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Practice Update
April 2024
🔶 WHAT TO DO IF YOU MISSED YOUR LODGMENT
DEADLINE FOR YOUR SMSF 🔶
Staying on top of deadlines is crucial for managing your Self-Managed Super Fund (SMSF). If you missed the lodgment due date for your 2023 SMSF Annual Return (SAR), it's time to take action. The deadline for SAR lodgment was 28th February, whether you handle it independently or through a tax agent. If through the latter, they will provide the due date for lodgment or payment. Failing to meet this deadline and communicate with the ATO can have serious implications for your SMSF's compliance status.
Consequences and Next Steps
Missing the lodgment deadline can result in your SMSF's compliance status being changed to 'regulation details removed' on Super Fund Lookup, limiting financial transactions. To reinstate compliance, all overdue lodgments must be submitted. If your SMSF no longer holds assets, request a 'return not necessary' or cancel its registration. Persistent failure to lodge SARs may prompt the ATO to take further compliance actions.
How We Can Assist
If you're struggling with SAR preparation or have missed the lodgment deadline, our team of registered tax professionals is here to help. We can guide you through bringing your lodgments up to date and understanding your options.
Take Action Now
Don't let missed deadlines jeopardize your SMSF's compliance and financial health. Reach out to us today to discuss your situation and take proactive steps to resolve any outstanding lodgment issues. Stay compliant. Stay informed.
🔶 ANAO RELEASES AUDIT REPORT ON ATO OVERSIGHT OF
GST FRAUD CONTROL MEASURES 🔶
The Australian National Audit Office (ANAO) has recently unveiled a report inspecting the Australian Taxation Office's (ATO) management of fraud control mechanisms concerning the Goods and Services Tax (GST).
Key revelations from the report indicate that while the ATO has implemented some effective measures to combat GST fraud, its overall framework for assessing and managing fraud risks associated with GST is deemed inadequate. The report highlights that although the ATO has deployed mostly effective strategies for detecting and addressing GST fraud, it lacks a specific plan to tackle large-scale fraudulent activities. Moreover, the oversight, monitoring, and reporting of GST fraud suffer from ambiguity in roles and responsibilities.
Additionally, the audit reveals that the ATO's governance structures concerning GST fraud control are only partially effective, with issues surrounding the clarity of risk ownership and incomplete documentation to support risk assessment and treatment.
In response to the report's findings, the ATO has concurred with all five recommendations put forth. The ATO has pledged to enhance its GST fraud framework by prioritizing the finalization of roles and responsibilities related to fraud prevention, detection, and treatment. Additionally, the ATO commits to regular documentation of assessments of GST fraud risks, aligning fraud and corruption control plans with documented fraud risks, and developing a comprehensive response plan for large-scale fraud events. The agency also intends to explore benchmarking for ATO fraud indicators, contemplating the removal of the 'Attorney-General's Department fraud benchmark.'
🔶 NEW EV HOME CHARGING RATE:
SIMPLIFYING ELECTRICITY COST CALCULATION 🔶
Electric vehicle (EV) users often face challenges when calculating home charging costs, especially for personal or work-related usage. Here is a new guideline for determining electricity costs associated with home EV charging.
This offers a quick method, pegging the EV home charging rate at 4.20 cents per kilometer.
Key Points:
Employees must have incurred home electricity expenses for charging EVs to utilize this guideline.
Employers can apply this rate from April 1, 2022, for FBT reporting, while employees can use it from July 1, 2022, for income tax purposes (logbook method).
Commercial charging station costs can't be included unless the percentage of vehicle charge from such stations is accurately determined.
Clients may still opt for actual cost calculation instead of relying on the guideline.
This rate is specific to zero-emission electric cars, excluding plug-in hybrids, electric motorcycles, or scooters.
Maintaining relevant records is essential.
Simplify your EV accounting with our new guideline. Keep track effortlessly and accurately.
🔶 UNLOCK TAX BENEFITS WITH THE SMALL BUSINESS SKILLS
AND TRAINING BOOST 🔶
Are you a small business owner aiming to invest in your employees' growth and development? If so, the Small Business Skills and Training Boost might just be the opportunity you've been waiting for.
For businesses with an aggregated annual turnover of less than $50 million, this boost offers an enticing incentive—a 20% bonus tax deduction for eligible expenditure on training new and existing employees.
You can claim a deduction for external training courses provided to your employees, whether conducted in person within Australia or online. However, it's essential that the training is delivered by a registered external training provider to qualify.
When it comes to claiming deductions, the timing is crucial. Expenses are typically claimed in the year they're incurred, but under the delayed claim rule, you might need to defer claiming the 20% bonus amount to a later tax return year. The timing depends on factors such as your business's balance year and when exactly the expense was incurred within that year. Be mindful of these considerations to optimize your tax planning strategy effectively.
The clock is ticking—this boost is available until 30 June. If you've been contemplating upskilling your workforce, now is the perfect time to take action and reap the rewards.
Important Points to Note:
While you can't claim expenditure for training you undertake personally as a business owner (e.g., if you're a sole trader, partner, or independent contractor), you can certainly claim it for the training provided to your employees.
For instance, if you're a sole trader in the landscaping business and you decide to undertake turf management training alongside your employee, you can't claim the bonus deduction for your own training. However, you can claim it for your employee's training.
Don't miss out on this opportunity to invest in your business's future while enjoying tax benefits. Act now and empower your team with the skills they need to succeed!
🔶 SUPERANNUATION GUARANTEE INCREASE 🔶
Starting July 1, 2024, the Superannuation Guarantee (SG) rate is set to increase to 11.5%. This means your employer will contribute a larger portion of your gross salary or wages into your super fund, providing a boost to your retirement savings.
The SG, a mandatory contribution by employers, plays a crucial role in building your retirement nest egg. This increase reflects ongoing efforts by the Australian Government to ensure Australians have sufficient savings for retirement.
It's important to stay informed about these changes and how they affect your financial future. Remember, from July 1, 2026, employee super payments will align with salary and wages payments, occurring simultaneously rather than quarterly.
🔶 END-OF-FINANCIAL-YEAR TAX PLANNING 🔶
With the End-of-Financial-Year approaching, it's prime time to review your tax position. Maximizing super contributions is a strategy to minimize your tax liability. Remember, the current cap on concessional contributions is $27,500. Act now to ensure your contributions are received before June 30.
For those employed, confirm your employer is fulfilling their obligation to contribute a percentage of your earnings to your super account. It's crucial to verify you're receiving the correct amount.
Consider making extra contributions to super if feasible. Not only does it bolster your retirement savings, but it also slashes your tax bill. Low-income earners may even qualify for additional contributions from the government.
If you're unsure about your super payments, check your payslip, myGov account, or contact your fund directly. Employers are mandated to pay at least 11% of your 'ordinary time earnings,' so ensure you're getting what you're owed.
Don't hesitate to address any discrepancies with your employer or report unpaid super to your tax professional.
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