News & Insights

Welcome to this month’s client newsletter. In this edition, we’ve pulled together some key updates and practical tips to help you stay ahead with your tax and super planning as we head towards 30 June and beyond.
 
1. Get on the front foot for your 2024-25 tax return
We take a closer look at some common deductions that the ATO often keeps a close eye on, like working from home costs and using your own car for work. Our tips will help you get your claims right and avoid unwanted surprises.
 
2. Proposed Division 296 tax: Key issues and implications 
There’s been a lot of talk about this new tax on large super balances. We explain the key concerns – like being taxed on unrealised gains and the fixed $3 million threshold – and why it’s important not to make any rushed decisions just yet. Remember, it’s still just a proposal.
 
3. The CGT exemption for land adjacent to a home 
Got a large property or extra land beside your main residence? We unpack the rules that could make this land exempt from capital gains tax (CGT). The rules are detailed, so it’s wise to seek advice if this applies to you.
 
4. 30 June 2025 tax and super checklist
The end of the financial year is fast approaching. This handy checklist helps you get organised – whether it’s reducing tax, topping up your super, or avoiding last-minute pressure. A little planning now can go a long way.

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Welcome to this month’s client newsletter. In this edition, we’ve rounded up a series of important updates and insights that could impact your financial decisions – whether you’re managing investments, planning your estate, or thinking about your super.
 
1. Reduce capital gains tax (CGT) with good record-keeping
Sold an investment and made a capital gain? Good record-keeping could help you legally reduce your CGT liability. We share practical tips to help you keep more of your windfall and avoid an unnecessary tax hit.
 
2. Super contributions vs mortgage repayments
Got some extra cash? We explore whether it’s better to make additional concessional contributions to super or pay down your home loan. Each option has its advantages – and we help you weigh them up.
 
3. Writing a will: the tax angle
There’s more to estate planning than just distributing assets. Writing your will in a tax-effective way can help avoid unexpected CGT issues. If you're preparing or updating your will, speak with us first so we can guide you through the tax considerations.
 
4. Binding death benefit nominations (BDBN)
Your super doesn’t automatically form part of your estate. To make sure it goes to the right people, a valid BDBN is essential. We explain what a BDBN is, why it matters, and what to keep in mind when making one.
 
5. The tax side of small-scale property development
If you’ve subdivided your property or built multiple dwellings on your land, the ATO may view this as small-scale property development—with profits potentially taxed as business income rather than capital gains. We unpack the tax implications and why professional advice is key in these scenarios.

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Welcome to this month’s client newsletter. In this edition, we cover key updates that may impact your financial decisions.
 
First up, a recent court decision has implications for some family trusts, particularly those with private corporate beneficiaries (often called bucket companies). If your company has an unpaid present entitlement (UPE) from a trust distribution, this article is particularly relevant.
 
For those buying or selling property in Australia, changes are coming from 1 January 2025. Sellers will need to obtain a clearance certificate from the ATO to confirm their residency status. Without it, buyers must withhold 15% of the sale price and remit it to the ATO. We explain the key changes you need to know.
 
If you’re 60 or over, a transition to retirement pension could be a smart move. Whether you want to manage cash flow, reduce tax, or pay off debt before fully retiring, we explain how this strategy can work for you.
 
With the ATO updating its guidance on the difference between employees and contractors, it’s more important than ever to understand the tax, super, and legal implications. Whether you’re a worker or a business owner, this distinction can have a big impact. 
 
Finally, we explore concessional contributions. Managing superannuation contributions requires balance – while they provide valuable tax benefits, exceeding the cap can lead to additional tax. We outline key factors to help you make the most of your contributions without going over the limit.

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Welcome to this month’s edition of our client newsletter.
 
In this issue, we explore salary sacrifice vs personal deductible superannuation contributions – both valuable strategies, but which one is right for you? We break down the key differences and factors to consider, such as employment status, cash flow, and flexibility needs.
 
We also highlight important tax considerations for cryptocurrency investors. Whether you've made a gain or loss, we share tips that may help you legally reduce your tax bill, while ensuring you stay compliant with the ATO!
 
Next, we cover an often-overlooked opportunity: claiming capital gains tax (CGT) small business concessions when you own an asset used by someone else in their business. This could include land, a factory, or even a trademark, so if you're in this situation, you may have tax-saving opportunities when selling the asset.
 
Finally, we have included a handy fringe benefits tax (FBT) checklist to help identify potential FBT liabilities. While your accountant will prepare your FBT return, not all benefits provided to employees (or their associates) are always obvious – this checklist can help ensure nothing is overlooked.

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As we settle into 2025, it’s the perfect time to stay informed about key tax, financial and superannuation changes that could impact you. This month’s newsletter is packed with insights to help you navigate the year ahead.

First, we break down seven key superannuation changes coming in 2025. Super is a long-term investment, and even small adjustments can have a big impact over time. Now is a great time to review your super and understand both proposed and legislated changes.

Next, we highlight the ATO’s latest rental data-matching efforts. If you own an investment property, this article shares useful tips to help you stay compliant and avoid potential issues if the ATO audits your rental income.

We also explore superannuation and financial hardship. Whether it’s for urgent medical bills, preventing home repossession, or making ends meet, this article explains when and how you may be able to access your super in tough times.

Finally, we clarify the ATO’s stance on the tax deductibility of financial advice fees. Not all financial advice fees are deductible, and this update breaks down what you can and can’t claim.

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This month’s edition of our client newsletter includes an article on the extra 15% “Division 293 tax” which applies to high income earners who have income and concessional superannuation contributions exceeding $250,000 in 2023/24. The article explains how the extra tax works and how you can pay for it if you’re liable. 
 
This is followed by an item which discusses the fine line between carrying on a business of property development and merely realising an asset. This article may be of interest to you if you are contemplating carrying out such an activity as there are different tax implications depending on the nature of the activity and property involved.
 
There is also an article about how useful the CGT main residence exemption concessions are, particularly for individuals who are considering buying or selling a home. Depending on your particular circumstances, these concessions can be used to allow you to access a full (or at least partial) CGT main residence exemption in a way that was probably never originally envisaged.

Our next article covers tax file numbers (TFN) and provides some insights on how TFNs are verified in tax return software. 
 
Finally, we provide an article which explains why you cannot add further money to a superannuation pension once it has commenced, and the alternative options to consider if you find yourself in this situation.  

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This month’s edition of our client newsletter includes an article on the importance of making your superannuation last in retirement. Superannuation is often a key source of income when you retire so it’s important to ensure your investment strategy makes your retirement savings last for as long as possible.
 
This is followed by an item that explains the personal services income rules that apply to income that is earned mainly from the personal efforts or skills of a person. Included is a handy flowchart which explains the rules depending on the different circumstances. It is worth noting that these rules do not apply to income earned from being an employee. 
 
Our next article covers the different types of amounts that you may receive which are not considered as “income” by the ATO. Although such amounts may not be assessable, they may need to be included elsewhere in your tax return for other purposes.
 
There is also an article about being on the lookout for scammers who may contact you about your superannuation. This is an important reminder as the number of cold callers is on the rise and many people are falling victim and losing their superannuation to scammers. 
 
Finally, we provide an article which explains the steps you should follow when on-boarding new employees, as there are a number of tax, workplace and superannuation obligations you must adhere to as an employer.

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The Federal Budget, handed down on Tuesday 14 May, contained a number of tax, superannuation, tax administration and social security/cost of living proposals that may impact your clients (and their businesses) in relation to the following matters:

• Instant asset write-off 

• CGT and foreign residents 

• The training and energy efficiency boosts

• ATO discretion to offset old tax debts 

• Refund frauds and BAS refunds

• Student loans repayments 

• Super to be paid on paid parental leave

• Social security deeming rates

• Commonwealth Rent Assistance

• and more.

Contact us if you would like to discuss any of these measures.

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This month’s edition of our client newsletter includes an article on being aware of a partial capital gains tax (CGT) liability that may apply to you if you sell your main residence. 
 
This is followed by an item that explains why you should be wary of timing when making superannuation contributions this financial year. You may not realise it, but a contribution is deemed to be made at the time it is received by your superannuation fund, not when you process the transaction. For this reason, it’s best to allow plenty of time to make your superannuation contributions well before 30 June for your contribution to be received by your superannuation fund this financial year. 
 
For those who have rental properties, there is an important article which summarises the traps and pitfalls to be aware of as the ATO is currently on the lookout. This is because majority of residential rental property investors who have been audited have been getting their returns wrong. 
 
There is also an item on succession planning for family businesses. This may be of interest for families who plan on transferring their business onto the next generation.  
 
Finally, we provide an article which helps explain how myGov can help you keep track of your superannuation balance. 
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This month’s edition of our client newsletter sets out six different strategies for boosting your superannuation nest egg while potentially saving on tax. This is followed by an item that explains what happens to your tax status on leaving Australia to live or work somewhere else in the world. You might be surprised to learn how long after heading off some people have to continue to call Australia home for tax purposes.

For those who run their business through a corporate structure there is a must read article on the pitfalls of treating the company’s bank account and other assets as your own – the ATO has its eye on this area. There is also an item on the tax issues that can potentially arise when deciding to sell the family home.

We have included a piece on the receipt of compensation for various events, including damage to property, wrongful dismissal or work injuries. In some cases, it may pay to obtain tax advice before settling on an amount with the insurer.

Finally, we offer a perspective on the question of where to put your spare cash (assuming you have any) – on the mortgage or into superannuation?

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This edition of our client newsletter features a run down on what taxpayers can do to maximise the benefits of the Stage 3 tax cuts that have recently been passed by Parliament. It explores some options for shifting taxable income from this year (2023-24) to the next (2024-25) by bringing forward deductions or deferring income. While the potential gains are not huge, they are not trivial either and they represent a permanent tax saving. On the deduction side, it is as simple as buying a depreciating asset or painting your rental property a few months earlier than you might otherwise have planned. Bear in mind, however, that bringing deductions forward involves a cash flow that you will have to fund.
 
Next, there is a short piece on the capital gains tax concessions that are potentially available for small business owners on the sale of their business. It’s a must read for anyone contemplating such a sale in the coming years.
 
We have also included an item we hope you will never need to be across, until you do. It’s about the ins and outs of briefing a barrister. Did you know that you can brief a barrister directly (ie. without engaging a solicitor)? Not all barristers accept direct access briefs, but many do, and their costs can compare favourably with those charged by solicitors. Many of them also specialise, so you might be able to track one down who has expertise in your issue.
 
Finally, we have a very informative piece on super contributions in light of increases in various contributions caps that apply from 1 July 2024. The article stresses that the super rules are highly complex and anyone with some spare cash who may be looking to make additional super contributions should first get specialist advice.

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This edition features pieces on:

• Compensation - is it taxable? Have you received compensation for bad advice or unethical behaviour, particularly from the banking and financial advice sector? There may be tax consequences. We explain how to navigate these payments from a tax perspective.

• Tax issues when dealing with volunteers: Volunteers can be an invaluable resource to many clubs, groups and charities. But what of payments made to these volunteers? We look at whether payments to volunteers constitute assessable income and whether their expenses are tax deductible.

• Collectibles and inherited jewellery: Whether you’re a genuine collector or just a hoarder, those trinkets may come with a capital gains tax kicker. We look at the rules to be aware of when selling certain of these types of assets.

• Using super to pay the mortgage: You may be able to use your super to pay down your mortgage, but there are tricks and traps. We look at this highly topical issue.

• Returning to work after retirement: Retirement just not cutting it? We look at the superannuation consequences of returning to work after retirement.

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This edition features pieces on:

• Give yourself a super gift this Christmas. We provide a super to-do list - including consolidating your super, reviewing your investment strategy, making extra contributions, checking your insurance and more to help boost the amount of super you will have in retirement.

• Lost or destroyed tax records? Don't panic! Natural disasters, moving house, technology failures - all of these often unforeseen events can result in the loss or destruction of important documents. This article provides some leads on how to recover lost information - including contacting the ATO, your employer, and of course your friendly tax professional.

• Taken goods for private use? Here's the latest values. It's common practice for business owners to take goods from their trading stock for private use. The ATO has released values for these goods for the 2023-24 income year. Be aware that the ATO may accept greater or lesser values - but you must provide evidence to back up your valuation.

• Two main residences is possible. This article looks at the circumstances in which it's possible to access the main residence for two properties. It's to do with overlapping ownership for a period of up to six months. The conditions which must be met are complex so you will need the help of your tax adviser. 

• Don't ignore those tax debts - the ATO won't! While the ATO was keen to assist businesses during covid, that period is well and truly over and it is taking a more robust approach to collecting debts. Contact us to see if you are eligible to use the ATO's Simplified Debt Restructuring program.

• The taxation of super death benefits. The tax treatment of superannuation death benefits can be complex - is the beneficiary a tax dependant? What are the components of the benefit? Will it be paid in a lump sum or income stream? We can help you to ensure your death benefits will be distributed in the most tax-effective manner.

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This edition features pieces on:

• Who can I nominate as my super beneficiary? Unlike other assets such as shares and property, your superannuation and any insurance benefits you have in superannuation do not form part of your estate. This article explains how to go about specifying who you want your superannuation money to be distributed to, and the importance of that person being a “dependant” for super purposes.

• Who is a resident for tax purposes? It’s not just a case of whether you are a “citizen” of Australia. Tax residency is a difficult issue to determine in Australian tax law, and while a recent AAT case sheds some light, there are other factors to consider; for example, any relevant double tax agreements.

• Introducing the energy incentive: The new Energy Incentive provides a bonus tax deduction of 20% of expenditure on improving the energy efficiency of your business. The incentive is not yet law, but it may be useful to put in some time now preparing the ground to take advantage of this bonus. And remember that you can still take advantage of the Skills and Training Boost (generally for expenditure on training employees incurred before 30 June 2024).

• Qualifying as an interdependent or financial dependant: Qualification for these categories is vital in order for potential beneficiaries to receive a death benefit. This article explains the conditions which must be met for interdependency relationship and financial dependency status. These terms are not expressly defined in superannuation law and can be complex to determine. 

• How to nominate a superannuation beneficiary: Many different types of nominations exist; for example, Binding death benefit nominations, Non-binding death benefit nominations, and Reversionary pension nominations. Getting the type of nomination right is vital to ensure your super ends up in the right hands.  And a reminder that if your nominated beneficiary does not meet the definition of a superannuation law dependant at the time of your death, the nomination will be invalid.

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This edition features pieces on:

• Personal Deductible Superannuation Contributions: 
  Overview: This article delves into the complexities surrounding the age-based rules and the work test for making deductible contributions to your superannuation fund. 
  Key Points: It covers the age brackets that are eligible for making contributions, the "work test" that individuals aged 67 to 74 must pass, and the annual caps on contributions. 
  Relevance: Understanding these rules is crucial for maximising your retirement savings while also taking advantage of tax benefits. 

• Capital Gains Tax (CGT) Roll-over Concessions:
  Overview: This piece provides an in-depth look at CGT roll-over concessions, which allow the deferral of capital gains tax. 
  Key Points: It explains the types of assets that qualify, the conditions under which the concessions can be applied, and the documentation required. 
  Relevance: Small business owners will find this particularly beneficial for tax planning and asset management.

• Small Business Skills and Training Boost: 
  Overview: This article focuses on the government's skills and training boost aimed at small businesses. 
  Key Points: It outlines the eligibility criteria, the types of training that qualify, and how businesses can claim tax deductions on these expenses. 
  Relevance: Investing in employee training not only enhances skills but also offers financial incentives through tax deductions. 

• Retirement Concession and Capital Gains:
  Overview: This section offers insights into capital gains concessions available to those aged 55 or over. 
  Key Points: It discusses how a capital gain of up to $500,000 can be taken tax-free or channelled into a super fund, along with the conditions that must be met. 
  Relevance: For those nearing retirement or considering asset liquidation, this information is invaluable for financial planning. 

1. Property Development and Taxation: 
   Overview: This article explores a Federal Court decision that has implications for property developers. 
   Key Points: It examines how the original purchase price of land can influence the costs that can be claimed as a tax deduction. 
   Relevance: Property developers and investors will find this information crucial for understanding the tax implications of their projects.

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