superchoice_obligations

For the rst year 1 july 200530 june 2006 the tax ofce

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Unformatted text preview: oyee did not choose a fund ■ make the contributions to the employee’s chosen fund if the employee did choose a fund, or ■ make the contributions to the employer fund if the employee did not choose a fund. For the first year (1 July 2005–30 June 2006), the Tax Office will focus on helping employers to understand and adapt to the choice of superannuation fund requirements. It recognises that employers may still be implementing appropriate record keeping practices to show that they have met their new obligations. Therefore, during this period, an employer who demonstrates they have made a genuine effort to comply will generally have any record keeping penalties reduced and/or any choice shortfall reduced to nil. However, choice shortfall and penalties will not be reduced where the employer has not made any attempt to comply or has deliberately or recklessly avoided their obligations. These decisions will be made on a case-by-case basis. In the most serious cases employers may face prosecution. Tax Office guidelines on reduction of the choice shortfall will be available at www.ato.gov.au in July 2005. More information about the choice shortfall and how The choice shortfall is usually 25% of the contributions to calculate it is available in the Tax Office publication that are not made in compliance with the choice of Employer’s guide to the Superannuation guarantee superannuation fund obligations. quarterly statement which will be available at Employers that charge employees a fee to recoup the www.ato.gov.au/super by the end of October 2005. cost of complying with the choice of superannuation fund More information about the superannuation guarantee obligations will also be subject to the choice shortfall. is available in the Tax Office publication Superannuation guarantee – a guide for employers available at The choice shortfall is capped at $500 for a notice period www.ato.gov.au/super (refer to the definition on page 31) per employee. To ensure they are not subject to th...
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This note was uploaded on 03/25/2014 for the course FOBE 302 taught by Professor X during the One '13 term at Macquarie.

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