Choosing a superannuation fund is a big decision. Making the right choice can have a significant impact on your financial future. Super will likely be the biggest investment you have in your lifetime after a house. So, it makes perfect financial sense to spend the time to get it right!
A recent decision in the Full Federal Court has again put service agreements to the test with a decision that is likely to widely impact the dental profession. The Full Federal Court has unanimously held that a dentist, Dr Moffet (the dentist) who operated under a service agreement was an “employee” under the Superannuation Guarantee (Administration) Act 1992, and not an independent contractor.
During July and August 2020, the Federal Government announced that the JobKeeper Payment, which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) until 28 March 2021.
As you are probably aware, the recent payroll tax cases in NSW and Victoria have demonstrated the Office of State Revenue’s renewed vigour to try to undo well accepted medical and dental practice structures, none more so than in the Optical Superstore case where recently the Victorian Court of Appeal found payments made to Optometrists by the Optical Super Store were subject to payroll tax.
The classification of an associate dentist as a common law employee or an independent contractor is not only relevant when determining a practice’s potential payroll tax obligations.
When planning your staff Christmas functions and gifts, don’t forget to consider the tax consequences to save you money!