Welcome to the start of the new financial year, we sincerely thank you for your support and for partnering with us over the past 12 months. Our team is up to date with the changes to tax rules this year, so it’s time to start thinking about completing your 2026 tax returns. If you have not yet organised your tax appointment, please book an appointment using the link below or get in touch with us asap. https://www.crawfordaccountants.com.au/schedule-an-appointment We conduct appointments at the office, via Zoom or Phone. 03 9853 1000 admin@crawfordaccountants.com.au www.crawfordaccountants.com.au Book Now Are you Audit Safe? The possibility of being selected for an audit or investigation is increasing each year as the Australian Taxation Office (ATO) and other government agencies widen the scope of their investigation activities utilising data collection/detection capacity, data matching and benchmarking/risk profiling. Even if you can substantiate your claim for an allowable deduction, if queried you must still go through the audit process. To alleviate the cost and stress, we have offered you to take out our audit protection and you should have received an offer letter from us few weeks ago. It is a cheap and efficient way of dealing with an ATO audit. For more information, please contact our office. Tax Deductions Tax deductions will help you minimise your tax, but there are three golden rules for tax deductions: Expenses must be related to business/ work and not private. If a portion of the expense if private, the deduction must be apportioned. You must have records to prove the deduction such as receipts The expense must not be reimbursed Pay day super is now active From 1 July 2026, Payday super applies. Employers will need to pay super to an employee’s nominated super fund each payday, and it must reach the fund within 7 business days after the payday. The STP lodgement obligations remain. If you require assistance with the process, please contact our office. Changes to car thresholds from 1 July The car limit for the 2027 income year is $69,883. This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2027 income year. If a taxpayer is buying a car and the price is more than the car limit, the highest input tax (GST) credit they can claim except in certain circumstances is one-eleventh of the car limit. For the 2027 income year, the highest input tax credit they can claim is $6,353. The luxury car tax threshold for the 2027 income year is $91,661 for fuel-efficient vehicles, and $80,809 for all other luxury vehicles. Input tax credits need to be claimed within the four year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes. Recap – Tax Reforms The Government has recently legislated several of the tax reform measures announced in the 2026 Federal Budget. Replacing the CGT discount with cost base indexation and a 30% minimum tax on gains accruing from 1 July 2027. This applies to pre-CGT assets as well. Increasing the small business turnover threshold for the 50% active asset reduction from $2 million to $10 million. Limiting negative gearing for residential property to new residential dwellings from 1 July 2027. Existing properties are grandfathered. Introducing the Working Australians Tax Offset from 1 July 2027, and the $1,000 instant tax deduction for work-related expenses from 1 July 2026. The Government has also announced further proposed measures, including: A new targeted CGT discount for investors in innovative start-ups. Barring SMSFs from utilising future limited recourse borrowing arrangements to acquire residential property. Exempting income of discretionary testamentary trusts from the minimum tax proposed for trusts. Fuel excise relief extended for July The Government has announced a further temporary extension of fuel excise relief for July, together with a reduction in the Heavy Vehicle Road User Charge and based on the government announcements, these measures will make petrol and diesel 16 cents per litre cheaper than they otherwise would have been during July. Dental clinic liable for super guarantee charge The Administrative Review Tribunal recently considered whether an oral health therapist engaged by a dental clinic was an employee for super guarantee purposes. The clinic argued that the therapist was not an employee but was instead an independent contractor and, as such, the clinic was not liable for the super guarantee charge. The ART held that the therapist was an employee under the extended definition. In particular, the ART found that: the contract contained features consistent with an 'employment' arrangement; the therapist was part of a regulated profession and could not practise independently; the purpose of the contract was to engage the therapist personally to work as a member of an integrated team. the clinic did not establish that she had a genuine right to delegate/subcontract her work. the therapist was not directly rewarded for her services, as her remuneration was subject to adjustments applied by the clinic on patient invoices. 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.