 and increased to $7000).

Please note: i am not trying to belittle what a great job adoptive parents do, however, i do not believe a business should pay.

 

[Prospector]

I don't think that anyone should receive paid leave for having a baby. Why should small business have to pay for that! If it is all about health issues for the mother then that is what sick leave is for.

But if paid ML is granted to birth parents (and the length of time of some payments is well beyond the recovery part anyway) then adoptive parents should be given the same respect financially.

 

[Duckman#72]

I don't think that anyone should receive paid leave for having a baby. Why should small business have to pay for that! If it is all about health issues for the mother then that is what sick leave is for.

I agree Prospector. As with everything - people abuse the system and adopt the mentality of "going after everything they can get". I'm not saying couples are getting pregnant just to get the paid maternity leave but, like you, I am sick of being taken advantage of by employees who feel as if the employer is a golden goose - continually handing out money with no apparent correlation to how valuable or productive the employee is.

I believe in rewarding valuable employees and being fair. But to steal a famous line from John Howard and turn it into a mantra for employers.....
........"We will decide who will be paid maternity leave, bonuses and above award wages and the circumstances in which they are paid".

(My apologies to any boat people posting)

 

[anon]

There is a major difference between the two.

Paid ML was introduced for health reasons for the birth mother.
Even now, most businesses do not give paid ML to fathers when their partner has their child.

The paid adoption leave that a government body is looking at introducing is for bonding time between the child and the parent of between 6 to 12 weeks.

I do not believe business (especially small businesses) should have to pay for adoption leave. The government gives other sorts of finanical assistance such as the $3000 maternity allowance (soon to be $5000 and increased to $7000).

Please note: i am not trying to belittle what a great job adoptive parents do, however, i do not believe a business should pay.

This hits the nail on the head. If ML is given for health reasons - then Medicare should pay for it.

Poor old Kim Beazley is being accused of being policy free. A good cause for him to take up would be to have the Government meet all the Maternity Leave and the Paternity Leave payments. A better policy than the one they ran with in the last election - that of paying all medical expenses for people over age 75.

A couple of years back I met a man who was a committed social worker with young people. In his opinion the $3,000 maternity payment that was announced at the time would attract many single young girls to have babies.

anon

 

[grumpee boi]

With respect to claiming deductions as a sole trader having part time employment there is what is known as the 10% rule for unsupported or substantially self-employed people:

To qualify as substantially self-employed, assessable and exempt income from elgible employment (plus ‘reportable fringe benefits) must be less than 10% of total assessable income (plus reportable fringe benefits). To qualify as unsupported, a person must not be elgible to receive any employer superannuatiun support in the financial year the deduction is claimed. An unsupported person may include a spouse receiving only spouse contributions.

If you meet that definition then you can claim a deduction on the first $5,000 plus 75% of the remainder up to certain limits. So to claim the govt. co-contribution you must fail this test. There are ways to deliberately fail it for those that are borderline.

In general I think that the super system is pretty good but a reduction in contribution taxes is needed. And as someone said earlier it is not that effective for younger people to lock away access to money (by contributing over and above what their employers do). I do think that it can be a burden on small business but if you factor it in to a salary then at least it becomes part of the package.

Regarding small business in general, I think that this government is happy to appease big business (who can absorb the hidden and not so hidden costs of their policies) at the expense of smaller business. This in itself is a real shame because it is from small business which big business grows.

To force small business owners to offer paid maternity in any form or concept is absolutely disgusting. It is a cost that cannot and should not be borne by the section of the community that can least afford to.

Adam

 

[Julia]

This hits the nail on the head. If ML is given for health reasons - then Medicare should pay for it.

Poor old Kim Beazley is being accused of being policy free. A good cause for him to take up would be to have the Government meet all the Maternity Leave and the Paternity Leave payments. A better policy than the one they ran with in the last election - that of paying all medical expenses for people over age 75.

A couple of years back I met a man who was a committed social worker with young people. In his opinion the $3,000 maternity payment that was announced at the time would attract many single young girls to have babies.

anon

Does anyone remember being read fairy stories when a child?

There was one which started: "Once upon a time, long, long ago, couples only decided to have a baby when they could afford to look after the child,all by themselves, without outside help other than family members doing some babysitting."

Julia

 

[Prospector]

Does anyone remember being read fairy stories when a child?

There was one which started: "Once upon a time, long, long ago, couples only decided to have a baby when they could afford to look after the child,all by themselves, without outside help other than family members doing some babysitting."

Julia

Oh yeah, I am with you there! I guess the big question there is have we (partner and I) been lucky enough NOT to have any government assistance whatsoever (no baby bonus, family payments - dont even know what they are called!) even when mortgage interest rates were 17%

or have we simply been wise in the way we manage our finances, which also includes only having two children because we knew that we could only afford to properly raise 2 (both time resources and money) even though we would have liked more

I was listening to the radio the other day and this woman was winging because she had five children aged 5 to 15 years and they liked to play sport on Saturday mornings. Well, there were only 2 parents (duh!) and so not all the kids could play sport because the parents couldnt be in five places at the same time. She was winging because the school (the Govt I guess) wouldnt provide the transport to get her kids to sport. :swear: :swear: Isnt that called planning ahead!

Have I got off topic here? I cant remember what it was sorry, but maybe it is all part of the same issue!

 

[Julia]

Oh yeah, I am with you there! I guess the big question there is have we (partner and I) been lucky enough NOT to have any government assistance whatsoever (no baby bonus, family payments - dont even know what they are called!) even when mortgage interest rates were 17%

or have we simply been wise in the way we manage our finances, which also includes only having two children because we knew that we could only afford to properly raise 2 (both time resources and money) even though we would have liked more

I was listening to the radio the other day and this woman was winging because she had five children aged 5 to 15 years and they liked to play sport on Saturday mornings. Well, there were only 2 parents (duh!) and so not all the kids could play sport because the parents couldnt be in five places at the same time. She was winging because the school (the Govt I guess) wouldnt provide the transport to get her kids to sport. :swear: :swear: Isnt that called planning ahead!

Have I got off topic here? I cant remember what it was sorry, but maybe it is all part of the same issue!

You raise a point which often causes me irritation: i.e. "being lucky" .
This really annoys me. What did luck have to do with it? You have planned carefully, been thoughtful about the choices you've made, and ensured those choices have been within your financial resources.

When people say to me how lucky I am to have what I have, I try to just let it go, but sometimes can't help myself pointing out that the assets I presently enjoy are the result of careful investment, a lot of hard work, and considerable sacrifice in the early stages.

Re the baby bonus - soon to be $7000 - for the most part the type of person who will respond to this bribe does not have the best genes to make a positive contribution to the gene pool and the progeny often continues in the cycle of welfare dependency.

Julia

 

[basilio]

With regard to employer super payments to employees.

I'm hearing from some friends that the nominal super payments they are supposed to be getting just aren't actually reaching their super accounts. This is now over a matter for 5 months and more. The pay slip notes the amount of super .. but it hasn't been paid.

On checking on the net it seems millions of employees are in similar situations. What is the experience of others on ASF ? As an employer, employee or just interested onlooker.

Unpaid superannuation: tax office should better police employers – Senate report

Committee finds ATO should have more power, and workers recourse to sue employers for failing to pay super entitlements

www.theguardian.com

How much unpaid super is really out there? | INTHEBLACK

An estimated $2.3 billion in superannuation is tangled and unpaid in the Australian system. Here’s how to keep track of your crucial lifelong investment.

www.intheblack.com

 

[Gunnerguy]

With regard to employer super payments to employees.

I'm hearing from some friends that the nominal super payments they are supposed to be getting just aren't actually reaching their super accounts. This is now over a matter for 5 months and more. The pay slip notes the amount of super .. but it hasn't been paid.

On checking on the net it seems millions of employees are in similar situations. What is the experience of others on ASF ? As an employer, employee or just interested onlooker.

Unpaid superannuation: tax office should better police employers – Senate report

Committee finds ATO should have more power, and workers recourse to sue employers for failing to pay super entitlements

www.theguardian.com

How much unpaid super is really out there? | INTHEBLACK

An estimated $2.3 billion in superannuation is tangled and unpaid in the Australian system. Here’s how to keep track of your crucial lifelong investment.

www.intheblack.com

I believe ones employer doesn’t have to pay your super in to your super account immediately. But I believe they have to do it within 12 weeks.
Gunnerguy

 

[Dona Ferentes]

Super payment due dates | Australian Taxation Office

An employee's fund must receive their super payments on or before the quarterly super due dates.

www.ato.gov.au

You must pay super for eligible employees to avoid the super guarantee charge. Payments can be made at least 4 times a year. This applies from the day employees start working for you. Payment due dates occur quarterly.

Quarterly super payment due dates

Quarter	Period	Payment due date
1	1 July – 30 September	28 October
2	1 October – 31 December	28 January
3	1 January – 31 March	28 April
4	1 April – 30 June	28 July

When a super due date falls on a weekend or public holiday, you can make the payment on the next business day.

You can also make payments more frequently than quarterly, for example fortnightly or monthly. If you do, ensure you pay your total super guarantee (SG) contribution for the quarter by the due date.

 

[basilio]

I did check out the administrative timetable as noted. However in my friends case the quarterly payment deadline is well overdue. The company has already missed a couple of wage payments to staff so I don't think they are that financially flush. The owner also has form with company fraud some years ago...

I was also interested in other experiences around this issue.

 

[Dona Ferentes]

yes, but how does my friends case, my friend's case (?) morph into

On checking on the net it seems millions of employees are in similar situations.

 

[Belli]

Single Touch Payroll | Australian Taxation Office

Understand how using Single Touch Payroll streamlines employer reporting to us and other government agencies.

www.ato.gov.au

Even small business are supposed to be using this which also has the ability to track superannuation payments.

"With STP, you report employees' payroll information to us each time you pay them through STP-enabled software. Payroll information includes:

• salaries and wages
• pay as you go (PAYG) withholding
• superannuation.

STP started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation."

Not working as well as expected?