March 2024 - Update

Author na1616mewedewd

Super contribution caps increase

 

  • Superannuation contribution caps are set to increase from the 2025 income year. The concessional contribution cap will increase from $27,500 to $30,000. This 'CC' cap is broadly applicable to employer super guarantee contributions, personal deductible contributions and salary sacrificed contributions.

 

  • The non-concessional contribution cap will increase from $110,000 to $120,000. This 'NCC' cap is generally applicable to personal non-deductible contributions. The increase in the NCC cap also means that the maximum available under the three-year bring forward provisions will increase from $330,000 to $360,000.  This is provided that the 'bring forward' is triggered on or after 1 July 2024.

 

  • The 'total superannuation balance' threshold for being able to make  non-concessional contributions (and the pension general transfer balance cap) will remain at $1.9 million.

 

Small business concessions

 

The ATO has recently issued a reminder that small business owners may be eligible for concessions on the amount of tax they ultimately pay.


This depends on their business structure, their industry and their aggregated annual turnover.

 

Small business owners who have an aggregated annual turnover of less than:

  • $2 million can access the small business CGT concessions;
  • $5 million can access the small business income tax offset; and
  • $10 million can access the small business restructure roll-over.


The ATO expects small business owners to check their eligibility each year before they apply for any of these concessions.


Furthermore, taxpayers generally need to keep records for five years to prove any claims they make.


We are always on the look-out for what tax concessions may be of use to our clients based on their individual circumstances.  These small business concessions in particular, can be very beneficial when applicable.

 

FBT time is fast approaching!

 

'FBT time' is just around the corner.


Employers need to attend to the following matters this FBT time:


  • Identify if you have an FBT liability regarding fringe benefits they have provided to their employees or their associates between 1 April 2023 and 31 March 2024.

 

  • Identify if you have an FBT liability as they will need to lodge an FBT return and pay the amount due by 21 May.

 

  • Identify if you are currently registered for FBT and let the ATO know if they do not need to lodge an FBT return by asking us to lodge an FBT non-lodgment notice to prevent the ATO seeking a return from them at a later date.

 

  • Employers should also remember that when the new FBT year starts on 1 April, they can choose to use existing records instead of travel diaries and declarations for some fringe benefits.


Furthermore, the ATO has released PCG 2024/2 which provides a short cut method to help work out the cost of charging electric vehicles ('EV') at an employee's home for FBT purposes.


Eligible employers can choose to use either the EV home charging rate of 4.2 cents per kilometre or the actual cost.


Ultimately, all employers need to make sure they understand their FBT obligations and the records they need to keep to avoid an FBT liability.

 

Penalties soon to apply for overdue TPARs


Businesses that pay contractors to provide certain services may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August each year.


From 22 March, the ATO will apply penalties to businesses that:

  • have not lodged their TPAR from 2023 or previous income years;
  • have received three reminder letters about their overdue TPAR.


Taxpayers that do not need to lodge a TPAR can submit a 'non-lodgment advice form'.  Taxpayers that no longer pay contractors can also use this form to indicate that they will not need to lodge a TPAR in the future.

 

Avoiding common Division 7A errors

 

Private company clients who receive payments, benefits or loans from their private companies need to ensure compliance with their additional tax obligations which are often referred to as their  'Division 7A' obligations.


There are multiple ways in which business owners may access private company money, such as through salary and wages, dividends, or what are known as complying Division 7A loans.


Division 7A is an area where the ATO sees many errors and the ATO is currently focused on assisting taxpayers in managing their obligations when receiving payments and benefits from their private companies.


In this regard, the ATO has recommended that business owners do the following:

  • keep adequate records;
  • properly account for and report payments and use of company assets by shareholders and associates; and
  • comply with rules around Division 7A loans.


Understanding these Division 7A obligations is essential in order to:

  • make informed decisions when receiving private company money and using private company assets; and
  • avoid unexpected and undesirable tax consequences.

 

The information provided in this update is general in nature and if you have any queries of require further information or assistance with the above, please contact our office.

Crawford News

November 4, 2026
ATO will accept credit cards until 30 June 2027 Despite Reserve Banks credit card surcharge terms, ATO will continue to accept credit card payments for tax obligations until 30 June 2027. After 30 June 2027, taxpayers who wish to use credit cards to pay ATO will have to use third-party payment providers. Early Release of Super Schemes The ATO is concerned that some health practitioners and third-party facilitators are using predatory practices to get individuals to inappropriately access their super. Red flags include practitioners or third parties advertising early access to super for cosmetic or dental procedures on social media, or asking for myGov sign-in details so they can apply for you. Other common red flags include: practitioners conducting telehealth appointments, rather than in-person examinations for ‘compassionate release of super’; recommending more expensive treatments when cheaper options may be available; encouraging the use of super to pay for treatment, rather than other payment options, such as a payment plan; requiring the use of a specific provider to prepare the second ‘compassionate release of super’ medical report, or a specific third party to submit the application; requiring upfront payment for treatments and withholding information about the ongoing costs of the treatment; and charging fees to assist with preparing or submitting a ‘compassionate release of super’ application without being a tax agent. Work cars: Are employers overlooking private use? The ATO is calling on employers to check how their employees use work cars, as FBT may apply where a car is used or made available for private use by an employee or their family members or associates. Private use can include: school pick-ups or drop-offs personal trip garaging the car at or near the employee's home taking the car on weekend recreational trips. 2026 Budget Announcements Common rental property deduction errors The ATO has recently published the three most common rental property deduction errors it sees. Not apportioning interest expenses correctly Broadly, rental property owners can only claim deductions for interest they pay on a loan used to: buy the rental property; buy a depreciating asset for the property pay for deductible expenses that arise from renting out the property finance renovations and extensions to the rental property Interest on any part of the loan used for private purposes is not deductible. Where the loan is refinanced or redrawn to pay private expenses, such as school fees or a holiday, a deduction cannot be claimed for the interest on that portion. Incorrect claims of repairs vs capital works The ATO continues to see errors in claims for repairs, maintenance and capital works expenses. Generally speaking: repairs, such as fixing wear and tear, or damage to a property that occurred while renting it out, can be claimed as a deduction in the year they occur; improvements, such as renovating or replacing an entire structure, are capital expenses which can be claimed over time (generally 40 years); and adding or replacing something that’s not part of the structure is a depreciating asset and the cost is generally claimed over the asset's effective life. Separating private use of a property The ATO is also seeing rental expenses not being apportioned for any private use. Generally speaking, if a rental property owner: only uses part of the property to earn rent, they must apportion the expenses based on the area of the property rented; rents out the entire property, but for only part of the year, they must apportion the expenses based on the number of days it was rented or held to produce rental income; or charges below market rates of rent, and the expenses incurred are more than the amount of rent received, the ATO expects them to apportion the expenses by limiting them to the amount of rent derived from the property. Where the rental property owner uses the property as a holiday home, they cannot claim ownership and use expenses, such as interest, rates and repairs, unless they 'used or held it for use mainly for producing rental income'. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.
October 5, 2026
ATO focus on PAYG instalments variations The ATO is writing to taxpayers who have varied their PAYG instalments to nil over multiple years, reminding them that the general interest charge may apply where their instalments have been significantly understated. Where varied instalments are less than 85% of the total tax payable, the ATO may impose GIC on the difference and, depending on the circumstances, penalties may also be applied. Taxpayers are advised to maintain appropriate records to support their variation decisions, and review variations where circumstances change. FBT changes for salary sacrificed work-related benefits From 1 April 2027, employers will no longer be able to use the ‘otherwise deductible rule’ to reduce the taxable value of an expense payment fringe benefit provided to an employee where the expense is: work-related; covered by the new $1,000 standard deduction; and provided under a salary sacrifice arrangement. This includes where an employer pays for, or reimburses, work-related expenses, such as home office expenses, home phone or internet expenses, or self-education expenses. However, the otherwise deductible rule can continue to apply where the expense is: not covered by the standard deduction; or covered by the standard deduction but the benefit is not provided under a salary sacrifice arrangement. Further, from 1 April 2027, certain work-related items will no longer qualify for the FBT exemption where they are provided under a salary sacrifice arrangement. These include: portable electronic devices; computer software; protective clothing; and briefcases and tools of trade. Eligible work-related items may still qualify for the exemption where they are not provided under a salary sacrifice arrangement. Further, under the changes, employers may be able to provide an employee with more than one eligible work-related item in an FBT year, even where the items have the same or substantially identical function, and continue to receive the exemption where the items: are mainly used for work purposes; and are not provided under a salary sacrifice arrangement. This repeals the general 'one-item' restriction applying to this work-related item exemption from 1 April 2027. Cents per kilometre method Motor Vehicle claims There are several misconceptions that commonly lead to incorrect claims under the cents per kilometre method for claiming deductions for car expenses. Common errors include: Claiming travel between home and work, which is generally private and non-deductible; Automatically claiming 5,000 kilometres without the appropriate records (for example, being unable to show how the business kilometres were worked out); Claiming car expenses for a vehicle provided under a novated lease through a salary sacrifice arrangement; Separately claiming the decline in value of a car and other expenses when using the cents per kilometre method; and Using both the cents per kilometre and logbook methods for different periods during the same year. Loss carry back rules have returned The re-introduced loss carry back measure has also now become law, applying to income years starting on or after 1 July 2026. Where eligible, companies will broadly be able to carry back a tax loss (revenue in nature) and apply it against tax paid in either, or both, of the previous two income years, basically giving rise to a tax refund for the loss year. ATO extends data-matching programs The ATO is continuing its visa data-matching program, acquiring data from the Department of Home Affairs from the 2027 to the 2029 income years. Under this program, the data collected may include: address and contact history for visa applicants, sponsors and migration agents; histories of visas granted, including visa subclasses; an individual’s visa status at a point in time; details of migration agents, sponsors and education providers; and international travel movements undertaken by visa holders (arrivals and departures). The ATO is also continuing its passenger movements data-matching program for the same period. Under this program, the data collected by the ATO may include names, dates of birth, arrival and departure dates, passport information and status types (including visa status, residency and citizenship status). The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.
September 9, 2026
Payday Super and contractors Businesses generally need to pay super where they engage an independent contractor mainly for their labour, personal effort, skills or time. This can apply even if the contractor: has an ABN; invoices the business for their work; or is described as a contractor in a written agreement. It is not mandatory to report payments made to independent contractors through Single Touch Payroll. However, if a business reports them voluntarily, it must meet the STP reporting requirements, including reporting qualifying earnings and super liability information. Where an independent contractor is entitled to super, the contribution must be paid for each payday and reach their super fund within seven business days after payday. Payday Super timeframe Under Payday Super, contributions must be received by an employee’s super fund within seven business days after payday. To keep on track, the ATO recommends that employers: use the new member verification request to verify that an employee’s super fund details are valid and that the fund can accept a contribution before it is made; check with the relevant payroll provider or clearing house that the fund is responding to MVRs; monitor payments, as funds have three business days to allocate or reject a payment; and if a payment is rejected or returned, act quickly to correct any errors and resubmit to the correct fund. For new employees, or where an employee changes their fund, employers generally have 20 business days to make the initial contribution. $21 billion in lost super The ATO is urging individuals to check whether they have lost or unclaimed super, with more than $21 billion waiting to be reunited with its owners. Super can become lost when an account is inactive and the fund cannot contact the member, often following a change of job, address or phone number. In some cases, the balance may be transferred to the ATO to hold until it can be reunited with the individual. The ATO reports that last year, more than $1.1 billion was returned through consolidations and direct payments to eligible individuals. ATO motor vehicle registries data-matching program The ATO acquires motor vehicle registries data from state and territory authorities from the 2026 to the 2030 income years. The information will be matched against ATO records to identify taxpayers who are not meeting their registration, lodgment, reporting, or payment obligations. The data will also be used to support ATO compliance activities through modelling, risk profiling and case selection. The data collected may include identification details for purchasers, sellers and other relevant parties, together with transaction dates and types, sale prices, market values, vehicle garage addresses, intended use, vehicle specifications and registration details. $1,000 deduction for work expenses From 1 July 2026, employees may choose either the standard deduction for work-related expenses of up to $1,000, or a deduction for the actual work-related expenses they incur. You should continue keeping records for deductible work expenses incurred from 1 July 2026. If, at the end of the 2027 income year, you choose to claim actual expenses, you must have the required written evidence for those expenses. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.
August 4, 2026
Government extends the $20,000 instant asset write-off The Government has recently introduced legislation to extend the $20,000 instant asset write-off for small businesses. If enacted, the changes would set the instant asset write-off threshold at $20,000 for eligible depreciating assets first used, or installed ready for use, for a taxable purposes from 1 July 2026. The changes would also further suspend the 'lock-out rule' until 30 June 2027. Loss carry back rules to be reintroduced The Government has introduced legislation to re-introduce the loss carry back measure for companies from 1 July 2026. If enacted, this will allow most companies to carry back a tax loss and apply it against tax paid in either, or both, of the previous two income years, basically giving rise to a tax refund for the loss year. New restrictions on LRBAs New legislation imposes restrictions on the use of limited recourse borrowing arrangements by SMSFs. LRBAs entered into on or after 10 August 2026 to purchase real property can now only be used to acquire business real property. These changes do not apply if an SMSF: has already entered into an LRBA to finance a real property acquisition before 10 August 2026; or maintains or refinances that LRBA on or after 10 August 2026. 'Business real property' generally means land and buildings used wholly and exclusively in one or more businesses. Division 7A benchmark interest rate The ATO has published a Division 7A benchmark interest rate of 8.77% for the income year ending 30 June 2027, up from 8.37% for the previous income year. The benchmark interest rate is applied when calculating minimum yearly repayments for complying Division 7A loans. ATO scam warning The ATO has received reports of a new email impersonation scam claiming to be from the ATO. The email states that a phone appointment with the ATO has been scheduled and includes appointment details such as the date and time. The email claims that recipients must open an attachment included in the email to securely access relevant services or reschedule the appointment. The attachment contains a link to a legitimate looking myGov sign-in page designed to steal usernames, passwords and other personal information. The ATO has advised recipients not to respond to the email or interact with it in any way. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.

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