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Practice Update
October 2024
🔶 OCTOBER 2024 TAX LODGMENT AND PAYMENT GUIDE 🔶
As October approaches, it’s essential for businesses and individuals to be aware of important tax deadlines. Staying on top of these due dates helps avoid penalties and ensures your tax obligations are met on time. Below is a detailed guide, along with a table summarizing the key lodgment and payment deadlines for the month of October.
Key Lodgment and Payment Dates
21 October 2024
Businesses must pay the annual PAYG instalment notice (Form N), with lodgment required only if varying the instalment amount or using the rate method. Additionally, head companies of consolidated groups need to lodge and pay the quarter 1, 2024–25 PAYG instalment activity statement. All businesses must also lodge and pay the September 2024 monthly business activity statement by this date.
28 October 2024
Businesses must lodge and pay the quarter 1, 2024–25 activity statement if electing to lodge by paper and are not active STP reporters. Additionally, super guarantee contributions for quarter 1, 2024–25 must be made by this date to avoid incurring the super guarantee charge, which would require lodging a Superannuation guarantee charge statement by 28 November 2024. For closely held trusts, businesses must also lodge and pay the annual activity statement for TFN withholding.
31 October 2024
Outstanding Tax Returns:
- Lodge tax returns for all entities with outstanding prior-year returns as of 30 June 2024. All outstanding returns must be lodged, not just the immediate prior year.
- SMSF Returns: Lodge self-managed superannuation fund annual returns (both taxable and non-taxable) for new registrant SMSFs. Other important Lodgments:
Lodge key reports, including the Annual Investment Income Report (AIIR), Departing Australia Superannuation Payments (DASP) annual report, Franking account tax return (if disclosure-only), PAYG withholding reports for foreign residents and no ABN withholding, the Lost Members Report (1 Jan–30 June 2024), and the TFN report for closely held trusts.
Not-for-Profit (NFP) Entities:
Lodge the self-review return for non-charitable NFP entities with an active Australian business number (ABN) that self-assess as income tax exempt.
🔶 DEADLINE NEARING FOR LODGING YOUR TAX RETURN 🔶
The Australian Taxation Office (ATO) reminds individuals that the deadline for self-lodging income tax returns is 31 October 2024.
As of 22 September, over 7.9 million returns have been submitted, with 4 million self-lodged and 3.8 million using a registered tax agent. ATO Assistant Commissioner Rob Thomson urges those yet to file to act promptly to avoid late penalties.
If you’re using a tax agent, ensure to register on or before 31 October. Simple returns can be easily lodged online via myTax, while complex cases may require professional help.
For accurate claims, avoid repeating deductions from previous years, especially if your job has changed. Most tax bills are due by 21 November 2024, regardless of your filing date. In addition to this, your due date may be at a later date if you are filing with us.
🔶 myGovID IS BECOMING myID 🔶
myGovID is getting a new name—myID.
If you’re using myGovID to access ATO online services, don’t worry—it will continue to work the same way. Renaming the Australian Government’s Digital ID app to myID is meant to reduce this confusion.
If you’re already using myGovID, there’s nothing you need to do. Your app will automatically update to myID. You’ll still be able to access online services as usual, with no changes to your login details or identity strength.
The main difference is that soon, myID will allow you to access even more government services. Eventually, you’ll also be able to use your Digital ID with private businesses.
Rest assured, your Digital ID will remain secure throughout this transition. However, be mindful of scams by avoiding suspicious links in emails or SMS and only downloading the myID app from official app stores when it becomes available.
🔶 ATO STRENGTHENS SECURITY SAFEGUARDS FOR FRAUD VICTIMS 🔶
The ATO has enhanced its security measures to protect taxpayers who have been victims of identity, tax, or superannuation fraud. These safeguards may require the affected individuals to contact the ATO whenever they need access to their account, which can cause some inconvenience for both taxpayers and their agents.
To ease this process, the ATO has recently improved procedures for accessing its online services. Impacted taxpayers will need to contact the ATO for initial access and then establish a Strong online access strength.
To achieve Strong online access, taxpayers must:
- Set up their myGovID to a Strong identity strength using their Australian passport
- Link their myGovID to their myGov account
- Sign in to myGov with their myGovID
- Access ATO online services through myGov
Once this is completed, taxpayers will no longer need to contact the ATO each time they want to access their information.
It’s important to note that impacted taxpayers must continue using their Strong myGovID for all future ATO online services. Failure to do so will result in restricted access to safeguard their account.
Additionally, myGovID will soon be rebranded as myID.
🔶 ATO STRENGTHENS SECURITY SAFEGUARDS FOR FRAUD VICTIMS 🔶
The Australian Taxation Office (ATO) is offering simple steps to help taxpayers avoid unexpected tax bills next year. Assistant Commissioner Rob Thomson explains that tax bills can arise for various reasons, but taking the right actions now can help ensure you've paid enough tax throughout the year.
Key steps to avoid a tax bill:
- Notify your employer if you have a study or training loan (e.g., HECS/HELP) so they can withhold extra for repayments.
- Only claim the tax-free threshold from one employer, typically the one paying the highest salary.
- Check if the Medicare Levy Surcharge applies to you if you don't have sufficient private hospital cover and meet the income threshold.
- Ensure your private health insurance rebate matches your income tier to avoid repaying any excess rebate.
- Consider entering PAYG instalments if you earn business or investment income, or have multiple income streams, to prepay tax and smooth cash flow.
If you receive a bill after lodging your return, don’t ignore it. Most tax bills aren’t due immediately, and you have until November 21 if you lodge your own return. Payment plans are available for those facing financial hardship, and paying on time helps avoid additional interest and debt collection.
For more information, you may inquire with us at the Lynden Group.
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