About Michael Griffiths

Michael is a Director in the Business Services and Taxation division and has over 25 years experience in Chartered Accounting and business advisory services.

Prior to joining Prosperity, Michael was a Director in the Business Services and Tax division of one of the 'Big 4' accounting firms.

Michael is commercially focused with strong communication skills. He provides advice and services to clients across a range of industries including manufacturing, property and construction, wholesale, retail, health, agriculture and professional services.

His areas of expertise include transaction structuring and support, business structuring and valuations, taxation advice, superannuation funds, trust account external examinations and finance applications.

Up to $4,000 in payroll tax rebates available for each new job created in your workforce

Are you aware of the ‘NSW Payroll Tax Rebate’ and do you know how to access it? We’ve prepared this short overview to ensure you know whether you qualify for this important helping hand of up to $4,000 in payroll tax rebates for each new job created in your business. 

The NSW Payroll Tax Rebate Scheme (Jobs Action Plan) is designed to give businesses an incentive to create new jobs and employ new workers.

For businesses that maintain an increased number of full-time equivalent employees for at least two years, up to $4,000 in payroll tax rebates can be accessed for employees in positions that are new jobs.

Key eligibility requirements include:

  • The new jobs must result in a sustained increase in full-time equivalent employees for a period of at least two years.
  • The employment services of eligible employees must be performed wholly or mainly in NSW.
  • The scheme can be accessed for new positions that commenced after 1 July 2011, and is available for the first 100,000 registered new jobs created across all of NSW up to 30 June 2013.
  • Other conditions apply.

Exclusions:

  • The employment of a person by an employer is excluded from the rebate scheme if:
    • The person was employed by the employer or a group member in the previous 12 months;
    • The person’s employment is a continuation of employment with another employer, such as from a business acquisition;
    • The employer already receives a rebate in respect of the employees wages, such as an apprentice or trainee rebate; or
    • The person is a contractor.
    • Other exclusions apply.

Benefit:

  • The benefit is provided by way of a rebate spread over two years.  The rebate should be the lesser of $4,000 per full-time equivalent employee registered for the scheme, and the net payroll tax liability for the financial year in which the claim is lodged.

Registering for the Scheme:

  • Generally registering the employment of an eligible employee should be made within 30 days of the employment commencing.  However, the OSR have indicated to us that there is flexibility around this time period given a significant amount of positions are still available.
  • Registration for the scheme can be done online or via paper form.

Claiming the Rebate:

  • The rebate is payable over two years. Claims for each eligible employee should be made within 30 days after the anniversary of the first year of employment and the second year of employment.
  • If at any time before the second anniversary of employment, the registered new position is not maintained, the employer will be required to repay any rebate received in respect of that position.

If you believe you may be eligible for the Payroll Tax Rebate Scheme (Jobs Action Plan) or would like more information in regards to the scheme, please contact Michael Griffiths or your Prosperity Adviser.

Save up to $1,200 by prepaying your private health insurance

As part of the 2012 Federal Budget, the Federal Government proposes to means test the government rebate on private health insurance payments paid on or after 1 July 2012.  For those adversely affected, prepaying your private health insurance before 1 July 2012 could save you real money!  The Federal Government also propose to means test the Medicare Levy Surcharge levied on individuals without private insurance hospital cover.  These measures and what you should do is discussed below.

Private Health Insurance Rebate

For payments of private health insurance from 1 July 2012, the rebate will depend on the age and “adjusted taxable incomes” (see below) of singles and families.

The changes will adversely impact:

  • Singles aged under 70 years of age with an adjusted taxable income of more than $84,000
  • Singles aged 70 and over with an adjusted taxable income of more than $97,000
  • Family members aged under 70 years of age with a family adjusted taxable income of more than $168,000
  • Family members aged 70 and over with a family adjusted taxable income of more than $194,000

For these purposes adjusted taxable income is calculated as your taxable income, adjusted to include fringe benefits, tax free pensions, tax exempt foreign income, reportable super contributions and total net investment losses, less any deductible child support expenditure.

The tables below show the revised rebate rates.

Singles (single on the last day of the year and have no dependants)

 

Adjusted Taxable Income

 Age

Up to $84,000

$84,001 – $97,000

$97,001 – $130,000

$130,001 or more

Under 65:

30%

20%

10%

0%

65-69 years:

35%

25%

15%

0%

70 and over:

40%

30%

20%

0%

 

Families  (if you have a spouse on the last day of the income year, or are a single parent with one or more dependants)

 

Adjusted Taxable Income

 Age

Up to $168,000

$168,001 – $194,000

$194,001 – $260,000

$260,001 or more

Under 65:

30%

20%

10%

0%

65-69 years:

35%

25%

15%

0%

70 and over:

40%

30%

20%

0%

Note: The family income thresholds are increased by $1,500 for every dependant child after the first child.

Medicare Levy Surcharge

The same adjusted taxable income criteria will also be used to determine an individual or family’s exposure to the Medicare Levy Surcharge from 1 July 2012.  The rate of the Medicare Levy Surcharge will be means tested and taxed up to a maximum of 1.5% as per the tables below.

The changes will adversely impact:

  • Singles with an adjusted taxable income of more than $97,000
  • Family members with a family adjusted taxable income of more than $194,000

Singles (single on the last day of the year and have no dependants)

 

Adjusted Taxable Income

 

Up to $84,000

$84,001 – $97,000

$97,001 – $130,000

$130,001 or more

All ages:

0%

1.0%

1.25%

1.5%

Families (if you have a spouse on the last day of the income year, or are a single parent with one or more dependants)

 

Adjusted Taxable Income

 

Up to $168,000

$168,001 – $194,000

$194,001 – $260,000

$260,001 or more

All ages:

0%

1.0%

1.25%

1.5%

Note: The family income thresholds are increased by $1,500 for every dependant child after the first child.

What can you do?  What should you do?

If you would be adversely affected by these measures, you should consider:

  • Prepaying your annual private health insurance before 1 July 2012 to maximise the private health insurance rebate available to you (on a $4,000 policy, the saving could be up to $1,200); and
  • Taking up private health insurance hospital cover to avoid the Medicare Levy Surcharge (if applicable).

If you are unsure whether you might be adversely impacted by these measures or would like to talk about the implications/opportunities, contact me or your Prosperity Adviser for advice.

Michael Griffiths is a Director of Business Services and Taxation at Prosperity Advisers.


Image source; Flickr; Ryan Smith Photography