Blog
Keeping Your Personal Information Personal
An alarming number of crimes in Australia have been mapped to stolen identities. When criminals have access to personal information they may pose as the individual without the person having any clue.This explains why we must stay alert and keep our identity documents / information protected. Personal information and identity documents comprise of one’s full name, current address, date of birth, Tax File Number, details regarding bank account, credit card, birth certificate, passport, driving licence etc. Thieves maysucceed in collecting...
read moreBasic Tax Related Information for 2015 – 16
For the financial year 2015 -16, tax rates come into effect from 1st July. The tax rates largely vary based on the taxableincome and residency status. The tax rates Australian residents for tax purposes are as follows,this excludes 2% medicare levy as well as the temporary budget repair levy. The latter is applicable at a rate of 2% when the taxable income exceeds $180,000. Taxable income Tax on this income 0 – $18,200 Nil $18,201 – $37,000 19c for each $1 over $18,200 $37,001 – $80,000 $3,572 plus 32.5c for each $1 over...
read moreKey Benefits of Salary Packaging
What exactly is salary packaging? The Australian Taxation Office allows restructuring of one’s income in such a manner that the pre-tax salary can be used as disposable income. This arrangement is known as salary packaging. It is popular as it results in lesser amount being left as taxable income and therefore brings greater savings. Is salary packaging popular in Australia? Yes many individuals are benefiting after getting their salary packaged. Employers are increasingly offering non-cash benefits. In the traditional scenario the...
read morePayroll Tax Rates
What is Payroll Tax? Payroll tax is a tax imposed by states and territories in Australia. It applies to the employer or a group when the wages paid or payable to its employees surpasses the threshold amount. What are the prevailing Payroll Tax rates and thresholds? The following table elaborates the Payroll tax and thresholds applicable in different Australian states and territories. Sr. No. State / Territory Rate Threshold (Monthly) Threshold (Annually) 1. Australian Capital Territory 6.85% $154,166.66 $1,850,000 2. New South...
read morePAYG Tax
What is PAYG Tax? PAYG Tax stands for Pay As You Go tax. As the name suggests this system allows individuals and businesses to pay their expected taxes in advance and as instalments. As and when the employees receive payments during an income year, as per their tax liabilities the employer can withhold the taxes. Along with the income tax it is used to collect superannuation funds, medicare payments and Higher Education Loan Program repayments. Is PAYG Tax the same as PAYE Tax? In the year 2000 this system replaced the Pay As You Earn...
read moreAustralian Tax
How does Tax System work in Australia? In Australia the individuals and companies pay variety of taxes and charges at multiple levels ay state, federal and local levels. Amongst the significant ones is the income tax that is collected by the government through the ATO (Australian Taxation Office). Then there is the GST (Goods and Services Tax) that is levied on the transactions that are a part of the production process. What is Payroll Tax? In Australia payroll tax rates and thresholds apply in its various states and territories. This tax...
read morePay As You Go (PAYG)
What is Pay As You Go (PAYG)? Pay As You Go or PAYG as it is popularly known as is withholding arrangement in the Australian Taxation system. It allows the contractors, employees and payees to withholding payments and repayments with their payers. These amounts typically include their superannuation fund, income tax, medicare payments and higher education loan program. What is the PAYG Summary? The PAYG summary summarises the payments received by the contractor during the financial year. It includes the gross payment received from the payer,...
read morePayroll Solutions in Australia
What are the key services offered by Independent Payroll Solutions in Australia? Independent Payroll Solutions (IPS) is a payroll company offering suite of services to contractors in Australia. It has a team of professionals who are into timely and accurate processing and management of: 1. online timesheets 2. pays 3. Payslips 4. PAYG summary 5. Superannuation funds 6. Novated leases 7. Living Away from Home Allowance 8. Salary sacrificing 9. Packaging of work related items 10. Insurances (Workers Compensation, Public Liability, Professional...
read moreSuperannuation in Australia
In Australia Superannuation refers the arrangement where people save funds for life post retirement. Typically this begins when they start earning. As per government laws the employer is obligated to pay the compulsory employer contribution. What is the compulsory employer contribution? Starting from 1st July 2014 the minimum employer contributions are 9.5% of the earnings. Can the contributions exceed the minimum required? Yes, employees can opt to have more funds in their superannuation in Australia by getting into a salary sacrificing...
read moreNovated Lease
What is Novated Leasing? Novated lease is essentially an arrangement to lease a new, an existing or used car. This involves getting into an agreement between the three key parties – employee, the employer and the financer/ Lease Company to treat employee’s car as company’s car for tax purposes. What makes Novated Leasing so popular? Novated lease ensures that the financing (lease payments) and the running costs of the vehicle are paid from the pre-tax income. This results in increased disposable income and reduced taxable income....
read more