Increase your online security

Your personal information is an important part of your identity. There are many ways you can interact online, and the following tips can help you make sure your online transactions are safe.

Use multi-factor authentication

Multi-factor authentication requires a combination of:

• something the user knows (PIN, secret question)
• something you have (card, token), or
• something you are (fingerprint or other biometric).

Enabling multi-factor authentication increases your online safety.

Use strong and secure passphrases

Consider moving from a password to a passphrase. Using passphrases can:

• boost the security of your accounts
• make it harder for cyber criminals to access your information.

A passphrase:

• should be easy for you to remember
• can involve a set of 4 or more random words, numbers and/or symbols depending on the website’s password requirements.

The longer your passphrases, the better.

A random mix of unrelated words:

• is less predictable than a password
• will produce a stronger passphrase – for example, ‘crystal onion clay pretzel‘.

A password manager can help you generate or store passphrases. Regularly change passphrases and do not share them.

Regularly back up your devices

Back up your files and devices regularly on a physical device (such as an external hard drive) or in the cloud. This is helpful if your data becomes damaged, lost, stolen or infected by ransomware.

Secure your backup devices by making sure they are not continuously connected to your main network.

Make sure all devices have the latest available security updates

Cyber criminals hack devices using known weaknesses in systems or apps. Updates have software security upgrades and make it harder to hack.

Regular updates are critical in maintaining a secure system. It’s important to:

• check for any updates regularly, or
• turn on automatic updates.

Antivirus software can help prevent, detect, and remove malware from your device. Make sure you turn on your antivirus software and keep it up to date.

Be careful when clicking on links, downloading programs or opening attachments

Be careful when downloading attachments or clicking on links, even if the message seems to come from someone you know.

Be sure you are downloading authorised and legitimate programs. Unless you know the program is legitimate, do not open attachments or download it.

Some programs contain malware that can infect your computer or be used to harvest your personal information.

Use a spam filter on your email account

Always use a spam filter on your email account and do not open unsolicited messages.

Be wary of downloading attachments or opening email links you receive, even if they are from someone you know.

Spam emails can be:

• embedded with malware
• used to trick you into providing information or buying non-legitimate goods.

Do not respond to or click on these emails. This can help you reduce the risk of your personal information being used fraudulently, or your computer being infected with malware.

Monitor your accounts for unusual activity or transactions

Check your inboxes on your accounts (including banking and online services) regularly. If you know everything is in order, it will be harder for a scammer to convince you otherwise.

If an organisation you deal with sends you an email or SMS alerting you to unexpected changes on your account, do not:

• click on included hyperlinks
• open any attachments.

You should immediately:

• check your account
• contact the organisation by telephone.

Be vigilant about what you share on social media

Keep personal information private and be aware of who you are interacting with.

People are accustomed to sharing personal information on social media. However, before sharing ask yourself if it is information you want strangers to have access to.

It’s very easy for information on social media sites to be shared outside of your network, even when your security settings are set to private.

Be sure you know who you are speaking to on social media, and only share information with people you know and trust.

Criminals can use certain combinations of your personal information to impersonate you to access money, apply for credit cards and bank loans, or commit crimes.

Keep your personal information secure

Keep your tax file number (TFN), passwords, superannuation and other sensitive information (such as your myGov or bank account details) secure. Don’t share them with others, including in emails, to prospective employers or on social media.

Secure your electronic devices wherever you are. Your personal information can be taken in an instant. In some situations, you won’t even know it was stolen.

Make sure you:

• do not leave electronic devices unattended
• secure your electronic devices with passcodes
• securely store portable storage devices (such as thumb and hard drives) when not in use.

This will enhance security, improve fraud detection, and change the user experience when you make payments.

From 17 March, only card holders will be able to make payments with a debit or credit card.

This means your tax professional, or bookkeeper will no longer be able to make card payments on behalf of your business. Other online payment methods such as electronic funds transfer (EFT) and BPAY will still be available to them.

When you pay by card online, you’ll now need to provide details, such as your billing address, contact details and card verification code (CVC or CVV).

The financial institution that issued your card may also ask you to provide additional information, just like when you make other online purchases. The information will depend on your financial institution, but it could include security questions, a one-time pin, or fingerprint or facial recognition verification.

It’s important to keep details such as your address and contact information up to date with us and your financial institution, as it will make payments easier for you.

These changes are due to take effect on the weekend of 14 to 16 March, so online debit and credit card payments will be temporarily unavailable, during this time. EFT and BPAY will still be available.

Indexation of the general transfer balance cap (‘TBC’) will occur on 1 July 2025.  This cap will increase by $100,000 from $1.9 million to $2 million.

Editor: The general TBC amount is used for a number of purposes, including to determine the total capital amount that can be transferred to the retirement (pension) phase, and to determine eligibility for making non-concessional contributions.

This increase has flow through impacts for individuals who have started a retirement phase pension, as they will be entitled to an increase to their personal TBC if they have not previously been at, or exceeded, their cap.

Individuals starting a pension for the first time on or after 1 July 2025 will be entitled to a personal TBC of $2 million.

The ATO will calculate an individual’s personal TBC based on the information reported to and processed by the ATO.  To help individuals have a clear understanding of their position, the ATO encourages funds to report all ‘TBC events’ when they occur and as early as possible before the 1 July 2025 indexation start date.

Editor: Indexation of the general TBC also has flow through consequences for the Total Super Balance (‘TSB’).  The TSB influences an individual’s non-concessional contributions cap, non-concessional bring forward arrangement, and eligibility for spouse tax offset and co-contributions.

Free Tools for First Years

If you are in the first year of an eligible construction, plumbing, engineering or electrical apprenticeship, you may be eligible for a rebate of up to $1,000 to cover the cost of tools you purchased for the apprenticeship.

The eligibility period for the rebate is being backdated to 22 May 2023.

The Free Tools for First Years program has been expanded to include relevant engineering qualifications, and eligibility has been further backdated from 1 January 2024 to 22 May 2023.

What is paid

If you’re eligible, you can get reimbursed for the purchase of tools up to $1,000.

You can’t claim again if you receive a rebate of less than $1,000, so it is important to consider the tool purchases you will include in your claim.

There is $4 million available under the Free Tools for First Years program, and claims will be open until the funds are exhausted.

Eligible apprenticeships

The ATO has the following tips to help you get your BAS right before you lodge:

•     You should make sure you enter the figures for your obligations at the correct label, and only complete applicable fields.
•     If you have nothing to report for the period, you can lodge a ‘nil’ BAS online by selecting ‘Prepare’ and then ‘Prepare as nil’, or you can call the ATO’s automated service “any time of the day”.
•     If you made a mistake on your last BAS, instead of lodging a revision, you may be able to use your current BAS to fix it.  For example, you can use label 1A to adjust GST on sales, or label 1B to adjust GST on purchases.
•     You can also use your BAS to vary an instalment amount.

As your tax agent, we’re here to help. If you need any assistance with your BAS, please don’t hesitate to contact us.

Fuel tax credits changed on 3 February, and taxpayers could receive more savings for fuel they have acquired on and from this date.  Different rates apply based on the type of fuel, when it was acquired and what activity it is used for.

The ATO has the following tips to ensure you are claiming correctly.

•     Use the ATO’s ‘eligibility tool’ on its website to find out if you can claim fuel tax credits for fuel you have acquired and used.
•     Use the ATO’s online fuel tax credit calculator (which should automatically apply the right rate) to work out your claim.

As ATO impersonation scams have become more sophisticated, it’s crucial to stay vigilant to protect your business. One of the most effective ways to stay safe is to Stop, Check and Protect.

Scammers often create a sense of urgency, hoping you’ll act without thinking. By stopping to check the legitimacy of the communication, you can avoid situations that could lead to financial loss or personal information being stolen.

How to check

If you aren’t sure whether something is legitimate, first check contact details. Look up contact information for the organisation and reach out directly using details you’ve sourced yourself.

Next, look for red flags in the message. Be cautious of messages that:

• contain a hyperlink
• create a sense of urgency or fear
• ask for personal information or payments
• contain spelling or grammar errors
• come from unofficial email addresses or phone numbers. Scammers use legitimate looking email addresses, so always double check.

Finally, cross-check any information in the message, like a tax debt or refund, or problem with your account, through official sources. Always access the ATO’s online services by typing the URL in a browser or via our website.

The ATO will never send unsolicited messages with hyperlinks or ask for personal information via email or SMS. To help protect your personal information, use your Digital ID, such as myID, set to the highest level you can achieve to access the ATO’s online services.

If you think a phone call, SMS, voicemail, email, or interaction on social media claiming to be from the ATO isn’t genuine, don’t engage. Instead:

• Contact us, as your registered agent;
• go to Verify or report a scam to see how to spot and report a scam, or
• if you have divulged information or paid a scammer money, phone the ATO on 1800 008 540.

For more information on staying scam safe, visit Scamwatch.

The Government recently passed legislation making changes to the foreign resident capital gains withholding laws (among other changes).

Editor: Foreign resident capital gains withholding is relevant for all vendors selling certain taxable real property (e.g., Australian land).

Even Australian residents can be caught by these laws because, if they do not have a valid ‘clearance certificate’ issued by the ATO at, or before settlement, tax must be withheld from the sale proceeds by the purchaser and paid to the ATO.

The new legislation increases the foreign resident capital gains withholding rate to 15% (from 12.5%), and completely removes the threshold (currently $750,000) before which withholding applies.

This means that all disposals of taxable real property are potentially subject to foreign residents’ capital gains withholding requirements regardless of the market value of the CGT asset.

These amendments take effect from 1 January 2025.

Historically, ATO interest charges, such as General Interest Charges (GIC) and Shortfall Interest Charges (SIC), have been tax deductible for businesses and individuals. These charges often arise from underpaid tax, late payments, or adjustments to prior tax returns.

However, from 1 July 2025, ATO interest charges will no longer be eligible for tax deductions. This means businesses and individuals will bear the full cost of these charges without the benefit of reducing their taxable income.

Why Is This Change Being Introduced?

The decision to remove the deductibility of ATO interest aligns with the government’s broader efforts to encourage timely tax compliance. By eliminating the tax advantage associated with ATO interest, the measure aims to promote more proactive financial management and timely payment of tax obligations.

What This Means for Businesses and Individuals

1. Paying More Tax
ATO interest charges will hit cash flow and profits harder. Businesses will need to adjust their budgets since they can no longer rely on tax deductions to soften the blow.

2. More Focus on Tax Planning
With bigger financial impacts, it’s more important than ever to stay on top of tax reporting and manage finances carefully.

3. Reconsider Borrowing Choices
Businesses may need to rethink how they borrow money to cover tax bills due to the higher cost of ATO interest. We confirm that the non-deductibility of interest expense only applies to ATO forms of interest, and not to other forms of external finance, such as from banks or suppliers.

Example

The following table outlines the impact of this change on the tax position on small to medium trading companies.

For every $10,000 in ATO interest charges, small to medium trading companies will lose a tax benefit of $2,500.

Preparing for the Change

1. Review Your Tax Payments
Be aware of your upcoming tax liabilities.

2. Manage Cash Flow Better
Review how you handle cash to ensure you’ve got enough set aside for tax payments. Setting up a tax savings account could help.

3. Plan Ahead
Start preparing now for the changes coming on 1 July 2025. Factor these costs into your budget to avoid surprises later.

4. Changing Tax Registration Cycles
Opt in to pay GST and PAYG Withholding monthly, to reduce large quarterly tax bills. We note that some entities may already be required to lodge and pay monthly by law.

Final Thoughts

The upcoming non-deductibility of ATO interest represents a fundamental shift in the tax framework, placing a greater emphasis on timely compliance and proactive cash flow planning. By understanding the implications and preparing early, businesses and individuals can minimise the impact of this change.

If you would like to understand more about how this change may affect your specific circumstances, we can assist in reviewing your current strategies and identifying opportunities for improvement. Contact us to find out more.

If you employ staff, here are the important dates and obligations to remember throughout the year, to set yourself up for success.

Super guarantee (SG)

• 28 January, 28 April, 28 July, and 28 October are the quarterly due dates for making SG payments.
• The SG rate is currently 11.5% of an employee’s ordinary time earnings. From 1 July 2025, the SG rate will increase to 12%.
• Ensure SG for your eligible employees is paid in full, on time and to the right super fund. If you don’t, you’ll need to lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO.

Fringe benefits tax (FBT)

31 March 2025 marks the end of the 2024–25 FBT year. There are 4 key steps to nail your obligations for FBT tax time.

1. Identify if you’ve provided a fringe benefit.
2. Determine the taxable value to work out if you have an FBT liability.
3. Lodge an FBT return and pay any FBT owed (if you have a liability). As your reregistered tax agent we receive a lodgement extension, giving you more time to lodge and pay.
4. Keep the right records to support your FBT position.

Pay as you go (PAYG) withholding

Tax rates may increase from 1 July 2025. Use the tax withheld calculator to calculate how much you need to withhold from your employees’ payments.

Single touch payroll (STP)

Finalise your STP data by 14 July 2025 for the 2024–25 year.

This ensures your employees have the right information they need to lodge their income tax returns.

If you have any closely held payees, you may have a later due date for those payees only. Remember to finalise all employees you’ve paid in the financial year.

You can also check out the ATO’s range of resources for employers.

Remember, as your registered tax agent we can help you with your tax and super obligations, just contact us to find out more.