• Recovering from a natural disaster: what you need to know about tax – As Australia experiences another summer of unpredictable weather patterns, it’s essential to be prepared for the unexpected.
• Changes coming for buy now pay later services – If you’re one of the millions of Australians who use BNPL services, important changes are coming that will give you stronger consumer protections from 10 June 2025.
• ATO launches its small business focus areas for 2025 – The ATO has outlined specific areas of concern to help you avoid common pitfalls and manage your tax obligations effectively.
• ATO warns about GST refund fraud: check your arrangements – The ATO-led Serious Financial Crime Taskforce has issued a warning to businesses against trying to cheat the tax and super system by committing GST fraud.
• How tax works in Australia’s superannuation system – Australia’s super system plays a vital role in ensuring financial security for individuals in retirement.
• Super legacy pensions: regulations offer window to exit – Regulations that came into effect in December 2024 allow thousands of SMSF members to exit legacy income streams at any stage until 7 December 2029.

You can read the full Client Alert here 

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The next edition will be published in February 2025. We wish you all the best for the festive season and new year.

• Understanding the Australian Government’s plan for cash and cheques – As digital payments become increasingly prevalent, the government has announced it’s taking significant steps to modernise the nation’s payment system.
• Proposed changes to HELP loans could mean lower repayments in 2025 – If you’re one of the millions of Australians with a HELP debt, you might be wondering how the government’s proposed changes loans could affect you.
• Understanding the Medicare levy and Medicare levy surcharge – Navigating the Australian tax system can be challenging, especially when it comes to understanding the Medicare levy and the Medicare levy surcharge.
• FBT and tax considerations for end-of-year parties and gifts – As the end-of-year season approaches, it’s a great time to celebrate with your employees and show appreciation for their hard work throughout the year; however, it’s essential to understand the potential tax implications.
• Managing your business’s tax debts – Facing a tax bill is a common challenge for many Australian businesses, and the ATO has recently shifted to a more active approach to debt recovery.
• Spouse contribution splitting: a strategic approach to retirement planning – As retirement approaches, couples often discover a significant imbalance in their superannuation accounts. Addressing it proactively can be beneficial for various retirement strategies.
• Super, KiwiSaver and the Trans-Tasman Retirement Savings Portability Scheme – If you’re thinking of making a permanent move between New Zealand and Australia, what do you do about your superannuation fund or KiwiSaver scheme?

You can read the full Client Alert Here.

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Understand your deductions

Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing as everyone has a different working set up and what you can claim for can vary between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted

You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time – keeping on top of your cash means you’re more likely to succeed. Do your research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it’ll make sending those invoices that much easier!

Stash that cash

When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

One way to budget and keep on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods.

We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances.

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• Tax consequences of sharing your home – Rental and some sharing situations will affect your assessable income and what expenses you can claim at tax time.
• Unlocking value: subdividing your family home’s land – For retirees living on larger properties, subdividing and selling unused land can be a potential retirement funding strategy.
• Employee overpayments: what to do – Unintended overpayments to employees sometimes come to light. If this happens for your business, it’s important to consider all parties’ rights and obligations when deciding what to do next.
• Payday super: policy design released – A newly released fact sheet sets out some key elements of the government’s “payday super” policy.
• “Super saver” scheme now more flexible for first home buyers – Changes taking effect from 15 September 2024 will improve the process of accessing certain voluntary super contributions to assist with purchasing or constructing a first home.
• Accessing super from age 60 to 65 – From 1 July 2024, the rules for accessing superannuation became somewhat simplified: the preservation age to begin accessing benefits is now effectively 60 years.

To read the full article, please visit here.

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The post 2024 EOFY Business Checklist appeared first on DFK Gray Perry Adelaide.

Key Announcements made in this budget

Stage 3 Tax Cuts

The Government’s changes to the Stage 3 tax cuts are a key element of the Budget. They broaden the benefit of the original tax cuts, halving the tax break for wealthier taxpayers and increasing the benefit for those on lower incomes.

Cost of Living – Energy Bill Relief

The Budget’s key new cost-of-living measure is a new energy bill relief payment, extending existing energy relief measures. From 1 July 2024, the Budget provides rebates of $300 to every household and $325 to around one million small businesses.

Small Business Support – Instant Asset Write Off

The Government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the small business $20,000 instant asset write-off (IAWO) by 12 months until 30 June 2025.

Superannuation

Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025.

The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

Tax Administration

Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023.

The ATO will be given a statutory discretion to not use a taxpayer’s refund to offset old tax debts on hold.

Access our Budget Report and Tax & Superannuation Overview for a full analysis via the links below.

Please find below links to the full 2024-25 Federal Budget Overview and Tax & Superannuation Overview. If you have any queries or would like to discuss any of the announcements made in this budget, please contact our team.

FEDERAL BUDGET OVERVIEW

FEDERAL BUDGET TAX & SUPERANNUATION

The post Federal Budget Overview and Reports appeared first on DFK Gray Perry Adelaide.

• Key tax considerations this tax time – Is your year-end tax planning in order?
• Stay alert for tax time scams – Around 20,000 scam reports have been received to date this year, and ATO impersonation scams are becoming increasingly commonplace.
• Small business lodgment amnesty: reminder – The ATO reminds eligible small businesses to take advantage of the recently announced lodgment penalty amnesty program covering income tax returns, BAS and FBT returns.
• “Buy now pay later” NPL sector facing more regulation – The government is moving to bring BNPL products within the scope of the Credit Act with a tailored version of the general responsible lending obligations.
• Minimum pension payment changes – The temporary 50% reduction in the minimum pension drawdown rate for superannuation and annuities will no longer apply from 1 July 2023.

Click here to download our July Client Alert.

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The post 2023 EOFY BUSINESS CHECKLIST appeared first on DFK Gray Perry Adelaide.

Whether you have a trust set up for investment or business purposes, there are some common elements to getting ready for the trust’s tax return.  Contrary to popular opinion, a trust is not actually a legal entity; rather, it is a formal relationship between other entities, where one entity holds property for the benefit of another entity, which could be a business or individual. 

Because a trust is not a person or business entity, its income is usually taxed differently, although this depends on the setup and type of the trust. But even though the tax return is different, many other administrative aspects are the same as for any taxpaying entity. 

Trust Administration 

One of the most important administrative tasks to attend to is to hold a formal meeting before midnight on 30 June each year to document the basis of distributions to beneficiaries. 

If you haven’t already done this for the 2023 financial year, talk to us as soon as possible so we can check your accounts and advise you on the best arrangements for beneficiary distributions. 

Record Keeping 

The other essential element of trust administration is record keeping. Although a trust may not be a legal taxpaying entity in the same way a person or business is, all records related to income and expenses must be kept for five years after lodgement of the income tax return. 

Particularly important are records for any property owned by the trust. If a trust owns multiple properties, you’ll need to separate income and expenses according to each property.  If the trust earns income from overseas interests or investments, all these records must also be kept. 

Capital gains, interest earned, and dividends received must also be documented. The trustee must keep records of the trust deed, trustee contact details, trustee resolutions, statements of assets and liabilities, all business contracts, and for employing trusts, all records relating to wages and superannuation. 

Trust Management 

Trust management can be complex but well worth the time spent keeping good records to maintain asset protection, streamline the tax return process, and maximise the allowable tax deductions. 

We can help with record keeping, managing investments, checking trust deed compliance, and simplifying the administration. And remember, the ATO has changed the rules around distributions, so we’ll advise you about the best way to allocate income to beneficiaries. 

Talk to us now and start preparing for your next trust tax return. 

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Having a self-managed superannuation fund (SMSF) gives you control and flexibility over how you make investments and prepare for retirement. 

It’s important to get your deductions and record keeping correct for the SMSF audit process and the tax return, as there are strict laws governing SMSFs. 

An SMSF must be set up as a trust and must also have a legal document called a trust deed. A super fund trust is set up for the sole purpose of providing retirement benefits to its beneficiaries. The trust deed governs how the fund is set up and how it will operate and must be used in conjunction with the superannuation laws. 

There are many different investment strategies for SMSFs according to the fund’s trust deed and operations. 

Common Tax Deductions 

Deductible expenses for SMSFs vary according to the nature of investments and the trust deed, however there are some general expenses that apply to most funds. 

• Operating expenses, such as management and administration fees, audit fees and ASIC annual fees. 

• Investment-related expenses, such as interest, investment advice fees, costs of servicing and managing investments, property fees and brokerage fees. 

• Tax-related expenses, such as preparing the SMSF annual return. 

• Legal expenses including amending trust deeds. 

• SMSF statutory fees and levies. 

• Insurance premiums for death, total and permanent disability, terminal illness and income protection.  

The rules for tax deductibility for SMSFs are different to those for individuals and business. Many people are used to claiming deductions for certain things in business or property investment and find they don’t apply to SMSF tax returns. We can help clarify what’s deductible and what’s not. 

Expenses must relate to the sole purpose of the super fund being to provide retirement benefits to its members. There may be some items you want to query with us for the audit and tax return to see if they meet the sole purpose test, such as investment training courses, collectibles and artwork, travel expenses or personal computers. 

SMSF Annual Return and Records 

Once the formal audit of the SMSF has been completed, the annual return must be lodged with the ATO. The annual return is not only a tax return but also reports regulatory information and member contributions. You must keep all records relevant to the annual return. 

• Keep all transaction, tax, accounting and financial reporting records for at least five years. 

• Keep all records relating to trustee meetings, minutes, investment strategies and appointments or changes of trustees for at least ten years. 

Make Your SMSF Management Easy 

SMSF management can be time consuming. Gray Perry Wealth Advisors Pty Ltd can help with researching and managing investments, checking trust deed compliance, setting investment strategies, keeping records and conducting the audit. Talk to us now and get ahead for your next annual SMSF return. 

Gray Perry Wealth Advisers Pty Ltd and Allan Taylor are Authorised Representatives of Lionsgate Financial Group Pty Ltd ABN 92 140 591 484 AFSL 342766

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