Item	Link	Impact for Payroll
Low Income Offset	Link	You will notice a slight change in the tax tables for 2011-2012 as the low income offset will now be paid via a reduced rate of withholding.
Fringe Benefits Tax	Link	Statutory Formula method will change to a flat rate instead of sliding scale depending on km’s you drive. We recommend companies/employees look at the alternative “log book method” when working out their FBT liability.  Note this new formula will apply to new contracts entered into after 7:30pm (AEST) on 10 May 2011, and will be phased in over four years.
Personal income tax — increasing the Medicare levy low‑income thresholds	Link	The Government will increase the Medicare levy low income thresholds to $18,839 for individuals and $31,789 for families, with effect from 1 July 2010. Will affect Tax Tables
Small business depreciation — accelerated initial deduction for motor vehicles	Link	The Government will allow small businesses to claim up to $5,000 as an immediate deduction for motor vehicles, with effect for vehicles acquired from the 2012‑13 income year. The remainder of the motor vehicle value will be pooled in the general small business pool (depreciated at 15 per cent in the first year and then 30 per cent). The Government has previously announced that any new business asset worth less than $5,000 can be written off immediately from the 2012‑13 income year.
Superannuation — refund of excess concessional contributions	Link	The Government will provide eligible individuals with the option to have excess concessional contributions taken out of their superannuation fund and assessed as income at their marginal rate of tax, rather than incurring excess contributions tax.   The measure will apply where an individual has made excess concessional contributions of up to $10,000 (not indexed) in a particular year and is only available for breaches in respect of 2011 ‑ 12 or later years, and only for the first year, commencing from 2011 ‑ 12, in which a breach occurs. This measure makes the super system fairer by allowing those who have breached the cap for the first time, by $10,000 or less, the option to have these contributions refunded and taxed at their potentially lower marginal tax rate rather than the 46.5 per cent effective excess contributions tax rate.
Superannuation — securing super	Link	The Government will ensure that employees receive information on their payslips about the amount of superannuation actually paid into their account; and employees and employers will receive quarterly notification from their superannuation fund if regular payments cease, with effect from 1 July 2012.
Superannuation contribution caps — operation of the higher cap for over 50s	Link	The Government will set the higher concessional superannuation contributions cap for eligible individuals aged 50 and over with total superannuation balances of less than $500,000, due to apply from 1 July 2012, to $25,000 above the general concessional cap. This measure clarifies the operation of the higher cap for the over 50s which was introduced in the 2010 ‑ 11 Budget, and means those eligible Australians over 50 will be able to contribute $25,000 more per year than other workers.   The general concessional contribution cap is set at $25,000. When it increases due to indexation, the higher cap will increase by the same dollar amount.

 

2011 Payroll Update Seminar Coming to Brisbane, Perth, Sydney, Melbourne, Adelaide and Darwin.   June is the time to bring yourself up to date on the latest legislation and obligations that will affect payroll professionals. With this in mind CPD Live is offering two hour day update seminar in these key areas to make sure you are ready for End of Year. There have been a number of changes in relation to your obligations to your employees over the last 12 months. Payroll officers need to be up to date with the latest changes in superannuation, PAYG and the current industrial relations law. To download the brochure and enrolment form click here.

Salary Packaging Update Seminar.   Coming to Brisbane, Perth, Sydney, Melbourne, Adelaide, Darwin Ensure you offer the best package to your employees and you are up to date with the latest trends in salary packaging. There have been a number of significant developments affecting employers FBT liability and salary packaging arrangements. This seminar is designed to update you with the latest rates, changes and developments of the past year.   To download the brochure and enrolment form click here.      Payroll & Salary Packaging Update Seminar 2011 Payroll Update (9am to 12pm)  Salary Packaging Update (1pm to 4pm) Register Perth - Applied Education, Level 1, 524 Hay St, Perth WA 6000 Tue 28th June Tue 28th June Brisbane - Christie Corporate, 320 Adelaide St, Brisbane QLD 4000 Wed 22nd June Wed 22nd June Sydney - Christie Coporate, 3 Spring St, Sydney NSW 2000 Thu 23rd June Thu 23rd June Melbourne - Institute of Accountants Lvl 6, 555 Lonsdale St Melb VIC 3000 Wed 29th June Wed 29th June Adelaide - Hilton Hotel, 233 Victoria Squ, Adelaide SA 5000 Thu 30th June Thu 30th June Darwin - Darwin Cetral Hotel, Knuckey St Darwin Tue 28th June Tue 28th June