Key new tax and superannuation measures announced by the government include:
- A phased introduction of monthly PAYG instalments for large companies> in Australia over three years: from 1 January 2014, for companies with a turnover of $1 billion or more; from 1 January 2015, for companies with a turnover of $100 million or more; and from 1 January 2016, for companies with a turnover of $20 million or more. The government is planning to issue a consultation paper “early next year”.
- Provision of $390 million in funding to the Australian Tax Office (ATO) for further compliance activities to continue to target profit shifting and high wealth individuals and to focus on outstanding income tax lodgments in the micro and small business segments.
- Concessional treatment will be removed for in-house fringe benefits if they are accessed through a salary sacrifice arrangement. This proposal will apply to salary sacrifice arrangements with certain transitional relief for such arrangements entered into before 22 October 2012.
- Private Health Insurance (PHI) rebate will move in line with CPI or the commercial premium increase (whichever is lower) from 1 April 2014. However, the rebate as it currently applies will remain unchanged.
- Baby bonus rate will be reduced from $5000 to $3000 for second and subsequent children from 1 July 2013.
- SuperStream start date deferred from 1 July 2013 to 1 January 2014 for the proposed ecommerce data and payment standards for superannuation contributions and rollovers for superannuation trustees. However, the government said it remains committed to mandating electronic contributions from medium and large employers from 1 July 2014.
- Superannuation income streams upon death of member will be amended from 1 July 2012 to allow the tax exemption for earnings on assets supporting superannuation income streams to continue following the death of a fund member in the pension phase until the deceased member’s benefits have been paid out of the fund.
- Superannuation proportioning rule will be amended to ensure it does not apply to transactions that are beyond the control of individual members. The proposed changes seek to provide greater certainty around superannuation fund mergers and certain transactions in response to the Stronger Super reforms.
- Self-managed super fund (SMSF) levy will be increased to $259 per annum from 2013–14 (up from $191 in 2012–13) and levied and collected from SMSFs in the same year of income. The change will be phased in over the two years.
- From 31 December 2012 lost superannuation accounts that are inactive for 12 months with less than $2,000 will be transferred to the ATO. The ATO will also be given additional funding to use its data matching resources to match lost accounts with active accounts.
- Interest on lost superannuation will be paid by the government from 1 July 2013 at the rate of CPI inflation on all unclaimed superannuation monies.