Small business superannuation clearing house on line from 1 July 2010

On 6 November 2009, the federal government introduced a free superannuation clearing house service to small businesses with less than 20 employees.  This service is optional and is designed to reduce red tape and compliance costs associated with meeting superannuation guarantee obligations.  The clearing house is administered by Medicare Australia, offering employers the simplicity of making all of their super guarantee payments to a single location.

For further information click here.

Governing in the election campaign

• In the lead-up to the 21 August election, the federal government enters ‘caretaker’ mode
• During this period the government follows agreed caretaker conventions
• The conventions generally do not prevent the ordinary functions of government, though they do affect major decisions and relationships with business and industry groups.

In the campaign weeks approaching the 2010 federal election, the Australian Government assumes a ‘caretaker’ role, and follows the Guidance on Caretaker Conventions administered by the Department of the Prime Minister and Cabinet.  
 
The caretaker period begins at the time the House of Representatives is dissolved until the election result is clear or, if there is a change of government, until the new government is appointed.  
 
Under the caretaker conventions, the business of government continues, but the government will avoid making major policy decisions or entering into major contracts or undertakings. This means for many Australian business and industry groups, advocacy and consultation activity is limited until after the results of the 21 August election are known. 
 
When urgent circumstances require the government to take action, the relevant minister must consult the Opposition spokesperson beforehand. Most significant government actions and announcements, however, will be deferred for the duration of the campaign.

ATO Compliance Program 2010-11

The Australian Taxation Office will release early in the new Financial Year their Compliance Program for 2010-11.  In light of the Global Financial Crisis the ATO’s focus is on preventing problems rather than waiting for them to emerge.  An overview of what the ATO focus will be and some of the new measures commencing in the new financial year are as follows:

Targeted problems of inflated or fraudulent GST refunds, systematic under reporting of GST liabilities, non lodgement and non payment. Work related expenses with a focus on occupations with a pattern of large and/or rising claims or returns which do not fit the pattern or norm for a particular occupation across the community. Reforms to income tests. The continued use the benchmarks to identify businesses that may be avoiding their tax obligations. The ATO have recently begun sending letters to approximately 1000 businesses that are reporting income that is significantly outside of the benchmarks.

For further information click here.

June CPI released

The Australian Bureau of Statistics has released the latest Consumer Price Index figure. It shows a rise of 0.6% in the June quarter 2010 compared with a rise of 0.9% in the March quarter 2010.

The ABS Consumer Price Index rose 3.1% through the year to the June quarter 2010, compared with a rise of 2.9% through the year to March quarter 2010.
The most significant price rises this quarter were for tobacco (+15.4%), hospital and medical services (+3.8%), automotive fuel (+2.1%), rents (+1.1%) and house purchase (+0.6%). The most significant offsetting price falls were for domestic holiday travel and accommodation (–6.0%), fruit (–4.8%), audio, visual and computing equipment (–6.3%), vegetables (–3.0%), and overseas holiday travel and accommodation (–1.9%).

Interestingly, the AWOTE index grew by a greater percentage. Full-time adult ordinary time earnings rose by more than 5% in the 12 months to May 2010. By the latest measurements, the average full-time Australian worker earns over $65K per annum.