January 2025 Newsletter
Contents:
- Major Changes Coming From January 1
- The nuts and bolts of testamentary trusts
- ‘Sham’ termination caused psychiatric injury, High Court rules
- Legacy Pension Amnesty now law
- Hiring children under 15 for summer seasonal work? What you need to know
- Victoria’s new short stay levy
- What happens if SG payments are late or missed?
- What the employment law changes mean for small businesses and individuals
- Announcements
Major Changes Coming From January 1
Centrelink payment increases and passport price hikes are among the money changes happening from January 1, 2025.
The new year is fast approaching and with it comes a raft of changes with new laws, Centrelink payment increases and price hikes coming into effect. The changes will be good news and put extra money into the pockets of some, but bad news for others.
Here’s a breakdown of the major financial changes happening in Australia from January 1, 2025.
The nuts and bolts of testamentary trusts
In an earlier article, I briefly analysed family trusts and discussed some of their benefits. This article will consider the role that testamentary trusts can play in a well thought-out estate plan.
Because this subject matter is so broad, I have made this article a ‘grab bag’ of things that readers might think about when considering whether a testamentary trust might have a place in their estate plan. Any decision to use testamentary trusts should be accompanied with bespoke legal, accounting and financial advice.
‘Sham’ termination caused psychiatric injury, High Court rules
A century-old precedent has been overturned by the High Court of Australia, with an employer being ordered to pay over $1.4 million to a former employee who claimed psychiatric injury arising from a breach of employment contract.
The High Court of Australia has handed down a landmark decision, ordering Vision Australia to pay $1,442,404.50 in damages for breaching the terms of an employee’s contract through a “disgraceful” termination process, which led to psychiatric injury.
Legacy Pension Amnesty now law
Late last week the SMSF sector was handed a somewhat unexpected, but much welcomed, early Christmas present.
But this gift was richly deserved – just reward for your Association’s extensive advocacy efforts over several years.
After much lobbying, and following the recent public consultation, Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 – which heralds the introduction of an amnesty period, allowing long-suffering SMSF members to exit legacy pensions – is finally law!
Victoria’s new short stay levy
A 7.5% levy on the total booking fees will apply for short stay rentals from 1 January 2025. The total booking fee is the sum of all fees and charges related to the booking, eg, cleaning fees, GST etc. However, the total booking fee does not include credit card fees/surcharges.
The short stay levy (Levy) is prescribed in the Short Stay Levy Act 2024 (Vic) (STL Act).
Where a booking is done through a platform, the booking platform will be required to pay the Levy. Where the booking is done directly through the owner/tenant, then they will be required to pay the Levy.
What the employment law changes mean for small businesses and individuals
Casual employment, independent contractors and the right to disconnect: what the employment law changes mean for small businesses and individuals.
The Federal Government has recently introduced a range of new employment law reforms to the Fair Work Act 2009 (Cth) (Fair Work Act), which will impact on both small and non-small businesses.
Announcements:
This month we wish Andrew, Gabi & Kelly a very happy birthday. We also have a number of team members bringing up significant employment anniversaries, congratulations Grant (23), Katrina (5), Xavier (4), Lee (24) & Paula (32)!|
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Important ATO Dates
| Lodgement Program | Date |
| December monthly activity statements | 21/01/2025 |
| Quarter 2 (October–December) PAYG instalment activity statement | 21/01/2025 |
| Quarter 2 (October–December) – super guarantee contributions | 28/01/2025 |
| 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.
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.
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.
Christmas Holiday 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.