NEWS & EVENTS
Practice Update – May 2025
How to manage business day-to-day transactions
The ATO has the following tips for small business owners “that can make your tax life easier”:
- They should keep an eye on upcoming expenses, and regularly update their books and reconcile their accounts.
- They should set aside the GST they collect (e.g., by transferring it into another bank account within the business to keep it separate from their cash flow).
- They can also set their PAYG withholding and super aside, so they will have the funds available when payments are due.
- They should plan ahead and schedule time in their calendar to prepare their business activity statement (‘BAS’), and lodge and pay their BAS on time.
Editor: If you need assistance with any of these issues, please contact our office.
Minimum pension drawdown reminder
An SMSF must pay a minimum amount each year to a member who is receiving an account-based pension.
…Practice Update – April 2025
ATO’s new focus for small business
The ATO is currently focusing on the following ‘specific risk areas’, where it is concerned “small businesses are getting it wrong”:
- Contractors omitting income — with a focus on data matching to ensure all income is reported.
- Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025.
The ATO will also continue its focus on non-commercial business losses, small business capital gains tax (‘CGT’) concessions, business income that is not personal income, incorrect claims for ‘small business boosts’, GST registration and income of taxi, limousine and ride-sourcing services.
Reminder of March 2025 Quarter Superannuation Guarantee (‘SG’)
Employers are reminded that employee super contributions for the quarter ending 31 March 2025 must be received by the relevant super funds by Monday, 28 April 2025.
If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.
The SG rate is 11.5% for the 2025 income year.
FBT record keeping and plug-in hybrid exemption changes
With the 2025 fringe benefits tax (‘FBT’) year having just ended (on 31 March), the ATO is reminding employers of some changes that might impact their FBT obligations.
…Practice Update – March 2025
How to master employer obligations in 2025
Taxpayers who employ staff should remember the following important dates and obligations:
Fringe benefits tax (‘FBT’)
31 March 2025 marks the end of the 2024/25 FBT year. Employers should remember the following regarding their FBT tax time obligations.
- They should identify if they have provided a fringe benefit. If they have, they should determine the taxable value to work out if they have an FBT liability.
- They should lodge an FBT return and pay any FBT owed by 21 May 2025. If their registered tax agent lodges electronically for them, they have until 25 June 2025.
- They should keep the right records to support their FBT position.
Pay as you go (‘PAYG’) withholding
…Practice Update – January/February 2025
CGT withholding measures now law
The Government recently passed legislation making changes to the foreign resident capital gains withholding laws (among other changes).
Editor: Foreign resident capital gains withholding is relevant for all vendors selling certain taxable real property (e.g., Australian land).
Even Australian residents can be caught by these laws because, if they do not have a valid ‘clearance certificate’ issued by the ATO at, or before settlement, tax must be withheld from the sale proceeds by the purchaser and paid to the ATO.
The new legislation increases the foreign resident capital gains withholding rate to 15% (from 12.5%), and completely removes the threshold (currently $750,000) before which withholding applies.
This means that all disposals of taxable real property are potentially subject to foreign residents’ capital gains withholding requirements regardless of the market value of the CGT asset.
These amendments take effect from 1 January 2025.
ATO debunks Division 7A ‘myths’
…
Christmas Parties & Gifts 2024
Year-end (and other) staff parties
Editor: With the well earned December/January holiday season on the way, many employers will be planning to reward staff with a celebratory party or event. However, there are important issues to consider, including the possible FBT and income tax implications of providing ‘entertainment’ (including Christmas parties) to staff and clients.
FBT and ‘entertainment’
Under the FBT Act, employers must choose how they calculate their FBT meal entertainment liability, and most use either the ‘actual method’ or the ’50/50 method’, rather than the ’12-week method’.
…Practice Update – December 2024
Can staff celebrations attract FBT?
With the holiday season coming up, employers may be planning to celebrate with their employees.
Before they hire a restaurant or book an event, employers should make sure to work out if the benefits they provide their employees are considered entertainment-related, and therefore subject to fringe benefits tax (‘FBT’). This will depend on:
- the amount they spend on each employee;
- when and where the celebration is held;
- who attends — is it just employees, or are partners, clients or suppliers also invited?
- the value and type of gifts they provide.
Employers who do provide entertainment-related fringe benefits should keep records detailing all of this information so they can calculate their taxable value.
…Practice Update – November 2024
Hiring employees for the festive season
As the festive season approaches, employers that hire new employees to help with their business should remember the following when it comes to their employer tax and super obligations:
- Employers should make sure they are withholding the right amount of tax from payments they make to their employees and other payees, especially as this will help their employees meet their end-of-year tax liabilities;
- Employers must pay super guarantee (currently at 11.5%) to all eligible employee’s super funds in full and on time to avoid paying the super guarantee charge; and
- If employers are still not reporting through single touch payroll (‘STP’) and they do not have an approved exemption, deferral or concession in place, they should start reporting now. If they have just started a business or recently employed staff, they will need to report through STP from their first payday.
Lodging and paying business activity statements (‘BASs’)
The ATO is reminding taxpayers that it is important to lodge BASs and pay in full and on time to avoid penalties and interest charges.
The BAS for the first quarter of 2024/25 is generally due on 28 October, but taxpayers may receive an extra:
…Practice Update – October 2024
Avoid a tax time shock
Individual taxpayers can take the following steps right now to ensure the correct amount of tax is being put aside throughout the year:
- let their employer know if they have a study or training support loan, such as a HECS or HELP debt;
- check they are only claiming the tax-free threshold from one employer;
- consider whether the Medicare Levy Surcharge may affect them this financial year (i.e., whether they have the appropriate private health insurance);
- check their income tier is correct for their private health insurance rebate; and
- consider voluntarily entering PAYG instalments and pre-paying tax throughout the year to avoid a large tax bill at tax time for investment or business income.
Editor: If you would like to discuss or implement any of these steps and strategies in more detail, please feel free to contact our office.
Reminder of September Quarter Superannuation Guarantee (‘SG’)
Employers are reminded that employee super contributions for the 1 July 2024 to 30 September 2024 quarter must be received by the relevant super funds by 28 October 2024 in order to avoid being liable to pay the SG charge.
myGovId changing its name to myID
…Practice Update – September 2024
Taxpayers can start lodging their tax returns
With millions of pieces of information now pre-filled (including information from most banks, employers, government agencies and private health insurers), the ATO is giving taxpayers with simple affairs the ‘green light’ to lodge their tax returns.
Taxpayers who plan to claim deductions this year should make sure they have the correct records, and, in most cases, “a bank or credit card statement (on its own) isn’t enough evidence to support a work-related deduction claim – you’ll need your receipts”.
The ATO reminds taxpayers that the rules regarding how and when they can claim a deduction can change, including in relation to car expenses and working from home costs. Therefore, they should not just ‘copy and paste’ their deductions from last year, and they may require assistance from their accountant in this regard.
The ATO notes that taxpayers using a registered tax agent normally have more time to lodge.
Editor: Feel free to contact us if you want to urgently lodge your return, or if you want to confirm that you (and your related entities) are on our deferred lodgment program.