Compulsory Superannuation Contributions To Rise
The Australian government has announced that it intends to legislate for an increase in the compulsory superannuation guarantee rate which will be increased gradually over ten years. The initial increments, commencing on the 1st July 2013, will be 0.25 percentage points and from the 1st July 2014 increments of 0.5% percentage points every year until 2019-20. The overall affect being to increase the rate of superannuation to 12% of an employee’s earnings by 2019/20.
Article provided by Acclipse Business Advisor and ESS BIZTOOLS Pty Ltd.
Age Limits For Superannuation To Be Scrapped
The government has announced that it intends to change the Law so that people, aged over 70, can continue to work and will be entitled to receive compulsory payments to superannuation. This is part of the government’s strategy to encourage older people to stay in work. The new arrangements will commence form the 1st July 2013.
Article provided by Acclipse Business Advisor and ESS BIZTOOLS Pty Ltd.
Who Are The "Winners" And "Losers" In The Carbon Tax Debate?
Winners
Low income households
Specific renewable projects seeking subsidies
Snowy and Tasmanian hydro schemes
Land owners
Some professionals advising companies on their carbon tax policies
Losers
High emission power generators
Coal mines
Steel and aluminium sectors
Most manufacturers
Anyone earning more than $80,000 per annum
What can you do in your business to prepare? You need to understand your emissions' intensity. There are ways of reducing your energy consumption. Carbon costs will be passed through all types of suppliers, not just power and transport. Can you find ways to reduce the costs by undertaking new methods of production? Can you produce a more efficient delivery of products or service procedures? Could you contract with other suppliers who have lower carbon costs?
It is estimated that Carbon Tax will increase power prices by 10% - 20% over the next 2 - 3 years.
One of the key issues is determining if suppliers can change the price they charge for long term contracts. For everyone else without long term contracts, suppliers will be charging more for their products to try and recoup the Carbon Tax that they have paid.
So, the key question that SMEs need to answer is - "Can you pass on the Carbon Tax influence on prices to your customers?" What will this do to your competitive position in the market place?
There is going to be some government funding available to assist in research and development and the actual development of products that reduce carbon emissions. We will provide you with details of these schemes as they are announced. If you would like to discuss the potential impact of the Carbon Tax on your business operations, please do not hesitate to contact us.
Article provided by Acclipse Business Advisor and ESS BIZTOOLS Pty Ltd.
This newsletter is intended for general information only. While every effort has been made to provide valuable, useful information, Griffin Accountants Pty Ltd and any associated suppliers accept no responsibility or any form of liability from reliance upon or use of its contents. Please seek professional advice for your personal circumstances.
Please contact us at advice@griffinaccountants.com.au if you have any queries.
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CPA
The Tax Institute