April 2025 Newsletter
Contents:
- Government Expands Dispute Resolution Service
- Claiming deductible contributions correctly
- PPSR value reaches $450bn mark as Aussies invest in security
- Natural disasters can raise problems for farming clients’ SMSFs
- Majority of NFPs yet to lodge self-review return as deadline looms
- Changes to luxury car tax, GIC deductions pass both houses
- Announcements
Government Expands Dispute Resolution Service
Small businesses can now access low-cost legal advice as part of the government’s funding and commitment to “levelling the SME playing field.”As of Monday, eligible small businesses in dispute with another or government agency can access low-cost legal advice to help clarify issues and explore dispute resolution options.
Minister for Small Business Julie Collins revealed the initiative was part of the government’s commitment to bolster Australian small businesses and was part of a $2.6 million investment to expand the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) dispute resolution services.
Claiming deductible contributions correctly
While TR 2010/1 covers the mechanics of how to make a personal contribution, difficulty arises when claiming contributions as a tax deduction is not done correctly.
Regardless of the cause, the tax rules are unforgiving if one step of the process is missed because the Commissioner has no discretion in allowing the deduction.
Personal Deductible Contributions – Where members contribute directly and claim a tax deduction in the year the contribution is made, they are considered concessional contributions and taxed in the fund at a rate of 15%.
PPSR value reaches $450bn mark as Aussies invest in security
Registrations in 2023–24 reached 10.4 million after 2.2 million new registrations, reflecting a 7.9 per cent increase from the previous financial year.
Natural disasters can raise problems for farming clients’ SMSFs
The consequences of natural disasters on primary producers with an SMSF can be catastrophic, a legal expert has warned.
Katie Timms, partner superannuation and SMSF for RSM Australia, said although most attention is focused on big natural disasters, there are a number of other potential catastrophic events, both environmental and personal, that can affect an SMSF held by primary producers, including death and divorce.
“The statistics since around 2020-21 show that natural disasters have caused a 23 per cent loss in profit for farming businesses, but what we sometimes don’t consider as much is a late rain or an early rain, or that last frost that comes at the wrong time which can be as detrimental as a flood,” Timms said.
Changes to luxury car tax, GIC deductions pass both houses
The bill to tighten the definition of a fuel-efficient vehicle for the luxury car tax and end GIC deductions has now passed through Parliament.
Amendments that will update the definition of a fuel-efficient car for the purposes of the luxury car tax (LCT) and align the indexation rates for LCT thresholds were passed by the Senate on Wednesday (26 March).
The Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024 updates the definition of a fuel-efficient car by reducing the maximum fuel consumption for a car to be considered fuel-efficient for the LCT to 3.5 litres per 100 kilometres from the current 7 litres per 100 kilometres.
Announcements:
This month we have Richard, Laurie & Katrina all celebrating birthdays, happy birthday guys!|
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Important ATO Dates
| Lodgement Program | Date |
| FBT Odometer Readings to Watts Price (if applicable) | 31/03/2025 |
| March monthly activity statements | 21/04/2025 |
| Quarter 3 (January–March) activity statements | 28/04/2025 |
| Quarter 3 (January–March) PAYG instalment notices | 28/04/2025 |
| Quarter 3 (January–March) GST instalment notices | 28/04/2025 |
| Quarter 3, (January–March) super guarantee contributions | 28/04/2025 |
Other News
Changes to Interest Charge Deductions and BAS Refund Notifications
Parliament has passed amendments that will significantly impact taxpayers regarding interest charges and refund notifications. Here’s a summary of the key changes:
No More Deductions for GIC and SIC:
- Starting 1 July 2025, taxpayers will be unable to claim deductions for General Interest Charge (GIC) and Shortfall Interest Charge (SIC).
- This change aims to incentivize timely and accurate self-assessment of tax liabilities.
- The Commissioner retains the discretion to remit interest charges in fair and reasonable circumstances.
Extended BAS Refund Notification Period:
- The Australian Taxation Office (ATO) now has 30 days (previously 14 days) to notify taxpayers of decisions to retain refund amounts from Business Activity Statements (BAS) for verification.
- This extension strengthens the ATO’s ability to combat fraud during high-risk periods.
Financial Implications:
- It is important to note that ATO interest rates are high, currently around 11%.
- Without the ability to claim a tax deduction, the effective cost of these charges will increase significantly. For example, for a taxpayer with a 32% tax rate, the effective cost would increase to approximately 16%.
- Therefore, taxpayers are advised to explore alternative financing options, such as bank loans, if possible, to manage tax liabilities.
What This Means for You:
- Plan ahead to ensure timely payment of tax liabilities to avoid incurring GIC and SIC.
- Be aware of the extended notification period for BAS refunds and cooperate with the ATO’s verification processes.
- Seek financial advice regarding alternative financing options.
If you have any queries please contact our office on 5382 3001 or mail@wattsprice.com.au
MYOB Secure Invoicing Upgrade
MYOB is implementing a secure invoicing upgrade for client files, starting next month. This upgrade requires clients to complete a business verification process.
Key Points:
- Advance Notice: Clients will receive an email notifying them of the upcoming upgrade and verification requirements. No immediate action is needed, but they can verify early if desired.
- Verification Deadline: Next month, clients will receive another notification with a deadline for verification. Failure to verify will result in restricted invoicing functionality.
- Gradual Rollout: The upgrade will occur throughout the year, with clients upgraded at different times.
- Support Resources: MYOB provides resources to assist clients with the verification process, accessible through support pages, FAQs, live chat, and direct contact.
- Purpose: This upgrade enhances security and ensures safe and easy business transactions.
QuickBooks users please note!
Some QuickBooks users have noticed missing bank transaction on February 28th, we recommend doing a bank reconciliation to ensure you have no missing transactions.
If you need any assistance please contact our office on 5382 3001 or mail@wattsprice.com.au