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Practice Update
February 2025
🔶KNOW WHEN YOUR SMSF ANNUAL RETURN IS DUE🔶
The Australian Taxation Office (ATO) emphasizes the importance of timely lodgment of the Self-Managed Superannuation Fund (SMSF) annual return (SAR) for the 2023–24 financial year. The SAR is essential for reporting super-regulatory information, and member contributions, and for paying the SMSF supervisory levy. Lodgment deadlines vary based on specific circumstances:
Newly registered SMSFs and those with overdue SARs (excluding deferrals): These funds should have lodged their SAR by 31 October 2024.
Self-preparing SMSFs: Unless directed otherwise by the ATO, these funds must lodge their SAR by 28 February 2025.
SMSFs using a tax agent: The lodgment due date is generally either 15 May or 6 June 2025, as advised by the tax agent.
Before lodging the SAR, it's mandatory to appoint an approved SMSF auditor at least 45 days prior to the lodgment date. Ensure that the audit is completed, and that the SAR includes accurate auditor details. Failure to lodge the SAR on time can result in the SMSF's compliance status being updated to 'regulation details removed' on Super Fund Lookup, potentially hindering rollovers and employer contributions to the fund. For detailed guidance, refer to the 2024 SAR instructions or contact Lynden Group at info@lyndengroup.com.au
🔶AUSTRALIA ACCELERATES INVESTMENT IN NET ZERO TRANSFORMATION🔶
The Australian Government is intensifying its commitment to achieving net zero emissions by implementing several key initiatives:
Renewable Hydrogen Collaboration: Partnering with Germany to connect European buyers with Australian green hydrogen via H2 Global funding.
Hydrogen Production Tax Incentive: Proposed A$2/kg subsidy for eligible renewable hydrogen, available for up to 10 years from 2027, between 1 July 2027 and 30 June 2040.
Critical Minerals Production Tax Incentive: Introducing legislation to provide a 10% production incentive on processing and refining costs for Australia's 31 critical minerals.
Battery Manufacturing Support: Launching the Battery Breakthrough Initiative, developed by the Australian Renewable Energy Agency (ARENA) as part of the National Battery Strategy, to offer production credits and capital grants to companies developing and manufacturing batteries in Australia.
Investment Facilitation: Establishing a streamlined 'Front Door' service to simplify investment processes and attract both global and domestic capital, with pilot services commencing in September 2025.
These initiatives underscore Australia's dedication to accelerating its net zero transformation through strategic investments and collaborations.
🔶CRIMINALIZING INTENTIONAL WAGE UNDERPAYMENTS🔶
Effective 1 January 2025, several regulatory changes will impact Australian businesses:
Wage Underpayment Penalties: Deliberate underpayment is now a criminal offence, with fines up to $8.25 million for companies and $1.65 million-or 10-years' imprisonment for individuals. A compliance code supports small businesses.
Updated Entry-Level Pay Rules: Some awards now have revised classifications and time-limited introductory rates.
Mandatory Climate Reporting: Large businesses must provide annual climate-related financial disclosures.
Engineered Stone Ban: Importing engineered stone is prohibited, following earlier restrictions on its use.
Businesses are advised to review these changes thoroughly to ensure compliance and adjust their operations accordingly.
🔶MANDATORY SERVICE STANDARDS FOR THE SUPERANNUATION INDUSTRY🔶
On 28 January 2025, the Albanese Government announced the implementation of mandatory and enforceable service standards for all large APRA-regulated superannuation funds. These reforms aim to enhance member outcomes by improving fund engagement and prioritizing member interests. The initial focus will be on:
Timely and compassionate handling of death benefits
Fair and efficient processing of insurance claims
Clear, respectful, and accessible communication with members
Treasury will collaborate with consumer advocates, regulators, and industry stakeholders to develop these standards, with draft versions to be released for public consultation. This initiative aligns with the newly legislated objective of superannuation: "to preserve savings to deliver income for a dignified retirement, alongside government support, equitably and sustainably." It also complements the Government’s broader reforms aimed at providing Australians with better financial advice, improved products, and greater transparency.
🔶ONLINE TAX SCHEMES ON THE RISE🔶
The ATO warns of rising online tax schemes, often promoted on social media, promising tax reductions or avoidance. These scams, including fake investment opportunities and income diversion through non-profits, can lead to severe penalties and repayment of owed taxes with interest. The ATO urges individuals to consult registered tax practitioners and report suspicious schemes confidentially.
🔶 SCAM ALERT: ASIC WARNS CONSUMERS ABOUT INVESTMENT BOND SCAM IMPERSONATING BUNNINGS🔶
ASIC has issued a warning about scammers impersonating Bunnings to promote fake sustainability investment bonds with exaggerated returns. The scammers create fraudulent websites that appear legitimate by linking to Bunnings' real website. They offer investment options promising returns of up to 9%, falsely claiming that these bonds are government-backed. ASIC advises consumers to be cautious, verify investment opportunities, and report suspicious activities to prevent financial loss.
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