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ATO get Building & Construction Industry to report all payments to contractors via annual “taxable payments report”.

Friday, 20 April 2012

As of 1 July 2012, most businesses operating in the Building & Construction Industry will have to keep a record of all payments (and ABN, address details etc.) made to contractors and report this summary information to the ATO by 21 or 28 July 2013.

My message to people paying contractors is make sure you are receiving tax invoices and have your recording system in place NOW to capture the data required (ABN, name, address, gross amount, GST) as you are going to have to report it and it will need to be accurate.

My message to contractors is the days of the cash economy are over = big brother (and his computer) knows.

For more information check out the link or file attached: http://www.ato.gov.au/businesses/content.aspx?doc=/content/00313486.htm&alias=taxablepaymentsreporting 

taxable payments reporting.pdf

Goodbye 30% private health insurance premium rebate for high income earners! Hello higher Medicare Levy Surcharge rates!!!

Tuesday, 3 April 2012

As of 1 July 2012, access to the 30% private health insurance rebate will be means tested meaning if your 2012-13 “assessable” income as a:
- Single is more than $84,000 you will start to lose the rebate and at $130k you lose it fully.
- Family is more than $168,000 combined you will start to lose the rebate and at $260k it’s gone.

My message is to get out last year’s tax return and work out what your/family assessable income is, check out the table in the below links/attachment to see how it will effect your back pocket and then if it is going to hurt, call your private health insurer and check out if you should cancel your old policy and start another one so to change the “timing” of your next premium payment to be before 1 July 2012 to save/defer this “whack” making sure to keep your 365 days cover.

Then vote Liberal at the next election as they have promised to restore the rebate if they get in?

To make matters better/worse they have also tweaked the Medicare Levy Surcharge (ie. Pay extra 1% of your taxable income if you don’t have PHI for the full year and earn over $80k) whereby you pay an extra 1% MLS if you earn between $84k-$97k, or an extra 1.25% if you earn between $97k-$130k or an extra 1.5% if you earn over $130k. This is on top of the 1.5% you already pay as a general Medicare Levy! Is it time to get a PHI hospital cover quote from www.iselect.com.au??

For more information check out the link or file attached: http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/rebatechanges.htm 

Changes to PHI premium rebate - high earners lose.pdf