parallax-accounting

PayDay Super

Tue, 03 Mar 2026 00:26:12 GMT

The Australian Taxation Office (ATO) has announced the introduction of Payday Super, a major change to how employers pay superannuation contributions.

From 1 July 2026 , employers will be required to pay their employees’ super at the same time as their salary and wages, rather than quarterly.

Super contributions will need to reach employees’ super funds within seven calendar days of payday .

The reform is designed to reduce unpaid super, improve transparency, and help employees receive their retirement savings sooner. Employers will need to review their payroll systems, processes, and cash-flow management to ensure they can meet the new payment timeframes.

Businesses are encouraged to begin preparing early to ensure a smooth transition ahead of the 2026 start date.

Please use the link below or contact our office for more information.

About PayDay Super

Tax Dodgers Banned From Leaving The Country

Mon, 02 Mar 2026 23:35:14 GMT

The ATO is actively using departure prohibition orders ('DPOs') as part of a broader shift towards strengthening payment performance and debt collection. A DPO is an enforcement action available to the ATO to prevent certain persons with tax liabilities from leaving Australia without paying their outstanding tax.

Since July 2025, the ATO has issued 21 DPOs, more than the total number issued in the entire financial year ended 30 June 2025.

The ATO notes that a taxpayer was recently prevented from boarding a flight in the early hours of the morning due to a DPO imposed because of deliberate non-payment of a significant debt.

Please contact our office for more information.

Paying Super Guarantee

Mon, 02 Mar 2026 23:30:29 GMT

The Bureau of Meteorology have issued a long-range forecast for February to April 2026.

Here’s where we come in.

Weather forecasts don’t bankrupt farms, unplanned decisions do. ��️��

A long-range outlook might say “hotter and drier than normal.” but this is what that actually means when you run it through the numbers ⬇️

Yield scenarios: good / average / bad year
Revenue ranges under each outcome
Break-even yields and prices
Cash-flow impact if rain is 10–15% below normal

From there, smarter moves follow:

Don’t over-invest in seed, fertilizer, or irrigation ahead of a tough year
Decide if drought-tolerant crops reduce downside risk
See which acres carry the most financial exposure

Then comes survival planning:

Month-by-month cash-flow forecasts
Knowing when money gets tight not just if
Lining up operating credit before stress hits

Layer in risk management:

Crop insurance levels that actually pencil out
Revenue vs. yield protection tradeoffs
Marketing decisions that balance price risk with production risk

And finally, capital discipline:

Delay big equipment buys in risky years
Lease instead of buy when cash matters
Invest aggressively only when the forecast supports it

Bottom line:

A forecast tells you what might happen, Good business advice tells you how to survive it and still farm next year. ��

Please click the link below or contact our office for more information.

BOM's Long Range Weather Forecast

BOM Long Range Weather Forecast

Mon, 02 Mar 2026 23:16:37 GMT

The Bureau of Meteorology have issued a long-range forecast for February to April 2026.

Here’s where we come in.

Weather forecasts don’t bankrupt farms, unplanned decisions do.

A long-range outlook might say “hotter and drier than normal.” but this is what that actually means when you run it through the numbers.

Yield scenarios: good / average / bad year
Revenue ranges under each outcome
Break-even yields and prices
Cash-flow impact if rain is 10–15% below normal

From there, smarter moves follow:

Don’t over-invest in seed, fertilizer, or irrigation ahead of a tough year
Decide if drought-tolerant crops reduce downside risk
See which acres carry the most financial exposure

Then comes survival planning:

Month-by-month cash-flow forecasts
Knowing when money gets tight not just if
Lining up operating credit before stress hits

Layer in risk management:

Crop insurance levels that actually pencil out
Revenue vs. yield protection tradeoffs
Marketing decisions that balance price risk with production risk

And finally, capital discipline:

Delay big equipment buys in risky years
Lease instead of buy when cash matters
Invest aggressively only when the forecast supports it

Bottom line:

A forecast tells you what might happen, Good business advice tells you how to survive it and still farm next year.

Please click the link below or contact our office for more information.

BOM's Long Range Weather Forecast

Taxpayer's Dog Breeding Activities Held To Be An Enterprise

Tue, 10 Feb 2026 00:13:38 GMT

The Administrative Review Tribunal ('ART') recently held that a taxpayer had carried on an enterprise of dog breeding for GST purposes.

He had lodged activity statements for the quarters ended 30 September 2018 to 31 December 2021 inclusive, claiming input tax credits ('ITCs') for the dog breeding activities he carried on from his home (among other activities).

The ATO disallowed the taxpayer's claims for the above periods, arguing that enterprises were not carried on, and that there was a lack of appropriate substantiation (among other reasons).

The ART however held that the taxpayer's dog breeding operation was an enterprise for GST purposes, noting that his activities had "the necessary commercial character." Therefore, the taxpayer was entitled to ITCs for that enterprise.

However, the ART affirmed the ATO's decision to reduce the taxpayer's other ITC claims, such as in relation to stamp duty on the acquisition of a property and for café and grocery expenses.

The ART also admonished the taxpayer for apparently using artificial intelligence in the presentation of his case, as he appeared to rely on cases and principles that did not exist.

Please contact our office for more information.

Time Limits On GST And Fuel Tax Credit Claims

Tue, 10 Feb 2026 00:10:21 GMT

Taxpayers should note that GST credits and fuel tax credits will expire if not claimed within the 4-year credit time limit (i.e., generally four years from the due date of the original BAS in which the taxpayer could have claimed them).

Once credits expire, the ATO has no discretion or ability to amend the assessment to include those credits.

The 4-year credit time limit is different to the period of review and applies more strictly.

There may be situations where the ATO is able to amend for overpaid or underpaid GST or overclaimed credits, but additional credits cannot be included in an amendment assessment.

If credits are near expiry, instead of writing to request an amendment, taxpayers should consider:

claiming the credits in their next BAS that is still within the 4-year credit time limit;

requesting the amendment by lodging a revised BAS for the tax period to which the credits are attributable (these are generally processed faster than amendment requests in other forms); or

lodging a valid objection against their assessment for the period to which the GST credits are attributable before the end of the 4-year credit time limit.

Please contact our office for more information.

ATO Child Support Data-Matching Program

Tue, 03 Feb 2026 07:44:52 GMT

The ATO has advised that it will acquire child support data from Services Australia for the 2025 to 2027 income years, including the following:

client identification details (names, addresses, phone numbers, and dates of birth); and
child support details (child support identification reference number, child support role type, and child support category).

The ATO estimates that records relating to up to 300,000 individuals will be obtained each financial year, which will be matched against ATO records.

The objectives of this program are to (among other things):

allow Services Australia to more accurately assess child support obligations, and maximise opportunities to collect child support debts; and
identify and educate individuals who may be failing to meet their lodgment obligations and help them to finalise their lodgment obligations, or notify the ATO that an income tax return is not required.

Please contact our office for more information.

Mandating Cash Acceptance

Tue, 03 Feb 2026 07:38:07 GMT

The Government recently announced that it was delivering on its commitment "to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026."

The changes mean that, from 1 January 2026 , most food and grocery retailers must accept cash for in-person transactions of $500 or less between 7am and 9pm.

Small businesses with aggregate annual turnover under $10 million are generally exempted from this mandate. However, this mandate still applies to small businesses that choose to share a trademark with a large retailer.

The Government noted that, in addition to the cash mandate for fuel and groceries, consumers also already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay.

The Government will review this mandate after three years, to ensure it is functioning as intended.

Please contact our office for more information.

ATO Warns About Barter Credit Tax Scheme

Mon, 12 Jan 2026 23:05:59 GMT

The ATO is warning the community to steer clear of an emerging tax scheme involving barter credits — a type of alternative currency used in some business networks.

A tax scheme that involves artificially inflating deductions for donations of barter credits to deductible gift recipients ('DGRs') is on the rise. While it may seem enticing, promoters and taxpayers could face potentially significant consequences if they are involved.

The ATO is concerned that such schemes are being enabled by several barter exchanges that are allowing participants to access barter credits with a nominal face value that is much more than any payments actually made to the exchange.

Participants then donate these barter credits to a DGR and claim a larger tax deduction than they are entitled to.

Those involved may have to repay the tax, plus face heavy penalties, interest and legal action.

Please contact our office for more information.

ATO's New Approach To Holiday Home Expenses

Mon, 12 Jan 2026 22:59:27 GMT

The ATO has announced that it will take a somewhat different approach in relation to expenses that are claimed in relation to holiday homes.

Broadly, the ATO now takes the view that, if a taxpayer's rental property is also their holiday home, certain deductions relating to holding it will be completely denied (rather than being apportioned).

Expenses relating to ownership and use of the holiday home (e.g., interest, rates and maintenance) will not be deductible, unless the holiday home is 'mainly' used to produce assessable income.

Whether a holiday home is used 'mainly' to produce assessable income will be determined based on a consideration of a number of factors.

However, this will generally not apply to expenses incurred in relation to holiday homes that are rental properties before 1 July 2026, if those expenses are incurred under an arrangement entered into prior to 12 November 2025.

Please contact our office for more information.

Australians Call Out Tax Dodgers In Record Numbers

Tue, 09 Dec 2025 06:48:13 GMT

The ATO has hit a major milestone of over 300,000 tip-offs from the community about tax avoidance and other dishonest behaviours since 1 July 2019. In the 2024/25 financial year alone, almost 50,000 red flags were raised by members of the community who spotted something suspicious.

Most of the tip-offs received related to shadow economy activity, coming from customers, employees, other businesses, and even family and friends.

This year, Australians reported businesses and individuals who:

did not declare their income;
demanded or paid for work in cash to avoid tax;
lived lifestyles that did not match their known income; and
failed to report all sales.

The top three industries seeing a surge in 'red flags' this financial year are:

building and construction;
cafes and restaurants; and
hairdressing and beauty services.

Please contact our office for more information.

Dental Expenses Are Private Expenses

Tue, 09 Dec 2025 06:41:11 GMT

The ATO has been seeing a number of deduction claims for dental expenses this tax time. Dental expenses, including preventative and necessary dental treatment, medical expenses and other costs relating to client's personal appearance (such as teeth whitening, makeup, skin care, shaving products and haircuts) are not deductible.

These expenses are generally private expenses, even if an employer expects an employee to maintain a certain appearance, or pays them an allowance to cover grooming expenses.

Taxpayers should remember that they can only claim an expense that directly relates to earning their income. Private expenses cannot be claimed as a deduction.

Taxpayers should have written evidence of all their expenses, and be able to show a direct connection with those expenses to their employment income.

Please contact our office for more information.

Reminder Of December 2025 Quarter Superannuation Guarantee ('SG')

Mon, 01 Dec 2025 23:35:45 GMT

Employee super contributions for the quarter ending 31 December 2025 must be received by the relevant super funds by 28 January 2026.

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 12% for the 2026 income year (increased from 11.5% for the 2025 income year).

Please contact our office for more information.

Alternative Providers To The SBSCH

Mon, 01 Dec 2025 23:25:06 GMT

Employers should start preparing for the permanent closure of the Small Business Superannuation Clearing House ('SBSCH') on 1 July 2026.

By acting now to find an alternative service, employers will:

have an established process in place to pay super guarantee ('SG') for the March and June quarters (if they currently pay quarterly);

reduce the risk of late payment of SG for the June 2026 quarter due date (28 July), as the SBSCH will be already closed;

have more time to set up their business cash flow to enable frequent payments of SG; and

have finalised payments and downloaded any reports from the SBSCH before it closes permanently.

Employers that are still using the SBSCH should be aware of the following key dates.

10 December 2025 — Super payments, along with instructions, must be received by 5.30 pm AEDT on this date. The ATO says payments received after this time will be processed from 2 January 2026.

28 January 2026 — December 2025 SG quarterly payments due date.

February to March 2026 — Employers should move to an alternative option to the SBSCH.

28 April 2026 — March 2026 SG quarterly payments due date.

30 June 2026 — Final day for employers to use the service, make any final payments and download reports.

1 July 2026 — SBSCH is no longer available.

Employers may already have other options readily available so they can exit from using the SBSCH ahead of time.

They should check their existing software and payroll packages, as they may already include super functions they can use to pay SG.

Otherwise, employers can look for options from super funds or digital service providers offering payroll services, software or commercial clearing houses.

Please contact our office for more information.

GST Held To Apply To Sales Of Subdivided Lots

Mon, 10 Nov 2025 23:31:57 GMT

The Administrative Review Tribunal ('ART') recently held that some sales of subdivided farmland were subject to GST as they were made by the taxpayer in the course of carrying on an enterprise.

The taxpayer owned farmland near Adelaide. He entered into an agreement with a developer, under which the developer sought rezoning and development approvals, carried out development works, and marketed the subdivided lots.

The taxpayer progressively gave the developer access to the property as required and signed documents where necessary, including contracts for the sale of the subdivided lots. The taxpayer received 20% of the proceeds of sale progressively as sales of the subdivided lots were completed, with the developer receiving the remaining 80%.

The taxpayer argued that his role was passive, and that such rights as he had, and actions he took under the agreement with the developer, were of an administrative nature not amounting to a series of activities in the form of a business.

The ART disagreed, finding that the sales of the subdivided land were subject to GST as they were made in the course of carrying on an enterprise.

The ART noted that the taxpayer's activities "exhibited some of the well-known indicia of a business."

Amongst other factors, the taxpayer's activities in facilitating the implementation of the development agreement "had a degree of regularity and repetition", including allowing access to the land progressively as required, an ongoing obligation not to encumber or sell the land during the project, and the continuous signing of sales contracts and monitoring of sales returns.

Please contact our office for more information.

SMSF Non-Compliance With Release Authorities

Mon, 10 Nov 2025 23:24:32 GMT

Release authorities are documents issued by the ATO to super funds, authorising the release of money from a member's super account to pay specific liabilities, including in relation to excess concessional contributions, excess non-concessional contributions, and Division 293 tax assessments.

The ATO is seeing a rise in SMSFs that receive a release authority and are either:

not responding within 10 business days as required; or

responding incorrectly (i.e., either not releasing the requested amount, or failing to submit a release authority statement back to the ATO, or both).

Failure to meet these obligations may result in significant penalties for the fund.

SMSF trustees should make sure they have effective processes in place to respond to release authorities promptly and accurately.

Please contact our office for more information.

New ATO Data-Matching Programs

Mon, 10 Nov 2025 23:13:30 GMT

The ATO acquires and uses data for pre-filling, detecting dishonest or fraudulent behaviour, and identifying areas where it can educate taxpayers to help them understand their tax obligations.

When data does not match, the ATO may contact tax agents and their clients to find out why.

Rental Income Data-Matching

Over the coming months, the ATO will be sending letters where its data indicates:

tax returns including rental income may need to be lodged for specific years; or
rental income should be included in previously lodged tax returns.

Please contact us if you receive such a letter.

Offshore Merchant Data-Matching Program

The ATO will acquire merchant data from the big four Australian banks (ANZ, Commonwealth Bank, National Australia Bank and Westpac) for the 2025 to 2027 income years.

The ATO estimates that records relating to approximately 9,000 offshore merchants will be obtained each financial year.

Please contact our office for more information.

ATO's Focus On Small Businesses

Mon, 03 Nov 2025 21:32:05 GMT

The ATO is 'detecting and addressing' recurring errors in specific industries when businesses have a turnover between $1 million and $10 million.

These industries include property and construction (including builders, contractors and tradies), and professional, scientific and technical services (including engineering, design, IT and consulting professionals).

In these industries, the ATO continues to see recurring issues, including:

omitted sales and income in BAS and tax returns, including income from related entities;

overclaimed expenses and GST credits;

private expenses incorrectly reported as business-related, or not properly apportioned between business and personal use;

failure to register for GST when required;

incorrect claims for the research and development (R&D) tax incentive offset, especially for activities that do not meet the eligibility criteria; and

not seeking independent advice from a registered tax agent, particularly in head contractor/subcontractor arrangements.

By sharing the issues that it is seeing, the ATO hopes to help taxpayers running a small business in one of these (or other) industries to avoid common errors and get it right from the start.

Please contact our office for more information.

ATO Reminder: Business Expenses That Can (And Cannot) Be Claimed

Mon, 03 Nov 2025 21:26:46 GMT

Taxpayers can claim a tax deduction for most business expenses, provided they meet the ATO's three 'golden rules':

The expense must be for business use, not for private use.

If the expense is for a mix of business and private use, they can only claim the portion that is used for business.

They must have records to prove their claim.

The ATO also wants business taxpayers to remember that there are some expenses that they cannot claim, including entertainment expenses, traffic fines, and expenses that relate to earning non-assessable income.

Please contact our office for more information.

Dual Cab Utes And FBT

Mon, 03 Nov 2025 21:21:12 GMT

The ATO wishes to dispel the 'common myth' that dual cab utes are automatically exempt from fringe benefits tax ('FBT'). If an employer provides dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT.

By understanding how their employees use their dual cab utes, employers can work out if FBT applies and meet their FBT obligations.

To qualify for an exemption, the dual cab ute must be an 'eligible vehicle'. That is, it must be designed to carry a load of one tonne or more, or more than eight passengers (including the driver), or a load under one tonne and not primarily designed for carrying passengers.

The dual cab ute must also only be used for limited private use (i.e., minor, infrequent and irregular), such as the occasional trip to the tip or helping a mate move house.

If an employee's personal use of the dual cab ute does not meet both of the above exemption conditions, then the employer will be liable for FBT.

Please contact our office for more information.

Taxi Service And Ride-Sourcing Providers Must Be Registered

Mon, 27 Oct 2025 23:47:35 GMT

Taxpayers that provide taxi, limousine or ride-sourcing services must register for GST regardless of their turnover.

They must collect and pay GST and income tax on all their rides and all other business income.

The ATO is advising drivers in this industry who do not have a TFN, ABN or GST registration that they need to register now, and collect, report and pay GST on all their future rides.

They also need to report all their income from their rides in their next tax return.

Penalties and interest may apply for drivers who do not register for GST.

Drivers who have not declared all their income for ride-sourcing in prior years can amend a previous tax return.

Please contact our office for more information.

Getting Ready For Business

Mon, 27 Oct 2025 23:37:25 GMT

The ATO advises new business owners that they need to understand their obligations to ensure they are "getting it right from the start."

These are the 'top 7 things' taxpayers need to know when starting a business:

They should use digital tools and maintain accurate records to help them manage daily activities and cash flow.

There are some registrations they will need to complete when they start a business (for example, registering for an ABN or a business name).

They can claim a tax deduction for most business expenses if the expense is directly related to earning their income. Taxpayers should remember to keep records and only claim the business portion of mixed-use expenses.

The type of business structure they set up will affect their tax and registration requirements, so they need to choose the right business structure and understand their obligations.

If they are an employer, they should realise that they have extra responsibilities and obligations (e.g., super guarantee and Single Touch Payroll).

They need to lodge and pay their taxes on time. They can prepay their estimated income tax liability through PAYG instalments.

Businesses that maintain accurate records, lodge and pay on time and avoid errors not only steer clear of penalties and general interest charge but also become more resilient when facing challenges.

Please contact our office for more information.

'Wild' Tax Deduction Attempts

Mon, 27 Oct 2025 23:12:44 GMT

The ATO recently revealed some of the 'wild' work related expense tax claims people have tried to "put past" the ATO, including the following:

A mechanic tried to claim an air fryer, microwave, two vacuum cleaners, a TV, gaming console and gaming accessories as work-related. The claim was denied as these expenses are personal in nature.

A truck driver tried to claim swimwear because it was hot when they stopped in transit and they wanted to go for a swim. The claim was denied as these expenses are personal in nature.

A manager in the fashion industry tried to claim well over $10,000 in luxury-branded clothing and accessories to be well presented at work, and to attend events, dinners and functions. The clothing was all conventional in nature and was not allowed.

This tax time, the ATO will be focused on areas where it sees frequent errors, including work-related expenses, working from home deductions, and in respect to multiple income sources.

Please contact our office for more information.

ART Dismisses Argument That Medical Expenses Were Deductible

Mon, 20 Oct 2025 23:19:59 GMT

In a recent decision, the Administrative Review Tribunal ('ART') held that a taxpayer could not claim a tax deduction for medical expenses incurred by him in relation to his total and permanent disability pension.

The taxpayer had been terminated from his employment due to total and permanent disablement ('TPD'). For the 2024 income year, his only income was a TPD pension.

The taxpayer wanted to claim a deduction for medical expenses to be incurred, estimated to be approximately $100,000 in the 2024 income year.

The ART agreed with the ATO that the medical expenses were not deductible. The ART noted in this regard that the medical expenses were "incurred by (the taxpayer) to better live with his medical condition, not incurred 'in' gaining or producing the TPD pension." That is, "the occasion of the Medical Expenses is to assist (the taxpayer) with his medical condition, not to gain or maintain his eligibility to the TPD pension."

The ART also did not accept the taxpayer's argument that the medical expenses were not private or domestic in nature, as they were essentially personal in character.

Please contact our office for more information.

ATO Warning Regarding Private Use Of Work Vehicles And FBT

Mon, 13 Oct 2025 23:44:49 GMT

Employers that supply work vehicles to their employees need to check how the work vehicles are used and whether any exemptions apply to determine if they attract fringe benefits tax ('FBT').

FBT generally applies when a work vehicle is made available for private use, even if it is not actually used. Private use includes any travel not directly related to the employee's job.

Exemptions may apply depending on the vehicle's specifications and the nature of the private use.

The most common issues the ATO sees include the following:

incorrectly treating private use as business use;

assuming dual cab utes are exempt from FBT — exemptions only apply if the vehicle is eligible for the specific FBT exemption and private use is limited;

incorrectly classifying vehicles;

poor record keeping that does not support the claims or the FBT calculations made; and

not reporting or paying on time.

Please contact our office for more information.

Tips To Help Sole Trader Clients

Mon, 13 Oct 2025 23:30:49 GMT

The ATO is seeing sole traders make mistakes in the following areas:

not reporting all income — this includes income earned outside their business (like a 'side hustle'), cash jobs, or payments in-kind/barter deals;

overclaiming expenses — this includes claiming the portion of an expense related to personal use, or overstating the cost of goods sold and other business expenses;

calculating business losses;

incorrectly claiming and offsetting losses from non-commercial business activities against other income sources;

misreporting personal services income ('PSI') to gain tax benefits;

not registering for GST if they are in the taxi or ride-sourcing industry, or when they reach the GST threshold; and

not keeping accurate and complete records.

Please contact our office for more information.

Correctly Dealing With Rental Property Repairs

Mon, 06 Oct 2025 23:22:24 GMT

Taxpayers who have had work done on their rental property should ensure the expense is categorised correctly to avoid errors when completing their tax return.

A deduction for 'repairs and maintenance' expenses can be claimed for work done to remedy, or prevent defects, damage or deterioration from using the property to earn income. These expenses can be claimed in the year they were incurred.

However, some 'capital' expenditure may not be immediately deductible, such as for 'initial repairs', 'capital works', 'improvements' and depreciating assets.

Initial repairs include fixing any pre-existing damage or deterioration that existed at the time of purchasing the property, even if the damage or deterioration was unknown to the taxpayer at the time of purchase.

Initial repairs are treated as part of the acquisition cost and included in the cost base of the property for CGT purposes, unless they are capital works or depreciating assets.

Capital works are structural improvements, alterations and extensions to the property, and can generally be claimed at 2.5% over 40 years.

Capital works deductions can only be claimed after the work has been completed, regardless of when the taxpayer pays the deposit and instalments.

Improvements or renovations that are structural are also capital works. Work that goes beyond remedying defects, damage or deterioration that improves the function of the property is regarded as an improvement.

Repairs to an 'entirety' are capital and cannot be claimed as repairs. Repairs to an entirety generally involve the replacement or reconstruction of something separately identifiable as a capital item.

Depreciating assets are treated as follows:

Deductions for 'new' assets must generally be claimed over time according to their effective life.

Second-hand depreciating assets generally cannot be deducted.

Please contact our office for more information.

Reminder Of September Quarter Superannuation Guarantee ('SG')

Mon, 06 Oct 2025 23:15:46 GMT

Employers are reminded that employee super contributions for the quarter ending 30 September 2025 must be received by the relevant super funds by Tuesday, 28 October 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.

Please contact our office for more information.

Employees Incorrectly Treated As Independent Contractors

Mon, 06 Oct 2025 23:01:44 GMT

The ATO is warning businesses that if they incorrectly treat an employee as an independent contractor, then they risk receiving penalties and charges, including:

PAYG withholding penalty for failing to deduct tax from worker payments and send it to the ATO;

Super guarantee charge ('SGC'), which is more than the super that would have been paid if the worker was classified correctly. SGC consists of a super guarantee shortfall amount, nominal interest, and an administration fee; and

Additional SG penalties , including a penalty amount of up to 200% of the SGC.

'Sham contracting' may also contravene the Fair Work Act 2009. Courts can impose penalties against a business or person that incorrectly informs an employee that they are an independent contractor.

Please contact our office for more information.

Taxpayer's Claim For Home Office And Car Expenses Successful

Mon, 29 Sep 2025 23:53:59 GMT

The Administrative Review Tribunal ('ART') recently held that a taxpayer was entitled to claim deductions for home office and car expenses incurred during the COVID-19 pandemic.

The taxpayer was employed full time by the ABC producing the ABC Sport Digital Radio station ('Digital Role') and producing ABC live sports broadcasts, mainly NRL football ('Live Role').

During the 2021 income year, because of restrictions imposed in response to the COVID-19 pandemic, the taxpayer undertook all of his Digital Role from a second bedroom in his apartment (his home office) which he was renting with his wife, and he undertook most of his Live Role from the ABC's Southbank Studios in Melbourne.

The taxpayer claimed deductions for occupation expenses (being the proportion of rent for his apartment referable to the use of his home office in performing his Digital Role), and for car expenses incurred in driving between his home and the ABC studios at Southbank on days when he performed both roles.

The ART allowed the taxpayer's claims for occupation expenses in full, as the COVID-19 restrictions required him to earn most of his income at his home, and so a proportion of rent was incurred in gaining his assessable income.

The ART also allowed the car expenses in full on the basis that on the days when the taxpayer "closed his laptop at home, picked up his car keys and drove to the Southbank Studios . . . he was at work the entire time and his travel was therefore 'on work' . . ."

Please contact our office for more information.

Beware Of Tax Advice From 'Finfluencers'

Mon, 29 Sep 2025 23:42:47 GMT

The Tax Practitioners Board ('TPB') warns that the number of 'finfluencers' is on the rise. These are influencers who offer financial advice, including tax advice, on various social media platforms such as Instagram and TikTok.

Unfortunately, they do not always have the necessary qualifications to give out this advice or provide all the information taxpayers need to make a fully informed decision. This can result in taxpayers suffering serious financial harm.

The main way 'finfluencers' make their money is by getting paid by companies that want to promote their financial products through the 'finfluencers' social media platform.

Therefore, taxpayers who are going to use someone to help them manage their tax affairs should make sure they are registered with the TPB by checking the TPB Register.

Please contact our office for more information.

Notice Of Data Exchange For Skilled Visa Program Compliance

Mon, 29 Sep 2025 23:35:51 GMT

The Department of Home Affairs will obtain data from the ATO to identify whether business sponsors are complying with their sponsorship obligations (e.g., paying visa holders correctly) and whether temporary skilled visa holders are complying with their visa conditions (e.g., to work only for an approved employer).

The Department will provide to the ATO biographical details (including name, address and date of birth) of clients who are, or were in the three most recent financial years, holders of Skills in Demand or Temporary Skills Shortage (subclasses 457 and 482) primary visas.

These details will be electronically matched against ATO data holdings. Where there is an identity match, the ATO will return Single Touch Payroll employment data for the relevant individual(s) to the Department.

It is estimated that records will be shared relating to around 58,000 individuals .

Please contact our office for more information.

PAYGW Reminders For Activity Statement Lodgments

Mon, 22 Sep 2025 23:35:09 GMT

The ATO will be sending certain employers a reminder to lodge their activity statements

The reminder will include the amounts the ATO has on record for them, such as:

PAYG withheld amounts reported through Single Touch Payroll; and

any other pre-filled amounts, including GST instalments and PAYG instalments (instalment amount option).

The ATO's reminders are intended to provide a timeframe for employers to review (and if necessary correct) the amounts the ATO has on record for them and lodge their activity statements.

If these selected employers do not lodge by the specified date, the ATO will consider the amounts it has on record are correct and complete, and it will add these amounts to the employer's account, meaning they will be due and payable.

The ATO may also finalise the employer's activity statement and consider it lodged unless the employer has any other obligations such as GST to report.

If employers do not make any changes to correct the data or lodge by the due date and the activity statement has been finalised in ATO systems, they will need to adjust these amounts by lodging a revised activity statement.

If the information is correct, they will not need to take any further action.

Please contact our office for more information.

ATO AFCX Data-Matching Program

Mon, 22 Sep 2025 23:31:05 GMT

The ATO will acquire relevant account and transaction data from the Australian Financial Crimes Exchange ('AFCX') for the 2025 to 2027 income years, including the following:

Client identification details (names, addresses, phone numbers, dates of birth, identity verification document details, IP addresses, etc); and

Bank account transaction details (bank account details, transaction date and amount, IP addresses, etc).

The ATO estimates that records relating to approximately 70,000 individuals will be obtained each financial year.

The data collected under this program will be used to (among other things) safeguard taxpayer accounts from identity crime by implementing protective controls to enable pre-lodgment detection and application of treatments to victims of fraud.

Please contact our office for more information.

Small Business Superannuation Clearing House Is Closing

Mon, 15 Sep 2025 23:54:09 GMT

The Small Business Superannuation Clearing House ('SBSCH') will close on 1 July 2026.

The SBSCH is a free online service provided by the Australian Government through the ATO.

The SBSCH can be used by employers to pay superannuation for all their employees through a single payment. The SBSCH will then distribute the money to each employee's superannuation fund according to the employer's instructions.

To support small businesses to transition to alternative services prior to this time, new users will be unable to register to use the service from 1 October 2025.

Existing users are encouraged to take steps now to transition to alternative options.

These include reviewing their existing software and payroll packages (which may already include super functions), or looking at options offered by super funds, commercial dealing houses, or other payroll software or providers.

Please contact our office for more information.

Getting The Main Residence Exemption Right

Mon, 15 Sep 2025 23:33:21 GMT

Legislation has recently been enacted which delivers on the 2025/26 Federal Budget announcement to reduce student debts.

Pursuant to this legislation:

there is a one-off 20% reduction to Higher Education Loan Program debts and other student loans that were incurred on or before 1 June 2025 ;

the minimum repayment threshold is increased from $54,435 in the 2024/25 income year to $67,000 in the 2025/26 income year (to continue to increase each year with the growth in wages); and

a marginal repayment system is introduced where compulsory student loan repayments are calculated only on income above the new $67,000 threshold (rather than having it based on a percentage of the repayment income).

Please contact our office for more information.

Bill To Reduce Student Debt Now Law

Mon, 15 Sep 2025 23:28:12 GMT

From August 2025, the ATO is progressively including 'debts on hold' in relevant taxpayer ATO account balances.

A 'debt on hold' is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold where the ATO decides it is not cost effective to collect the debt at the time.

The ATO is currently required by law to offset such 'debts on hold' against any refunds or credits the taxpayer is entitled to. The difficulty with these debts is that the ATO has not traditionally recorded them on taxpayer's ATO account balances.

Taxpayers with 'debts on hold' of $100 or more will receive (or their tax agent will receive) a letter before it is added to their ATO account balance (which can be viewed in the ATO's online services or the statement of account).

Taxpayers with a 'debt on hold' of less than $100 will not receive a letter, but the debt will be included in their ATO account balance

The ATO has advised it will remit the general interest charge ('GIC') that is applied to 'debts on hold' for periods where they have not been included in account balances. This means that taxpayers have not been charged GIC for this period.

The ATO will stop remitting GIC six months from the day the taxpayer's 'debt on hold' is included in their account balance. After this, GIC will start to apply.

Please contact our office for more information.

ATO To Include Tax 'Debts On Hold' In Taxpayer Account Balances

Mon, 08 Sep 2025 23:39:58 GMT

In a recent decision, the Administrative Review Tribunal ('ART') denied an offshore worker's claim for work-related travel expenses, although it did allow his claim for home office expenses.

During the relevant period, the taxpayer resided in Queensland with his family, while his employment as an engineer was primarily based at an offshore facility located off the coast of Western Australia.

In his tax return for the 2022 income year, the taxpayer claimed work-related expenses of over $30,000, relating to accommodation, meal and incidental expenses for stays in Perth, Darwin and Broome between rotations on the offshore facility.

The ART noted that the taxpayer's permanent work location was the offshore facility. It accordingly largely disallowed the work-related expenses on the basis that they were "either preliminary to the commencement of those (employment) duties, or occurred after employment duties had ceased, and the (taxpayer) was on leave."

The ART also did not accept the taxpayer's claim for travel-related expenses with reference to the substantiation exception, as the allowances he received were not 'travel allowances'.

However, the ART did accept the taxpayer's claim for home office expenses of $579, noting that "As an engineer, he is required to engage in continuing professional development and the Masters and other studies completed in the home office were for this purpose."

Please contact our office for more information.

Taxpayer's Claim For Travel Expenses Denied

Mon, 08 Sep 2025 23:32:37 GMT

Businesses with an annual aggregated turnover of less than $50 million now have up to four years from the date of their tax return assessment to request amendments (increased from two years). This applies to assessments for the 2024/25 and later income years.

If businesses make a mistake on a tax return and need to request an amendment, they should lodge their requests well before the end of the amendment period to make sure the ATO can process it within the time limit.

They should keep accurate and complete records to support their amendment request.

Please contact our office for more information.

Changes To Tax Return Amendment Period For Business

Mon, 08 Sep 2025 23:27:32 GMT

Businesses with an annual aggregated turnover of less than $50 million now have up to four years from the date of their tax return assessment to request amendments (increased from two years). This applies to assessments for the 2024/25 and later income years.

They should keep accurate and complete records to support their amendment request.

Please contact our office for more information.

ATO Warns Of Common Division 7A Errors

Tue, 02 Sep 2025 00:01:27 GMT

ASIC is warning Australians to be on 'red alert' for high-pressure sales tactics, click bait advertising and promises of unrealistic returns which encourage people to switch superannuation into risky investments.

The warning comes amid increasing concerns from ASIC that people are being enticed to invest their retirement savings in complex and risky schemes.

ASIC Deputy Chair Sarah Court said the start of a new financial year was often the trigger for people to check their super fund's performance, and urged consumers to be extra cautious.

"When it comes to sales calls about super switching, there are some big red flags people should be alert to — being asked to make a quick decision is one of the most obvious. Remember, a good deal won't vanish overnight."

She said that these calls "don't have the hallmarks of a typical scam. The caller will seemingly have your best interests at heart, and they say they want to help you find a better super product or locate lost super for free."

Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement.

"If you are unsure or are feeling pressured, just hang up."

Please contact our office for more information.

ASIC Warning About Pushy Sales Tactics Urging Quick Super Switches

Mon, 01 Sep 2025 23:40:36 GMT

ASIC is warning Australians to be on 'red alert' for high-pressure sales tactics, click bait advertising and promises of unrealistic returns which encourage people to switch superannuation into risky investments.

The warning comes amid increasing concerns from ASIC that people are being enticed to invest their retirement savings in complex and risky schemes.

ASIC Deputy Chair Sarah Court said the start of a new financial year was often the trigger for people to check their super fund's performance, and urged consumers to be extra cautious.

Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement.

"If you are unsure or are feeling pressured, just hang up."

Please contact our office for more information.

Paid Parental Leave Changes Have Now Commenced

Mon, 01 Sep 2025 23:34:24 GMT

As from 1 July 2025, the amount of Paid Parental Leave available to families increased to 24 weeks, and the amount of Paid Parental Leave that parents can take off at the same time has also increased from two weeks to four weeks.

As from 1 July 2025, the amount of Paid Parental Leave available to families increased to 24 weeks, and the amount of Paid Parental Leave that parents can take off at the same time has also increased from two weeks to four weeks.

Superannuation will now also be paid on Government Paid Parental Leave from 1 July 2025, at the new super guarantee rate of 12%, paid as a contribution to their nominated superannuation fund.

Parents will also benefit from an increase in the weekly payment rate of Paid Parental Leave, increasing from $915.80 to $948.10 (in line with the increase to the National Minimum wage). This means a total increase of $775.20 over the 24-week entitlement.

Please contact our office for more information.

Appointing An SMSF Auditor

Wed, 19 Mar 2025 01:31:19 GMT

The Administrative Appeals Tribunal (‘AAT’) has held that interest income derived by a self-managed superannuation fund (‘SMSF’) as the sole beneficiary of a unit trust was not non-arm’s length income (‘NALI’), and so this income could still be treated as exempt current pension income.

During the 2015, 2016 and 2017 financial years, the unit trust lent money through two related entities to independent third parties who undertook development activities, through a series of loan arrangements.

The interest income derived by the unit trust through these loan arrangements was distributed to the SMSF as sole unitholder and was treated as exempt current pension income.

Following an audit, the ATO determined that the income was NALI, and therefore should not have been included as exempt current pension income.

The ATO then issued amended assessments for the relevant financial years, along with penalties.

While the AAT found that the parties were not dealing with each other at arm’s length, it also concluded that the income that the unit trust derived was not more than the amount it might have been expected to derive if the parties had been dealing at arm’s length.

Accordingly, the relevant interest income received by the SMSF was not NALI, and so the taxpayer’s objections to the amended tax assessments and penalties were allowed.

Please contact our office for more information.

NALI Provisions Did Not Apply To Loan Structure

Wed, 19 Mar 2025 00:51:36 GMT

The Administrative Appeals Tribunal (‘AAT’) has held that interest income derived by a self-managed superannuation fund (‘SMSF’) as the sole beneficiary of a unit trust was not non-arm’s length income (‘NALI’), and so this income could still be treated as exempt current pension income.

The interest income derived by the unit trust through these loan arrangements was distributed to the SMSF as sole unitholder and was treated as exempt current pension income.

Following an audit, the ATO determined that the income was NALI, and therefore should not have been included as exempt current pension income.

The ATO then issued amended assessments for the relevant financial years, along with penalties.

Accordingly, the relevant interest income received by the SMSF was not NALI, and so the taxpayer’s objections to the amended tax assessments and penalties were allowed.

Please contact our office for more information.

Different Meanings Of 'Dependant' For Superannuation And Tax Purposes

Wed, 19 Mar 2025 00:50:39 GMT

On a person’s death, their superannuation benefits can only be paid directly to one or more ‘dependants’ as defined for superannuation purposes, unless they are paid to the deceased’s legal personal representative to be distributed in accordance with the deceased’s Will.

Super death benefits can be tax-free to the extent that they are paid (either directly or indirectly) to persons who are ‘dependants’ for tax purposes.

However, the meaning of ‘dependant’ differs slightly for superannuation and tax purposes. For superannuation purposes, a ‘dependant’ of the deceased comprises:

their spouse (including de facto spouse);
their child (of any age);
a person in an ‘interdependency relationship’ as defined with the deceased; and
a person who was financially dependent on the deceased.

However, for tax purposes, a ‘dependant’ (or ‘death benefits dependant’) of the deceased includes their spouse or former spouse (including de facto spouse) and only children under the age of 18.

Therefore, super death benefits generally cannot be paid directly to a former spouse, as they are not a dependant for super purposes.

Also, while a child of any age is a dependant for super purposes, only children under the age of 18 are dependants for tax purposes. This means that, while a child of any age may receive super death benefits directly, those benefits will generally only be tax-free if the child is under 18.

Please contact our office for more information.

Taxpayers Need To Get Their 'Rental Right'

Wed, 19 Mar 2025 00:49:25 GMT

On The ATO reminds rental property owners and their tax agents to take care when lodging their tax returns this tax time. When preparing their tax returns, taxpayers should make sure all rental income is included, including income from short-term rental arrangements, renting part of a home, and other rental-related income.

Rental income must be reported in the year the tenant pays, rather than when the taxpayer’s agent transfers it to them, and it must be reported as the gross amount received (i.e., before the property managers fees and other expenses they pay on the taxpayer’s behalf are taken out).

There are three categories of rental expenses, as follows:

Expenses where taxpayers cannot claim deductions – e.g., expenses arising from a taxpayer’s personal use of their property and capital expenses;
Expenses where taxpayers can claim an immediate deduction in the income year they incur the expense – e.g., interest on loans, council rates, general repairs and maintenance, and depreciating assets costing $300 or less; andheir child (of any age);
Expenses where taxpayers can claim deductions over a number of income years – e.g., 'capital works' deductions and borrowing expenses incurred when setting up a loan.

The ATO is particularly focused on interest expenses and ensuring rental property owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes, or the loan was re-financed for some private purpose.

Taxpayers should ensure they have the records to demonstrate they incurred expenses for their rental property and the extent to which the expenses relate to producing rental income.

Please contact our office for more information.

Luxury Car Tax: Determining A Vehicle's Principal Purpose

Wed, 19 Mar 2025 00:47:57 GMT

The ATO recently explained how to determine the principal purpose of a car for ‘luxury car tax’ (‘LCT’) purposes (since LCT is not payable on the supply or importation of cars whose principal purpose is the carriage of goods rather than passengers).

Broadly, a luxury car (i.e., a car subject to LCT) is a car whose LCT value exceeds the LCT threshold. However, a commercial vehicle that is not designed for the principal purpose of carrying passengers is specifically excluded as a luxury car.

The ATO’s new determination sets out various factors to be considered in determining the principal purpose of a car, as well as factors to consider when assessing a car’s modifications.

The determination states that commercial vehicles are unlikely to have the body types of station wagons, off-road passenger wagons, passenger sedans, people movers or sports utility vehicles, and the supply of these vehicles for an amount above the LCT threshold without LCT being paid may well attract the ATO’s scrutiny.

Please contact our office for more information.

Remember The Unused Concessional Contributions Cap Concession

Wed, 19 Mar 2025 00:44:23 GMT

ThAs from 1 July 2018, individuals with a total superannuation balance of less than $500,000 as at 30 June of the previous income year may be entitled to contribute more than the general concessional contributions cap (i.e., and make additional concessional contributions to utilise any unused cap amounts).

For example, an individual who did not make any concessional contributions in the 2019 income year (and whose total superannuation balance was less than $500,000) would have been able to make up to $50,000 of concessional contributions in the 2020 income year.

Unused concessional contributions are available on a rolling basis and can be carried forward for up to five years, after which they will expire. The 2024 income year is the first year in which unused caps from all five previous years are potentially available to carry forward.

Please contact our office if you require assistance in relation to the above measure.

Choosing The Right PAYG Instalment Method

Wed, 19 Mar 2025 00:43:18 GMT

The ATO advises that Pay as you go (‘PAYG’) instalments are calculated using either the instalment amount method or the instalment rate method.

It recently provided the following two case studies to illustrate the two methods:

Case study 1: Kelly the DJ

Kelly is a DJ, working at festivals from November to January. She chooses to use the instalment rate method, as it suits her seasonal business income.

Using this method means she needs to work out her business income each period.

It helps her manage cash flow because the amounts she pays will vary in line with her income.

When Kelly receives her BAS or instalment notice, she calculates the instalment based on her income for that period, multiplied by the rate provided.

Case study 2: David the plumber

David is a plumber with regular monthly business income, so he chooses the instalment amount method. He won’t need to work out his business income each period to use this method. David pays the instalment shown on his BAS. The amount is calculated from information in his last tax return.

Please contact our office for more information.

Tax Issues For Businesses That Have Received A Support Payment

Wed, 19 Mar 2025 00:41:43 GMT

Taxpayers who have received a government support grant or payment recently to help their business recover from COVID-19 or a natural disaster should check if they need to include the payment in their assessable income.

Grants are generally treated as assessable income, and taxpayers may be able to claim deductions if they use these payments to:

purchase replacement trading stock or new assets;
repair their business premises and fit out; or
pay for other business expenses.

However, some grants are declared non-assessable, non-exempt ('NANE') income. This means taxpayers don't need to include them in their tax return if they meet certain eligibility requirements.

NANE grants include but are not limited to:

COVID-19 business support payments;
natural disaster grants; and
water infrastructure payments.

Taxpayers can only claim deductions for expenses associated with NANE grants if they relate directly to earning their assessable income, including wages, dividends, interest and rent.

Taxpayers cannot claim expenses related to obtaining the grant, such as accountant's fees.

Please contact our office for more information.

Deduction For Contributions Denied Due To Notice Requirement Problems

Wed, 19 Mar 2025 00:39:16 GMT

The Administrative Appeals Tribunal (‘AAT’) recently held that a claim for a deduction for personal super contributions should not be allowed, as the relevant 'notice requirements' were not satisfied.

In order to claim a deduction for personal super contributions, an individual must both notify the super fund of their intention to claim a deduction, and receive an acknowledgment from the fund that it received the notice

During the 2021 income year, the taxpayer made a number of personal superannuation contributions to his super fund totalling $6,550, with the last of those contributions made on 30 June 2021.

Sometime before 9 June 2021, the taxpayer submitted to his fund a notice advising the fund that he intended to claim a personal contribution deduction for $6,550 for the 2021 income year.

However, on 9 June 2021, the fund advised that it was unable to accept the notice because the fund's records indicated that the amount of contributions listed in the notice was different to the amount of contributions received. This was because the fund received the notice before the taxpayer made his final contribution of $550 on 30 June 2021.

Sometime between 9 June 2021 and 16 July 2021 the taxpayer resubmitted a notice to the fund via post that he intended to claim a deduction for the amended amount of $6,000 (although the fund subsequently advised that it had not received this notice).

On 14 July 2021, the taxpayer lodged his 2021 income tax return, claiming a deduction for $6,000 of personal contributions.

On 22 August 2021, the ATO notified the taxpayer that his claim for a personal contribution deduction had been disallowed, on the basis that the fund had not reported an acknowledged notice that matched his claimed deduction.

The AAT held that, when the taxpayer completed the first notice, he had not made personal contributions of $6,550 (as referred to in the notice), but rather had made contributions of $6,000.

Therefore, the first notice could not be valid as it was not in respect of the contributions that the taxpayer had made.

The AAT also noted that the fund did not provide an acknowledgment of the taxpayer's second notice, as it had not received it.

Please contact our office for more information.

Notice Of Visa Data-Matching Program

Wed, 19 Mar 2025 00:36:07 GMT

The ATO will acquire visa data from the Department of Home Affairs for the 2024 to 2026 income years, including the following:

address history and contact history for visa applicants, sponsors, and migration agents;
active visas meeting the relevant criteria, and all visa grants;
visa grant status by point in time;
migration agents who assisted the processing of the visa;
all international travel movements undertaken by visa holders; and
sponsor details, and visa subclass name.

The ATO estimates that records relating to approximately nine million individuals will be obtained each financial year.

The objectives of this program are to (among other things) help ensure that individuals and businesses are fulfilling their tax and super reporting obligations, and identify potentially new or emergent approaches to fraud and those entities controlling or exploiting the visa framework.

Please contact our office for more information.

ATO Says: "Be Cyber Wise, Don't Compromise"

Mon, 04 Nov 2024 05:18:41 GMT

Throughout the 2022 income year, one cybercrime was reported every seven minutes. The ATO encourages taxpayers to implement the following four quick steps to protect themselves.

Step 1: Install updates for your devices and software

Regular updates ensure taxpayers have the latest security in place which can help prevent cyber criminals from hacking their devices. They should also make sure they are downloading authorised and legitimate programs.

Step 2: Implement multi-factor authentication

Multi-factor authentication ('MFA') is a security measure that requires at least two proofs of identity to grant access. Businesses as well as individuals should implement MFA wherever possible. MFA options can include a physical token, authenticator app, email or SMS.

Step 3: Regularly back up your files

Backing up copies of files to an external device or the 'cloud' means taxpayers can restore their files if something goes wrong.

It is a precautionary measure that can help avoid costly data recovery.

Step 4: Change your passwords to passphrases

By using passphrases, taxpayers can boost the security of their accounts and make it harder for cyber criminals to access their information.

Passphrases use four or more random words and can include symbols, capitals and numbers. A password manager can help generate or store passphrases.

Please contact our office for more information.

Losses In Crypto Investments For SMSFs

Mon, 04 Nov 2024 05:18:40 GMT

Over the last few income years, the ATO has seen some instances of SMSF trustees losing their crypto asset investments.

These losses have been caused by:

crypto scams, where trustees were conned into investing their superannuation benefits in a fake crypto exchange;
theft, where fraudsters would hack into trustees' crypto accounts and steal all their crypto;
collapsed crypto trading platforms, many of which were based overseas; and
lost passwords, resulting in trustees being locked out of their crypto account and being unable to access their crypto.

Trustees thinking of investing in crypto need to be aware of the ways that crypto can be lost, including through scams, and how these scams can be avoided.

Many crypto assets are not commonly considered to be financial products, which means the platform where crypto is bought and sold may not be regulated by ASIC.

Therefore, trustees may not be protected if the platform fails or is hacked. When a crypto platform fails they will most likely lose all of their crypto.

Investing in crypto can be complex and risky, and so the ATO recommends that trustees seek financial advice before investing.

Please contact our office for more information.

Care Required In Paying Super Benefits

Mon, 04 Nov 2024 05:18:40 GMT

Generally, before SMSF trustees pay a member's super benefits, they need to ensure that:

the member has reached their preservation age;
the member has met one of the conditions of release; and
the governing rules of the fund (e.g., the trust deed) allow it.

Benefit payments to members who have not met a condition of release are not treated as super benefits. Instead, they will be taxed as ordinary income at the member's marginal tax rate.

If a benefit is unlawfully released, the ATO may apply significant penalties to:

the SMSF trustee;
the SMSF; and
the recipient of the early release.

The ATO may also disqualify the trustee(s) involved.

Investment restrictions and other rules that apply to SMSFs in the accumulation phase continue to apply when members begin receiving a pension from the SMSF.

Please contact our office for more information.