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.

The ATO will acquire rental bond data from State and Territory rental bond regulators bi-annually for the 2024 to 2026 income years, including details of the landlord and tenant, managing agent identification details, and rental bond transaction details.

The objectives of this program are to (among other things) identify and educate individuals and businesses who may be failing to meet their registration or lodgment obligations.

The ATO expects to collect data on approximately 2.2 million individuals each financial year.

The indexation rate for study and training loans is now based on the Consumer Price Index (‘CPI’) or Wage Price Index — whichever is lower.

This change has been backdated to indexation applied from 1 June 2023 for all HELP, VET Student Loan, Australian Apprenticeship Support Loan, and other study or training support loan accounts.

Consequently, indexation rates for 2023 and 2024 have changed to:

•       3.2% for 1 June 2023 (reduced from 7.1%); and
•       4% for 1 June 2024 (reduced from 4.7%).

Individuals who had a study loan that was indexed on 1 June 2023 or 1 June 2024 do not need to do anything.

Individuals whose study loan is in credit after the adjustment may receive a refund for the excess amount to their nominated bank account, if they have no outstanding tax or Commonwealth debts.

With the holiday period just around the corner, we’re reminding you how to keep your business premises and client information secure if you’re closing the workplace over the holiday break.

We’ve made a list (and checked it twice) of simple things to protect your business, both on site and online:

• Safely secure all physical files (or dispose of them appropriately). It only takes a few moments for thieves to photograph hard copies of your clients’ files so it’s crucial that all physical information is stored in locked storage units or shredded.
• Log out of all devices.
• Securely store your devices.
• Ensure all devices are using the latest software. Cyber criminals use known weaknesses in systems or apps to hack into devices. Turn on automatic updates to take the guesswork out of updating work devices.

Our list above is not an exhaustive list, and it’s important you take all necessary steps to ensure your information is protected.

The Foreign resident capital gains withholding (FRCGW) rules are changing from 1 January 2025.

Currently, Australian residents selling property must provide a clearance certificate to the purchaser at or before settlement to avoid having 12.5% withheld from a property sale where the value of the property is $750,000 or more.

Under the changes:

• the withholding rate will increase from 12.5% to 15%
• the $750,000 property value threshold will be removed, and the withholding rules will apply to all property sales.

The changes apply to contracts entered into on or after 1 January 2025.

FRCGW is designed to support the collection of tax liabilities owed by non-residents selling Australian property.

All Australian residents selling property will require a clearance certificate from the ATO, or withholding will apply to the transaction. If an Australian resident vendor doesn’t provide a clearance certificate by settlement, 15% of the sale price must be withheld by the purchaser and paid to the ATO.

If an amount is withheld from the sale price, the vendor will only receive any refund due after their next income tax return is processed at tax time.

Most clearance certificates will issue within a few days, but it is important to apply early because some can take up to 28 days to issue. They are valid for 12 months, so the vendor doesn’t need to wait until they have signed a contract.

Foreign resident vendors may be able to apply to vary the withholding rate.