December 2024 Newsletter
Contents:
- ‘Shadow Economy Taskforce’ investigating allegations of farm worker exploitation
- Victoria’s New Probate Fees Now in Effect
- New employment laws – Landmark changes from 1 January 2025
- Vacant Residential Land Tax (VRLT) — when should you notify the SRO?
- ATO reveals small business hit list to combat tax debt
- Sheep shearers call for a system of protection against ‘dodgy contractors’
- Unpaid money disputes increase
- Tax consequences of renting out a room in your home
- Announcements
‘Shadow Economy Taskforce’ investigating allegations of farm worker exploitation
According to a joint media release, the Australian Taxation Office (ATO), the Fair Work Ombudsman (FWO), and the Department of Home Affairs are investigating labour hire providers suspected of unlawful conduct.
The ATO, FWO, and the Department of Home Affairs have joined forces under the Shadow Economy Taskforce to investigate suspected unlawful conduct in the agriculture industry.
On 26 November, the three regulators visited a total of seven locations, including farms that produce broccoli, onions, pumpkins and shallots, as part of Operation Topaz.
Victoria’s New Probate Fees Now in Effect
he Victorian Government announced changes to probate fees that came into effect on 18 November 2024.
These changes will see fees increase on a sliding scale based on the value of the deceased estate. Victorians claiming estates worth up to $250,000 will have their probate fees waived, but those handling assets of more than $2 million are set to pay thousands of dollars extra under changes announced by the Allan government.
New employment laws – Landmark changes from 1 January 2025
The 1st January 2025 will mark the last major pillar of the Albanese Labour Government’s employment law reforms, when intentional wage underpayments will constitute a criminal and jailable offence.
To understand how we have got here, let’s consider the pathway to these changes which first commenced in September 2022, when the first Jobs and Skills Summit was held in Canberra. The Summit brought together industry, unions, and other stakeholder groups and set the scene for the significant reforms we have seen rolled out over the past 18 months.
Vacant Residential Land Tax (VRLT) — when should you notify the SRO?
If residential land in Victoria has been or will be vacant for more than 6 months in a calendar year, the property owner is required to notify the State Revenue Office (SRO). Property owners have until the 15 January to notify the SRO for the prior calendar years’ use and occupation (U+O) of the property. Failure to notify the SRO can result in additional penalty taxes being levied.
All residential land in Victoria is now caught unless an exemption is available. Prior to 1 January 2025, vacant residential land tax (VRLT) was contained to the inner and middle region of Melbourne.
Sheep shearers call for a system of protection against ‘dodgy contractors’
The Australian Workers’ Union (AWU) has come to bat for sheep shearers, calling on the federal government to step in with a new national licensing system that would protect shearers from exploitative contractors.
Sheep shearing is ingrained in Australian folklore as a hard-nosed, no-nonsense industry often composed of hardworking individuals operating in less-than-desirable environments.
These environments, being shearing sheds, time after time, pose a safety risk to the workers that operate in them due to habitual negligence from both farmers and contractors that has been accepted as the status quo.
Tax consequences of renting out a room in your home
Amid the national cost-of-living and housing crises, some property owners (owners) are considering innocuously renting out a room in their homes. This seemingly ticks a few boxes: it provides owners with an opportunity to receive some extra income to assist with living costs while helping out someone in need of accommodation.
However, owners who enter into such arrangements without thoroughly considering the tax implications may encounter unexpected or adverse tax outcomes. Key questions may include:
Announcements:
This month we wish Lee a very happy birthday and Phoebe celebrates an employment anniversary of 8 years service, congratulations Phoebe!|
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Important ATO Dates
| Lodgement Program | Date |
| November monthly activity statements | 21/12/2024 |
Other News
Preserve Your Past, Secure Your Future: A Timely Reminder on CGT
As you may know, Capital Gains Tax (CGT) can significantly impact your financial future. To ensure a smooth and stress-free experience when dealing with CGT events, it’s crucial to have accurate and readily accessible historical information.
Why Historical Information Matters
Recently, we’ve encountered instances where clients and their solicitors have faced challenges due to a lack of historical records, such as contracts and cost base details. This can be particularly problematic when dealing with older properties or assets, especially those inherited over time.
Proactive Steps to Protect Your Financial Future
To mitigate potential issues and ensure a seamless CGT process, we recommend taking the following proactive steps:
- Organize Your Records:
- Keep Contracts Safe: Store important documents like purchase contracts, legal documents, and valuation reports in a secure location.
- Compile Cost Base Details: Maintain a comprehensive record of purchase prices, legal fees, stamp duty, and other relevant expenses.
- Consider Digital Storage: Utilize secure cloud storage or other digital solutions to safeguard your documents and ensure easy access.
- Seek Professional Assistance:
- Consult Your Accountant: Our team can assist you in compiling and organizing your historical information, ensuring accuracy and compliance.
- Proactive Planning: By addressing CGT matters proactively, you can avoid potential stress and complications down the line.
By taking these steps, you can significantly reduce the burden of gathering historical information and enhance your overall financial planning.
Remember, a little preparation today can save you significant time and stress in the future.
If you have any questions or require further assistance, please don’t hesitate to contact us.
Cheques
The government has unveiled its Cheques Transition Plan, outlining a roadmap to phase out the use of cheques in Australia by 2030. This decision aims to modernize the nation’s financial system and streamline payment processes.
Key Points of the Plan:
- Phased Approach: The plan involves a two-step process:
- Step 1: Ceasing the issuance of cheques by June 30, 2028.
- Step 2: Ceasing the acceptance of cheques by September 30, 2029.
A quick reminder to those that operate a Macquarie Bank Cheque Account. From Friday 1 November 2024, you may not be able to:
- write or deposit personal cheques
- deposit or request bank cheques
- deposit cash or cheques at NAB branches
- make a super contribution or payment via cheque.
If you have any queries about the above please contact Macquarie Bank directly.
As a result of the above changes at Macquarie, Watts Price Accountants can no longer accept a cheque from Macquarie Bank for payment of service!
myGovID is changing it’s name to myID
Soon, myGovID will be changing to myID. The app will have a new name and new look, but you’ll continue to use it in the same way. The change from myGovID to myID aims to reduce the ongoing confusion between the myGovID app and myGov. Find out morePenalty Units for Super Increase
The Australian government has increased the penalty unit for superannuation fund contraventions. This means that SMSF trustees who break the rules could face fines of up to $19,800 for a single offence. This increase is significant and could have serious financial consequences for individuals and businesses.
The article warns that even unintentional mistakes, such as providing a loan to a member or failing to keep proper records, can result in hefty fines. It’s important for SMSF trustees to be aware of the rules and seek professional advice to avoid costly penalties.
Christmas Holiday Hours
The team at Watts Price Accountants would like to wish you a very Merry Christmas and a prosperous New Year!
Christmas Office hours:
Horsham Office
Closed from 5.30pm Monday 23 December 2024 & re-open Monday 6 January 2025
Rupanyup Office Hours
As above but also due to staff availability, until February we will only be open on a Tuesday (closed Thursday). We will also be closed Tuesday 10 December 2024.