The Federal Budget passed down on 3 May 2016 announced major changes to superannuation in terms of concessional and non-concessional contribution limits, the retirement account cap and contribution entitlements (click here to read our full recap of the changes).
Recently the Fair Work Ombudsman (FWO) has launched a number of investigations into fraud and corruption in the food and hospitality industry. These investigations have focussed on ensuring businesses comply with labour laws and employee rights, including applicable awards and working conditions.
As part of the 2016 Federal Budget the government made a simple announcement that it intends to make a number of “targeted” changes to the rules concerning Division 7A. Division 7A seeks to prevent private companies from making tax-free distributions of profits to shareholders.
All Australian employers are obligated to contribute superannuation equivalent to 9.5% of the gross wages paid to each employee to the relevant employee’s complying superannuation fund. This includes foreign expatriates working in Australia, however, certain exemptions may apply meaning the mandatory 9.5% superannuation contributions are not required for qualifying expatriates.