December 2012

With the festive season upon us, the Maxwell & Cameron team would like to take this opportunity to sincerely thank you for your continued business throughout 2012. We hope the past year has been prosperous and successful for you and that the festive season gives you and your family time to reflect on and celebrate the year that has been.

Please note our office will close for the Christmas/New Year period on Friday 21 December and will re-open at 8.30 am on Monday 7 January 2013.

In this edition we look at changes to the director penalty regime and how the law now extends beyond PAYG withholding to superannuation guarantee payments to staff.

Next month we will give you a run down on the "cloud" small business accounting software options now offered by QuickBooks and MYOB.

Don't forget to register for our Secure Client Area and if you are interested in featuring as our Business of the Month, please give us a call.

Feature Article - Directors personally liable for employee's super

Directors are now personally liable for unpaid superannuation guarantee payments to staff. While initially designed to prevent phoenix company activity, the new laws that apply from 1 July 2012, extend well beyond phoenix company activity. 

How does it work?



The new law extends the Director Penalty Regime (DPR) beyond PAYG withholding to the super guarantee charge. Therefore, if a company fails to remit superannuation guarantee to an employee's fund on time, the directors can be personally liable for the payment.

While the DPR targets companies and their directors, it is important to note that it will also apply to companies acting as trustees and the directors of those companies. 

A director penalty is triggered when a company's liability for PAYG withholding or superannuation guarantee remains unpaid and unreported 3 months after the due date. The ATO can then commence recovery proceedings, and will issue a director penalty notice to either the director or their tax agent.

Once this 3 month period has elapsed, directors cannot extinguish their personal liability by placing the company into voluntary administration or liquidation. The director penalty applies even if the company is placed into administration.

Increase in ATO Late Lodgement Penalties

On 28 November 2012, the Crimes Legislation Amendment (Serious Drugs, Identity Crime and Other Measures) Bill 2012 received royal assent. The change affects the value of a penalty unit in most Commonwealth laws, including the Taxation Administration Act 1953.

This Act increases the value of a late lodgement penalty unit from $110 to $170.

The new value of a penalty unit will apply prospectively, that is, where the matter giving rise to the penalty occurs on or after 28 December 2012.

Business of the month

Our December/January business of the month is Lickity Fingers Catering who offer a stylish range of catering for corporate and private events, from small and intimate to large extravaganzas.

Specialising in bite-sized morsels designed to be eaten in a cocktail-style setting, allowing greater social interaction with decreased formality. The menus are innovative and ooze elegance, perfectly balancing flavours of the best quality local and environmentally sustainable ingredients.

Their menus are designed to complement seasonal changes and utilise fresh local produce when Mother Nature has them in peak condition.

Lickity Fingers Catering prepares its products in a commercial kitchen, with a highly qualified and experienced chef leading the operation. Their products are freshly prepared to order, as opposed to using mass produced convenience products.

Dietary and food intolerance requirements are satisfied to suit the clients brief.

For more information visit Lickity Fingers Catering Rockhampton at www.lickityfingerscatering.com.au

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