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.
18 rules for ageing well
Announcements:
This month we acknowledge two significant employment anniversaries, congratulations Richard (18) & Laurie (17).
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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.
- 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.