Global Employer Services tax summary. For the year ending 30 June 2009

Transcription

1 Global Employer Services tax summary For the year ending 30 June 2009 November 2008

2 Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. This publication is provided as general information only and does not consider your specific objectives, situation or needs. You should not rely on the information in this publication. We accept no duty of care or liability to you or anyone else regarding this publication and we are not responsible to you or anyone else for any loss suffered in connection with the use of this publication or any of its content. Liability limited by a scheme approved under Professional Standards Legislation. Deloitte Touche Tohmatsu Ltd. November All rights reserved. AM_Per_11/08_036881

3 Personal tax rates Resident Non-resident Taxable income Tax % on excess Taxable income Tax % on excess 6,000 Nil 15 Nil 29 34,000 4, ,000 9, ,000 18, ,000 23, ,000 58, ,000 63, Note: The general tax-free threshold of $6,000 is reduced in a year of partial residence. Medicare levy (residents only) Medicare levy 1.5% Medicare levy surcharge (1) 1% Threshold Individuals Families Medicare levy 17,309 29,207 Medicare levy surcharge 70, ,000 (2) (3) (4) Note: 1) Applies to taxpayers with income above the threshold without approved private patient hospital cover 2) Family threshold is increased by $2,682 for each dependent child 3) Plus $1,500 for each child after the first 4) Individuals and families who obtain appropriate private health cover before 1 January 2009 will avoid the Medicare levy surcharge for the period 1 July 08 through to 31 December Certain individuals on temporary visas are ineligible for Medicare benefits and can apply to the Minister of Health for a certificate of exemption. Most prior residents of the UK, Sweden, Finland, New Zealand, Norway and the Netherlands are covered by Medicare for the duration of their visits. Residents of Italy and Malta are covered for six months and thus are not eligible for the exemption. Fringe benefits tax - general - FBT rate on grossed up value of benefit 46.5% - gross-up factor - benefits for which employer can claim input tax credit for GST gross-up factor - benefits for which employer cannot claim input tax credit for GST FBT benchmark interest rate for year ending 31 March % Fringe benefits tax on cars - statutory formula Annualised kilometres travelled Statutory fraction applied to car cost 14,999 or less 26% 15,000 to 24,999 20% 25,000 to 40,000 11% 40,001 or more 7% 3

4 LAFH - tax-exempt reasonable food allowance (FBT year ending 31 March 2009) Family size Tax-free allowance per week $ Tax-free allowance per annum $ 1 Adult 169 8,788 2 Adults ,208 3 Adults ,156 2 Adults, 1 child ,248 2 Adults, 2 children ,156 2 Adults, 3 children ,340 3 Adults, 1 child ,340 3 Adults, 2 children ,524 4 Adults ,524 Note: Children are persons younger than 12 years at the beginning of the FBT year, i.e. 1 April. In relation to larger family groupings, an allowance based on the figures above, plus $85 for each additional adult and $41 for each additional child is accepted. Minimum salary levels * (from 1 August 2008 for current sub-class 457 visa holders) Non-IT Professionals IT Professionals $43,440 $59,480 *Amounts mentioned above are based on a 38 hour working week; excluding allowances, bonuses, most packaged item and living away from home benefits. Car expenses /08 per kilometre rates Conventional engines 1600 cc (1.6 litre) or less cc cc ( litre) cc (2.601 litre) and over 70 Superannuation and employment termination payments Contribution caps Cents per km Amount Concessional (employer contributions & self employed tax deductible) $50,000 Non-concessional (personal non-deductible contributions) $150,000 Note: Between 1 July 2007 and 30 June 2012, a transitional concessional contributions cap will apply for people aged 50 or over. During this time, for persons aged 50 or over the annual cap will be $100,000. Persons under age 65 can make non concessional contributions of up to $450,000 under a bring forward option over a three-year period. 4

5 Superannuation guarantee Employers must generally contribute 9% of an employee s earnings base (to a maximum earnings base of $38,180 per quarter in 2008/09) to a complying superannuation fund. An exemption applies for certain employees who remain covered by their home country social security systems where Australia has a totalisation agreement with that country and the employer obtains a certificate of coverage. The countries with such agreements are: Norway, Ireland, Belgium, Croatia, Chile, Netherlands, Portugal, USA, Switzerland, Korea (Commenced on 1 October 2008), Germany (Commenced on 1 October 2008), Greece (Commenced on 1 October 2008), Japan (due to commence 1 January 2009) and Finland (due to commence 1 July 2009). Departing Australia - superannuation payments Post-June 1983 taxed element is subject to tax rate of 30%. Only temporary residents permanently departing Australia are able to access their accumulated superannuation on departure any unclaimed superannuation balances will be transferred to the Australian Taxation Office six months after temporary residents relinquish their visas and permanently depart Australia and may be reclaimed, with interest, at any time. Tax-free amount of genuine redundancy payments and early retirement scheme payments From 1 July 2008, the limit set for genuine redundancy and early retirement scheme payments includes: (i) base limit of $7,350 (ii) $3,676 for each year of service. Employment termination payments Pre-1983 service 0% First $145,000 - over 55 15% First $145,000 - under 55 30% Balance 45% Transitional ETP caps (For payments under contracts in force at 9 May 2006) Amount First $145,000 - over 55 15% Next $855,000 - over 55 30% First $1m - under 55 30% Balance 45% Accrued leave Payment type Assessable portion Maximum rate of tax* Resignation, retirement payments Rate (excluding Medicare levy) Rate (excluding Medicare levy) Maximum rate of tax* Long service leave - pre 16/08/1978 5% Marginal rate Marginal rate - 16/08/1978 to 17/08/ % 30% 30% - post 17/08/ % Marginal rate 30% Annual leave - pre 18/08/ % 30% 30% - post 17/08/ % Marginal rate 30% Redundancy, invalidity and early retirement scheme * Only applies to payments on termination. Resident taxpayers may also be subject to 1.5% Medicare Levy. 5

6 Building write-off Type Construction commenced Rate% Residential 18/07/ /09/ /09/ /02/ /02/1992 onwards 2.5 or 4 (1) Non-residential 20/07/ /08/ /08/ /09/ /09/ /02/ /02/1992 onwards 2.5 or 4 (1) 1) 4% rate applies to short-term traveller accommodation and industrial buildings where construction commenced after 26 February Structural improvements commenced after 26 February 1992 also eligible for write-off. 2) Buildings outside Australia qualify for deduction only for expenditure after 21 August Withholding tax on Australian income received by non-residents Unfranked dividends 30% (reduced to 15% by most tax treaties) Interest 10% Royalties Australian managed investment trust for other Australian sourced income distributions 30% (reduced to 10% or 15% by most tax treaties) 30% (reduced to 22.5% for EOI jurisdictions) Tax offsets for residents 20% rebate on un-reimbursed medical expenditure over $1,500 Dependent spouse tax offset (2008/09) - $2,100 (1) Low income earner tax offset (2008/09) - $1,200 (2) Notes: 1) Spouse tax offset reduced by $1 for every $4 by which the spouse s net income exceeds $282. Taxpayers whose taxable income exceeds $150,000 are ineligible for the spouse tax offset. 2) Low Income earner tax offset is reduced $1 for every $25 which the taxpayer s income exceeds $30,000. Timeline of important dates 1 July 2008 Beginning of the 2008/09 Australian tax year 28 July 2008 Last day for payment of fourth quarter PAYG instalment for 2007/08 21 October 2008 Last day for payment of 2007/08 annual lump sum PAYG instalment 28 October 2008 Last date for payment of first quarterly PAYG instalment for 2008/09 6

7 31 October 2008 Last date to be listed on Deloitte s lodgement program to obtain an extension of the tax return filing deadline 28 February 2009 Last date for payment of second quarterly PAYG instalment for 2008/09 31 March 2009 Last date for lodgement of 2007/08 tax return for tax level 6 individuals 28 April 2009 Last date for payment of third quarterly PAYG instalment for 2008/09 15 May 2009 Last date for lodgement of 2007/08 tax return without payment ~ Two weeks after lodgement 2007/08 income tax assessment issues from ATO 5 June 2009 Last date for lodgement of 2007/08 tax return with payment of balance due 30 June 2009 End of the 2008/09 Australian tax year 28 July 2009 Last date for payment of fourth PAYG instalment for 2008/09 21 October 2009 Last day for payment of 2008/09 annual lump sum PAYG Deloitte resources Visit the client resources section of our GES website for access to Australian tax information and administration documents you will need during your international assignment: Visit the GES website for further information on our various service offerings: Apply for an Australian tax file number necessary for completion and lodgement of your Australian income tax return: Contacts Sarah Lane Melbourne +61 (0) Frank Klasic Melbourne +61 (0) Paul Rubinstein Melbourne +61 (0) Robert Basker Sydney +61 (0) Elizma Bolt Sydney +61 (0) Stephen Coakley Sydney +61 (0) Sally Morton Sydney +61 (0) John Rawson Adelaide +61 (0) Shelley Nolan Brisbane +61 (0) George Kyriakacis Perth +61 (0)

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