Consultancy Expertise Advice On Tax Matters †MyAssignmenthelp.com

Question: Discuss about the Consultancy Expertise Advice On Tax Matters. Answer: I hereby wish to first and fore most accord you much appreciation for thy trust and considerations to me for the tax advice. I likewise wish to let you know that all the information that I will share while advising will be in conformity with the Australian Tax Office Regulation as well as any other prevailing regulation of the land applicable in the context. It is of great importance to inform the owner that employees superannuation is a compulsory statutory fund obligation an employer is bound to honour. However it is only compulsory to the 9.5% portion mark set by the marginal individual tax rate law thus anything above that it is subject employee vs employer agreements. I further wish to inform the owners that the idea of increasing the employees superannuation percentage portion to 13% may or may not have tax implications depending with the following factors; Whether the superannuation contribution is done after or before payment of income tax. Whether the contribution made is above the caps set and finally Whether the employee is classified as those earning high income or not as stipulated by ATO The owners should therefore be informed that if he does the addition within the procedural regulation acceptable while the employee has agreed for salary sacrifice and before paying income tax the fund is therefore free from tax subjection. This reduces employees salary for tax purposes and likewise benefits the employer since it is treated as employers contribution that is always eligible for treatment as deductible allowable for tax purposes Braithwaite(2007.Pg. 7). Concessional cap that depends with employees age likewise forms part of consideration such that the owners should ensure that the employees subjecting to addition superannuation percentage fulfils the cap age of between 0-48yearrs, 48-65years and that of 65 and above ,since this is what outlines the income levels. Concerning the private health insurance premiums I wish to inform the owners that as long as the fringe benefit is not discriminative i.e. it cuts across all the employees let him proceed with it because it is less expensive since it forms part of deductible allowable compared to salary or allowance that is subject to PAYG and income tax as well. Let him proceed with the reimbursement and introduction of the premiums but under indiscriminative rule that guides health insurance premiums thus allowable expense deduction and decrease in medical levy since the 2% portion to be subjected on gross income reduces as allowable expense on insurance is introduced Delany(2010. Pg. 12). I therefore strongly advice the owners to proceed with the 3.5% employee superannuation addition since there exist instant benefits on tax avoidance for both the employer and employee upon satisfaction of the ATO rules guiding salary sacrificial and that on accounting for superannuation fund. The owners are likewise informed to proceed with the reimbursement and introduction of health premiums since it forms part of allowable deduction as long as it is across the board i.e. involves all employees. References Braithwaite, V., 2007. Responsive regulation and taxation: Introduction. Law Policy, 29(1), pp.3-10. Delany, T.P., 2012. Fringe benefits tax.