Newsletter – February 2025

February 2025 Newsletter

Contents:

  • Help after a Bushfire
  • Foreign resident CGT withholding scheme now effective
  • What you need to know about retirement village contracts
  • How small businesses can avoid staff underpayment
  • How to talk to your family about your will
  • 18 rules for ageing well
  • Announcements

Help After a Bushfire

After a bushfire, the damage can be devastating. Recovery can feel hard, and it’s tough to know where to start.
At Emergency Recovery Victoria (ERV), we work with local councils and other government agencies to coordinate relief and recovery for people and communities.
This means we can connect you with services that can help you if you’ve been impacted by a bushfire.

 

Foreign resident CGT withholding scheme now effective

Property buyers and sellers have been reminded that the revised foreign resident capital tax withholding scheme is now in effect.
Accounting firm Forvis Mazars has reminded property buyers and sellers that the expanded foreign resident capital gains tax withholding scheme now applies to all property purchases that involve sellers who are not Australian residents, effective 1 January.
Under affected transactions, property buyers are required to withhold 15 per cent of the purchase price from the seller and pay that amount to the ATO.

What you need to know about retirement village contracts

Retirement village (RV) life is great. Like living on a cruise ship, staying in a luxury resort, visiting a health spa, or driving a premium car.
But what about the costs? And what are you getting for your often multi-million-dollar investment?
A retirement village contract is a loan agreement where the borrower sets the terms. The retiree does not have title to the property they live in.

 

How small businesses can avoid staff underpayment

From 1 January 2025, underpaying an employee’s wages or entitlements can be a criminal offence if the underpayment is “intentional”. 
A small business employer can’t be referred for criminal prosecution if the Fair Work Ombudsman (FWO) is satisfied that the employer has complied with the Voluntary Small Business Wage Compliance Code.
The FWO has released the Code and a guide to help small businesses (with less than 15 employees) take steps to pay their employees correctly and protect themselves from criminal liability.

How to talk to your family about your will

 

18 rules for ageing well

The rules to age successfully include, ‘the unexamined life lasts longer’, ‘change no more than one-eighth of your life at a time’, ‘nobody is thinking about you’, and ‘pursue virtue but don’t sweat it’.
I recently happened upon a practical and often humorous book about how to age successfully. It’s called Rules For Ageing by Roger Rosenblatt, a literary overachiever who’s had success as a Harvard lecturer, newspaper editor and columnist, and is the author of 21 books and six plays. 

 


Announcements:

This month we acknowledge two significant employment anniversaries, congratulations Richard (18) & Laurie (17).
We also wish a very happy birthday to Maree!
 

Richard Kemp

Laurie Liston

 
   
   
 

Important ATO Dates

Lodgement Program  Date
January monthly activity statements 21/02/2025
Quarter 2 (October–December) PAYG instalment activity statement 28/02/2025
Quarter 2 (October–December) – super guarantee contributions 28/02/2025
Quarter 2 (October–December) activity statements 28/02/2025

Other News

New Tax Deduction Rules for Small Donations

Great news for charitable givers! From 5 December 2024, you’ll be able to claim a tax deduction for even the smallest donations, including those under $2. This change aims to encourage more people to support their favorite charities, making it easier to donate through methods like rounding up purchases at the checkout.

In addition to this exciting news, ancillary funds will now be known as “giving funds.” This change reflects the important role these funds play in facilitating charitable giving.

Stay tuned for more updates as we approach the implementation of these new rules.


TBC to increase to $2m from 1 July

The general transfer balance cap (TBC) will increase from $1.9 million to $2 million on 1 July 2025, following the latest Consumer Price Index (CPI) figures. This means SMSF members starting their first retirement phase income stream in the 2025-26 financial year will have a TBC of $2 million. 
This TBC increase impacts several superannuation rules. If you have any queries please contact your Financial Adviser or our office!


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!
 
 
All the best from the Watts Price Team!