coggergurry

EOFY Check-In: Cars, Cashflow & Key Tax Moves

Mon, 20 Apr 2026 04:23:47 GMT

EOFY Check-In: Cars, Cashflow & Key Tax Moves

Logbook check-in: Are you still compliant?

Many people assume their car logbook is “set and forget” for five years, but that’s not always the case.

A logbook is only valid if your work-related travel patterns haven’t changed.

You may need a new logbook if:

You’ve changed jobs
You’ve moved home or workplace
Your work travel patterns have changed

Important reminders:

If you have multiple vehicles, you need a separate logbook for each
If you buy a new car, you can rely on your previous logbook, but only if you formally nominate this before lodging your return
If your employer provides your car (or via a novated lease), you generally can’t claim car expenses

Electric and hybrid vehicles:

Using the ATO shortcut rate for home electricity used to charge your vehicle (5.47c/km from 1 April 2026) means you can’t also claim charging costs from your electricity bills.
Plug-in hybrids require a specific calculation method

Bottom line: If your circumstances have changed, your logbook may no longer be accurate and that can impact your claim.

EOFY tax planning: What to focus on now

To keep this practical and not overwhelming, here are the key opportunities to review before 30 June:

1. Super contributions

Must be received by the fund before 30 June to claim a deduction
Concessional cap is $30,000 (2025–26)
Consider carry-forward contributions if eligible

2. Prepay and bring forward expenses

Small businesses may be able to prepay expenses and claim now
Bringing forward planned purchases (e.g. equipment under $20,000) can accelerate deductions

3. Review stock and assets

Write down or write off obsolete or slow-moving stock
Remove scrapped assets from your depreciation schedule

4. Clean up your books

Write off bad debts before 30 June
Ensure trust distributions or dividends are properly documented

5. Plan ahead

Consider timing of income, expenses and capital gains
Review cashflow for upcoming tax payments
Look at opportunities to vary tax instalments if needed

EOFY isn’t just about ticking boxes, it’s about making sure your claims are accurate and your tax position is working for you,

not against you.

If your situation has changed this year (work, home, business or vehicles), it’s the perfect time to review.

Need help? We’re here to make sure everything is set up correctly before 30 June.

Giving Back to the Communities that Support Us

Thu, 16 Apr 2026 23:04:42 GMT

Giving Back to the Communities That Support Us

At Brentnalls Western Victoria, giving back isn’t something we do occasionally, it’s part of who we are.

We’re proud to work closely with individuals, families and businesses across our region, and we believe it’s important to support the communities that support us. Through our Workplace Giving initiative, our team has the opportunity to contribute to causes that are meaningful to them, often those connected to their own families, friends and local networks.

What makes this initiative special is that it’s driven by our people. The causes we support aren’t chosen at a distance — they reflect real experiences, real stories, and real connections within our team.

In our most recent round of contributions, we were proud to support a number of important organisations making a difference in very different ways.

We made a donation to the Motor Neurone Disease Association of Australia , helping provide care, support and advocacy for individuals and families navigating the challenges of MND.

We also supported the World’s Greatest Shave — a cause that was particularly close to home this year. Erin’s son, Xavier (pictured above) took part in the campaign and was truly “brave for the shave,” shaving his head to raise funds and awareness for those facing blood cancer. It’s a powerful reminder of how small acts of courage can make a meaningful impact.

Our team also chose to support the Shaka Project , an organisation focused on strengthening youth mental health through connection, conversation and community. With growing awareness around mental health, particularly for young people, this is an area many of us feel strongly about.

In addition, we contributed to the Royal Children’s Hospital Melbourne , helping support the incredible work they do in delivering world-class care to children and their families.

While these contributions may seem small in isolation, together they reflect something much bigger - a shared commitment to looking beyond our day-to-day work and supporting the people and communities around us.

At Brentnalls Western Victoria, we believe strong communities are built through connection, care and contribution.

We’re proud to work alongside a team that not only cares about what they do, but also about the impact they can have.

Fuel cost pressures - ATO support now available

Thu, 16 Apr 2026 05:39:10 GMT

Fuel cost pressures – ATO support now available

With fuel prices continuing to impact businesses across Australia, the Australian Taxation Office (ATO) has introduced a temporary support response to help manage the flow-on effect to cash flow and tax obligations. From 1 April 2026, targeted measures are available for businesses, individuals and not-for-profits experiencing genuine financial pressure due to rising fuel and transport costs.

For many businesses, the impact isn’t just at the pump. It’s showing up in freight, suppliers and overall operating costs. The ATO has recognised this and is taking a more flexible, supportive approach during this period.

What support is available?

Depending on your circumstances, this may include:

Flexible payment plans with extended timeframes and no upfront payment
Remission of interest and penalties in certain situations
The ability to vary PAYG instalments if your income has reduced
A more considered compliance approach while conditions remain challenging

These measures are designed to ease immediate cash flow pressure and help businesses stay on track while costs remain elevated.

Don’t overlook fuel tax credits

With fuel costs front of mind, it’s also a good time to revisit whether you’re correctly claiming fuel tax credits.

Fuel tax credits allow eligible businesses to claim back some of the fuel tax included in the price of fuel used for business activities — particularly for off-road use such as machinery, equipment and generators.

This is especially relevant for businesses in:

Agriculture
Transport and logistics
Construction and earthmoving
Manufacturing and other equipment-heavy industries

The amount you can claim depends on how the fuel is used, and getting this right can make a meaningful difference to your overall fuel cost and cash flow.

Timing matters: The ATO fuel response measures are currently temporary and available until 30 June 2026, so it’s important to act early if your business is affected.

If you’d like help assessing your eligibility or ensuring you’re claiming everything correctly, please reach out to our team.

Call us on 03 5571 0111

Getting Ready for Payday Super

Thu, 16 Apr 2026 05:27:22 GMT

Getting Ready for Payday Super

Simple steps to stay ahead of the 1 July 2026 changes

What’s changing?

From 1 July 2026:

Super must be paid at the same time as wages
Contributions must reach funds within 7 days of payday
The ATO Small Business Super Clearing House will close

Good news:
The amount of super doesn’t change, just the timing.

What this means for your business

Cash flow impact – payments go out more frequently
Less room for delays – timing becomes critical
Systems matter – manual processes won’t keep up

Payday Super turns super from a quarterly task into something that happens every pay run.

Why start preparing now

The businesses that transition smoothly will:

Review and refine processes early
Test systems and workflows
Plan for cash flow changes
Ensure employee super details are correct

What to review

Start with these key areas:

Your payroll and super process
Employee super fund details
Pay run timing and approvals
Your cash flow planning
Whether your system can handle per-pay-run super payments

How we can help

We recommend starting with a short planning session.

In this session, we’ll:

Walk through what Payday Super means for your business
Review your current payroll and super setup
Identify any gaps or risks
Agree on practical next steps and a timeline

If moving to a more integrated solution like Xero Payroll, we’ll guide you through the transition and ensure everything runs smoothly.

Get ahead of the change

Payday Super is a significant shift but with the right preparation, it can be simple and stress-free.

We’re here to help you feel organised, prepared and confident well ahead of the deadline.

Let’s get started

�� Call us on 03 5571 0111
�� Or get in touch to book your planning session

Using AI in Your Business: Practical Tips (and Where It Really Adds Value)

Thu, 16 Apr 2026 05:15:38 GMT

Major Superannuation Tax Changes – What You Need to Know

Parliament has now passed legislation introducing changes to the way very large superannuation balances are taxed. While these reforms have attracted widespread attention, it’s important to note they will affect fewer than 0.5% of Australians. For most people, there is no change to how their superannuation is taxed.

Who is affected?

The new rules apply only to individuals with total super balances exceeding $3 million, affecting an estimated 80,000 Australians. If your balance is below this threshold, existing superannuation tax arrangements continue to apply.

What is the new Division 296 tax?

From 1 July 2026, a new Division 296 tax will apply to earnings on superannuation balances above $3 million, using a tiered approach:

Up to $3 million – earnings continue to be taxed at 15% (unchanged).
$3 million to $10 million – earnings on this portion are taxed at an effective rate of 30%.
Above $10 million – earnings on amounts above this level are taxed at an effective rate of 40%.

These thresholds will be indexed to CPI, meaning they will increase over time in line with inflation.

What earnings does this apply to?

The tax applies only to future realised earnings. Unrealised capital gains, where assets have not been sold, are not taxed under these new rules.

A note on the first year: For the first year only, liability will be determined based on your total super balance at 30 June 2027, rather than at the start of the financial year.

What This Means for You

Most clients won’t be affected
If your super balance is well below $3 million, these changes are unlikely to impact you at all.

High‑balance clients may need to review their strategy
If your individual super balance is close to, or expected to exceed, $3 million in the future, it may be worth reviewing your broader investment and retirement strategy to ensure it remains tax‑effective.

No need for immediate action
The new tax does not commence until 1 July 2026, providing time to plan and consider any adjustments if required.

If you’d like to discuss how these changes may apply to your personal situation, or whether a review of your superannuation strategy is appropriate, please get in touch and speak with our Superannuation team.

Telephone 03 5571 0111 or email reception@brentnallswv.com.au

Major Superannuation Tax Changes – What You Need to Know

Thu, 16 Apr 2026 05:06:19 GMT

Major Superannuation Tax Changes – What You Need to Know

Who is affected?

What is the new Division 296 tax?

From 1 July 2026, a new Division 296 tax will apply to earnings on superannuation balances above $3 million, using a tiered approach:

Up to $3 million – earnings continue to be taxed at 15% (unchanged).
$3 million to $10 million – earnings on this portion are taxed at an effective rate of 30%.
Above $10 million – earnings on amounts above this level are taxed at an effective rate of 40%.

These thresholds will be indexed to CPI, meaning they will increase over time in line with inflation.

What earnings does this apply to?

The tax applies only to future realised earnings. Unrealised capital gains, where assets have not been sold, are not taxed under these new rules.

A note on the first year: For the first year only, liability will be determined based on your total super balance at 30 June 2027, rather than at the start of the financial year.

What This Means for You

Most clients won’t be affected
If your super balance is well below $3 million, these changes are unlikely to impact you at all.

High‑balance clients may need to review their strategy
If your individual super balance is close to, or expected to exceed, $3 million in the future, it may be worth reviewing your broader investment and retirement strategy to ensure it remains tax‑effective.

No need for immediate action
The new tax does not commence until 1 July 2026, providing time to plan and consider any adjustments if required.

Telephone 03 5571 0111 or email reception@brentnallswv.com.au

We are now Brentnalls Western Victoria!

Thu, 16 Apr 2026 04:55:58 GMT

We’re now Brentnalls Western Victoria!

Same people. Stronger future.

We’re excited to share that CoggerGurry is now Brentnalls Western Victoria.

This change reflects a natural next step for our firm, aligning our brand with the Brentnalls network we’ve proudly been part of for over 20 years.

While our name and look have evolved, what matters most remains the same — the people you work with, the relationships we’ve built, and the practical, trusted advice you rely on.

What’s changing?

Our name is now Brentnalls Western Victoria
You’ll see a refreshed logo, colours and brand
Our website and email addresses have updated

What’s not changing?

Your trusted team and day-to-day contacts
Our client-first approach
Practical advice grounded in real experience

Why the change?

As part of the Brentnalls affiliation, we’re connected to a network of independent firms across Australia. This gives us access to broader insights, shared knowledge, and deeper expertise — while continuing to deliver the personalised, local support you value.

What you need to know

Our new website is brentnallswv.com.au
Email addresses now use @brentnallswv.com.au (old emails will continue to redirect)
No changes to your services or fees

Do you need to do anything?

There’s nothing urgent, but over time we recommend updating any saved email contacts and bookmarks.

If you have any questions, please contact our team. We’re here to help.

Telephone 03 5571 0111 or email reception@brentnallswv.com.au

Aged Care “Deposits” Explained

Wed, 17 Dec 2025 23:50:12 GMT

Aged Care “Deposits” Explained: RADs, DAPs and What Families Need to Know

When a loved one moves into residential aged care, one of the biggest (and most confusing) costs is the accommodation payment — often referred to as an “aged care deposit”.

In practice, there are a few different ways to pay, and the best option depends on cash flow, assets, and your broader plans.

Step 1: Start with the room price

Before entry, you’ll agree on a room price with the aged care home. Providers must publish their prices and you can negotiate (but you generally can’t be charged more than the published price for that room). If a provider wants to charge above a government-set threshold, they may need approval from the Independent Health and Aged Care Pricing Authority.

Step 2: Your means assessment affects what you pay

Services Australia assesses income and assets to determine whether you’ll pay the full accommodation cost yourself or receive some government support. Those with support may pay an accommodation contribution instead of the full price.

The three common payment methods

Most residents will be offered one (or a mix) of the following options:

1) Refundable Accommodation Deposit (RAD) A RAD is a lump sum paid upfront (think of it like a large bond). It is refundable when the resident leaves care, less any agreed deductions (for example, unpaid fees). The RAD is also treated as an asset in the means assessment.

2) Daily Accommodation Payment (DAP) A DAP is a non-refundable daily amount, like paying “rent” instead of a lump sum. It’s calculated using the government-set Maximum Permissible Interest Rate (MPIR), applied to the unpaid portion of the room price. In simple terms: DAP = (Unpaid RAD × MPIR) ÷ 365

3) A combination of RAD + DAP Many families choose to pay part of the RAD upfront (to reduce the daily cost) and pay a smaller DAP on the balance. This can help manage cash flow while keeping some funds available. An additional option is to use the part payment of the RAD to fund the payment of the DAP. This helps with cashflow but does have the effect of increasing the amount of the DAP as the RAD diminishes over time.

A note on recent reforms

Rules can differ depending on when someone enters care. Recent reforms introduced RAD retention for eligible residents (a small non-refundable amount deducted over time, capped) and changes affecting how accommodation costs are managed under newer arrangements. If you’re arranging entry now, it’s worth checking which “entry date” rules apply before signing.

How we can help

Aged care decisions are often made quickly, under stress. Before you commit to a RAD, DAP, or a mix of both, it’s wise to consider how the choice affects:

ongoing cash flow and affordability
sale/retention of the family home
Centrelink outcomes and estate planning

General information only: This article is not personal financial advice. We recommend seeking advice tailored to your circumstances before making decisions.

Before you choose a RAD, DAP or a combination, get advice tailored to your circumstances. Call us to book an aged care funding review, so you can feel confident about the decision and avoid surprises.

Start Your Year-End Payroll, Tax And Employee Leave Planning Now

Thu, 13 Nov 2025 02:50:19 GMT

Start Your Year-End Payroll, Tax And Employee Leave Planning Now

The end-of-year holiday period can be make or break for your business. Whether you’re gearing up for a rush or planning a shutdown, the key is early planning for payroll, tax and super, alongside careful compliance with workplace laws.

Start by checking whether any year-end paydays will fall on public holidays or during your closure. If so, you’ll need to bring the pay run forward so staff are paid before bank cut offs, and tell employees about any temporary date changes in writing. While the ATO generally allows lodgement and payment on the next business day when a due date falls on a weekend or public holiday, that doesn’t extend to paying wages late. Report each pay run through Single Touch Payroll (STP) on or before payday, including any brought forward payments you’re processing before year-end closure.

Keep your PAYG withholding and BAS lodgements on track. If you’ll have difficulty meeting due dates, contact your tax adviser and the ATO early to discuss options.

Don’t overlook super guarantee (SG) contributions on wages and paid leave taken over the break; annual leave and public holiday pay are part of ordinary time earnings for SG purposes. October to December quarter super must be received by employees’ funds by 28 January, so pay early to allow for bank processing times and so you don’t trigger the SG charge, interest, penalties and loss of deductibility.

If you provide year-end bonuses or staff gifts, process bonuses through payroll and withhold tax, and consider whether FBT applies to functions or presents. The minor benefits exemption may cover low cost, infrequent items, but good records are essential.

Remember that full-time and part-time employees who would normally work on a public holiday are entitled to their base rate for ordinary hours if they don’t work. You can ask employees to work public holidays, but requests must be reasonable and employees can refuse on reasonable grounds. If they do work, apply the correct penalty rates or time off in lieu under their award or agreement. Where a public holiday happens during an employee’s annual leave, it counts as a public holiday, not a leave day.

For holiday shutdowns, you can only direct employees to take annual leave if an applicable award or registered agreement allows it, usually with advance written notice. Where staff don’t have enough leave, many awards allow leave in advance or unpaid leave by agreement; make sure to document any agreement in writing. Check whether leave loading applies to annual leave taken over this period, and ensure your payroll system calculates it correctly.

PayDay Super

Thu, 13 Nov 2025 02:50:16 GMT

PAYDAY SUPER - Next step for payday super: legislation introduced to Parliament

The government’s payday super reforms have taken another step towards implementation with the introduction of legislation to Parliament. Requiring employers to pay employee super contributions on payday, the reforms are designed to ensure that employees benefit from more frequent and earlier super contributions that grow and compound over their working life and reduce instances of unpaid super.

Contribution timeframes are now measured in “business days” rather than “calendar days”, and employers will have 7 business days to make contributions.

The legislation still needs to pass through both the House of Representatives and the Senate before it becomes law, but you shouldn’t wait to start planning.

Recognising that employers need time to deploy, test and embed changes in their payroll systems and business processes, the ATO has released a new draft Practical Compliance Guideline that outlines its proposed compliance approach for the first year of payday super (starting 1 July 2026). It plans to use a risk-based framework where employers will be categorised as at low risk, medium risk or high risk of not meeting their payday super obligations.

What’s next?

Start preparing now. Review your payroll systems and processes to ensure they’re ready for payday super by 1 July 2026; consider whether more frequent super payments could have cash flow implications for your business that you need to act on; and look for alternatives if you use the SBSCH, as it will be closed from 1 July 2026. Planning ahead will help you be compliant with the law and make a smooth transition.

Keep an eye on developments as the legislation progresses through Parliament and as the ATO finalises its compliance guideline. Changes could still be made before the reforms take effect.

Medicare Levy

Thu, 13 Nov 2025 02:50:14 GMT

Medicare Levy

What’s the difference between the Medicare levy and the Medicare levy surcharge?

Many people getting their tax notice of assessment wonder why they see amounts for the Medicare levy and Medicare levy surcharge. Here’s how it works.

Medicare levy

The Medicare levy is a compulsory charge that helps fund Australia’s public healthcare system. Almost all Australians pay this levy, which is 2% of your taxable income. The levy is generally withheld from your pay by your employer throughout the year, so you may not notice it until tax time.

It’s important to note that having private health insurance doesn’t exempt you from paying the Medicare levy; it only affects your liability for the Medicare levy surcharge. In certain limited cases, such as if you’re a low-income earner, a foreign resident or have a medical exemption, you may qualify for a reduced rate or full exemption.

Medicare levy surcharge

The Medicare levy surcharge (MLS) is an additional charge designed to encourage higher-income earners to take out private hospital insurance, reducing the strain on the public healthcare system. The MLS isn’t automatically withheld from your income, but is calculated when you lodge your tax return.

You may be liable for the MLS if your income exceeds the MLS threshold and you, your spouse and your dependent children don’t all have an appropriate level of private patient hospital cover for the entire income year. The surcharge rates vary based on your income tier, beginning at 1% for singles with 2025–2026 income over $101,000 and families with income over $202,000.

Your income for MLS purposes includes several components beyond your taxable income, like reportable fringe benefits, total net investment losses and reportable super contributions. If you have a spouse, their income's also considered.

Private health insurance

To avoid the MLS when your income's over the threshold, you need an appropriate level of private patient hospital cover. Singles need a policy with an excess of $750 or less, and couples or families need a policy with an excess of $1,500 or less. Your policy must cover you, your spouse and all dependants for the full income year to avoid the surcharge. Keep in mind that extras-only cover (such as for dental or optical) and travel insurance don’t qualify as private patient hospital cover for MLS purposes.

Please note that if you didn’t have private hospital cover from the year you turn 31 you will be liable to pay the lifetime health cover loading to your health insurer.

The Truth About FBT And Your Business’s Work Ute

Thu, 13 Nov 2025 02:50:12 GMT

The Truth About FBT And Your Business’s Work Ute

If your business provides vehicles for employees to use in their work duties, you may have heard that providing a dual cab ute is automatically exempt from fringe benefits tax (FBT). Unfortunately that’s not quite right, and believing the myth could leave you with an unexpected tax bill.

While dual cab utes can be exempt from FBT, they need to meet specific conditions, and employees’ personal use of work vehicles is an important factor.

Fringe benefits tax is what you pay as an employer when you provide benefits to your employees or their families, like allowing them to use a work vehicle for personal trips. It’s separate from income tax and is your responsibility, not your employees’.

For a ute to be exempt from FBT, it must satisfy two conditions.

Exemption condition one: must be an eligible vehicle

Your dual cab ute needs to be designed to carry a load of one tonne or more; or more than eight passengers (including the driver); or a load under one tonne, but not be primarily designed for carrying passengers.

Most dual cab utes on Australian roads do meet this first condition, but this alone doesn’t guarantee an exemption.

Exemption condition two: private use must be limited

This is where many businesses trip up. Even if your dual cab ute qualifies as an eligible vehicle, any personal use must be minor, infrequent and irregular (according to ATO definitions of these terms).

What does this mean in practice? Think occasional trips to the tip or helping a mate move house once in a blue moon. Travel between home and work is allowed, as is incidental travel while undertaking work duties. If your employee uses the work ute as the family car for weekend getaways, school runs or regular shopping trips, FBT applies even where the vehicle is a dual cab ute.

When FBT kicks in

If your employees’ personal use exceeds the limited private use threshold, you’ll need to calculate the taxable value of the fringe benefit, work out your FBT liability, lodge an FBT return and pay what you owe, and report the reportable fringe benefits on your employee’s income statement or payment summary.

The taxable value calculation depends on the type of vehicle and how it’s used. You might use the operating cost method or the cents per kilometre method, depending on your circumstances.

Record keeping

Even if you believe your dual cab ute qualifies for the FBT exemption, you need to keep records that demonstrate the limited private use condition is met. You don’t need to maintain a formal logbook for exempt vehicles, but you should have some way to show that private use remains minor, infrequent and irregular. This could mean regularly checking odometer readings and comparing them with expected work-related travel.

Family Tax Benefit And Your Tax Return: Common Misunderstandings

Thu, 13 Nov 2025 02:50:07 GMT

Family Tax Benefit And Your Tax Return: Common Misunderstandings

Family Tax Benefit (FTB) is a government payment to help families with the cost of raising children. Despite its name, it’s not a tax refund or tax deduction – it’s a social security benefit to help with everyday costs like food, education, clothing and other child-rearing expenses.

FTB has two parts. Part A is the main payment available to most eligible families, and Part B is an extra payment for single parents or certain single income families (usually where one parent stays home or works part-time). Importantly, FTB is paid by Services Australia (through Centrelink), not the ATO.

To be eligible, you must have at least one dependent child in your care aged 0–15 years, or a full-time secondary student aged 16–19. Your child must be an Australian resident and you must meet certain residency rules.

FTB is means-tested, and there are income tests for both Part A and Part B payments.

FTB isn’t a tax refund

A tax refund is money the ATO gives back if you’ve overpaid tax during the year, but FTB is a government benefit, separate from the tax system. You don’t automatically receive FTB by lodging a tax return, and it’s not calculated in your tax assessment. Think of FTB as a family assistance payment like the Parenting Payment or Child Care Subsidy, rather than a tax refund or rebate.

How do you claim FTB?

To get FTB, you need to claim it through Services Australia. You can do this online via your MyGov account, phone the Centrelink Families line or visit a service centre. You’ll have a choice in how you receive FTB:

• Fortnightly payments: Most families opt to get FTB every two weeks along with any other Centrelink payments. You estimate your family’s income and get payments, and Centrelink balances the payments against your actual income at year-end.

• Annual lump sum: Alternatively, you can get FTB as an end-of-financial-year lump sum by waiting until after 30 June and submitting a claim for the year. This way you use the actual income from your tax return and avoid any overpayment. You must claim within one year after the financial year ends – so for 2024–2025 you have until 30 June 2026.

All communication about FTB will come from Services Australia (in your Centrelink online account or mailed letters), not in your tax return paperwork. For instance, if you get a lump-sum FTB payment, it will be deposited to your bank account by Centrelink after processing, entirely separate from any refund the ATO might send for your income tax.

If your circumstances change (like your income or care arrangements), remember to inform Centrelink, as it could affect your FTB rate. This will help avoid surprises after the end-of-year balancing calculations.

Unlock The Benefits Of Downsizer Super

Tue, 21 Oct 2025 01:55:15 GMT

If you’re nearing retirement and looking for ways to boost your superannuation savings, downsizer super contributions might be the perfect solution for you. These allow eligible Australians aged 55 and over to contribute proceeds from selling their home into their superannuation fund.

A downsizer contribution allows an eligible individual to contribute an amount equal to all or part of the sale proceeds (up to $300,000 each) from the sale of their home into their superannuation fund. The contribution must not exceed the sale proceeds of the home.

The great advantage is that downsizer contributions aren’t restricted by any other contribution caps or your total superannuation balance; there are no work tests; and there’s no upper age limit. It’s one of the rare ways you can contribute large amounts to your super even after the age of 75.

Eligibility

To make a downsizer contribution, you must:

• be 55 years or older at the time of contribution;

• have owned the home for 10 years or more (the owner can be you or your spouse);

• sell your home that is in Australia and is not a caravan, houseboat or mobile home;

• ensure the sale is exempt or partially exempt from CGT for you under the main residence exemption;

• make the contribution within 90 days of receiving the sale proceeds (usually settlement date);

• not have made a downsizer contribution previously from another home; and

• provide your super fund with the Downsizer contribution into super form either before or at the time of making the contribution.

Failure to submit the Downsizer contribution into super form on time may result in your fund rejecting the contribution or treating it as a standard non-concessional contribution, which could have adverse tax implications.

The 90-day deadline from the date of settlement is also strict. If you need more time (Eg due to delays in purchasing a new home), you must apply to the ATO for an extension. Extensions are granted only in limited circumstances, such as settlement delays due to council approvals.

If you are considering selling your home and wish to further explore a potential downsizer contribution, please do not hesitate to get in contact with our office (03)55710111

Big Changes Coming To AML/CTF Laws- What Our Clients Need To Know

Tue, 21 Oct 2025 01:55:07 GMT

The government has announced major reforms to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws .

This is the biggest update in nearly 20 years. These reforms aim to modernise how Australia combats financial crime and bring us into line with international standards. While not every business will be affected, some sectors will face new or expanded reporting and compliance obligations.

Sectors likely to be impacted include:

Accountants and bookkeepers
Real estate agents
Lawyers and conveyancers
Dealers in precious metals and stones

The activities you undertake, such as managing client funds, setting up companies or trusts, or handling large transactions, will determine if these new rules apply to you.

AUSTRAC’s national awareness campaign will help businesses understand what’s changing and how to prepare, with guidance and tools rolling out over the next year.

�� We’re here to help. If you’re unsure whether these reforms could affect your business, contact our team to discuss what it means for you.

You can read more here

- https://www.austrac.gov.au/national-reforms-awareness-campaign-launch

Vouchers And GST In Your Business

Tue, 21 Oct 2025 01:54:24 GMT

Vouchers and GST in your business

If your business sells or buys vouchers, it’s essential to understand how to account for and report GST correctly.

A voucher is a document or an electronic record that represents a right to receive goods or services. This includes physical gift cards, digital vouchers and even prepaid phone cards.

When your business sells a voucher, you’re essentially providing the recipient with a promise to supply goods or services in the future, and it’s at this future point that the GST implications come into play.

The ATO recognises two distinct types of vouchers.

Face value vouchers

Face value vouchers can be redeemed for a reasonable choice of goods and services – for example, a $50 supermarket gift card that works across all store locations. The voucher sale isn’t considered a GST taxable supply, so you don’t charge GST at the point when you sell the voucher. Instead, you account for GST when the voucher’s redeemed and the goods or services are supplied. For instance, if you sell that $50 gift card, you don’t charge GST on the gift card sale, but when the gift card’s redeemed to purchase goods worth $50, you charge GST on the supply of those goods.

Non-face value vouchers

Non-face value vouchers are restricted to specific goods or services – like a voucher specifically for a spa treatment, purchased for $100. With these, you account for GST (eg on the $100 price) at the time of sale, but only if the voucher is redeemable for taxable supplies.

If the voucher is only redeemable for GST-free or input-taxed supplies, there’s no GST to account for.

Note on expired vouchers

Here’s something business owners often overlook: if you’ve sold face value vouchers that expire or remain unredeemed, and you write back the unused amount to your current income for accounting purposes, you need to make an “increasing adjustment” on your Business Activity Statement (BAS). This adjustment is 1/11th of the unredeemed balance.

Keep accurate records

To account for GST on vouchers you sell, you need to keep accurate records including dates of sale, redemption and/or expiration, and the amounts of GST payable. Importantly, specific rules and exceptions apply to certain types of vouchers. For example, if you sell vouchers that can be redeemed for a combination of goods and services, you need to apportion the GST accordingly. You may also need to issue a tax invoice to the customer when a voucher’s redeemed and \keep a copy of this invoice for your records. And finally, of course, you need to report GST on vouchers in your BAS in accordance with ATO guidelines.

What the new TASA legislation means for clients

Mon, 06 Oct 2025 21:51:41 GMT

Important Update: Our Terms and Conditions Have Been Updated

At CoggerGurry , we’re committed to keeping our clients informed, protected, and confident in the advice we provide.

In line with recent updates to the Tax Agent Services Act (TASA) 2009 , we’ve reviewed and updated our Terms and Conditions to ensure full compliance with the latest Tax Practitioners Board (TPB) requirements.

These updates are now in place and apply to all existing and new clients.

Why These Changes Were Made

The Tax Practitioners Board introduced new compliance measures to strengthen professional standards across the accounting industry.
These reforms were designed to enhance transparency, accountability, and client protection — ensuring that all registered tax agents operate to the highest ethical and professional standards.

At CoggerGurry, we’ve always taken our obligations seriously, and these updates reinforce our commitment to doing the right thing — both for our clients and our profession.

What’s Been Updated

1. Registration and Compliance Details

We’ve included clearer information about our registration under the TPB and how clients can independently confirm our compliance.
Declarations regarding disqualified persons have also been formalised, ensuring full transparency.

2. Confidentiality and Information Management

Our Terms now reflect strengthened provisions around the confidentiality and secure handling of your personal and financial information, reinforcing our ongoing commitment to client privacy and data integrity.

3. Professional Conduct and Independence

We’ve enhanced our standards of professional conduct and independence to align with the TPB’s updated Code of Professional Conduct — ensuring every engagement meets the highest expectations of integrity and objectivity.

4. Advice and Documentation Practices

All tax-related advice provided by our team is now formally documented in writing. This ensures clarity, compliance, and a reliable record for both you and the ATO.

5. Fee and Charge Updates

We’ve also reviewed our charge-out rates and minimum standard fees for compliance work.

What This Means for You

These updates don’t change our relationship with you — they simply strengthen it.

You can continue to expect:

Clear, written documentation of all tax-related advice
Full transparency around fees and engagement terms
Consistent adherence to the highest professional standards

Behind the scenes, we’ve implemented system and process updates to ensure all team members are operating in line with the new legislation.

Review the Updated Terms

You can view our updated Terms and Conditions here:
CoggerGurry Terms and Conditions

These updates reflect our ongoing commitment to professionalism, transparency, and quality advice.

Our goal remains the same — to deliver advice with substance , backed by trust, expertise, and integrity.

If you have any questions about the changes or how they relate to your engagement, please don’t hesitate to contact our team.

The CoggerGurry Team

Understanding the Farm Household Allowance

Wed, 01 Oct 2025 22:12:52 GMT

Understanding the Farm Household Allowance (FHA)

Support for Farmers Facing Hardship

Farming is the backbone of our communities, but even the most resilient families can experience challenging times. From fluctuating markets to rising costs, drought, or simply the day-to-day pressures of running a farm, financial strain is something many farming households will face at some point.

That’s where the Farm Household Allowance (FHA) comes in. This government-funded initiative is designed to provide vital financial support and professional assistance to farmers and their partners who are experiencing hardship — helping you not just get through tough times, but plan for a stronger, more sustainable future.

What is the Farm Household Allowance?

The FHA is a payment available to eligible farmers and their partners. It aims to provide:

Financial support : Regular payments to help with essential household expenses.
Professional assistance : Access to financial advice and farm improvement programs.
Tailored services : Support designed around your unique circumstances.
Future planning : A structured plan to improve your farm’s long-term viability and your family’s security.

Why Apply?

The FHA is more than just financial assistance. It’s about equipping farming families with the tools, advice, and resources to regain control over their financial future.

Support includes:

Regular payments to meet basic household needs.
A farm financial assessment supplement of up to $1,500 to cover the fees of a qualified financial assessor.
Guidance to help improve farm profitability and sustainability.
Access to programs and services that can make a real difference in planning for the years ahead.

Who Can Apply?

To qualify for FHA, you must meet the following criteria:

Be a farmer, or the partner of a farmer.
Be 16 years or older.
Contribute significant labour and capital to an Australian farm, or be the partner of someone who does.
Have a farm enterprise with a significant commercial purpose or character.
Meet income and assets test limits.
Have received less than four years of FHA within a specific 10-year period.

Income test : Your total income must be below the JobSeeker payment income test cut-off.

$1,484 per fortnight for singles
$2,745 per fortnight combined for couples

Asset test : Your combined personal and farm assets must be below $5.5 million.

Mutual Obligation Requirements

Recipients of the FHA are required to:

Complete a Farm Financial Assessment (FFA) to evaluate the farm’s financial position.
Develop and follow a Financial Improvement Agreement , outlining actions to strengthen financial circumstances.

The $1,500 supplement is provided to cover the cost of engaging a qualified financial assessor to assist with this process.

Frequently Asked Questions

Is the FHA only for those affected by drought or natural disasters?
No. It’s available to any farming family experiencing financial hardship, regardless of the cause.

Can I apply if I have significant assets but limited cash flow?
Yes. As long as your combined personal and farm assets are below $5.5 million, you may still be eligible.

How long can I receive FHA payments?
You can receive FHA for up to four cumulative years within a 10-year period.

What can the $1,500 financial supplement be used for?
It’s designed to cover the cost of a qualified financial assessor completing the Farm Financial Assessment.

How to Apply

Getting started is simple. You can:

Visit the Farm Household Allowance page on the Services Australia website .
Call the Farmer Assistance Hotline on 132 316 (Monday to Friday, 8am–5pm).
Or, contact CoggerGurry on (03) 5571 0111 — our team can guide you through the process and provide support tailored to your circumstances.

Understanding the new 20% student loan reduction

Thu, 25 Sep 2025 05:40:52 GMT

The Australian government’s promise to cut student loan debts by 20% has now become law. If you’re one of more than three million Australians who have a student loan, you’re probably wondering what this means for you and when you’ll see the benefits.

The change applies to all types of student loans, including VET Student Loans, Australian Apprenticeship Support Loans, and even older schemes like the Student Financial Supplement Scheme.

If you had an outstanding student loan debt on 1 June 2025, you’re eligible. The reduction is calculated on your debt balance as at that date, before the annual indexation was applied. Even if you’ve made payments since June or completely paid off your loan after that date, you’ll still receive the full 20% reduction based on what you owed on 1 June.

If you’ve already paid off your loan since 1 June, the reduction might actually put your ATO account into credit, potentially resulting in a refund to your bank account (as long as you don’t have tax debts owing).

If you’d already paid off your student loan completely before 1 June 2025, unfortunately you won’t benefit from the 20% reduction. The relief only applies to debts that existed on that date.

The ATO’s responsible for applying the change, and is currently updating its systems to process these reductions. Most people should see their 20% reduction applied before the end of 2025.

You don’t need to do anything to receive the reduction – it will be applied automatically. The ATO will notify you when it’s been processed, and you’ll be able to see your new lower balance through your myGov account or the ATO app.

Don’t delay lodging your tax return while you wait for your changed loan balance to appear in your MyGov account. There’s no benefit in waiting, and you should continue with your normal tax obligations.

Remember to update your bank details with the ATO if you’re expecting a potential refund, and if your loan gets paid off completely, don’t forget to tell your employer to stop withholding additional amounts from your pay.

Please contact our office if you have any questions or queries - 03) 5571 0111

Celebrating Kieran Neeson’s Appointment as Principal

Wed, 24 Sep 2025 22:07:23 GMT

Celebrating Kieran Neeson’s Appointment as Principal

We are delighted to share some exciting news from the CoggerGurry team — Kieran Neeson has been appointed to the role of Principal . This is a significant career milestone and a well-earned recognition of his dedication, leadership, and commitment to both our clients and our people.

A Journey of Growth and Dedication

Kieran joined CoggerGurry more than five years ago and has made a lasting impact ever since. Holding his CPA qualification and as a graduate of the Brentnalls Affiliation Leadership Program, Kieran brings together technical expertise with forward-thinking leadership.

Throughout his time with us to date, he has consistently demonstrated professionalism, strategic insight, and a genuine passion for supporting clients to achieve their goals. Within the firm, Kieran is known for his collaborative approach and the strong relationships he builds with both clients and colleagues.

Leadership That Inspires

Kieran’s promotion reflects not only his personal achievements but also the direction we’re taking as a firm. At CoggerGurry, we are focused on building a leadership team that is progressive, people-focused, and dedicated to delivering excellent outcomes for our clients. Kieran embodies these values and we are thrilled to see him step into this role.

Celebrating With Family

Behind every professional success is the support of family. We would like to acknowledge the encouragement of Kieran’s wife, Cassie, and their daughters, Elka and Sienna. Their support is a reminder of the important role family plays in shaping and sustaining success.

Looking Ahead

As Kieran takes on the role of Principal, we are excited about the contribution he will continue to make to CoggerGurry’s growth and future direction. His leadership, experience, and vision will help us continue to serve our clients with excellence and care.

Please join us in congratulating Kieran on this well-deserved achievement. We are proud to celebrate this moment with him and look forward to the exciting chapters ahead.

Making Electronic Signing Easier for You

Fri, 29 Aug 2025 01:04:39 GMT

We’re excited to share that we’ve upgraded our client signing experience—now powered by FuseSign!

This intuitive, secure platform lets you sign documents in minutes (not days), straight from any device, and is simple to use.

There’s no need to download apps or remember passwords - just click the link, review your documents, and sign.

With industry-leading security and a smooth, hassle-free process, signing important documents has never been faster or easier.

You can find out more about FuseSign Here

Understanding The 20% HECS-HELP Debt Reduction

Fri, 29 Aug 2025 01:04:36 GMT

As part of its re-election commitment, the Federal Government has passed legislation to reduce all outstanding HECS-HELP debts by 20%. The Bill passed the Senate on 31 July 2025 and will come into effect once it receives Royal Assent. The reduction will be applied retrospectively to student loan balances held as at 1 June 2025.

While many borrowers have recently seen their loan balances increase due to the 3.2% annual indexation, the Government has confirmed that the 20% discount will be calculated based on the loan amount before indexation was applied.

How the Reduction Will Work:

Once the legislation is in effect, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to eligible student loan accounts. Indexation will also be recalculated using the reduced loan balance, delivering further relief for borrowers.

This change builds on previous reforms that now link indexation to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), rather than CPI alone, an approach designed to ease the financial pressure on graduates.

Lodging Your Tax Return:

If you’re getting ready to lodge your tax return, you don’t need to delay. The ATO will automatically apply the discount in the coming months. If you’ve fully repaid your student loan since 1 June 2025, you may be eligible for a refund equivalent to the 20% discount (subject to any other outstanding tax liabilities).

Other Changes to Student Loan Repayments:

The legislation also introduces changes to repayment thresholds. From 1 July 2025, the minimum income threshold for compulsory student loan repayments will increase from $54,435 to $67,000, making repayments more equitable.

If you have any questions about how these changes may affect you or your tax return, please get in touch with CoggerGurry today, we’re here to help.

Tel: 03 5571 0111

Division 296 Tax Update

Fri, 29 Aug 2025 01:04:35 GMT

Parliament has resumed, and we are watching closely for the introduction of the Division 296 tax Bill to the lower house.

While the Government is managing a number of priorities, the extra time provides us with the opportunity to continue planning with clients who may be affected and to ensure we are ready when the legislation is finalised.

Although no update has been given on whether the 1 July 2025 start date will be deferred, we’ll keep you informed as soon as there is more clarity.

In the meantime, rest assured that we are monitoring developments carefully and will provide guidance and advice as soon as the position becomes clearer.

ATO Interest Charges No Longer Tax-Deductible For Businesses

Fri, 29 Aug 2025 01:04:32 GMT

Effective 1 July 2025, businesses can no longer claim income tax deductions for interest charges imposed by the ATO on unpaid or underpaid tax liabilities. This change applies to general interest charge (GIC) and shortfall interest charge (SIC) amounts incurred in income years starting on or after 1 July 2025.

Previously, businesses could deduct ATO-imposed interest charges on overdue tax debts, reducing the net cost of these charges. From 1 July 2025, this deduction is no longer available, meaning any GIC or SIC incurred from this date cannot be claimed as a tax deduction, regardless of when the underlying tax debt arose.

For example, if a business incurs GIC on an unpaid income tax liability after 1 July 2025, this interest expense is not deductible in its tax return for the 2025–2026 income year or subsequent years.

This legislative change is significant for businesses that manage cash flow by deferring tax payments, as the cost of carrying tax debt will effectively increase. Without the tax deduction, the real cost of ATO interest charges rises, making it more expensive to delay tax payments.

The ATO applies GIC on unpaid tax liabilities at a rate that is reviewed quarterly and compounds daily. As of the latest update, the GIC rate is 10.78%.

The removal of tax deductibility for ATO interest charges underscores the importance of timely tax compliance.

Businesses should act promptly to adjust their financial strategies, ensuring that they are not adversely affected by increased costs associated with overdue tax payments.

Please contact our office if you have any questions or queries - 03) 5571 0111

Xero Accounting Software – Changes to Subscription Features

Fri, 11 Jul 2025 02:23:03 GMT

Please note that Xero has recently made changes to their subscription plans with the major change of added Payroll and Superannuation functionality to their Ignite and Grow plans.

As we are at the start of a new financial year this may be an appropriate time for you to review your business’s subscription level to ensure you are on the most suited plan for your business needs.

If you have any questions, feel free to contact us to discuss your software needs. 03)5571 0111

End-of-year Finalisation Through Single Touch Payroll (STP)

Fri, 11 Jul 2025 02:23:01 GMT

If you have paid wages to employees in the 2025 financial year you will need to make a finalisation declaration by 14 July 2025 to ensure your employees can access their finalised information to complete their tax return.

When you have reported and finalised your employees' information through STP, you are exempt from:

providing payment summaries to your employees
lodging a payment summary annual report.

For payments to your employees that were not reported through STP, you still need to:

give a payment summary to your employees
provide the ATO with a payment summary annual report for these payment summaries.

For small employers (19 or fewer employees) who only have closely held payees, the due date for end-of-year STP finalisation is the payee's tax return due date.

If you would like to know more, you can visit Here

Business Advisory Services at CoggerGurry

Fri, 11 Jul 2025 02:22:58 GMT

At CoggerGurry, we understand that every business is unique, with its own set of challenges and aspirations.

Our Business Advisory services are designed to provide personalised, strategic support that aligns with your goals and helps you move confidently toward long-term success.

We offer practical support in:

Strategic Planning & Business Structuring – We help you set a clear direction for growth and resilience.
Succession & Estate Planning – Guiding you through securing the future of your business and family wealth.
Financial Analysis & Forecasting – Making sense of your numbers to inform smarter decisions.
Cash Flow Management – Developing strategies to improve your cash position and future planning.
Quarterly Business Reviews – Keeping you accountable and on track throughout the year.

Now is a great time to take stock and set your business up for the new financial year. Whether you're looking to grow, manage risk, improve profitability, or plan for succession, our advisory services can help you get clarity and take action with confidence.

Our approach is collaborative and long-term – we become part of your team. Based in Hamilton, Victoria, we bring regional knowledge, genuine relationships, and deep commercial expertise to help you and your business thrive.

To learn more or book a confidential discussion, get in touch with our team. 03)5571 0111

Get It Right This Tax Time Preparing Your 2024–25 Individual Tax Return

Fri, 11 Jul 2025 02:22:54 GMT

Tax time is here – but don’t rush it! Here's what you need to know to get it right this year.

When can you lodge?

You can lodge anytime from 1 July, but the ATO recommends waiting until late July so your data (like income, interest, health insurance and dividends) can auto-fill correctly.

In 2024, over 140,000 early lodgers needed amendments due to missing info. Waiting reduces errors and delays in processing.

Key Dates:

• Lodging yourself? Do it online via myGov by 31 October.

• Lodging with CoggerGurry? Contact us to book your appointment.

What’s new from 1 July 2025:

• Parental Leave: Extended to 24 weeks & superannuation now paid on parental leave

• ATO Interest: No longer tax-deductible

• Minimum Wage: Increased to $24.95/hr

Top tips while you wait to lodge:

• Check your bank & contact details

• Ensure your income statement is marked “Tax Ready”

• Gather receipts, diaries & private health details

• Review ATO deduction guides for your occupation

Need help or not sure where to start? We’ve got you covered – get in touch today. - ( 03) 5571 0111

When someone dies: The Tax to-do List

Fri, 11 Jul 2025 02:22:50 GMT

If someone close to you dies and you’re the one responsible for taking over their tax affairs, there are a number of steps you need to take to advise the ATO of their passing.

This starts with establishing your identity with the ATO as the deceased’s representative, and formally notifying the ATO of the death, with a death certificate of the deceased or a grant of probate or letters of administration.

To have full authority to manage the tax issues of someone who has died, you’ll need to be their authorised legal personal representative (LPR). A person’s LPR is usually the executor named in their will, or if no executor has been named, a court-appointed administrator (this can be the person’s next of kin).

To be recognised as an LPR for tax purposes, you’ll need a supreme court (in your state) to recognise that the deceased’s will is legal, allowing you as the executor to represent the deceased’s estate and distribute their assets according to the will.

Where there’s no will, a grant of letters of administration are issued to the person (this is often the next of kin) to manage the estate, and they are appointed as the administrator of the estate.

You will need to be aware of whether the deceased person carried on a business and, if they did, you’ll need to seek specialised legal or tax advice.

You also may need to lodge the deceased’s final tax return, known as the “date of death” tax return, and check if any other years’ tax returns are outstanding and arrange payment for those, with help from the ATO to access the deceased’s person’s tax information.

If the estate of the deceased receives any income from assets such as rental property or shares, and/or is due to claim any tax refund or franking credits that are owed, the estate is treated as a trust for tax purposes, and you will need to lodge a trust tax return.

You need to ensure that all tax liabilities have been paid, that credits owing to the deceased person and their estate have been received, and that all tax registrations (such as ABNs and registration for GST) have been cancelled.

After all of these requirements are met, you will then be able to distribute the assets of the estate to the beneficiaries following probate.

It’s important to be aware that finalising the administration of an estate can take six to 12 months, or sometimes longer.

Victorian State Taxes: What’s Changing in 2025 and Beyond?

Fri, 11 Jul 2025 02:22:45 GMT

Victoria’s state tax system is undergoing major reform, with implications for property owners, investors, and businesses. Here's what’s changing—and what you need to consider.

1. Emergency Services and Volunteers Fund (ESVF) Reforms

From 1 July 2025, the fire services property levy will be replaced with emergency services and volunteers fund and will continue to be collected via council rates notices.

How it’s calculated:

ESVF = fixed charge + variable charge – concession (if eligible) – rebate or other relief (if applicable)

To help reduce this rate you can make sure you have applied for all the appropriate concessions and rebates you are entitled to.

Fixed Charge - The fixed charge is based on the property’s classification and is linked annually to CPI, so make sure the classification is correct for your property.

Variable Charge - The variable charge is based on the capital improved value of the property, so if you disagree with this value, you have two months from the date of your rates notice to lodge an objection either with your local council or the Valuer-General Victoria’s website.

Concessions - Single Farm Enterprise Concession – Allows farms under common ownership to be assessed as one holding, reducing the fixed charge levy amounts. This concession must be applied for and is not automatic so check your rates notice carefully and contact your shire council if you need information on this.

Rebates - Volunteer Rebate – For CFA, SES volunteers and Shepparton Search and Rescue Squad members who own residential or farm property. They can apply for a rebate from the Vic Services website from late July 2025. Go to https://service.vic.gov.au/find-services/housing-and-property/eligible-volunteers-rebate-scheme

2. Land Tax Changes & Exemptions

Since 2024 the Victorian land tax thresholds changed with many landholders feeling the financial impact of these changes. The main adjustments were:

Threshold Adjustments

The general threshold dropped from $300,000 to $50,000 in addition to increasing the land tax rates. Land valued between $50,000 and $100,000 will have $500 to pay in land tax and those in the next banding up to $300,000 will pay $975. For full details see State Revenue Office website: https://www.sro.vic.gov.au/about-us/rates-and-statistics/current-rates/land-tax-current-rates#general24

Trusts: Trust surcharge rates have increased and apply when the total taxable value of land held by the trust is $25,000 or more, making it considerably more expensive to hold property in a trust structure. Some trusts, such as charitable trusts and non-profits may be exempt from the surcharge, and notifying the State Revenue Office (SRO) about beneficiaries can impact the assessment. https://www.sro.vic.gov.au/

Primary Production Land (PPL) Exemptions

Land used primarily for primary production may be exempt from land tax. The eligibility criteria varies depending on the location of the land (inside or outside greater Melbourne) and the nature of its use. Recent rulings have clarified what constitutes 'preparation' for primary production, which can also qualify for the exemption. sro.vic.gov.au dr.www.sro.vic.gov.au

Action Point: Given the complexity and recent changes, it's advisable to review your land tax assessments carefully, as we have seen a rise in the number of incorrect assessments. If you believe an exemption applies or if you're uncertain about your liability, contact our office or the SRO directly..

3. Commercial and Industrial Stamp Duty Reform (CIPT)

From 1 July 2024, Victoria is transitioning from upfront stamp duty to an annual property tax model for commercial and industrial properties. This annual tax will be know as Commercial and Industrial Property Tax (CIPT).

How it works:

From 1 July 2024, commercial or industrial properties will transition to the new model if they meet certain criteria when sold. Only properties that have a change in ownership will be impacted, those properties that continue to be held by the same owners with no change in use will not be affected.
Properties will transition into CIPT reform if there is an eligible dutiable transaction or relevant acquisition, defined as an entry transaction.
Duty is still payable on the entry transaction, then ten years after the entry transaction, CIPT will be payable if there has been no change in use.
Annual property tax called CIPT is a flat rate of 1% of the property’s (unimproved) site value.
Once transitioned, the property is exempt from stamp duty for future owners.
CIPT is different to land tax, so as a commercial or industrial land owner you may be liable for both land tax and CIPT.

Note, land that is exempt for land tax purposes will normally be exempt for CIPT.

CIPT only applies to qualifying commercial and industrial land, not residential.

4. Short Stay Accommodation Levy (SSL)

From 1 January 2025, a 7.5% levy will apply to revenue earned from short-stay accommodation (e.g. Airbnb, Stayz).

Applies to:

Residential short-term rentals (less than 28 consecutive days and excludes hotels and motels).
Can be collected through booking platforms or if you rent your property out directly and collect the money yourself you are still liable to report and remit 7.5%.
Based on gross revenue, not number of nights and includes add on charges such as cleaning and GST but excludes credit card fees.

Funds raised will support affordable and social housing initiatives.

5. Vacant Residential Land Tax (VRLT) – Expanded

From 1 January 2025, VRLT will apply statewide, not just to inner and middle Melbourne.

Key features:

Applies to homes vacant more than 6 months per year.
Annual tax of 1% of capital improved value (CIV).
Residentially zoned land is targeted.

Some exemptions exist (e.g. deceased estates, genuine holiday homes, renovations) but are strict and must be documented.

6. Windfall Gains Tax (WGT)

Introduced in 2023, the WGT applies when land is rezoned and its value increases by more than $100,000. The amount of WGT depends on the amount of uplift, being:

Uplift between $100,000–$500,000 taxed at a marginal rate of 62.5% on the uplift above $100,000
Uplift of $500,000 or more will have the entire uplift amount taxed at 50%.

Can be deferred up to 30 years or until the property is sold.

There are a number of exemptions including:

Residential land exemption
Land entitled to a transitional exemption
Charitable and university land

What Should You Do Now?

Reassess land holdings, exemptions, and property usage
Apply for eligible concessions like the Volunteer Rebate or Single Farm Exemption.
Act early to prepare for land tax, ESVF, SSL, VRLT, WGT and stamp duty changes.
Visit the Victorian State Revenue Office website for more information on all the above items. https://www.sro.vic.gov.au/

Need support or clarification?

We're ready to help with land tax reviews, levy planning, or assessing transaction strategies. Reach out to ensure you're not paying more than necessary. (03)5571 0111

Working Out Your WFH Expenses This Tax Time

Thu, 19 Jun 2025 06:47:13 GMT

To be eligible to claim working from home (WFH) expenses, you need to be genuinely working from home to fulfil your employment duties, not just checking emails or taking occasional calls. You must also incur additional running expenses because of your WFH arrangement.

These additional costs can typically include energy expenses for heating, cooling and lighting, home and mobile internet or data, phone expenses, and stationery or office supplies.

When it comes to calculating your deductions, you can choose the “fixed rate method” or the “actual cost method”. For both methods, you’ll need records that accurately track your WFH hours. You can keep a diary or timesheets covering a representative four-week period showing your usual work pattern, or you can maintain a record of your entire year’s WFH hours. You’ll also need documentation showing you’ve incurred additional expenses, such as receipts and bills, and be able to demonstrate the proportion that relates to work.

Fixed rate method:

This approach simplifies your calculations by applying a set rate for each hour you work from home. For the 2024–2025 income year, this rate is 70 cents per hour. To calculate your deduction, simply multiply your total WFH hours by 70 cents. Remember, if you choose this method, you can’t claim additional separate deductions for expenses already covered under the fixed rate method, such as stationery supplies.

Actual cost method:

This approach requires you to keep detailed records of all additional costs incurred while working from home. You’ll need to track your WFH hours and maintain comprehensive records for all your WFH expenses.

You can make separate claims for expenses not covered by either of the above methods, such as work-related technology and office furniture like chairs, desks, computers and bookshelves, as well as repairs or maintenance on these items.

If you’re unsure whether an item you want to claim qualifies as an allowable work-related expense, check the ATO website for guidance or speak with your registered tax agent before including it in your return.

If you would like to know more, you can visit Here

Minimum Wage Increase from 1 July 2025: What You Need to Know

Thu, 19 Jun 2025 06:44:40 GMT

Starting 1 July 2025, the Fair Work Commission has announced a 3.5% increase to both the National Minimum Wage and minimum award wages.

Key Details:

New National Minimum Wage: $24.95 per hour or $948 per week.
Applies to: Employees not covered by an award or enterprise agreement.
Effective Date: From the first full pay period on or after 1 July 2025.

For employees covered by awards—which outline minimum pay rates and conditions for specific industries or occupations—the same 3.5% increase applies. This adjustment will also take effect from the first full pay period starting on or after 1 July 2025.

What This Means:

For Employees: You can expect a pay increase reflecting the 3.5% rise, depending on your current wage and coverage under an award or agreement.
For Employers: Ensure that payroll systems are updated to accommodate the new wage rates from the applicable date.

The Fair Work Ombudsman will update its Pay and Conditions Tool and other resources to reflect these changes. It's advisable to check these tools closer to 1 July to confirm the specific rates applicable to your situation.

If you want to learn more about the minimum wage increase, contact us today. P- 03)5571 0111 or click Here

ATO Interest Charges

Thu, 19 Jun 2025 06:43:29 GMT

ATO interest charges incurred on or after 1 July

Any GIC or SIC incurred on or after 1 July 2025 is not deductible. This includes all GIC and SIC in respect of outstanding or late payments of tax for income years both before and after 1 July 2025.

As they are not deductible, any GIC or SIC that is later remitted will no longer need to be included as assessable income.

ATO interest charges incurred before 1 July

Any GIC or SIC incurred prior to 1 July 2025 is not impacted by the changes to the law and will continue to be deductible for the 2024-25 and earlier income years.

If you have (or can) deduct GIC or SIC for the 2024-25 or an earlier income year and it is later remitted, the amount that is remitted will need to be included in your assessable income in the year in which the remission occurred.

If you would like to know more, you can click Here , or you can contact our office if you have any questions or queries - 03) 5571 0111

Super Guarantee Charge (SGC) Rate Change

Thu, 19 Jun 2025 06:40:39 GMT

The super guaranteed rate will increase from 11.5% to 12% from 1 July 2025.

This means employers will need to contribute a minimum of 12% of an employee’s ordinary earnings to their superannuation.

You can read more about this Here

Instant Asset Write-off Extended to 30 June 2025

Thu, 19 Jun 2025 06:38:22 GMT

Announced as part of the 2024–2025 Budget, and now legislated, the $20,000 instant asset write-off limit has been extended for a further 12 months until 30 June 2025 to continue to provide support for small businesses.

The instant asset write-off enables eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use. The write-off can be used for new and second-hand assets, and for multiple assets if the cost of each individual asset is less than the relevant limit.

To claim the instant asset write-off, a small business must use the simplified depreciation rules, and the write-off cannot be used for assets excluded from those rules. Eligibility criteria, the year in which you may use the instant asset write-off to claim an immediate deduction for an asset, and the threshold limits, have changed over time, and depend on:

• Your aggregated turnover (the annual turnover of your business and that of any business entities that are your affiliates or connected with you);

• The date you purchased the asset;

• When it was first used or installed ready for use; and

• The cost of the asset being less than the limit.

To be able to take advantage of the $20,000 threshold for the 2024–2025 income year as a small business you will need to: have an aggregated turnover of less than $10 million; apply the simplified depreciation rules; and acquire the asset and first use it, or install it ready for use, between 1 July 2024 and 30 June 2025.

The $20,000 limit applies on a per asset basis, so you can instantly write off multiple assets.

Assets valued at over $20,000 can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each year after that. Additionally, pool balances under $20,000 at the end of the 2024–2025 income year can be written off.

The simplified depreciation rules apply to most depreciating assets, including items like office furniture or equipment; computers; tractors or tools. However, the instant asset write-off doesn’t apply to certain depreciating assets, including assets leased out for more than 50% of the time on a depreciating asset lease; horticultural plants, including grapevines; software allocated to a software development pool; assets used in your research and development (R&D) activities; and capital works, including buildings and structural improvements.

Please contact our office if you have any questions . T: 03 5571 0111 E: reception@coggergurry.com.au or make an online enquiry www.coggergurry.com.au/coggergurry_contact_us

Easy Ways to Protect Yourself from Scams

Tue, 13 May 2025 01:24:24 GMT

Scams are getting trickier, but there are some simple things you can do to keep your accounts safe:

Use strong passphrases, not just passwords

Instead of using the same password everywhere, try a passphrase—like a short sentence or four random words. Make it at least 14 characters long and mix in numbers, symbols, and upper/lowercase letters.

Turn on Multi-Factor Authentication (MFA)

MFA means you need more than just a password to log in—like a code sent to your phone or using your fingerprint. It makes it much harder for scammers to get in, even if they have your password.

Keep your devices safe

Lock your phone and computer with a passcode or biometrics (like Face ID). Set them to auto-lock if you leave them for a bit. Turn on “find my device” features so you can lock or erase your data if your device goes missing.

Be suspicious of unexpected calls, emails, or texts

If someone contacts you out of the blue, don’t rush. Don’t click on links or share personal info unless you’re sure it’s legit. Go directly to the organisation’s website and contact them using the official phone number or email.

If you have any concerns or feel as though you may be a victim of a scammers, please contact us 03)5571 0111

Upskilling? You May be Able to Claim Your Self-Education Expense

Tue, 13 May 2025 01:24:23 GMT

If you’re planning to upskill or undertaking professional development this year, you may be eligible to claim some of your self-education expenses in your 2024–2025 income tax return.

You incur self-education expenses when you:

• take courses at an educational institution (even if you don’t gain a formal qualification);

• undertake training provided by an industry or professional organisation.

• attend work-related conferences or seminars; or

• do self-paced learning and study tours in Australia or overseas.

Your self-education expenses need to have a sufficient connection to your current employment income in order to make a claim. This means that your study must either maintain or improve the specific skills or knowledge you use in your current role or be likely to result in increased income in your current role.

If you meet the eligibility criteria you may be able to claim a deduction for:

• tuition, course or seminar fees incurred in enrolling in a full fee paying place;

• general course expenses (eg stationery, internet usage);

• depreciation on assets like laptops;

• transport costs between home or work and your place of study.

• accommodation and meals when your course requires you to be away from home for one or more nights; or

• interest on loans where you use the funds to pay for deductible self-education expenses.

If you would like to know more, you can click Here

Beyond the Booking: Tax Implications for Short-Term Rentals of Your Home

Tue, 13 May 2025 01:24:21 GMT

In today's sharing economy, platforms like Airbnb have made it easier than ever to earn extra income by renting out a spare room or your entire home – but many Australians are unaware of the tax implications that come with these arrangements.

The ATO has intensified its focus on all aspects of the sharing economy, particularly short-term rental arrangements, and has sophisticated data-matching capabilities with third-party platforms like Airbnb. This means they can identify discrepancies between what’s reported on your tax return and what the platforms' records show.

When you rent out all or part of your residential property through digital platforms, the ATO requires you to declare this income on your tax return. Keeping meticulous records of all rental income earned is essential, as is maintaining documentation of expenses you intend to claim as deductions.

One area where many property owners get caught out is capital gains tax (CGT). While your main residence is typically exempt from CGT, this exemption can be partially lost when you rent out portions of your home. The reduction in your exemption is calculated based on the floor area rented and the duration of the rental arrangement. This is a crucial consideration if you're thinking of selling your property in the future, as it could significantly impact your tax position.

When it comes to deductions, you can claim a portion of expenses related to the rented space, including council rates, loan interest, utilities, property insurance and cleaning costs. The deductible amount depends on both the percentage of the property being rented and the duration of the rental period throughout the financial year. Platform fees or commissions charged by services like Airbnb are often 100% deductible, providing some relief against your rental income.

As with all income items, you will need to maintain statements from rental platforms showing your income, along with receipts for any expenses you plan to claim. Without proper documentation, you risk having legitimate deductions disallowed during an ATO review or audit, potentially leading to additional tax liabilities.

If your property is located in Victoria, the short stay levy of 7.5% of total booking fees may also apply.

Please contact our office if you have any questions or queries - 03) 5571 0111

What Payday Super Could Mean For You

Tue, 13 May 2025 01:22:51 GMT

The way superannuation is paid may be about to undergo a significant transformation. The Labor government’s proposed “payday super” reforms would require employers to pay superannuation contributions within seven calendar days of every payday.

Payday super is intended to apply from 1 July 2026, it’s important to understand what this could mean for you.

For employers, the shift to payday super involves changes to administrative processes. Key considerations include:

From 1 July 2026, super contributions must reach your employees’ funds within seven calendar days of their payday, whether you pay weekly, fortnightly or monthly.
The ATO’s Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Employers who currently use it will need to transition to suitable payroll software.
The superannuation guarantee charge (SGC) will be redesigned to include components such as notional earnings (interest on unpaid super), administrative uplifts, and choice loadings for non-compliance with fund choice rules. Importantly, both on-time and late super contributions would be tax-deductible, offering some financial relief to employers.

You can read more about this Here

Sole Trader or Company: What are the Tax Differences?

Tue, 13 May 2025 01:22:48 GMT

You may be starting out in business and trying to decide whether to become a sole trader or to set up a company. Alternatively, you may already be an established sole trader and considering switching to become a company. Tax considerations are vital in deciding which of the two business structures is most suitable for you.

The first practical difference is in relation to your tax return. As a sole trader, you simply add your business income and expenses to a separate business and professional items schedule in your individual tax return that you lodge each year. For a company, there’s a separate annual tax return, and tax to pay on the company’s income. Companies are subject to annual reviews by the Australian Securities and Investments Commission (ASIC), so financial records must clearly show transactions and the company’s financial position, and allow clear statements to be created and audited if necessary. A number of strict legal and other obligations need to be met.

Tax returns for a company must clearly list the income, deductions and the liable income tax of the company. Also, directors and any employees of a company must lodge their own individual tax returns.

There’s no tax-free threshold for companies – they simply pay tax on the amount they earn. This is at either the 25% or 30% company tax rate. To be eligible for the lower company tax rate of 25%, the company needs to meet strict requirements to be a base rate entity. One of the tests is that your company’s aggregated turnover for the relevant income year must be less than the aggregated threshold for that year – which since 1 July 2018 has been $50 million a year. For all companies that are not eligible for the lower company tax rate, the full company tax rate of 30% will apply. However, for sole traders, whose tax is assessed as part of the individual’s personal income, $18,200 is the tax-free threshold.

Both sole traders and companies can:

• Register for goods and services tax (GST) if your GST turnover is $75,000 or more, or you’d like to claim fuel tax credits; and regardless of your turnover, you must register for GST if you provide taxi, limousine or ride-sourcing services; and

• Employ people, and if the business’s gross wages exceed the threshold set by your state or territory, then you will have to pay payroll tax.

Both types of business also need to pay capital gains tax (CGT) if a capital gain has been made, but sole traders may be able to reduce this gain by what are known as the discount and indexation methods. The latter may also be used by some companies.

Please contact our office if you have any questions . T: 03) 5571 0111 E: reception@coggergurry.com.au or make an online enquiry www.coggergurry.com . au/coggergurry_contact_us

ANZAC Day Closure Dates

Tue, 15 Apr 2025 00:35:41 GMT

Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025

Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

Easter Closure Dates

Tue, 15 Apr 2025 00:33:55 GMT

Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025

Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

Fringe Benefit Tax (FBT) 2025: Increased ATO Scrutiny and Key Risks to Watch

Tue, 15 Apr 2025 00:28:55 GMT

The 2025–26 Federal Budget has reinforced the Albanese Government’s commitment to tax compliance, with a major boost in funding to the ATO to strengthen enforcement—including Fringe Benefits Tax (FBT).

With that extra funding comes increased ATO scrutiny on employers. If you're responsible for FBT compliance, now’s the time to get your house in order.

High-Risk Areas Under the ATO Microscope :

�� Car Fringe Benefits

Incorrect vehicle classification (especially dual cab utes and SUVs).
Invalid or poor-quality logbooks.
Incorrectly treating private use (e.g. home to work, errands) as business use.
Misuse of the statutory formula method.

��️ Meals & Entertainment

Misunderstanding what qualifies as deductible vs. entertainment.
Inadequate documentation for functions or staff events.
Incorrect application of the "otherwise deductible" rule.

⚡ Electric and Plug-in Hybrid Vehicles

From 1 April 2025 , PHEVs lose their FBT exemption unless:

The car was in use before 1 April 2025, and
There is a binding agreement to continue use post-1 April.

Many employers are still unaware of these transitional rules.

�� What the ATO Is Watching

Nil or non-lodged returns where fringe benefits were likely provided.
Incorrect treatment of employee contributions .
Mismatches between FBT and income tax reporting.

Penalties can be up to 75% of the shortfall , so it pays to be proactive.

✅ What You Should Do

Review the benefits you've provided in the 2025 FBT year.
Reassess logbooks, vehicle use, and entertainment records.
Seek advice on grey areas like PHEVs or meal benefits.
Lodge and pay on time.

�� Need help reviewing your FBT exposure before the deadline? Get in touch today—we’re here to help you stay compliant and penalty-free.

Read more about this on our website HERE or give us a call on 03) 5571 0111

�� Key FBT Dates for 2025

FBT year ends : 31 March 2025
Lodgment due (paper) : 21 May 2025
Lodgment due (tax agent) : 25 June 2025
Payment due : 28 May 2025

Cybersecurity Reminder: Protecting Your Superannuation

Tue, 15 Apr 2025 00:25:28 GMT

Recent cyberattacks targeting accounts within industry superannuation funds have highlighted just how important it is for all of us to stay vigilant about online security.

While no breaches have been reported among Self-Managed Super Funds (SMSFs), these incidents are a timely reminder that cybercriminals are becoming increasingly sophisticated—and no one is completely immune.

What you can do to protect yourself:

Use strong, unique passwords for each of your financial accounts
Enable multi-factor authentication (MFA) wherever possible
Regularly check your accounts for any unusual activity
Be cautious of phishing attempts—never click on suspicious links or provide personal information via email or text

Cybersecurity is everyone’s responsibility. A few simple precautions can go a long way in protecting your personal and financial information.

If you want to find out more, please contact us on 03) 5571 0111

What the Latest Federal Budget Means for You!

Tue, 15 Apr 2025 00:19:29 GMT

The 2025 Federal Budget has just been announced, and it brings a mix of cost-of-living relief, tax cuts, and support for both individuals and small businesses.

We’ve broken down the key points in plain English so you can quickly understand what’s changing and how it might affect you.

Personal Income Tax Cuts Coming in 2026 and 2027

Good news if you pay tax — the government is planning to lower personal income tax rates starting in July 2026, with a further drop in July 2027.

Anyone earning above $18,200 will benefit from the reduction in the marginal tax rate currently 16% applied to earnings between $18,200 and $45,000, reducing to:

15% in 2026, and
14% in 2027

This means a tax cut of:

Up to $268 in 2026, and
Up to $536 in 2027

When combined with existing Stage 3 tax cuts, the average Australian could save about $2,548 a year by 2027–2028—that’s roughly $50 a week back in your pocket. For someone earning around $79,000, the total tax cut will be $2,190 by 2027–2028.

These cuts are designed to ease the cost of living and help part-time and lower-income workers. The government also expects these changes to encourage more people to increase their working hours.

2. Student Debt Relief for More Than 3 Million Australians

If you’ve got a HELP or student loan, here’s what you need to know:

The government plans to reduce HELP debts by 20% before indexation is applied on 1 June 2025. This could wipe around $16 billion in debt for over 3 million people.
From 1 July 2025, the new system is proposed, subject to parliamentary approval, that aims to:

-Raise the repayment income threshold, so you can earn more before you start repaying.

-Switches to a fairer repayment structure that increases gradually with income.

Also, a change already in place (backdated to June 2023) has capped indexation to whichever is lower — the Consumer Price Index (CPI) or Wage Price Index (WPI) — and has already reduced debts by $3 billion.

you’ve got a HELP or student loan, here’s what you need to know:

3. Energy Bill Rebate Extended — Small Businesses Included

The energy rebate is sticking around until the end of 2025 — and now includes small businesses too.

Here’s what you’ll get:

Another $150 rebate in total, split into two $75 quarterly payments, starting 1 July 2025.
This applies automatically to eligible households and about one million small businesses — no need to apply.

Treasury expects this will:

Cut the average power bill by about 7.5%, and
Help reduce overall inflation slightly in 2025.

4. Instant Asset Write-Off Extended — Still Being Finalised

Small businesses may soon be able to immediately write off new asset purchases under $20,000 again — but the rules haven’t officially passed yet.

If approved, this will apply to:

Assets bought and ready to use between 1 July 2024 and 30 June 2025.
Multiple assets under $20,000 each — there’s no limit on how many.

Larger purchases (over $20,000) can still be claimed gradually using the simplified depreciation rules. If your depreciation pool ends up under $20,000 at the end of the year, you can write the whole amount off too.

This rule is for businesses with a turnover of less than $10 million.

5. ATO Getting More Power to Crack Down on Tax Dodging

The ATO is getting nearly $1 billion over four years to boost its tax compliance programs — which means more focus on catching and preventing tax mistakes or fraud.

The funding will be used to:

Expand audits on big companies and multinationals.
Crack down on the “cash economy” — such as under-the-table payments or not reporting income.
Target individuals who might be incorrectly claiming deductions or not reporting income.

if you’d like to chat about how these changes apply to your situation, feel free to give us a call on 03 5571 0111 — or head to the Budget 2025-26 websit e for more information.

Agribusiness Tax Planning

Tue, 15 Apr 2025 00:08:33 GMT

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2025. 

Farm Management Deposits (FMD)

FMDs are a powerful tax deferral strategy for eligible primary producers. A few points to consider include the following:

Funds must be held for at least 12 months to retain the deduction.
Deposits are fully tax-deductible in the year made.
The withdrawals are assessable income in the year they’re taken out.

So, with adequate planning, we can help you identify:

If depositing into a FMD before 30 June year end will save you tax, and how much
Or whether it may be a good time to withdraw FMD’s. If you are having a loss year or experiencing a downturn, it may be good timing to pull money out of FMD’s, minimising your tax on this income and improving your cashflow.

Prepaying Deductible Expenses

If your taxable income is tracking high, an effective tool is prepaying deductible expenses. Under ATO rules, primary producers can prepay up to 12 months of eligible expenses and claim the deduction this year, as long as the services are provided within that 12-month period.

Fencing, Water Facilities and Fodder Storage Assets

If you are a Small Business Entity (SBE) with a turnover under 10m you are eligible to use the simplified depreciation rules.

This means that a SBE can choose to claim deductions under the simplified depreciation rules for certain depreciating assets used in the course of carrying on a business of primary production. The choice is available for water facilities, fencing assets, fodder storage assets and depreciating assets relating to land care operations, electricity connections and phone lines.

Please contact our office for specific advice or assistance with any Tax queries. T: 03 5571 0111 E: reception@coggergurry.com.au or make an online enquiry www.coggergurry.com.au/coggergurry_contact_us

2025 Tax Planning

Tue, 15 Apr 2025 00:03:02 GMT

BASIC TAX PLANNING:

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2025. 

Superannuation Contributions  

 The concessional contributions cap for 2025 has increased to $30,000, up from $27,500 from the 2024 financial year. A concessional contribution is a voluntary payment from your before-tax income to your superannuation fund and includes SGC Super Guarantee Contributions paid by employers. The contributions are then taxed at a concessional rate of 15% in the superfund, rather than your individual tax rate. Concessional contributions are capped each year to prevent people taking advantage of the lower tax environment offered by superannuation funds.

 For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions. 

 A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances. 

  Instant Asset Write-Off

Temporary full expensing ended on 30 June 2023. However, for the 2024 financial year small businesses, with aggregated turnover of less than $10 million, could immediately deduct purchases of eligible assets costing less than $20,000 under the Instant Asset Write-Off. The expectation is this threshold will be extended for the 2025 financial year. See our section on “What the latest Federal Budget means for you” for more details.

For assets that are priced at $20,000 or above, which do not qualify for immediate deduction, there is still a provision. These assets can be added to the small business simplified depreciation pool. In the first year, these assets can be depreciated at a rate of 15%, with subsequent years at 30%.

If you would like to know more, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au

Self managed super fund (SMSF) Association Conference

Mon, 24 Mar 2025 01:12:40 GMT

In February, Hamish McDonald represented our team at the SMSF Association's annual conference in Melbourne, joining over 1,600 SMSF professionals from around the country.

The conference covered a wide range of current and emerging issues in the self-managed super fund (SMSF) space. Some of the key highlights included:

The proposed Division 296 tax (commonly referred to as the "$3 million super tax") failing to pass through Parliament.
Growing interest in SMSFs holding carbon credits and involvement in carbon farming initiatives.
Considerations for SMSFs holding land impacted by natural disasters.
Strategic opportunities through contribution splitting between spouses.

If you’d like to learn more about any of these topics and how they might apply to your circumstances, feel free to get in touch with our Superannuation Team on (03) 5571 0111 to book an appointment.

Brentnalls 56th National Affiliation Conference – Into the Future

Mon, 24 Mar 2025 01:09:39 GMT

Earlier this month, our leadership team and managers had the opportunity to attend the Brentnalls 56th National Affiliation Conference in Hobart, bringing together professionals from the Brentnalls Affiliation from across Australia and New Zealand to collaborate, learn, and explore the future of our industry.

With the theme “Into the Future,” the conference focused on innovation, leadership, and emerging technologies, equipping us with new strategies to enhance our services and support our clients. Key discussions included artificial intelligence in business, building hardiness in leadership, and navigating the balance between tradition and progress.

Beyond the valuable insights, the conference was a fantastic opportunity to strengthen relationships within our network, share best practices, and bring fresh ideas back to our firm.

We look forward to applying these learnings to continue delivering the best possible outcomes for our clients.

ATO - Move from Quarterly to Monthly BAS!

Mon, 24 Mar 2025 01:09:28 GMT

If you operate a small business and have a history of failing to comply with your tax obligations, the Australian Taxation Office (ATO) can move you from quarterly to monthly reporting as part of their corrective action.

From March 2025, small businesses that have a history of failing to comply will start to receive communication from the ATO notifying them of their new monthly reporting cycle effective from 1 April 2025.

These businesses have not responded to previous communications from the ATO and demonstrate a poor compliance history, for example:

Paying late or not paying the amount due
Not lodging or lodging late
Reporting your tax obligations incorrectly.

The ATO will notify you in writing if they move you to monthly GST reporting. After 12 months, you can request a change back to quarterly reporting. The ATO will only do this if they are satisfied that you are complying with your obligations.

GIC Deductability

The Federal Government has announced a plan that general interest charges (GIC) and shortfall interest charges (SIC) incurred on or after 1 July 2025 will no longer be deductible.

This is aimed at addressing the increase in tax debt by incentivizing taxpayers to correctly self-assess their tax liabilities and pay on time.

If enacted without amendments, it may have significant implications for taxpayers. Whilst the coming Federal Election may delay or even prevent this change from becoming law, it is crucial to be aware of the possible outcome.

For more information. Click Here. or call us on 03) 5571 0111

Increase to the General Transfer Balance Cap

Mon, 24 Mar 2025 01:00:22 GMT

The Transfer Balance Cap (TBC) came into effect on 1 July 2017 and reflects the maximum amount you can take as a pension, usually tax free.

It is called a Transfer Balance Cap as the amount of pension you can access is transferred from the normal accumulation account where your super was

accumulating before you were ready to take a pension and moved into an account called your retirement phase income stream.

The benefit of it being in pension phase in the retirement phase income stream is it is generally tax free money when paid to you. This limit was introduced to reinforce the principle that the sole purpose of superannuation is to provide access to retirement income, rather than a means of storing wealth or avoiding tax.

Unlike certain other superannuation caps, the Transfer Balance Cap is not indexed yearly, rather it is annually adjusted based on CPI in increments of $100,000. The cap began at $1.6 million in 2017, was $1.9 million in the 2024 Financial Year, and will increase to $2.0 million for the 2025 & 2026 Financial Years.

Your personal Transfer Balance Cap is determined by what the cap was at the time when you first started a Retirement Phase Income Stream.

For example, if you first began a Retirement Phase Income Stream in the 2023 Financial Year, your lifetime Transfer Balance Cap would be whatever the cap was in that year, being $1.9 million.

It is worth noting that while your transfer balance is a lifetime limit, any unused cap may see a proportional increase based on any future cap increases. Also, the cap only applies to amounts transferred into a Retirement Phase Income Stream and does not include future earnings on these amounts.

If your Transfer Balance Cap is exceeded, the excess must be withdrawn from the Income Stream or transferred back into your Accumulation Account, and excess transfer balance tax will need to be paid. The ATO Online Services can be utilised to help track your personal balance cap. Alternatively, please contact our office for specific advice or assistance with any Transfer Balance Cap questions or matters.

If you would like to know more, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au

Xero Cloud-Based Accounting Software

Tue, 18 Mar 2025 22:39:34 GMT

Xero can be used to manage your business, whether you are a small or a large business, it can be tailored to you and your business needs. CoggerGurry is a Xero Platinum Champion Partner and can assist you with all your business needs. The biggest benefit to utilising Xero is the “Live data” provided and the ability for multiple logins to work together on the same file. We find this allows CoggerGurry to assist with any queries or concerns while dealing with your accounting needs.

Through Xero you can pay bills, process payroll, store files and keep track of inventory. There is also the option to connect over 1,000 specialised apps to ensure your business can run as efficiently as possible. These apps offer industry specific functionality to assist with Bill Processing, Quoting, Timesheets & Payroll, Customer Payments, HR and Inventory. Featured industries include Agriculture, Automotive, Construction & Trade, Health, Hospitality, Manufacturing, Retail amongst others.

If you want to find out more or understand how Xero can help your business, please get in touch.

GST - Made a Mistake Charging GST?

Tue, 18 Mar 2025 22:27:39 GMT

As a small business owner, you understand the importance of getting your GST right. If you have incorrectly charged GST on a sale, don’t panic – there are steps you can take to fix the situation.

The key factor is whether you have passed the GST on to your customer. This means that if you have charged GST and issued a tax invoice, it is considered to have been passed on.

If you have overcharged GST, the most effective way to recover the excess GST is to reimburse the customer. Once you refund the excess GST, you can then adjust your next BAS to recover this amount.
If you have not charged GST, the most effective way to recover this is to issue your customer an invoice to pay the extra GST amount or you can remit 1/11 of the original sale amount.

If you did not pass on the GST, you have two options:

For small businesses (turnover under $20 Million), correct it on a later BAS if the adjustment being made is under $12,500, or if it is over $12,500 revise the original BAS.
For larger businesses (turnover greater than $20 Million), revise the original BAS.

If you would like assistance, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au

Superannuation Rate Increase – What Employers Need to Know

Thu, 13 Feb 2025 21:43:28 GMT

A quick reminder for all employers: the Superannuation Guarantee (SG) rate is set to increase.

Currently, you’re required to contribute 11.5% of your employees' ordinary time earnings (OTE) to their super. However, from 1 July 2025 , this will rise to 12% .

Super contributions must be paid at least quarterly to eligible employees, so now is the time to plan for this change and ensure your payroll systems are updated.

Stay ahead of the update and keep your business compliant.

Did you know we also offer Bookkeeping and Payroll Support ? Call us today to discuss how we can help 03 5571 0111

HOW TAX WORKS IN AUSTRALIA’S SUPERANNUATION SYSTEM

Thu, 13 Feb 2025 21:39:58 GMT

Australia’s super system plays a vital role in ensuring financial security for individuals in retirement. However, how superannuation is taxed can appear complex.

In Australia, superannuation is taxed at three main points: contributions, investment earnings and withdrawals. This structure is known as a TTE (taxed, taxed, exempt) system: contributions to the superannuation fund are taxed and the investment earnings within the fund are also taxed, but withdrawals made during retirement are generally exempt from tax. That is, in Australia’s system:

Contributions, including those made by employers under the super guarantee (SG) and voluntary concessional contributions, are taxed at a concessional rate of 15%. This is lower than the rates that apply to most other forms of income, providing a tax advantage.

Earnings generated from fund investments during the accumulation phase are also taxed at a flat rate of 15%. This is beneficial because it’s lower than the tax rates that typically apply to investment income earned outside of superannuation.

Withdrawals made during retirement are generally tax-free. This is intended to enhance the appeal of building super savings over your working life, ensuring you have a tax-effective income stream in retirement.

Call us today to discuss your superannuation with one of our experts 03 5571 0111

ATO LAUNCHES ITS SMALL BUSINESS FOCUS AREAS FOR 2025

Thu, 13 Feb 2025 21:34:03 GMT

Staying on top of the ATO’s focus areas for 2025 will help your business stay compliant and avoid unnecessary stress. The ATO has highlighted key areas where businesses often make mistakes, so you can take proactive steps to manage your tax responsibilities.

Keep Business and Personal Finances Separate

Your business’s money and assets should not be treated as your personal funds. Using company money for personal expenses without proper documentation can lead to issues with the ATO. If you take money from your business, it may be treated as a loan that needs to be properly recorded and repaid with interest. If not managed correctly, this can result in unexpected tax bills or penalties.

Claim Deductions and Concessions Correctly

Many small businesses make mistakes when claiming tax deductions and concessions. The ATO is paying close attention to how businesses apply for small business capital gains tax (CGT) concessions and report business losses. If you’re claiming a deduction, ensure you meet all the requirements to avoid having to pay back incorrectly claimed amounts or facing penalties.

Follow the Tax Rules

The ATO is cracking down on businesses that under-report income, over-claim expenses, or use business funds for personal spending. Poor record-keeping and cash flow management can also raise red flags. Good financial habits will help you stay compliant and avoid unnecessary scrutiny.

For more information from the ATO, read the full details here

RECOVERING FROM A NATURAL DISASTER: WHAT YOU NEED TO KNOW ABOUT TAX

Thu, 13 Feb 2025 20:37:14 GMT

As many of us in the local Grampians region and across Australia have faced another challenging summer, the impact of fires, unpredictable weather, and natural disasters has been deeply felt. From devastating bushfires in our own backyard to floods in other areas of the country, these events can turn lives and communities upside down. Being prepared for the unexpected has never been more important. While you’re focused on rebuilding and recovery, tax may be the last thing on your mind, but understanding the implications of assistance payments and insurance payouts can help you make informed decisions.

For financial support for the recent Western Victoria Bushfires or Queensland floods, see Services Australia website for information on the Disaster Recovery Allowance. Those affected have 6 months to make a claim and need to meet eligibility criteria, available at https://www.servicesaustralia.gov.au/who-can-get-bushfires-western-vic-dec-2024-disaster-recovery-allowance?context=80302

When you receive an insurance payout after a disaster, whether it's taxable depends on the type of asset involved:

Business assets: For business owners, insurance payouts for damaged or destroyed business assets (like equipment or inventory) are usually taxable and need to be reported as income.

Personal assets: Payouts for personal items like household goods, furniture and private vehicles are generally not taxable.

Rental properties and income-producing assets: If the insurance payout relates to a property used to produce income, it may have tax implications. For instance, if part of your home was used for a business, such as a home office, the insurance payout might affect your capital gains tax (CGT) calculations.

Your home: If the insurance payout is for your main residence, it's generally not taxable.

If you're planning to repair or rebuild your home, or if you decide to sell your property after a disaster, here’s what you need to know:

Main residence CGT exemption: If you rebuild your home, move back in as soon as practicable and live there for at least three months before selling, the property can remain exempt from CGT. This exemption also applies if you sell the land without rebuilding, provided the destroyed property was your main residence before the disaster.

Engaging contractors: It's important to ensure that any builders or contractors you hire are licensed and genuine. Check their Australian Business Number (ABN) and request written quotes and contracts to protect your rights.

Reminder: it’s important to check with Services Australia or a tax professional to understand how any assistance payments you receive may impact your financial situation. Staying informed about tax implications can help you navigate the recovery process with confidence and ensure you meet any reporting obligations.

And remember, we are here to help! Call us on 03 5571 0111 if you need assistance.

Stay Alert: How to Spot and Avoid ATO Scams

Fri, 13 Dec 2024 00:14:46 GMT

Scams via email and SMS are on the rise, and what’s more concerning is how convincing they’ve become. In our industry, many of these scams come in the form of messages purporting to be the ATO and seeking additional information from you as a taxpayer.

Here are key things to remember if you receive a suspicious email or SMS:

Watch out for messages with links that prompt you to log in to government services like myGov/myID. The ATO has recently stopped including hyperlinks in unsolicited SMS messages. So, if you receive a message claiming to be from the ATO but it contains a link, it’s almost certainly a scam.

Always access ATO services directly by typing the web address yourself: ato.gov.au or my.gov.au, or via the ATO app.

Be cautious of emails asking for personal or financial information , especially if they claim to be urgent. The ATO will never request sensitive information such as passwords, account numbers, or personal details via email, SMS, or unsolicited phone calls.

Be wary of downloading attachments or clicking on links in emails, as they may contain malware that can steal your personal information.

If you’re ever in doubt, contact our office on 03 5571 0111. As your tax agent, we can verify whether any communication you’ve received from the ATO is legitimate and advise you if you think your security has been compromised.

Proposed changes to HELP loans could mean lower repayments in 2025

Wed, 11 Dec 2024 00:43:34 GMT

If you're one of the millions of Australians with a Higher Education Loan Program (HELP) debt, you might be wondering how the government's proposed changes to HELP loans could affect you. While these changes are subject to the passage of legislation, they are proposed to take effect by 1 June 2025.

One of the most significant aspects of the proposed changes is a one-off 20% reduction in all HELP debts. This reduction would be automatically applied by the ATO before the annual indexation on 1 June 2025. For example, if you have a HELP balance of $27,600, you could expect a reduction of approximately $5,520 in your debt.

From 1 July 2025, the minimum income threshold for making compulsory HELP repayments is proposed to increase from $54,435 to $67,000. This means you’ll only start repaying your HELP debt once your income exceeds $67,000. The new repayments will be calculated only on the income above this threshold, but the rates will be higher compared to the current system. Here are the proposed new marginal repayment rates:

income below $67,000: no repayment required.
income between $67,001 and $124,999: 15 cents for each dollar over $67,000
income above $125,000: $8,700, plus 17 cents for each dollar over $125,000.

Another crucial change is the proposed capping of the HELP indexation rate. Once the legislation is passed, the indexation rate will be set at the lower of either the consumer price index (CPI) or the wage price index (WPI). This adjustment will be backdated on all existing HELP, VET student loans, and other similar accounts from 1 June 2023. As a result, if your HELP balance was indexed based on the CPI in 2023 and 2024, the ATO will adjust your account to reflect the lower indexation, potentially providing a refund if your balance falls below zero.

If you would like more information on this topic, please contact our office on 03 5571 0111.

FBT and Tax Considerations for End-of-Year Parties and Gifts

Tue, 10 Dec 2024 21:59:36 GMT

FBT and Tax Considerations for End-of-Year Parties and Gifts

As the end-of-year season approaches, it's a great time to celebrate with your employees and show appreciation for their hard work throughout the year. However, it's essential to understand the potential tax implications, particularly concerning fringe benefits tax (FBT), when planning holiday entertainment or gifts for employees.

FBT is a tax employers pay on certain benefits provided to their employees or employees' associates (like family members). When planning a festive gathering, such as a Christmas party, it's crucial to determine if your event might attract FBT.

Here are some key points to consider:

• Location and attendees: If your party is held on business premises during a working day and is only for current employees, you generally won't have to pay FBT on food and drinks. However, if the event is off-site or includes employees' associates, you might need to consider FBT, unless the cost per person is under $300 and deemed a minor benefit.

• Entertainment and gifts: If you provide gifts alongside the party, remember that gifts under $300 per person can also qualify as minor benefits, exempting them from FBT. However, if gifts exceed this amount, FBT may apply.

• Including your clients: Costs related to clients attending your event are not subject to FBT. This means you can invite clients without worrying about FBT implications for their expenses.

When it comes to calculating FBT on entertainment-related benefits, you have a few options:

• Actual value method: This method involves calculating the actual cost of the entertainment provided to employees and their associates. If non-employees are involved, you need to apportion the costs accordingly. For example, if you host a dinner where employees and clients are present, only the portion related to employees is considered for FBT.

• 50:50 split method: If you hire or lease entertainment facilities (such as a corporate box or function room, this method allows you to allocate 50% of the total entertainment leasing expenses to FBT, regardless of whether it's for employees, clients or others. This can simplify calculations but might not always be the most cost-effective approach.

• Meal entertainment valuation: If the entertainment involves meals without recreational activities, you can use meal entertainment valuation methods. Options include the 50:50 split or the 12-week method, where you track meal costs over a period and determine the taxable portion related to employees. Both of these options are based on your expenditure on all meal entertainment for all people during the FBT year.

*Important considerations*

• Recordkeeping : It's essential to maintain accurate records of all entertainment expenses, including costs, recipients and the calculation methods you’ve used.

• Tax deductions and GST credits : Generally, if your event is exempt from FBT, you cannot claim income tax deductions or GST credits for the associated costs.

• Gifts to clients: If you’re giving gifts to clients, it's important to note that these are typically not subject to FBT. However, you may be able to claim a tax deduction for such gifts, provided they aren’t classified as entertainment.

Celebrating a Milestone: Brentnalls Ranked 33rd Nationwide

Fri, 22 Nov 2024 04:50:44 GMT

Celebrating a Milestone: Brentnalls Ranked 33rd Nationwide

At CoggerGurry, we believe in hard work, innovation, and unwavering commitment to our clients and community. We are proud to share an incredible milestone with the Brentalls Affiliation being ranked 33rd nationwide in the prestigious Top 100 Accounting Firms for 2024 as published in the latest Financial Review.

As proud members of the Brentnalls Affiliation—a select network of just seven firms driven by collaboration and excellence—the team at CoggerGurry are continually empowered to grow, learn, and achieve success. Together, we are setting a standard of excellence in the accounting industry, and this acknowledgment is a shared victory for all of us.

This recognition reflects not only the expertise and dedication of the Brentalls group, but also our talented team and the trust and loyalty of our clients. Every conversation, strategy, and solution we’ve provided has contributed to this achievement.

“This ranking reflects the collaborative strength of the Brentnalls Affiliation, the dedication of our team and the loyalty of our clients,” said Andrew Heazlewood, Director at CoggerGurry and Chair of the Brentnalls Affiliation. “We are incredibly proud of this collective achievement and deeply grateful for the trust our clients continue to place in us.”

We extend our thanks to our clients, staff, and the Brentnalls Group for their contributions to this achievement. Your trust and support are the cornerstones of our success.

As we celebrate this milestone, we look forward to continuing to provide innovative and reliable services. Here’s to many more achievements together!

You can read more about the Brentnalls Affiliation here

To speak with us about how we can help you, call our office on (03) 5571 0111 or email reception@coggergurry.com.au

SMSF's Seminar and Superannuation Division 296 Update

Tue, 19 Nov 2024 01:22:02 GMT

We recently hosted an insightful seminar on Self-Managed Super Funds (SMSFs), where valuable knowledge was shared by our expert presenters. The session covered everything from SMSF setup to compliance, and we were thrilled by the positive feedback from attendees who left with a deeper understanding of managing their own super. Thank you to our presenters for delivering such a comprehensive session! If you missed out, stay tuned for our upcoming events – we’ve got more great learning opportunities lined up for 2025.

As part of our commitment to keeping you informed about important changes in superannuation, we wanted to share an update on the proposed Division 296 tax. This potential new tax will apply to individuals with superannuation balances exceeding $3 million at the end of the financial year (starting with 30 June 2026 for its first year).

Key Insights on Division 296

If enacted, Division 296 will introduce an additional tax, separate from existing fund and personal taxes. Here’s a quick summary of how it will work:

Who Is Affected?

Division 296 will apply only to individuals with superannuation balances over $3 million at the end of the financial year.

How Will It Be Calculated?

The tax will be calculated as 15% of a specific proportion of superannuation earnings (Please note that terms are still being clarified).

Personal Tax, Not Fund Tax

Unlike current super taxes, Division 296 is a personal tax, issued to the individual (or their tax agent) rather than the super fund. Individuals will have 84 days to pay the tax and can choose to pay it personally or have the amount released from their super fund.

We understand this new tax may add complexity to your superannuation planning. Our team is here to help clarify how Division 296 might impact you and discuss strategies to manage this change effectively.

If you’d like to discuss Division 296 in more detail and how it may affect your retirement strategy, we encourage you to make an appointment with one of our advisors. Contact Toni Wright on (03) 5571 0111.

We’re here to provide guidance and support to help you navigate these changes with confidence.

CoggerGurry Attends Brentnalls Affiliation Conference in Sydney

Tue, 19 Nov 2024 01:17:02 GMT

Recently, Directors Andrew, Stacey, Toni, and Practice Manager, Erin, represented CoggerGurry at the Brentnalls Affiliation Conference in Sydney, joining professionals from other Brentnalls-affiliated firms across Australia and New Zealand.

This conference agenda focused on critical developments in accounting, including updates on superannuation and the proposed Division 296, new career pathways introduced by CAANZ to support emerging talent in accounting, and a valuable workshop on strategy and people development and succession planning.

Networking and benchmarking were also highlighted as key benefits of conference and being part of the Brentnalls Affiliation. As part of this network of independent chartered accounting firms spanning major cities like Brisbane, Sydney, Melbourne, and Perth, CoggerGurry gains access to a broad range of knowledge, resources, and best practices that are often challenging to replicate for regional firms.

Our association with Brentnalls allows us to focus on innovation and brings additional depth to our service offerings, ultimately benefitting our clients with a unique service approach and enriched resources. We are proud to be part of an affiliation recognised consistently among the BRW Top 100 Accounting Firms, which further strengthens our commitment to delivering the highest quality of professional services to our clients.

Through these conferences, CoggerGurry stays at the forefront of industry advancements, continuously enhancing our ability to provide best practice outcomes for our clients.

For more information, call CoggerGurry on (03) 5571 0111 or email reception@coggergurry.com.au

On-Farm Drought Infrastructure Grants Available

Mon, 18 Nov 2024 22:15:40 GMT

The Victorian Government is providing practical support to farmers in south west Victoria impacted by drought with grants for farm upgrades that will provide short term benefits and build future resilience.

A $13.53 million Drought Support Package was announced by the Premier and Agriculture Minister on 30 September 2024.

The package includes $12.1 million for grants to help farmers prepare their properties for ongoing drought and dry seasonal conditions.

The On-Farm Drought Infrastructure Grants Program provides financial assistance to farmers to strengthen drought preparedness and the longer-term viability of their farm businesses.

Grants of up to $5,000 are available. A dollar-for-dollar co-contribution is required by the grant recipient. The grant program is being administered by Rural Finance on behalf of the Victorian Government. Applications will be processed in order of receipt and the program will close when all funds are allocated.

Eligible farmers can apply for grants for on-farm improvements including water infrastructure upgrades, stock containment areas, grain and fodder storage and drought management tools such as soil moisture monitors and weather stations.

A full list of eligible activities is available in the program guidelines.

To apply visit ruralfinance.com.au or call 1800 260 425 during business hours.

For more information on drought support available visit agriculture.vic.gov.au/dryseasons , email drought.support@agriculture.vic.gov.au , or call 136 186.

Vacant Land Tax Reminder - Deadline is 15 January 2025

Mon, 18 Nov 2024 22:11:47 GMT

Important Changes to Victoria’s Vacant Residential Land Tax in 2025

Starting 1 January 2025, Victoria's Vacant Residential Land Tax (VRLT) will expand beyond Melbourne to cover all residential properties statewide. If your property is vacant for more than six months in 2024, you could be liable for this tax.

Previously, this tax only applied to properties in Melbourne’s inner and middle suburbs. The new rules will introduce progressive tax rates based on how long a property remains vacant:

1% of the property's value for the first year
2% for the second consecutive year
3% for the third year onwards

This change aims to encourage property owners to put vacant homes to better use. Exemptions still apply for holiday homes, renovations, and new acquisitions, but criteria are tightening, so careful planning is crucial.

Please note: You must still register by 15 January 2025 even if an exemption applies.

How We Can Help

At CoggerGurry, we’re here to help you navigate these changes:

Assess if your property is impacted
Identify potential exemptions
Manage compliance to avoid penalties

If you need support to prepare for these changes, get in touch with our team today! Call our office on (03) 5571 0111

Source: State Revenue Office website

Victoria's New Short Stay Levy: What It Means for Short-Term Rental Hosts and Property Owners

Mon, 18 Nov 2024 00:44:38 GMT

Victoria's New Short Stay Levy: What It Means for Short-Term Rental Hosts and Property Owners

In a move to boost affordable housing, Victoria is introducing a 7.5% short stay levy effective January 1, 2025. This levy targets short-term rentals booked for less than 28 days, including holiday homes, apartments, and guest units, regardless of the booking platform or direct arrangement. Here’s a comprehensive look at the levy’s impact, the responsibilities for hosts and property managers, and the specific guidelines surrounding its implementation.

Why a Short Stay Levy?

The new short stay levy has been established to address Victoria's housing affordability issues. Funds collected from this levy will go directly towards affordable housing projects managed by Homes Victoria. With the housing market’s tight supply and rising costs, especially in metropolitan and popular tourist areas, this initiative is set to generate additional resources to benefit the broader Victorian community.

What Properties Are Affected?

The levy applies to a broad range of properties used for short-term stays under 28 days, including:

Entire homes or apartments: Vacation rentals of full properties.

Guest units on residential land: Self-contained units separate from the main dwelling.

Private room/s in a house: where the house is not a person’s primary residence

Hotels, motels, and other types of commercial lodgings are exempt, as are stays within a primary residence. This means if a homeowner rents out a spare room in their primary residence, it won’t fall under the levy requirements. This structure aims to focus the levy on properties exclusively dedicated to short-term rentals, which often contribute to the decrease in long-term rental availability in the state.

Host Responsibilities and Compliance

Property owners and managers need to be aware of their responsibilities under the new levy:

Registration Requirement: Hosts must register properties with the State Revenue Office (SRO) if they fall under the levy’s scope, no later than 30 days after the return period. If collecting less than $75,000 in total booking fees in a calendar year, you will need to lodge and pay annually. If great than the $75,000 threshold, your return periods will be quarterly – 1 January, 1 April, 1 July and 1 September.

Levy Collection and Payment: The 7.5% levy applies to the total accommodation cost for each booking under 28 days. Hosts are responsible for accurately calculating and remitting the levy, whether bookings are managed directly or through platforms like Airbnb or Stayz.

Reporting Requirements: To maintain compliance, hosts will likely need to report rental income related to short stays regularly, documenting stays and levy payments for accuracy and transparency. Failing to comply could lead to penalties, so ensuring proper systems and records are essential.

Key Considerations for Short Stay Hosts

For those operating short-term rentals in Victoria, it’s important to consider the levy’s impact on pricing and booking processes:

Pricing Adjustments: Hosts may consider adjusting nightly rates to incorporate the additional cost of the levy. Transparent communication in listings and booking details can help maintain trust with guests.

Impact on Demand: While the levy’s ultimate effect on demand remains to be seen, understanding the financial commitment involved is crucial for short stay hosts, especially as this initiative is aimed at reducing the number of homes solely used for short-term rentals.

Potential Exemptions and Reductions: The SRO has specified that only properties entirely dedicated to short-term rentals fall under this levy. This could encourage homeowners to explore alternative approaches, such as long-term rentals or renting out a room within their primary residence, which are exempt.

Transitional Arrangements

To assist with the introduction of this levy, transitional rules mean the short stay levy will only apply to bookings made on or after 1 January 2025.

Bookings made before 1 January 2025 but the stay occurs after this date will not be included when calculating the levy.

Preparing for the January 1, 2025 Implementation

With the levy going into effect at the start of the new year, hosts have a few months to get their systems and processes in place. Here are some steps to consider:

Review Property Listings: Clarify pricing and booking terms, updating descriptions to reflect the new levy if it impacts the final cost for guests.

Stay Updated on SRO Guidelines: As January 2025 approaches, the SRO is expected to provide further details to support hosts and answer common questions.

Evaluate Financial Projections: Factoring the levy into financial planning is essential, especially for hosts who rely on short-term rentals as a significant income source.

Final Thoughts

The introduction of Victoria’s short stay levy represents a significant step in addressing the state’s housing issues. As it rolls out, staying informed and compliant will be crucial for property owners to avoid fines and ensure a smooth transition. This levy not only brings a change in the financial landscape for short-term rentals but also highlights Victoria’s commitment to improving housing accessibility.

For more details, including registration steps and levy-specific guidelines, visit the official SRO Victoria page on the short stay levy.

Contact Stacey Shelden or your tax advisor at CoggerGurry for assistance. T: (03) 5571 0111

Source: State Revenue Office website

SMSF's - Making Super Work For You Business Seminar

Wed, 25 Sep 2024 04:35:33 GMT

Save The Date : SMSF's - Making Super Work For You

Tue, 03 Sep 2024 04:20:13 GMT

SAVE THE DATE

SMSF's - Making Super Work For You

October 15 2024, 9AM - 11AM

Hamilton Exhibition and Conference Centre

Shakespeare St, Hamilton VIC 3300

Understanding Farm Household Allowance: Support for Farmers

Tue, 03 Sep 2024 04:01:10 GMT

Farm Household Allowance (FHA) is a critical support program designed to assist Australian farmers and their partners facing financial hardship. Whether due to unexpected weather conditions, illness, or market changes, FHA offers a safety net to help farming families regain stability.

What is Farm Household Allowance?

FHA provides eligible farmers with income support, delivered at the same rate as the JobSeeker Payment or Youth Allowance, for up to 4 years within a 10-year period. This allowance can be utilized as needed and does not have to be claimed consecutively. In addition to income support, FHA offers access to a $10,000 Activity Supplement to fund skill development or financial advice, and up to $1,500 for a professional financial assessment. Recipients also receive a Health Care Card, providing further cost-of-living relief.

How the Activity Supplement Can Help

The Activity Supplement is a significant part of the FHA program, designed to help farmers build resilience and improve their financial stability. The $10,000 supplement can be used for a wide range of activities, including accessing expert advice, training, and professional services that can enhance both on-farm and off-farm skills. For example, farmers can use the funds to hire agronomists, attend business courses, or seek financial planning advice. This support enables farming families to not only address immediate financial difficulties but also to build a stronger, more sustainable future.

Who is Eligible?

Eligibility for FHA depends on meeting specific income and asset tests, with net farm and personal assets needing to be below $5.5 million and income must be below the cut-off for the JobSeeker Payment income test amount (see Cut-off points tables below). It’s essential not to self-assess eligibility but to apply and allow Services Australia to determine your qualification.

Source: Services Australia website

How CoggerGurry Chartered Accountants Can Help

Applications can be submitted online through a myGov account linked to Centrelink. For those unable to apply online, paper forms are available. At CoggerGurry Chartered Accountants, we understand the complexities of managing farm finances, especially during challenging times. Our team can guide you through the FHA application process, ensuring all necessary documentation is complete and accurate. We can also assist in making the most of the Activity Supplement by connecting you with relevant experts and advisors. Whether you need help with financial planning, business strategy, or improving your farm operations, we can support you in utilizing these funds effectively.

For personalized assistance, contact CoggerGurry Chartered Accountants today and let us help secure your financial future.

Investment Properties & Tax

Tue, 03 Sep 2024 03:51:25 GMT

Benefits, costs and key considerations

If you’re considering investing in property, you must understand the tax consequences. In Australia, like many other parts of the world, owning an investment property offers potential tax benefits and costs. From claiming deductions on interest payments and holding costs to understanding the nuances of Capital Gains Tax (CGT), property investors need a comprehensive grasp on these matters to make the most out of their investments.

Property investment tax benefits

Interest payments and holding costs

Owning a rental property comes with its share of expenses. However, many of these costs can be claimed as tax deductions if your property is up for rent or already rented out.

For property owners, ongoing expenses that can be used as a tax deduction are:

- The interest accumulating on a mortgage used to purchase a rental property.

- Property Management fees

- Council Rates

- Water Rates

- Land taxes

- Insurance Coverage

- Repairs & Maintenance

- Other upkeep-related costs such as general cleaning or landscaping & gardening.

Claiming depreciation on rental assets

When you purchase items for your rental property, such as new appliances, they lose value over time due to wear and tear. You can claim this loss in value as a tax deduction, often referred to as tax depreciation or capital allowance, and spread across the useful lifespan of that item.

Claiming for construction and renovations

You can claim these expenses as deductions if you’ve undertaken construction or renovation projects at your rental property. Typically, these capital works deductions are spread out throughout 25 to 40 years. The exact time frame will depend on the construction’s start date, purchase date, and intended use.

Offsetting losses with negative gearing

When your rental property’s expenses exceed earnings, resulting in a net loss, this is termed “negative gearing.” The upside to negative gearing is that you might be able to leverage this loss to counterbalance income from other sources, ultimately lowering your taxable income for the year.

Four types of tax on investment property

Income tax

The income from your rental property is subject to tax, just like your regular income. When lodging your income tax return, you must include the rental income alongside any other earnings, such as your salary or profits from other investments.

Capital Gains Tax (CGT)

If you are thinking of selling your rental property, be prepared for the potential of Capital Gains Tax. If you make money when selling your rental property, that profit is seen as a “capital gain.” This profit needs to be reported on your yearly tax return. The extra tax you owe because of this added profit is called Capital Gains Tax or CGT, and is taxed at your marginal tax rate.

Stamp Duty Tax

When you buy an investment property, you must pay a stamp duty tax. This tax is due when the property’s ownership changes hands from the seller to the buyer.

The Australian Taxation Office (ATO) doesn’t let you claim this as a tax deduction on your income tax return, but it can be added to the asset’s cost base for CGT purposes.

Stamp duty varies depending on:

The state you’re in
The property’s price
If you’re a first-time buyer

Land Tax

Land tax is different from stamp duty. While you pay stamp duty just once when you buy a property, land tax is an ongoing charge based on the land’s value unless the property is your primary home (often referred to as Principal Place of Residence or PPOR).

Every state and territory has a land tax rate based on the land’s “unimproved value.” This means that the value of buildings, walkways, landscaping, or fences on the land is not included when calculating land tax.

Land tax rates and thresholds for each state or territory are available on the Revenue Office websites for each state. Please note the Victorian Land Tax Rates are included in the table below.

If you want to learn more about the tax implications of holding property, contact us today.

Tax Time Scams

Tue, 03 Sep 2024 03:50:31 GMT

An ever-increasing number of email and SMS scams are doing the rounds in 2024, but perhaps most troubling is the fact that they are becoming increasingly believable.

In our industry they are typically sent from scammers purporting to be the ATO and seeking additional information to you as a taxpayer.

Key things to remember if you are confronted with a suspicious email or SMS.

Look out for messages containing a link that asks you to log in to a government service such as myGov. The ATO has recently removed all hyperlinks in unsolicited, outbound SMS, so if you’ve received a message that appears to be from the ATO but contains a link, it’s a scam.
You should always access ATO services by visiting ato.gov.au or my.gov.au, or via the ATO app.
Be careful of emails requesting personal or financial information, especially if they claim to be urgent or time sensitive. The ATO will never ask for passwords, account numbers, or other sensitive data via email, SMS or unsolicited phone calls.
Be wary of downloading attachments or opening email links. They can infect your computer with malware, leading to information being stolen.

In summary, if in doubt call CoggerGurry on 03 5571 0111, as your tax agent we can confirm any correspondence from the ATO or provide advice if you think you’ve had your security breached.

ATO Lodgement Dates in August

Thu, 01 Aug 2024 02:38:55 GMT

21 August – Lodge and pay July 2024 monthly activity statements

25 August – Lodge and pay June 2024 quarterly activity statements

New Annual Not-For Profit (NFP) Self-Review Reporting Obligations

Thu, 01 Aug 2024 02:36:11 GMT

Are you involved in a local NFP group or association? You may not be aware that there is a new annual reporting requirement to notify the ATO of the organisation’s income tax exempt eligibility.

From 1 July 2023, non-charitable NFP organisations with an active Australian Business Number (ABN) that self-assess as income tax exempt are required to lodge an annual self-review return with the Australian Tax Office (ATO). Until now, NFP organisations that self-assess had not been required to report annually to the ATO.

The following 8 categories are income tax exempt entities that can self-assess their eligibility for income tax exemption:

Community Service Organisations
Sporting Organisations
Cultural Organisations
Educational Organisations
Health Organisations
Employment Organisations
Resource Development Organisations
Scientific Organisations

If you are involved with a NFP association you may have received a notice from the ATO alerting you of this new requirement however if you have any questions or require assistance with completing the form, we are here to assist you.

GST Refresher For Your Business

Thu, 01 Aug 2024 02:29:52 GMT

GST is paid at each step in the supply chain, and registered businesses charge GST in the price of goods, services or anything else they supply. GST collected on the sale of goods and services made by registered businesses must be remitted to the ATO via the business’s Business Activity Statement. The end consumer merely pays the GST at time of purchase to the supplier, and the supplier is responsible for paying it back to the ATO. If an entity is registered for GST, it can claim input tax credits from the ATO for any GST included in the price paid for goods, services or anything else bought for the business.

GST issues to keep in mind

You may want to keep some of these GST issues in mind:

Second Hand Goods

Buying second-hand can often be cheaper. However, in most cases they are purchased from a non-GST registered seller. Unless the seller is registered for GST you will not be able to claim the GST on the purchase. If you are registered for GST, don’t forget to charge GST when you sell your business assets regardless of whether the purchaser is registered for GST or not.

Deposits

The purchase of a significant asset often requires a deposit to be paid. Suppose you report GST on a cash basis. In that case, you will not be entitled to claim a GST input tax credit on the deposit at the time of paying. If you haven’t claimed GST when paying the deposit, make sure to claim GST on the total purchase price, including the deposit, when the deposit is later applied towards the asset’s cost (which may occur in a later BAS reporting period).

Purchasing a car for more than the car limit

Your GST input tax credit will be limited if you purchase a car with a cost that exceeds the tax car cost limit for depreciation. The car cost depreciation limit is the maximum you can claim as depreciation deductions for income tax purposes ($69,674 in 2024-25). Where the cost of your car exceeds this value, your GST claim is limited to 1/11th of the car limit.

Small but not insignificant

Bank Fees

Ordinary monthly bank account charges won’t include GST, but merchant fees do, so check your accounting system is set up to capture the GST on those merchant fees.

Insurance Policies

Insurance policies often include a small stamp duty component, which does not attract GST. You may be overclaiming GST if your accounting software is set up to claim a full 10% GST (or 1/11th of the premium cost).

Registrations

In Victoria, the vehicle registration is broken up into 3 parts: Registration Fee, TAC Charge and Duty Insurance. Only the TAC Charge includes GST; the other 2 components are GST Free.

Remember, the best way to maximise your GST claims is by checking your tax invoices for GST paid (you have four years to claim the GST) and then keeping those and other GST records for five years.

Claiming Car Expenses - Which Method?

Thu, 01 Aug 2024 02:08:33 GMT

The ATO has announced that the cents per kilometre rate have now increased to 88 cents per kilometre for 2024/2025.

There are two methods to claim work-related car expenses as follows:

Cents per kilometre method

This method is easier for record-keeping, involves simpler calculations, and is suited to those with less vehicle use.  You simply record the number of kilometres you are travelling for work or business over the duration of the year, and you claim these using a set rate. 

The drawback of this method is that you are limited to a maximum of 5000 work-related or business kilometres per year. That gives you a total maximum claim of $4,400. Thus, if you are using your car a lot for work, you may find that this method is quite limiting. 

Logbook Method

This method can allow for greater claims depending on how much you use your car for work or business. Each logbook you keep is valid for five years.

However, there are more record-keeping requirements – the main one being that you must keep a 12-week logbook that records all your business and private trips for those 12 weeks. At the end of the 12 weeks, you calculate your work-related or business percentage use, and you can claim that percentage of all deductions for your car. 

You must also keep all receipts for fuel, insurance, registration, interest, and servicing throughout the year. As mentioned, despite the additional effort, it can often lead to a greater claim if you use your car a lot for work and business. 

Please note that for the 2023/2024 financial year the rate was 85 cents per kilometre.

Meet Julie Donovan

Fri, 05 Jul 2024 04:25:58 GMT

Julie grew up in Belgrave in Melbourne’s outer South East where she continued to live locally until moving to Hamilton in late 2017, after visiting family here regularly for more than 15 years.

In 2018 her family purchased a farm in Branxholme where they agisted cattle and ran their own sheep. Julie now lives in Hamilton with her 2 teenage children.

In her spare time Julie is a trainer for the Branxholme Wallacedale Football club where her daughter also plays netball.

She has around 20 years of accounts experience, most recently as Mulleraterong Centre Inc’s Finance Officer for 6 years.

Congratulations Chloe Meyers

Fri, 05 Jul 2024 04:05:22 GMT

Chloe has recently completed her Bachelor of Commerce, Majoring in Accounting and Finance. Congratulations Chloe. Well done on this milestone of an achievement, we look forward to your future endeavors!

We are also celebrating Chloe being part of the CoggerGurry team for 5 years. Chloe began working in reception before deciding to study accounting and joining our Cadetship Program. At this time Chloe moved into a Bookkeeper role. She is a hard working and efficient member of our team, always ready to help clients and colleagues with a smile and approachable attitude.

Congratulations Chloe!

ATO Lodgement Dates in July

Thu, 04 Jul 2024 02:16:44 GMT

14 July 2024 - Due date for single touch payroll (STP) finalisations through payroll software.

28 July 2024 - Due date to pay June 2024 quarterly PAYG instalments.

28 July 2024 - Due date for employers to pay super guarantee contributions for the June 2024 quarter.

Single Touch Payroll (STP) Finalisation

Thu, 04 Jul 2024 00:33:14 GMT

All employers need to make a year-end finalisation declaration by 14 July each year, which is simply notifying the ATO that the payroll information for all employees reported through STP for the year is complete and correct. Once finalised you should inform each employee so they know they can access their finalised information to complete their tax return.

If you are unable to make a finalisation declaration on or before the due date, you will need to apply for a deferral.

Complying with STP finalisation means the employer is exempt from having to provide payment summaries or lodging a payment summary annual report.

The 2024 STP finalisation can be made through your payroll software. If you need any further assistance with reconciling your payroll for accuracy or completing a STP finalisation, please contact our office.

Superannuation Guarantee Rate Changes

Mon, 01 Jul 2024 23:59:29 GMT

The superannuation guarantee (SG) rate increase from 1 July 2024 will see more employees entitled to additional SG contributions to their superannuation fund.

On 1 July 2024, the SG rate increased from 11% to 11.5%. In some cases, an employee’s pay period will cross over between June and July when the rate increases. However, the percentage employers must apply is determine based on when the employee is paid, not when the income is earned. The rate of 11.5% will need to be applied to all salaries and wages paid on or after 1 July 2024, even if some or all of the pay period relates to is before 1 July 2024.

This means that if the pay period ends on or before 30 June, but the pay date falls on or after 1 July, the 11.5% rate applies to those salary wages.

Most accounting software will automatically update the SG rate to the 11.5%, however employers should review to ensure that the correct rate is being applied.

Farewell Alan Oakley

Tue, 11 Jun 2024 04:52:11 GMT

After 12 years at CoggerGurry Alan Oakley is retiring at the end of June.

Over the years Alan has worked in multiple areas of the business, with many clients, all who have appreciated his approachability, expertise and problem solving. His background in financial planning meant Alan could assist clients navigate the complexities of Centrelink. He has also worked with clients to review financial arrangements and obtain new finance as required.

All the team will miss his work ethic, sense of humour and kindness.

We wish Alan well in his retirement and look forward to hearing his golf and travel stories . . . and ongoing theories about Carlton’s form.

Meet Kieran Neeson

Tue, 11 Jun 2024 04:51:33 GMT

Kieran grew up locally on a farm at Nareen north of Coleraine and completed his schooling in Hamilton. Post schooling, he took a “gap year” and first began working within the Tax Services team at CoggerGurry over a 12 month period. Following this he moved to Melbourne to complete a Bachelor of Commerce at Deakin University. During his tertiary studies he returned to Hamilton and to recommence his role at CoggerGurry while finishing his degree.

During his 5-year period away from the firm Kieran completed further studies to become a full member of CPA Australia with areas studied including Taxation and Management Accounting.

Outside of work he enjoys all things sport, currently playing football with Penshurst Football Netball Club and a keen supporter of the Fremantle Dockers. Any other spare time is spent with his partner Cassie and their 2 daughters.

ATO Lodgement Dates in June

Tue, 11 Jun 2024 04:51:12 GMT

21 June - Due date to lodge and pay monthly activity statements for May 2024.

25 June - Due date to lodge fringe benefits tax returns for the FBT year to 31 March 2024.

30 June - End of the 2023/24 income year.

30 June - Superannuation guarantee contributions must be paid by this date to qualify for an income tax deduction in the 2023/24 year. Check with your superstream provider when super contributions need to be processed by to make the 30 June 2024 cut off.

30 June - Due date for recipients of Child Care Subsidy and Family Tax Benefits from Services Australia to lodge 2022/23 tax returns, regardless of any deferrals granted.

Gifts and Donations

Tue, 11 Jun 2024 04:50:29 GMT

You can only claim a tax deduction for a gift or donation to an organisation with the status of a deductible gift recipient (DGR). A DGR is an organisation or fund that registers to receive tax-deductible gifts or donations.

The second condition is that you must not receive any material benefit from your donation. You voluntarily transfer money or property without obtaining or expecting any material benefit or advantage in return. A material use is something that has a monetary value.

Most DGRs will issue you a receipt for your donation, but they’re optional, too. You can still claim a deduction using other records, such as bank statements if you don’t have a ticket.

If a DGR issues a receipt for a deductible gift, the ticket must state:

the name of the fund, authority, or institution to which the donation has been made.

the DGR’s Australian business number (ABN) (some DGRs listed by name in the law may not have an ABN).

that it is for a gift.

Tax Checklist

Tue, 11 Jun 2024 04:49:07 GMT

With the end of the financial year fast approaching, have you completed all transactions necessary to ensure full compliance with your tax needs.

If you have a Self-Managed Superannuation Fund (SMSF) please ensure that any contributions and rent are made, and you have withdrawn your minimum pension. If you need assistance with this or are unsure, please contact our office as soon as possible.

If you want to make any withdrawals or deposits to your FMD’s, please ensure this has been completed prior to the end of the financial year.

Any personal super contributions need to be made at least by Friday the 21st of June to ensure that it is received by the fund by 30 June 2024 to qualify for an income tax deduction in the 2023/24 income year.

If you have a trust make sure you have actioned your trust resolutions to determine the distribution of income.

If you pay staff and want to claim a tax deduction for SGC super paid for your employees before 30 June, it must be paid to the fund prior to the superstream cut off date.

CoggerGurry Sponsorships

Thu, 16 May 2024 07:13:44 GMT

Proud sponsors of Branxholme Wallacedale Football Netball Club in 2024.

2024 Budget - Personal Tax Rates

Thu, 16 May 2024 07:06:58 GMT

In the 2024–2025 Federal Budget, the Government did not announce any further changes to the personal tax rates.

The Government’s revised Stage 3 tax changes (as announced on 25 January 2024 and enacted into law by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 ) commence from 1 July 2024. The Treasurer said all 13.6 million taxpayers will receive a tax cut from 1 July 2024. The average annual tax cut is $1,888 (or $36 a week).

The tax rates and income thresholds from the 2024-25 for residents (as already legislated) are:

• taxable income up to $18,200 – nil;

• taxable income of $18,201 to $45,000 – nil plus 16% of excess over $18,200;

• taxable income of $45,001 to $135,000 – $4,288 plus 30% of excess over $45,000;

• taxable income of $135,001 to $190,000 – $31,288 plus 37% of excess over $135,000; and

• taxable income of more than $190,001 – $51,638 plus 45% of excess over $190,000.

This means, when compared to 2023–2024, that for 2024–2025 the 19% tax rate has been reduced to 16%; the 32.5% tax rate has been reduced to 30%; the 37% tax rate threshold has been increased from $120,000 to $135,000; and the 45% tax rate threshold has been increased from $180,000 to $190,000.

2024 Budget - HECS/HELP debt

Thu, 16 May 2024 07:05:18 GMT

The Government recently proposed changes to HECS/HELP debt contained in the budget papers.

A student who receives a HELP loan under any of the student loan schemes has an “accumulated HELP debt” with the ATO. The loan is subject to yearly indexation but is otherwise interest-free.

Loans that are covered by the system include the following:

• HECS-HELP;

• FEE-HELP;

• OS-HELP;

• SA-HELP;

• Student Start-up Loan (SSL) Scheme;

• ABSTUDY Start-up Loan (ABSTUDY SSL) Scheme; and

• Australian apprenticeship support loan (AASL) scheme (renamed from the Trade Support Loan (TSL) Scheme).

HELP debts are repaid through the tax system (voluntary repayments can be made at any time). The amount to be repaid each year is a percentage of the taxpayer’s HELP repayment income (and is notified on the income tax assessment for the year). The percentage increases as the HELP repayment income increases.

Indexation is applied to any HECS/HELP debt that’s older than 11 months, once a year on 1 June. The CPI number is currently used to index debts and it was recently announced that debts will increase by 4.7% on 1 June 2024. In addition, inflation pushed the indexation rate for 2022–2023 debts to 7.1%, the highest since 1990. This generated much negativity and the Prime Minister subsequently announced that “there’d be help on HECS” as part of the Budget.

Indexation changes

The Government has flagged two proposed changes (which require legislative amendments to the Higher Education Support Act 2003 ).

First, the indexation factor will be the lower of the CPI or the Wages Price Index (WPI). The quarterly WPI measures change in the price of wages and salaries in the Australian labour market over time. In a similar way to the CPI, it follows changes in the hourly rate paid to a fixed group (or “basket”) of jobs. More can be found about it on the ABS website.

Second, the change will be backdated to 2022–2023, meaning the new system will apply to the 2022–2023, 2023–2024 and following years (noting again that the factor is applied to debts on 1 June, not 1 July).

As the WPI was lower than the CPI in 2022–2023, the indexation that was applied on 1 June 2023 will be retrospectively cut from 7.1% to 3.2%. This means that students with an outstanding debt will have it reduced with effect from 1 June 2023. Those students who have subsequently paid off their debt based on the 7.1% rate presumably will be eligible for some sort of refund.

If you would like to know more or want to make a voluntary repayment please contact us at CoggerGurry.

2024 Budget - $20,000 instant asset write off small business

Thu, 16 May 2024 06:59:39 GMT

The Government will extend the instant asset write-off concession for small businesses for another 12 months.

This will allow small businesses with turnovers capped at $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use for a taxable purpose between 1 July 2024 and 30 June 2025.

The deduction is available in the income year in which the taxpayer first uses the asset, or first installs it ready for use, for a taxable purpose. The deduction is known as the “instant asset write-off”.

Current status

In technicality, the increased instant asset write-off concession ceased on 30 June 2023. However, the Government announced last year in the 2023–2024 Federal Budget that it would be extended by one year, to finish on 30 June 2024.

That measure was contained in a Bill which is currently before Parliament (that is, it is not yet law). The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 was passed by the Senate on 27 March 2024 with one amendment relating to the instant asset write-off, which requires the approval of the House of Representatives.

The Senate amendment would:

• extend the coverage from small businesses to medium businesses, ie all entities with an aggregated turnover of less than $50 million; and

• increase the threshold from $20,000 to $30,000.

It is important to note that these proposed amendments have not been reflected in the 2024–2025 Budget announcement, which indicates that the Government will not be supporting them in the House of Representatives.

It is yet to be seen whether the Government will incorporate the 2024–2025 Budget announcement into the Small Business and Charities Bill 2023 or will reintroduce the measures for both years in a separate Bill.

Brentnalls Conference

Thu, 16 May 2024 06:59:05 GMT

In April the 54th Brentnalls National Affiliation Conference was hosted by OHM in Melbourne. Over 50 attendees from across the Brentnalls Affiliation offices congregated to participate in focus groups and sharing of ideas and information.

Guest speakers included James Mason, Simon Kuestenmacher, Alan Fitzgerald, Nick Zouros and Robyn Jacobson.

2024 Budget - Superannuation on paid parental leave

Wed, 15 May 2024 06:22:08 GMT

The Treasurer has announced that the Federal Government will pay superannuation on paid parental leave from 1 July 2025. The intention is that the superannuation will be administered by the ATO, meaning that employers will not have to process these payments on the government’s behalf.

The Treasurer has said that this reform builds on the government’s work to “modernise” paid parental leave and expand the payment to cover a full six months by 2026. The expansion to Australia’s Paid Parental Leave Scheme will give families an additional six weeks of paid parental leave in total: an extra two weeks of leave (for 22 weeks total) from 1 July 2024, increasing to 24 weeks from July 2025 and 26 weeks from July 2026.

Employers will continue to be involved in the administration of payments if an employee elects to take eight or more weeks of their entitlement consecutively. For any shorter periods, Services Australia will pay the individual directly.

ATO Lodgement Dates in May and June

Wed, 15 May 2024 06:13:16 GMT

21 May - Due date to lodge and pay monthly activity statements for April 2024

26 May - Due date to lodge and pay quarterly activity statements for the March 2024 quarter

5 June - Due date for all entities otherwise required to lodge on 15 May 2024 to lodge 2022/23 income tax returns

ANZAC Day Closure Dates

Tue, 09 Apr 2024 03:06:15 GMT

Our office will be closed on Thursday the 25th of April, and reopening on Friday the 26th of April.

Meet Lachlan Wark

Tue, 09 Apr 2024 03:02:01 GMT

Lachlan grew up in Hamilton and returned after completing University in Melbourne. Becoming a partner at CoggerGurry in 2011, Lachlan enjoys working closely with clients in a range of areas including strategic planning, structuring, and taxation.

Outside the office, Lachlan is a keen yet average cricketer, and along with his wife Jessica and young family, enjoys boating, touring, and exploring new areas of Australia.

ATO Lodgement Dates in April

Tue, 09 Apr 2024 02:54:49 GMT

28 April 2024 – March 2024 QTR Instalment Activity Statements.

28 April 2024 – Due date for employers to pay superannuation contributions for the March 2024 quarter.

15 May 2024 – Due date for all entities that did not have to lodge earlier, to lodge 2023/24 income tax returns.

If you have any concerns or issues regarding lodgement of ATO statements please be in contact with our office.

When a due date for lodgment of an approved form or payment of a tax debt falls on a day that is not a business day, you can lodge or pay on the next business day.

2024 Tax Planning

Tue, 09 Apr 2024 02:51:17 GMT

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2024.

Trust Distributions

The ATO has recently released guidance on its compliance approach and viewed on the tax treatment of income from family trusts.

In particular, it is proposing to take a stricter view on income distributions made to low-income taxpayers where other family members benefit from trusts’ funds.

It will therefore be crucial to review trust distributions for 2024 to minimise the risk of ATO review.

Superannuation Contributions

The concessional contributions cap for 2024 remains at $27,500.

For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions.

A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances.

Instant Asset Write-Off and Temporary Full Expensing

The instant asset write-off and temporary full expensing ended on 30 June 2023.

Small businesses, with aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed read for use between 1 July 2023 and 30 June 2024.

For assets that are priced at $20,000 or above, which do not qualify for immediate deduction, there is still a provision. These assets can be added to the small business simplified depreciation pool. In the first year of income, these assets can be depreciated at a rate of 15%, and in subsequent years, the depreciation rate will be 30%.

Ute or Family Car Tax?

Tue, 09 Apr 2024 02:47:01 GMT

You may have seen headlines recently such as “Ute Tax” or “ Labor’s family car tax” but what actually is this? Well, it is not a direct tax at all but an impost on car manufacturers to reduce their carbon emissions.

The federal government unveiled plans in February for a new vehicle efficiency standard “requiring car manufactures to meet certain standards on grams per kilometer of fuel used”. The proposed legislation is to be introduced to parliament in the first half of 2024 with plans to be implemented from 1 January 2025. Vehicle manufactures will be required to meet the national annual average emissions target that will be reduced over time. Those manufacturers that beat the target will earn credits and those not meeting targets will have two years to either trade credits with a different supplier or earn credits for themselves before financial penalties will be applied.

What this means is that manufacturers may incur extra costs if they continue to sell less energy efficient vehicles, and hopefully encouraging more energy efficient vehicles to be sold here in Australia. Currently the EU and US both have energy efficient standards and on average new passenger cars in Australia use 20% more fuel than in the US. SUV’s and 4WD’s have been highlighted as more inefficient vehicles and hence the headlines implying a family car or ute tax.

These standards are yet to go through parliament so we will have to watch this space as it unfolds.

For further details see:

Sources:

Press Release King, Catherine, MP Minister for Infrastructure, Transport, Regional Development and Local Government https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22media%2Fpressrel%2F9585863%22;src1=sm1

Australian Government, Department of Infrastructure, Transport, Regional Development, Communications and the Arts website:

https://www.infrastructure.gov.au/infrastructure-transport-vehicles/vehicles/new-vehicle-efficiency-standard/australian-new-vehicle-efficiency-standard-frequently-asked-questions#:~:text=support%20more%20EVs%3F-,What%20is%20a%20New%20Vehicle%20Efficiency%20Standard%20(a%20Standard)%3F,they%20must%20meet%20or%20beat .

Small Business Superannuation Clearing House And Self-Managed Superannuation Fund Bank Account Validation

Tue, 09 Apr 2024 02:42:57 GMT

If you are a either a member of a SMSF or have employees who are members of a SMSF and use the ATO Small Business Superannuation Clearing House (SBSCH) the ATO is rolling out a new security feature to assist with fraud prevention and misconduct. The new feature consists of checking for a match between an employee’s SMSF bank account details and the SMSF record when electronic payments are made via the SBSCH. Where there’s a mismatch, the SBSCH cannot accept payments to an employee’s SMSF until the error is resolved. Employees need to ensure that the bank account listed with the ATO is the one receiving contributions from their employer. This may be an issue where a SMSF has multiple bank accounts within the Fund.

If you are unsure of which bank account to process payments for an employee, please confirm with them prior to processing of the March 2024 quarterly superannuation payment. If you are an employee and are unsure of your SMSF bank account listed with the ATO please contact our office and we will be able to confirm the account to provide to your employer.

Easter Closure Dates

Tue, 12 Mar 2024 05:52:15 GMT

Our office will be closed on Good Friday and Easter Monday.

Mike Retirement

Tue, 12 Mar 2024 05:48:32 GMT

After almost 30 years of dedicated service, Mike will retire from CoggerGurry at the end of this month.

As our longest standing employee, Mike has been a constant, familiar face for as long as any of us can remember. 

In the mid 1990’s Mike moved home to the family farm at Penshurst from Geelong with his wife Andrea. He would soon join Tony Gurry at McLarty Archer & Co, initially working closely with the late Ivo McLaughlan and quickly becoming a senior member of the team. 

His background in agriculture gave him the ability to understand the issues faced by his clients and allowed him to connect closely and form wonderful relationships. 

Over the years Mike has been a keen and willing mentor to many staff helping them to find their feet. His years of experience, support and collaboration will be sorely missed by the team. 

We wish Mike all the very best for life after CoggerGurry and a wonderful retirement. 

Xero Cloud-Based Accounting Software

Tue, 12 Mar 2024 05:45:05 GMT

If you want to find out more or understand how Xero can help your business, please get in touch.

ATO Lodgement Dates in March

Tue, 12 Mar 2024 05:40:45 GMT

21 March:

Lodge and pay February 2024 monthly business activity statement.

31 March:

Lodge tax return for companies and super funds with total income of more than $2 million for 2023.
Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more

If you have any concerns or issues regarding lodgement of ATO statements please be in contact with our office.

SMSF Conference

Tue, 12 Mar 2024 05:37:55 GMT

Recently Toni, Sam and Hamish travelled to Brisbane to attend the national SMSF Association conference to hear from the industry experts in all things superannuation related.

We learnt further details about the proposed Div 296 tax with its cap of $3m in super including the various options for those with more than $3m in super, the impacts on estate planning and the ongoing industry submissions for changes to proposed legislation.

We heard about the opportunities and risks associated with holding farming land within SMSF’s and the suitability of SMSF’s for the younger generations and highlighting the long term impact saving strategies can have.

Feel free to contact the super team to discuss any of these developments further.

Stage 3 Personal Tax Cuts Now Law!

Tue, 12 Mar 2024 05:34:16 GMT

The much-discussed stage 3 personal tax cuts have now passed through Parliament and become law, receiving royal assent on 5 March 2024. These new measures modify the personal tax rates and thresholds for the 2024-25 financial years onwards.

Cost of living pressure has driven the change to redistribute the savings to direct more into the hands of low and middle-income earners. Analysis by Treasury shows the redesigned personal tax cuts will spread the benefit of the tax cuts more evenly so regardless of your income you should receive a tax cut of between 1.5 to 2.5 per cent of taxable income (see chart below).

Source: Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 [and] Treasury Laws Amendment (Cost of Living – Medicare Levy Bill 2024), Treasury Parliament of Australia, (Bills Digest No. 42, 2023-24) 26 February 2024

It is important for individuals to understand that if you are a salary/wage earner these tax cuts will be built into the PAYG Withholding tax that your employer withholds on your behalf. This will mean more money in your regular pay cheque throughout the year and not as a lump sum when lodging your tax return.

The tables below show tax rates and thresholds that you can expect to pay in tax for the current year 2023-24 and next financial year 2024-25.

For more information visit Treasury’s website or contact us at CoggerGurry today.

Sources:

Treasury website:

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7140

Treasury Bill Digest:

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2324a/24bd42a

Tax Banter:

https://taxbanter.com.au/revised-stage-3-tax-cuts-law/

Business Cashflow Seminar - 21 March

Thu, 07 Mar 2024 01:26:11 GMT

Maree Retirement

Fri, 16 Feb 2024 06:10:07 GMT

After 15 years at CoggerGurry, Maree has made the decision to retire.

Words will not convey the enormous respect we all have for Maree and her amazing work ethic, reliability and can do attitude.

Maree’s wealth of knowledge will be missed as will her smile and genuine care for her fellow team members.

On behalf of the Directors and Staff we wish Maree all the best in her retirement and look forward to hearing about her travels and adventures.

Meet our Director Hamish McDonald

Fri, 16 Feb 2024 06:05:45 GMT

I moved back to Hamilton after a period of working in tropical Cairns in 2009 and became a director with CoggerGurry in 2011.

I have a passion for primary production after growing up on a farm in Nareen. I currently provide services in a number of areas including tax, SMSF advisory and Incorporated Association audits. With over 20 years of experience I enjoy working with clients finding them the best solutions available and helping them manage their businesses.

Outside of work you will either find me on the bowling green, at the racetrack or trying to keep up with my CoggerGurry Serra Terror teammates in the Grampians.

ATO Lodgement Dates in February

Fri, 16 Feb 2024 06:02:48 GMT

21 February – January 2024 Instalment Activity Statements

28 February – December 2023 Business Activity Statements

If you have any concerns or issues regarding lodgement of ATO statements please be in contact with our office.

Joint Tenants and Tenants in Common

Fri, 16 Feb 2024 06:00:02 GMT

When buying a property with another person, you are given the option of how to be registered on the title of the property with them: joint tenants vs tenants in common. But what is the difference between the two, and is one better than the other? In this article, we explain everything you need to know.

What are Joint Tenants?

Joint tenants (also known as joint proprietors) means you own 100% of the property jointly with the people registered as joint tenants with you.

Practically this means:

When joint tenants die, the surviving owner or owners automatically become entitled to be registered as the sole owner or owners of the whole of the interest in the property. This means that any property owned in joint tenancy do not form part of a deceased’s estate, rather their interest automatically goes to the surviving owner or owners. This is called “the right of survivorship”.
You split the property’s profits, losses, and risks evenly.
You cannot have an uneven share of the property. All joint tenants own the property 100% jointly. For tax purposes, the shares are even.

What are Tenants in Common?

Tenants in common means you have a defined ownership share of a property title. This can be 50-50, 60-40, 99-1 or any other combination.

Practically this means:

On the death of either of the owners, the deceased’s interest in the property passes to his or her beneficiary (not necessarily the surviving owner on the title). The beneficiary is dictated by the deceased’s Will or if they do not have a Will by State law.
The defined ownership share splits the property’s profits, losses, and risks.

Can you do both Tenants in Common and Joint Tenants at the Same Time?

Yes, you can if you have three or more owners on the title. For example, persons A and B hold a 50% share of the property as tenants in common jointly, while person C holds their 50% share as a tenant in common individually.

Practically this means:

On the death of either person A or B, who holds their 50% share jointly, the survivor of A or B will get the full interest of the deceased share. Person C will not have any claim to this share as they did not hold that 50% share jointly.
If Person C passes away, Persons A and B will have no automatic interest in Person C’s share of the property. Rather, person C’s share in the property will go to their beneficiary in accordance with their Will or State law if no Will exists.

Touch base with us if you would like more advice about the ownership structure you should adopt when acquiring property.

Proposed Changes to Stage 3 Tax Cuts Announced

Fri, 16 Feb 2024 05:54:43 GMT

It’s been hard to miss news of the Government’s broken promise on stage 3 tax cuts, legislated to take effect from 1 July 2024. Cost of living pressure has driven the change to redistribute the savings to direct more into the hands of low- and middle-income earners.

For those earning approximately between $40,000 and $145,000 you will be better off under the proposed cuts. An average income earner of $80,000 would receive $1,679 in savings versus the already legislated cuts of $875. The impact on high income earners is more pronounced with earnings above $200,000 will have their tax saving almost halved from $9,075 to $4,529.

If you are concerned about the impact on your position or want to know more contact us a CoggerGurry today.

What is Carbon Farming?

Fri, 15 Dec 2023 02:47:59 GMT

Carbon farming is an innovative and sustainable approach to farming by sequestering carbon and/or reducing green house gas emissions. Not only does this approach benefit the environment but it can provide a genuine revenue stream for farmers and landowners.

A carbon farming project allows for the carbon that is reduced or sequestered through farming practices to be measured over the life of the project. Farmers are able to access projects under various agricultural initiatives including feeding livestock, soil treatment, fertilizer and cropping and forestry. Under the Government regime the carbon farmer will be issued ACCU’s (Australian Carbon Credit Units) by the Clean Energy Regulator which can be sold on market, providing a diversified revenue stream.

The basic steps to undertake a carbon project are:

Plan your project, check project eligibility and legal rights
Register the project with the Emissions Reduction Fund.
Perform the activities of the project over time, ensuring you meet project guidelines
Report on your project and claim ACCU’s

Buyers of ACCU’s can be Government, companies or other private buyers that are looking to offset their carbon emissions to achieve a lower carbon footprint. Carbon accounting is used by these entities to determine their carbon footprint allowing for good governance and sustainability transparency.

This is a developing industry that is gaining mainstream acceptance, providing both economic and environmental opportunities for farmers and landowners. It comes with a level of compliance and has a long-term outlook with projects lasting 25 or 100 years. These projects should not be undertaken without seeking advice from your trusted financial and legal advisors.

Come talk to us today if you would like to know more about carbon farming.

Meet Leah Moore

Fri, 15 Dec 2023 00:51:43 GMT

My name is Leah, I have been working at CoggerGurry for 9 years. I work as an accountant in tax services, I completed my study at the University of Ballarat many years ago, and became CPA qualified in 2003. Prior to CoggerGurry I was working in the finance department at WDHS for over 10 years.

I live in Hamilton with my two teenage sons, I am a passionate hiker and in my spare time you will find me climbing mountains in the Grampians!

CoggerGurry T20 Cricket

Fri, 15 Dec 2023 00:31:05 GMT

Congratulations to Sam Lambevski and his Macarthur team mates for winning the 2023 CoggerGurry T20 competition.

Meet our Cadets

Thu, 14 Dec 2023 23:00:28 GMT

My name is Chloe Meyers, and I am currently in my final year of my Bachelor of Commerce degree at Deakin University. Through the cadetship program offered at CoggerGurry, I have had the opportunity to work part time and study with my week made up of three days at work and two days at university. During the university breaks I have the option of working full time.

At CoggerGurry there is currently two cadets including myself and Sam Lambevski.

If you have any questions, come in and talk to Sam or Chloe, or call us on 03 5571 0111.

Director Liabilities

Thu, 14 Dec 2023 22:24:37 GMT

One of the major advantages of operating within a company structure is the benefit of asset protection. Broadly speaking, company owners are protected from creditors if their company fails. However, there are two notable exceptions!

The first of these is where a director offers a personal guarantee. Companies often require financial support to secure loans, leases, or credit facilities to foster growth and development in the dynamic business world. To assure lenders or creditors, directors of companies in Australia may be asked to offer personal guarantees. These guarantees, known as “Directors’ Guarantees”, play a crucial role in ensuring that the obligations of a company are met.

Such guarantees are essential for three reasons:

Access to Funding: By providing a personal guarantee, directors can help their companies access financing that might otherwise be difficult to obtain, especially for new businesses. This may be in the form of Equipment Financing or creation of an Overdraft Facility.
Credibility: A director’s willingness to guarantee a company’s obligations can enhance the company’s credibility and trustworthiness in the eyes of creditors and prospective business partners.
Risk Mitigation: For creditors, a Directors’ Guarantee serves as a safety net, ensuring that someone personally takes responsibility for the company’s obligations, reducing the risk of financial loss.

Directors should know that providing a Directors’ Guarantee carries significant personal risk. If the company defaults on its obligations and the director cannot cover the debt, its personal assets may be at risk.

Along with director guarantees, owners of companies may also be personally liable under the director penalty notice regime. As a company director, you also personally become liable for your company’s unpaid amounts of:

Pay as-you-go withholding (PAYGW)
Goods and services tax (GST)
Super guarantee charge (SGC)

These amounts that a director is personally liable for are called “director penalties”. The ATO can recover the penalty amounts once they issue a director penalty notice. To be clear, a director is responsible for ensuring the company meets its PAYGW, net GST and SGC obligations in full and by the due date.

Talk to us if you are still determining your director’s liabilities or have any further queries in relation to your director responsibilities.

Christmas/New Year Closure Dates

Fri, 24 Nov 2023 04:53:56 GMT

Our office will close on Thursday 21 December at 5pm and reopen on Wednesday 3 January.

CoggerGurry wish all their clients a happy, safe and Merry Christmas. We look forward to working with you in 2024.

Staff Day

Tue, 14 Nov 2023 04:51:31 GMT

Connecting as a team is a priority at CoggerGurry. Recently our team gathered at HIRL for a team building day.

Thanks to Shawn Price from Positive Intelligence for a fantastic workshop on emotional intelligence and wellbeing and staff for getting involved in break out sessions and bonding activities.

Together we shared lots of laughs, and it was wonderful to see everyone working as one.

Meet Chloe Meyers

Tue, 14 Nov 2023 04:42:35 GMT

My name is Chloe, and I have been working at CoggerGurry since 2019 after I completed Year 12 at Monivae College. My first position was as a trainee receptionist whilst completing a Certificate in Business before moving into the tax services team where I have been working for just under 3 years.

In 2021, I commenced a Bachelor of Commerce degree at Deakin University, and I am currently in my final year of study.

I reside in Hamilton and in my spare time I enjoy playing netball for Coleraine and basketball in Hamilton, as well as spending time with my family and friends.

Christmas Party Deductions

Tue, 14 Nov 2023 04:37:11 GMT

With summer and Christmas celebrations well under way, you may plan a party or a day on the green with your employees. Before you fire up the BBQ, consider your celebration’s fringe benefits tax (FBT) implications.

Fringe Benefits Tax (FBT) applies when an employer provides benefits to an employee other than their regular salary or wage. The circumstances that determine an FBT event include:

the amount you spend on each employee
when and where your party is held
who attends – is it just employees, partners, clients, or suppliers also invited?
the value and type of gifts you provide.

The key here is to know your limits, keeping in mind that the $300 “minor and infrequent” benefit threshold for FBT is the key to your Christmas party and gifts remaining tax-free. Note that the $300 threshold applies to each benefit provided, not to the total value of the associated benefit.

If you have any further questions, feel free to get in touch with our office.

Nominate Your Tax Agent Now

Tue, 14 Nov 2023 04:30:40 GMT

From 13 November the ATO requires new businesses with an ABN (excluding sole traders) to nominate their tax agent via ATO online business services. This applies for BAS agents and payroll service providers as well as tax agents. Existing client/agent relationships will not be affected unless there is a change to current arrangements.

This means your tax agent will not be able to access your business information with the ATO until you nominate them, and the agent has accepted the nomination. This change is to further strengthen the security of your data and prevent cyber and identity theft. Your tax agent will not be able to do this nomination for you, it must be actioned by you.

What you need to know

As a new business you will need to set up your access to ATO online business services. Online business services can be accessed through your web browser ato.gov.au/OSB but you will need to pass an identification process first with myGovID and then link your myGovID to your ABN. You will need the myGovID app (which is not the same as your myGov app).

From within the business services you can nominate your tax agent and they have 28 days to action the nomination. To nominate your tax agent you will need to request their tax agent number from them. Make sure you alert your tax agent that you have nominated them as they will not get a notification of this.

Visit the following ATO site for more information or contact CoggerGurry for our tax agent number or if you have any questions.

https://www.ato.gov.au/Tax-professionals/Digital-services/In-detail/Client-agent-linking-steps/

Consolidating Your Superannuation

Tue, 14 Nov 2023 03:55:32 GMT

You may be able to transfer your existing super account(s) to another complying fund (known as a rollover), depending on the rules of your super funds. This is also the case if you want to roll over into a Self-Managed Super Fund from your retail or industry fund. Partial roll overs may be an option where you want to retain your old Super Fund due to insurances or other reasons.

For example, you can transfer your super to consolidate multiple accounts. Putting all your super in one account means paying only one set of account fees. Differences in fees can significantly affect the amount you have when you retire. Having fewer accounts also makes it easier to keep track of your super.

It is important to think about the possible consequences before deciding to roll over your super. Ask your existing super fund about any fees or charges that will apply or any loss of entitlements such as life insurance. You should also consult the receiving super fund to ensure they will accept a rollover of your super.

Tax

No tax is payable on the amount rolled over to another complying super fund until you withdraw your super, when tax may apply.

If a super benefit is paid directly to you before being rolled into another fund, the payment is considered outside the super system. It will be treated as a super benefit rather than a rollover; in which case it may be taxed.

Considerations

You will need to check with both super funds, particularly the transferring fund, so you know of any applicable fees or charges, any effect on your benefits, and any loss of entitlements such as insurance.

The fund you want to transfer to may not accept transfers from other funds or ATO-held super–check before starting your transfer. There are no fees or charges for transferring ATO-held super money into a super fund account.

Check that both the account you’re planning to transfer super from and the account you’re planning to move it to are still open, as there can be delays in funds reporting closed accounts to us. Check that neither of the funds has restrictions on actioning the transfer.

There are some essential factors to consider before transferring your super:

Differences in fees can significantly affect the amount you have when you retire.
The fund you want to leave could charge administrative, exit, or withdrawal fees.
The fund you want to transfer may charge entry or deposit fees.
The fund you want to leave may insure you against death, illness or an accident that prevents you from returning to work. If you leave this fund, you may lose these entitlements so check if the other fund offers comparable cover.

Transferring your funds will not change the super fund your employer pays your contributions to. You will still need to speak with your employer and advise them of the new fund account details for future contributions.

You can request a transfer of the whole of a super account balance online by signing into MyGov.

Melbourne Cup Public Holiday

Tue, 10 Oct 2023 06:22:09 GMT

Our office will be closed on Tuesday 7 November for the Melbourne Cup Public Holiday.

One Day Office Closure

Tue, 10 Oct 2023 06:19:18 GMT

Our office will be closed on Tuesday 31 October for a Staff Day.

Thank you for your understanding.

Meet Ann Ferrier

Tue, 10 Oct 2023 06:17:44 GMT

Born in the small town of Leeton in NSW, my family made a swift move back to our Coleraine home after just a year. Ever since then I have grown up and lived in the surrounding districts, making trips to Thailand every two years to visit family on my mother’s side.

We have a family farm that produces cattle, which I frequently help out and look after while the folks go away.  You may not see me out and about around the town as I am quite introverted and enjoy spending my time at home with my little hobbies. I started at CoggerGurry in May 2023, working downstairs at reception. I look forward to meeting you!

Victoria's 7.5% Short Stay Levy

Tue, 10 Oct 2023 06:16:22 GMT

Victoria’s 7.5% Short Stay Levy

The Victorian Government has recently announced a new tax that will impact those that choose to rent their properties using platforms such as Airbnb and Stayz. This announcement is part of a wider housing strategy to tackle housing supply and affordability issues outlined in Victoria’s Housing Statement ‘The decade ahead|2024-2034'.

Victoria has more than 36,000 short stay accommodation places with almost half of these properties located in regional Victoria. The levy is to be set at 7.5 per cent of the short stay accommodation platform’s revenue and will start from 2025. The money raised from this levy, the first of its kind in Australia, is to be put towards Homes Victoria to support their work of providing social and affordable housing. Regional Victoria has been pledged to receive 25 per cent of the funds raised.

CoggerGurry will continue to monitor this levy and other state government taxes to help you stay abreast of any developments. This new levy will be in conjunction with state land tax which has also recently changed to lower thresholds, meaning more property owners will be caught in the land tax net. For more information about any of the above read our article on 2023-24 Land Tax Rates or view the Victoria’s Housing Statement located at www.vic.gov.au/housing-statement.

2023/2024 Land Tax Rates - State Revenue Office

Tue, 10 Oct 2023 06:14:12 GMT

In the State Budget announcement in May this year, a change to the land tax assessment thresholds applied to property owned (other than your main residence or that used for primary production activities) for the calculation of land tax was made. This means for those taxpayers who own a holiday house or investment property that previously have not paid any land tax they may, for the 2024 year, receive a land tax assessment notice. The new thresholds are available at https://www.sro.vic.gov.au/land-tax-current-rates.

As an example, for the 2024 year, a property value of $300,000 would return an assessment of $975, whereas a property value of $350,000 would return an assessment of $1,500. Previously the $300,000 property would have received a nil assessment, and the $350,000 property would have received an assessment of $475.

If you have any queries or concerns, please do not hesitate to contact our office.

Capital Gains Tax

Tue, 10 Oct 2023 05:56:52 GMT

One of the most generous features of the capital gains tax (CGT) regime – which may apply to the disposal of assets such as property, shares, rights and options, foreign currency, goodwill in a business, units in a unit trust, certain personal use assets such as boats – is the CGT general discount. It can reduce your CGT liability by up to 50% if applicable.

Eligible taxpayers include individuals, superannuation funds and trusts (depending on the beneficiary’s eligibility). The most notable omission is companies – they do not qualify for the 50% discount. The discount’s unavailability should be considered when contemplating whether to hold CGT assets with a company structure.

Having established the structure’s eligibility, the entity must have held the asset for at least 12 months before the CGT event (ie. the sale) to qualify for the discount. Interestingly, the ATO takes the view in Taxation Determination TD 2002/10 that the day of acquiring and selling the asset must be excluded from the 12 month holding period.

For this reason, if you are nearing the 12 month holding period, you may wish to delay the asset’s sale to quality for the required 12 month period. By doing so, you can dramatically reduce your CGT liability.

As well as companies, non-residents are also now ineligible for the CGT discount.  Foreign and temporary resident individuals, including beneficiaries of trusts and partners in a partnership:

Are subject to CGT on taxable Australian property.
Are not entitled to the 50% capital gains tax (CGT) discount for assets acquired after 8 May 2012.

If the CGT asset was purchased after 8 May 2012, and you remain a foreign or temporary resident for the entirety of ownership, you are not entitled to any CGT discount when you sell the asset.

Cashflow Forecasting

Tue, 10 Oct 2023 05:50:04 GMT

Cashflow forecasting is critical for small businesses.

What is it?

Cash flow forecasting is a method of predicting cash inflows and outflows to see how much money you’ll have in the future. It provides a window into your business’s financial health and can help plan spending.

A cash flow forecast is in contrast to a cash flow statement. A statement focuses on past cash flows; a forecast predicts the future. It’s essential that you understand your cash flow cycle, which boils down to whether you’ve got more money coming in than going out. If you have more cash going out, you must address it quickly.

Staying on top of your business cash flow helps you pay bills on time and helps ensure you can pay yourself. When costs are rising (as per the current climate), it becomes even more imperative that businesses get their cash flow management right, and cash flow forecasting is one way to do it.

Benefits

The benefits include:

spotting cash shortages and giving you time to work on contingency plans, whether delaying spending, requesting extra credit from suppliers, or securing a business loan.
assessing the affordability of your growth plans – for example, they can show if there will be enough money to buy new tools or hire a new employee.
ensuring you have enough money to pay you, the business owner!
identifying quickly if expenses are climbing or income is slumping.
highlighting fixable cash flow problems such as slow-paying customers, impractical payment terms, seasonal cycles, or over-reliance on high-cost finance.

Key Components

The key components are –

starting position (cash in the bank).
expected cash in (hopefully mostly from sales but may also be from loans or sales of assets).
expected cash out.
net cash flow shows if cash reserves have grown or shrunk.
closing balance.

How often?

Businesses can do cash flow forecasting for any timeframe and duration. As you might imagine, it gets harder to accurately predict incomings and outgoings the further into the future you go. But whatever range you choose, it’s a good idea to keep refreshing your forecast.
If you run a 12-month forecast, for example, with a column for each month, you might refresh it at the end of each month. Drop the last month off, add another month to the future, and check all the forecasts in between to see if anything needs updating.

Ways to increase profitability

For most businesses, the easiest way to improve profits isn’t landing the next big client. Instead, it’s improving the little things, such as:

Increasing prices by a small margin, such as 5% or in line with CPI.
Collecting money owed to you faster.
Checking that you’re not paying too much for overheads like power, the Internet and office supplies. These can be small amounts, but they add up over time.
Look to renegotiate some of your earlier agreements.

Monitoring of cashflow and staying mindful of your ins and outs can bring positive changes to your business and gets you working on your business instead of in it. If you need any help establishing a process or need some accountability CoggerGurry can assist you with this process. Contact us now to get started on your cashflow forecasting journey.

AFL Grand Final Public Holiday

Mon, 11 Sep 2023 05:15:37 GMT

CoggerGurry is closed for the AFL Grand Final Public Holiday on Friday 29 September.

Meet Rebecca Ryan

Mon, 11 Sep 2023 04:37:42 GMT

I started at CoggerGurry in September 2019, just before the Covid 19 lockdowns. I began my career in Reception for approximately a year and then transferred into the Self Managed Superannuation Fund team working predominantly on administration tasks.

Before starting at CoggerGurry I was helping you with your parcels over the road at the Post Office. Born and raised in Hamilton, I have grown to love the area and bought a house at the end of 2022 with grand renovating plans. I have 3 rescue cats who are basically like my children, and plan to adjust my renovations to cater for them.

When I can, I enjoy going to live concerts and conventions.

One of my greatest memories is when I travelled to Rome and visited historic sights I had been obsessed with since I was old enough to borrow books from the library at primary school.

Maximising Returns with Investment Property Repairs

Mon, 11 Sep 2023 04:35:09 GMT

Investing in real estate can be a smart financial move, offering a stable income stream and potential for capital growth. However, understanding how Australian tax laws impact initial repairs, capital improvements and renovations on your investment property is crucial. Below, we'll explore the tax implications of these expenses and how you can optimize your returns while staying compliant with tax regulations.

Deductible Repairs vs Capital Improvements

Repairs and maintenance expenses for your investment property can be claimed as immediate deductions. These are costs incurred to keep the property in its current condition and are fully deductible against your rental income for the same financial year.

On the other hand, capital improvements, which enhance the property's value or extend its useful life, must be capitalized and depreciated over time.

Initial Repair

Have you have just bought an investment property and it requires repairs to get it up to scratch prior to renting? These repairs will be considered initial repairs and will form part of the purchase costs for capital gains tax purposes and will not be a deductible repair in the current year. It can be difficult to determine what is an initial repair versus a normal deductible repair so make sure you speak with your tax professional about this.

Examples of common deductible repair expenses for investment properties include:

1. Fixing plumbing or electrical issues

2. Repairs to the roof, guttering, or downpipes

3. Painting and repainting

4. Replacing or repairing broken windows and doors

5. Repairing heating or cooling systems

These expenses can significantly reduce your taxable rental income and increase your after-tax return.

Effective Record Keeping

To ensure you can claim these deductions, maintain thorough records of all repair expenses. This includes invoices, receipts, and documentation of the work performed. Accurate record-keeping is essential for substantiating your deductions if required.

Leveraging Tax Benefits

To maximize your returns while adhering to Australian tax laws:

Plan your repairs carefully: Strategically group smaller repairs within the same financial year to maximize deductions.
Consult a tax professional: An experienced tax advisor can help you navigate our tax laws, ensuring you make the most of available deductions.
Depreciation deductions: For capital improvements, remember to claim depreciation deductions over the prescribed recovery period.

Conclusion

Investment properties can offer financial advantages, but understanding how our tax laws impact spending on repairs is vital. By distinguishing between repairs and capital improvements, maintaining meticulous records, and seeking professional advice, you can minimize your taxable income and enhance your investment property returns while remaining compliant with local regulations.

Please note that tax laws can change, so always consult with us for the most up-to-date guidance tailored to your specific investment property situation.

Brentnalls Affiliation Charity - Proudly supporting Good Shepherd Charity

Mon, 11 Sep 2023 04:31:20 GMT

CoggerGurry is a proud member of the Brentnalls Affiliation consisting of independent firms working together to help each other be better. We are thrilled to announce that the Brentnalls Affiliation has raised an inspiring $6,014 to support women in need.

Through a combination of individual firm initiatives and an affiliation-wide raffle featuring two exclusive Jasmine Mansbridge prints donated by the artist herself, we have joined forces to make a meaningful contribution to Good Shepherd which is Australia’s oldest and longest-running not-for-profit that specifically supports women, girls and families.

Our commitment to empowering women finds a perfect match in Good Sheppard’s mission. The funds raised will directly support their programs, providing assistance to women facing family violence, education and employment issues and requiring pathways out of homelessness.

We extend our heartfelt gratitude to all participating member firms for showcasing the power of collective generosity. Together, we're proving that unity can drive positive change and create brighter futures.

For more information on the member firms of the Brentnalls Affiliation's initiatives, visit www.brentnalls.com.au .

Learn more about Good Shepherd's impactful work at https://goodshep.org.au/

Navigating the Maze of Fringe Benefits Tax Rules

Mon, 11 Sep 2023 04:23:24 GMT

In today's rapidly evolving business landscape, attracting and retaining top talent has never been more crucial. One effective way to do so is by offering attractive fringe benefits to your employees.

However, as many Australian employers know, providing these perks can also come with tax obligations. In this newsletter, we explore the essential Fringe Benefits Tax (FBT) rules in Australia that employers should be aware of when offering fringe benefits to their staff.

Understanding Fringe Benefits Tax (FBT):

Fringe Benefits Tax, commonly known as FBT, is a tax imposed by the Australian government on the non-salary benefits provided by employers to their employees. These benefits can include company cars, health insurance, gym memberships, and even work-related entertainment. The aim of FBT is to ensure that employees are not receiving hidden forms of compensation that go untaxed.

Key FBT Rules and Considerations for Employers:

Types of Fringe Benefits : Employers should be aware that not all benefits are considered taxable fringe benefits. Common examples include company cars, housing allowances, and low-interest loans. Understanding what constitutes a fringe benefit is the first step in compliance.
Calculating FBT : Once you've identified the fringe benefits, you'll need to calculate the FBT liability. The most common method is the 'taxable value' method, where the taxable value of the benefit is multiplied by the FBT rate (currently 47%).
Reporting and Lodging : Employers are required to report FBT to the Australian Taxation Office (ATO) on an annual basis, generally by the end of March following the FBT year (April 1 to March 31). Ensuring accurate reporting and timely lodgment is crucial to avoid penalties.
Exemptions and Concessions : Some benefits may be exempt from FBT or eligible for concessions. For example, small businesses with an annual turnover below a certain threshold may be entitled to reduced FBT rates or exemptions.
Employee Contributions : In some cases, employees may make contributions towards the cost of fringe benefits. These contributions can reduce the taxable value of the benefit and, consequently, the FBT liability for the employer.
Record Keeping : Comprehensive record-keeping is essential. Employers should maintain documentation that supports the FBT calculations, including receipts, invoices, and employee declarations.
Employee Declarations : Employees may be required to declare their fringe benefits on their income tax returns. Employers should communicate this requirement to their staff to ensure compliance on all fronts.

Consult with Experts:

Given the complexity of FBT rules, many employers find it beneficial to consult with tax professionals or accountants specializing in FBT. Their expertise can help you navigate the intricacies of FBT compliance, minimize your tax liability, and ensure that your employees receive the benefits they deserve.

In conclusion, offering fringe benefits can be a valuable tool for attracting and retaining top talent in your organization. However, it's vital for employers to understand and comply with the FBT rules to avoid potential pitfalls. By staying informed and seeking professional guidance, when necessary, you can create a win-win situation for both your business and your employees.

If you have any questions or require assistance with FBT compliance, please contact us.

Accommodation Sharing and Tax

Mon, 11 Sep 2023 04:17:20 GMT

The ATO has reminded taxpayers of the sharing economy tax implications, when providing accommodation.

The sharing economy provides an excellent opportunity for individuals with spare rooms or spare houses to rent out space and earn rental income using facilitators such as Airbnb.

This comes as the ATO announces a new data-matching program specifically targeting around 190,000 taxpayers receiving income from short-term rentals. The ATO said it would examine the information provided by online platforms like Airbnb to identify taxpayers who had left out rental income and over-claimed deductions.

If you are renting out rooms of your home, or indeed entire properties – whether via Airbnb or another facilitator or just privately – there are some tax issues to be aware of:

Rental Income

This will need to be declared in your tax return, irrespective of whether you rent out a room or an entire property or whether this is your primary source of income.

Rental Expenses

Expenses from renting out your property can be a tax deduction. However, there can be several complexities. Expenses directly associated with the rented area are deductible in full. In contrast, expenses that relate to shared areas (i.e., areas that you, as the host, may share with renters) must be apportioned. Expenses that relate to the host’s private room only are not deductible.

Capital Gains Tax

Broadly, the sale of your primary residence is free from Capital Gains Tax (CGT) when you sell it, where it was the primary residence for the entire time you owned it, and it was not used to produce income. However, if you are renting out a portion of your home, you will only be eligible for a partial principal residence exemption. If you rent out the entire house, then none of the property will enjoy the principal residence exemption for that period. Exceptions apply, including the ability to rent out your home for six years yet still enjoy the full CGT principal residence exemption. This exemption is subject to several conditions.

It is important to note that properties purchased before 20 September 1985 are exempt from CGT, irrespective of whether they are rented out.

Goods and Services Tax

Income from renting out part or all of a residential property is typically “input-taxed”. This means you should not charge GST on the rent you earn from guests. Conversely, you cannot claim GST credits for any rental expenses you incur, but you can claim the GST-inclusive amount of any rental payments as a tax deduction. All told, there is no requirement to register for GST because of your rental property alone.

Record Keeping

As your tax agent, we are limited in the claims we can make for you on your property to the records you keep. So please retain all expense records (i.e. receipts) to maximise your deductions.

Meet Chris Kautsky

Thu, 10 Aug 2023 08:30:22 GMT

I grew up in the Adelaide Hills with Belair National Park across the road as my extensive playground. 

After studying Mathematical Sciences at the University of Adelaide I moved to Melbourne where I qualified as a Chartered Accountant.  I’ve worked in a number of accounting practices and several large corporates.

After over thirty years in Melbourne and with my two children, Matthew and Gillian, at university, it was time for my husband Jan and I to start another chapter in our lives. Having holidayed in the southwest of Victoria for many years, we chose Hamilton as our new home and relocated last December.

You may see me getting dragged around Lake Hamilton by two crazy fox terriers, Olive and Sabre. I’ve always loved plants and playing in the dirt, so I am eagerly anticipating growing a rambling garden once our new hours has been completed.

I started at CoggerGurry in February 2023 as the Finance Officer. Please contact me if you require assistance with invoicing or payment matters.

Superannuation and Age Pension Eligibility

Thu, 10 Aug 2023 08:14:16 GMT

During retirement, many people rely on a combination of their superannuation savings and their age pension to sustain them moving forward financially. Accordingly, a front-of-mind issue for individuals is at what point do the superannuation savings and payments impact your eligibility for the age pension?

While someone is under age pension age, concerning any Centrelink payment, Centrelink does not count your or your partner’s superannuation balance in the income or assets test if your fund is not paying you a superannuation pension. However, that pension is considered if your fund pays you a superannuation pension.

Once you reach age pension age, Centrelink counts your super (a) in the assets test and (b) in the income test under the deeming rules. The same rules apply to your partner and their super when they are age pension age, even if they are not receiving a Centrelink payment.

Deeming is a set of rules determining the income your financial assets create. It assumes these assets earn a set rate of income, no matter what they earn. The main types of financial assets are:

savings accounts and term deposits
managed investments, loans and debentures
listed shares and securities
some income streams
some gifts you make.

Centrelink includes any deemed income as your income under the income test. The income test helps Centrelink determine how much income support it can pay you. Taking money out of superannuation doesn’t affect your Centrelink payments, but you may be impacted by the deeming rules (see earlier) depending on where that money is invested outside super.

Recent research into retirement confidence by Monash University found that people aged 50 and over – who take time to understand and plan their finances – are less anxious about transitioning into retirement. It found that they were more confident overall about their retirement options. Knowing how much of the age pension you could be eligible for can help you understand your finances in retirement.

Tax Time - Unexpected First Time Debts

Thu, 10 Aug 2023 08:11:20 GMT

For the first time, many Australians are finding themselves in a position where they are being told they owe the ATO money after completing their tax return this year. A significant number of taxpayers in this position are those that are still paying off their Higher Education Loan Program (HELP) debts – many of them young Australians.

When PAYGW is deducted from salaries and wages to take account of HELP liabilities, the withheld amount is not applied against the HELP debt until after the end of the income year, when the tax return is lodged. This means that indexation is applied to the debt without considering any PAYGW withheld during the year.

Fact or myth?

This is a myth.

Indexation only affects the loan balance. It does not affect the amount of the year-end tax liability.

When an employee has a salary sacrificed, the lower salary will reduce the PAYGW withheld. Still, the reportable fringe benefit is included in the repayment income used to determine liability to HELP repayments.

Fact or Myth?

This is a fact.

HELP repayment income is the total sum of the following amounts from a person’s income tax return for the income year:

taxable income
reportable fringe benefits (as reported on their payment summary)
total net investment loss (which includes net rental losses)
reportable super contributions (including salary sacrificed contributions); and
any exempt foreign employment income amounts

Negative gearing amounts are added back and included in HELP repayment income. The rapid rise in interest rates will flow through to negative gearing amounts, increasing the repayment income.

Fact or Myth?

This is a fact.

However, this will only affect those engaged in negative gearing, which may not be many young Australians with a HELP debt.

The end of LMITO after 2021/22 is only just being realised by taxpayers now, despite two years of talking about this. The message did not get through, or the impact was not fully understood.

Fact or Myth?

This is a myth.

For employees, the PAYGW rates were increased to take the LMITO abolition into account, so yes, no refund, but there should not be tax payable due to just the LIMITO ending.

Concession Card Eligibility for Self Funded Retirees and Low Income Earners

Thu, 10 Aug 2023 08:06:32 GMT

COMMONWEALTH SENIORS HEALTH CARD

Who is eligible?

Person of Age Pension Age not receiving a Pension payment
Income assessed, with Adjusted Taxable Income, plus deemed income from certain Account Based Pensions
Income needs to be lower then $90,000- for a single person, $144,000- combined for a couple and $180,000- for a couple separated by illness
No asset test applies to this concession card

LOW INCOME HEALTH CARE CARD

Who is eligible?

Be 19 years of age or older and an Australian resident
Have income within the following allowable thresholds, based on average weekly assessable income over the 8 weeks immediately before making a claim
Single, no children $702 x 8 = $5,616
Couple combined, no children $1,204 x 8 = $9,632
Single, one dependent child $1,204 x 8 = $9,632
Couple combined, one child $1,238 x 8 = $9,904
For each extra child, add $34 x 8 = $272
Income includes, employment income from wages & self-employment income, net rental income, reportable super contributions, deemed income from financial investments, plus account based income streams, defined benefit pensions, income from private trusts and companies.
Again no asset test applies to this concession card.

Should you have any questions in relation to the above please contact Alan Oakley who is able to assist with the completion of the necessary claim forms.

The Proposed Tax on $3million Super Balances Update

Thu, 10 Aug 2023 08:04:17 GMT

[STATUS UPDATE BELOW]

The proposed draft tax legislation on earnings for superannuation balances exceeding $3million is expected to be released in September 2023.

On the release of the draft legislation, the industry bodies will be given up to five weeks for consultation and the ability to make submissions before it is introduced to parliament.

The SMSF Association, which two of our Directors, Hamish McDonald and Toni Wright, are members of, will be lobbying for several changes to the draft legislation when it is released. They will lobby for such changes as the removal of unrealised gains being taxed and an indexation of the $3million cap.

Once the proposed draft tax legislation is released, we will be able to provide more concise details on how the legislation will work and how it might affect you.

Whilst the proposed start date of the new legislation is still some time away being 1 July 2025, we still recommend that you contact us to discuss your options and strategies based on your specific circumstances.

[STATUS UPDATE] October 2024

The proposed $3 million super tax legislation was put on hold by Parliament in the last few weeks. The sector is now waiting for the next sitting of parliament this month to see if it is put on the schedule for it's third reading in the House of Representatives.

It is going to be another month of waiting to find out what is going to happen, and we encourage clients to speak to their advisors before taking action given the state of flux the legislation is in. In some respects, the longer it drags out, the better if an election is called.

Meet our Staff : Tamara Milne

Tue, 11 Jul 2023 01:05:11 GMT

I work in the tax services team and have been at CoggerGurry since 2017. I have over 15 years experience in the tax and accounting space and really enjoy what I do. 

Residing in Hamilton with my husband Ross and our two children Darcy and Evie, my time outside of the office is very busy spent running around between various sporting commitments! I play netball for the Hamilton Kangaroos and also coach both junior netball and basketball.

My downtime is best spent at home with my family, in my garden, going for big walks with our labs Sammi and Sadie and being bossed around by our very spoilt sausage dog Manfred! 

Superannuation Rate Changes

Mon, 10 Jul 2023 05:55:50 GMT

Superannuation Rate Rises to 11%

The superannuation guarantee (SG) rate increase from 1 July 2023 will see more employees (and some contractors) entitled to additional SG contributions to their superannuation fund.

On 1 July 2023, the SG rate increases from 10.5% to 11%. In some cases, an employee’s pay period will cross over between June and July when the rate increases. However, the percentage employers must apply is determined based on when the employee is paid, not when the income is earned. The rate of 11% will need to be applied to all salaries and wages paid on or after 1 July 2023, even if some or all the pay period it relates to is before 1 July 2023.

What happens if the pay period crosses over between June and July

On 1 July 2023, the SG rate increases from 10.5% to 11%. In some cases, an employee’s pay period will cross over between June and July when the rate increases. However, the percentage employers must apply is determined based on when the employee is paid, not when the income is earned. The rate of 11% will need to be applied to all salaries and wages paid on or after 1 July 2023, even if some or all of the pay period it relates to is before 1 July 2023.

This means that if the pay period ends on or before 30 June, but the pay date falls on or after 1 July, the 11% rate applies to those salary and wages.

Legislated SG Rates

Employers should prepare for ongoing annual increases to the SG rate over the next couple of years. The following already-legislated increases will proceed as follows:

1 July 2023 to 30 June 2024 - 11%

1 July 2024 to 30 June 2025 - 11.5%

1 July 2025 onwards - 12%

Single Touch Payroll Finalisation

Mon, 10 Jul 2023 05:47:43 GMT

STP Finalisation

You need to make a finalisation declaration by 14 July each year, which is simply notifying the ATO that the payroll information for all employees reported through STP payroll for the year is complete and correct. Once finalised you should inform each employee so they know they can access their finalised information to complete their tax return.

If you are unable to make a finalisation declaration on or before the due date, you will need to apply for a deferral.

Complying with STP finalisation means the employer is exempt from having to provide payment summaries or lodging a payment summary annual report.

The 2023 STP finalisation can be made through your payroll software. If you need any further assistance with reconciling your payroll for accuracy or completing a STP finalisation please contact our office.

Claiming Car Expenses

Mon, 10 Jul 2023 05:42:06 GMT

Claiming Car Expenses – Which Method?

The ATO has just announced that the cents per kilometre rate have increased to 85 cents per kilometre for 2023/2024.

There are two methods to claim work-related car expenses as follows:

Cents per kilometre method

This method is easier for record-keeping, involves simpler calculations, and is suited to those with less vehicle use. You simply record the number of kilometres you are travelling for work or business over the duration of the year, and you claim these using a set rate.

The drawback of this method is that you are limited to a maximum of 5000 work-related or business kilometres per year. That gives you a total maximum claim of $4,250. Thus, if you are using your car a lot for work, you may find that this method is quite limiting.

Logbook method

This method can allow for greater claims depending on how much you use your car for work or business. Each logbook you keep is valid for five years.

Please note that for the 2022/2023 financial year the rate was 78 cents per kilometre.

Congratulations Stacey and Toni

Mon, 10 Jul 2023 05:12:27 GMT

The CoggerGurry team is delighted to welcome Stacey Shelden and Toni Wright as Directors of the business from 1 July.

Stacey and Toni are well known in the local community and have been key employees for a long while, approximately 15 years each, and over the past two years have fulfilled a role as Principals.

Welcoming our first female directors is a very exciting milestone for our business, and we enthusiastically congratulate them on their achievement!

In their new roles, Toni will head up the Self-Managed Super Fund team, while Stacey will continue to be an integral part of the tax services team having recently completed a post graduate Masters of Taxation.

We are all looking forward to the ongoing contribution Toni and Stacey will make in their new leadership roles, and believe we are well positioned to continue providing the best possible taxation compliance and advisory services to the wider Hamilton region.

Year-end deductible personal super contributions

Mon, 05 Jun 2023 00:34:12 GMT

As we approach the end of the financial year, you may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income – for example from your bank account directly to your super fund.

Before you can claim a deduction for your personal super contributions, you must give your super fund a Notice of Intent to claim or vary a deduction for personal contributions and receive an acknowledgment from your fund.

The personal super contributions that you claim as a deduction will count towards your concessional contributions cap. When deciding whether to claim a deduction for super contributions, you should also consider the super impacts that may arise from this, including whether –

you will exceed your contribution caps

Division 293 tax applies to you

you wish to split your contributions with your spouse

it will affect your super co-contribution eligibility.

If you exceed your cap, you must pay extra tax, and any excess concessional contributions will count towards your non-concessional contributions cap.

If you would like to discuss any questions relating to your personal super contributions, please contact one of our tax specialists at 03 5571 0111.

Congratulations Stacey

Thu, 01 Jun 2023 00:39:33 GMT

Congratulations to Stacey Shelden, Principal at CoggerGurry for completing her Master of Taxation awarded with Excellence from the University of New South Wales.

Stacey completed the Applied Tax specialisation designed to provide tax practitioners with essential technical knowledge to meet the taxation needs of today’s clients.

“My knowledge has increased immensely over three years I took to complete my studies. It was certainly challenging trying to manage working, family, Covid 19 and home schooling but very worthwhile.”

Rental property deductions

Thu, 01 Jun 2023 00:36:32 GMT

As we come to the end of the financial year it is good to start collating documents relating to rental properties as your record-keeping will significantly impact on the deductions that can be claimed.

Talk with us about the record-keeping requirements if you are unsure and keep records of the following:

Bank Statements & Loan Documents showing the interest charged on money you borrowed for the rental property.
Land Tax Assessments
Documents or receipts that show the amounts you pay for
Advertising (including efforts to rent out the property)
Bank charges
Council rates
Gardening
Property agent fees
Repairs or maintenance
Purchase of depreciating assets used at the rental property.
If any capital works take place, such as structural improvements, then any documents along with before and after photos for works completed.
Documents or a diary that show periods of personal use by you or your friends.
When you sell a property
Contract of sale
Conveyancing documents
Sale of property fees.

This year, the ATO is particularly focused on interest expenses and ensuring rental property owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes (or the loan was refinanced with some private purpose).

Super Guarantee payable on payday from 1 July 2026

Thu, 01 Jun 2023 00:30:35 GMT

This will require all employers to pay their employees’ super guarantee at the same time as their salary and wages (e.g. weekly or fortnightly etc., instead of every three months) from 1 July 2026.

This may impact employer cash flow. From an employee standpoint, however, it will increase the transparency of SG payments and also boost retirement savings. For example, the Treasurer says that a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000, or 1.5% better off at retirement.

Small business lodgement penalty amnesty

Thu, 01 Jun 2023 00:29:02 GMT

A lodgment penalty amnesty program will be provided for small businesses with aggregate turnover of less than $10 million to encourage them to re-engage with the tax system. The amnesty will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due during the period from 1 December 2019 to 29 February 2022.

Important ESA changes to your Self-Managed Super Fund

Fri, 12 May 2023 06:48:21 GMT

From 30 June 2023, BGL, the cloud-based program we use to view your SMSF balances, will no longer be supporting the Electronic Services Address, AUSPOSTSMSF. Your registered ESA is required to make any contributions or rollovers to your Self-Managed Super Fund through SuperStream and is automatically allocated to you by Coggergurry.

What is SuperStream?

SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically in accordance with the SuperStream standard. All superannuation funds, including SMSFs, must receive contribution details electronically in accordance with this standard.

What does this mean?

Those funds registered with the old AUSPOSTSMSF Electronic Services Address will need to have fully transitioned to the new BGLSF360 ESA to receive SuperStream data by 30 June 2023.

How do I know if this affects me?

Coggergurry will be sending out notifications for those Self-Managed Super Funds who have recently received contributions, so you may advise your employer of the new BGLSF360 ESA. If by 30 June 2023, you have yet to inform your employer of the new ESA, no contributions or rollovers can be accepted.

Contact Rebecca Ryan at the office if you wish to discuss any questions or concerns you may have.

Temporary Full Expensing – Pre 30 June 2023

Fri, 12 May 2023 03:28:52 GMT

Until 30 June 2023, under Temporary Full Expensing, businesses can claim new and second-hand depreciating assets where those assets are used or installed ready for use for a taxable purpose.

From a timing standpoint, this means you will not be eligible for Temporary Full Expensing in this financial year if you merely order or pay for the asset before 1 July 2023 – instead, the asset must be used or installed and ready for use in your business before this date.

Small Business Instant Asset Write Off – Post 1 July 2023

Fri, 12 May 2023 03:23:53 GMT

With the Temporary Full Expensing measures ceasing for businesses from 30 June 2023, the Government has announced that it will temporarily increase the instant asset write-off threshold to $20,000 from 1 July 2023 to 30 June 2024.

Small businesses, i.e., those with aggregated annual turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or

installed ready for use between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.

Director Bonuses

Fri, 12 May 2023 03:20:45 GMT

It’s not an uncommon strategy for companies to resolve to pay director fees or director/employee bonuses in the current financial year but not physically pay them until the following financial year.

The aim of this is a degree of tax deferral, whereby a company commits itself to pay director fees or bonuses in the current financial year and accordingly claims a tax deduction.

However, it does not pay the amount in that year but the following year. A deduction is claimed, but the company incurs no expense.

What of the ATO’s position? To claim a deduction in the current 2022/23 financial year, there must be a definite liability to pay the amount in question, which must arise on or before 30 June.

This can be achieved by the company passing a properly authorised resolution by this date.

Those amounts must be paid in the following months and at least by the end of the following year.

When those amounts are paid, the standard PAYG rules must be complied with for a deduction to be claimed.

Meet Carri Berwick

Fri, 12 May 2023 03:10:16 GMT

Born and raised in the southern Mallee town of Lameroo, South Australia, I have a strong background and healthy respect for farming and agriculture. I was also the daughter of a shearing contractor, with my family still actively involved in the industry today.

Almost two years ago my husband Adam and I made the decision to move from our beloved small community to a more progressive area, and along with our daughter Payton (11) and son Van (5) we landed in this district and haven’t looked back.

Previously I worked for 16 years in SA Health at the Mallee Health Service- Lameroo District Hospital in both an administrative and clinical role.

Currently we reside in the township of Hamilton along with our Irish wolfhound, Ruby-Rose and our cavalier king charles cross, Bruce, and since arriving the whole family enjoy exploring this region, its diverse landscape and what it has to offer at every opportunity.

Meet our Staff - Michael Pech

Tue, 04 Apr 2023 05:08:50 GMT

Hi I’m Michael P, an Accountant in our Tax Services team, and I started my accounting journey at 44 Gray Street by completing a traineeship way back in 2004.

I have since spent many years gaining taxation industry experience with a number of mid-tier firms in Melbourne, while completing a Bachelor of Accounting via online study.

I’ve been back in town for a while, and re-joined CoggerGurry in 2018 – still at 44 Gray St!

In my spare time I enjoy playing competitive lawn bowls with Hamilton Bowling Club and cheering on my favorite footy team The Carlton Blues.

Gold Coast Brentnalls Conference

Tue, 04 Apr 2023 05:07:22 GMT

In early March we attended our bi-annual Brentnalls Conference – this time at the Sheraton Mirage on the Gold Coast. It has been great having time to properly reconnect with friends and colleagues over the past 18 months after two years of COVID disruption.

The Brentnall’s Network is a group of likeminded business owners with Practices located in Melbourne, Sydney, Brisbane, Perth, Adelaide, Auckland and Hamilton. Each Practice is quite different in the customers they work with, however we all have similar issues to navigate so it is always a fantastic opportunity to be able to share ideas, experiences and help each other out.

The CoggerGurry team is heavily invested in the ongoing success of Brentnalls. Kieran Neeson attended his first conference having just completed an emerging leaders course with participants from each of the other Practices. Toni Wright played an integral role in the launch of our Women in Brentnall’s initiative, Michael Fitzpatrick has just completed a term as chair of the Tax Group, and l am about to commence a two year term as chair of the Affiliation.

As l have said on other occasions, our involvement with Brentnalls provides opportunities for our staff, and access to networks and resources that would be very difficult for other Practices in a regional location to replicate.

I look forward to providing you with an update from our next Conference – scheduled for Queenstown in September.

- Andrew Heazlewood

The Proposed Tax on $3m Super Balances

Tue, 04 Apr 2023 05:05:13 GMT

Individuals with large superannuation balances may soon be subject to an extra 15% tax on earnings if their balance exceeds $3m at the end of a financial year.

What has been proposed?

Recently, the Government announced it would introduce an additional tax of 15% on earnings for individuals whose total superannuation balance (TSB) exceeds $3m at the end of a financial year.

Those affected would continue to pay a 15% tax on any earnings below the $3m threshold but will also pay an extra 15% on earnings for balances over $3m.

The proposal will not impose a limit on superannuation account balances in the accumulation phase, and rather it is about how generous the tax concessions are on higher balances.

The Government has confirmed the changes will not be applied retrospectively and will apply to future earnings, coming into effect from 1 July 2025. This means your balance in superannuation on 30 June 2026 is what matters initially.

What counts towards the $3m threshold?

The $3m threshold is based on your TSB and includes all your superannuation accounts. This includes your accumulation and pension accounts and all superannuation funds you may have (such as your SMSF and any APRA-regulated superannuation funds you have).

Further, the $3m threshold is per member, not per superannuation fund. This means a couple could have just under $6m in the superannuation/pension phase before being impacted by the proposals.

How will earnings be calculated?

Put, the extra 15% tax is unrelated to the actual taxable income generated by your superannuation fund. Instead, it is a tax on earnings or increases in account balances over $3m (including unrealised gains and losses).

This means any growth in balances will include anything that causes your account balance to go up – such as interest, dividends, rent, and capital gains on assets that have been sold, including any notional or unrealised gains on assets that increase in value, even if your fund hasn’t sold them.

Apart from the extra 15% tax, the taxation of unrealised gains has caused a stir, as currently, individuals do not pay tax on income or capital gains on assets that have not been sold.

When looking at how to capture growth in a person’s TSB over a financial year, earnings will be calculated based on the difference in TSB at the start and end of the financial year. They will be adjusted for withdrawals and contributions.

It is also worth noting that negative earnings can be carried forward and offset against this tax in future years’ tax liabilities.

How is the extra 15% tax calculated?

Superannuation funds, including SMSFs, will not be required to calculate the earnings attributable to a member’s balance above $3m.

Instead, the ATO will use a three-step formula to calculate the proportion of total earnings, which will be subject to the additional 15% tax.

How will the extra tax be paid?

The ATO will notify individuals of their liability to pay the extra tax. This means the ATO will issue members with a tax assessment, not their superannuation fund.

Individuals can either pay the tax themselves or from their superannuation fund(s) (if they have multiple funds).

The tax will be separate from the individual’s personal income tax liabilities.

Don’t fret just yet

The measure will start on 1 July 2025, so superannuation funds and members still have time to consider their options.

Remember, this measure is still a proposal and must be passed into legislation by Parliament to become law. So don’t rush to remove benefits below the $3m limit just yet, as once amounts have been withdrawn from superannuation, it’s hard to get them back in.

2023 Tax Planning

Tue, 07 Mar 2023 03:59:04 GMT

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2023.

Trust Distributions

The ATO has recently released guidance on its compliance approach and views on the tax treatment of income distributions from family trusts.

In particular, it is proposing to take a stricter view on income distributions made to low-income taxpayers where other family members benefit from the trusts’ funds.

It will therefore be crucial to review trust distributions for 2023 to minimise the risk of ATO review.

Superannuation Contributions

The concessional contributions cap for 2023 remains at $27,500.

For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions.

A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances.

Instant Asset Write-Off and Temporary Full Expensing

The instant asset write-off and temporary full expensing has not yet been extended and is due to come to an end on 30 June 2023.

Businesses looking to invest in plant and equipment assets should consider bringing forward these purchases to ensure they are installed, delivered and ready for use by 30 June.

Meet Tracey Deary

Tue, 07 Mar 2023 03:50:12 GMT

Hi, Tracey Deary here, as most of you know I moved to Australia from Zimbabwe with my family back in 2006.

I started at CG the following year, coming up for 17 years this September, there have been a few changes along the way & special friends made. My family has expanded with the addition of Kate & Emma & two gorgeous grandbabies – Sadie & Miles.

I still like to play tennis, go for walks & travel – have managed to squeeze in a few great overseas trips over the years.

Hopefully, you will see me around for a few more years!

How Much do you Need to Start a Self Managed Super Fund?

Tue, 07 Mar 2023 03:48:50 GMT

SMSFs are not for everyone, but for those individuals where an SMSF is entirely appropriate for them, the benefits can be considerable.

In the context of ongoing public debate regarding the appropriate minimum size for an SMSF, new research has been provided to give insights into the true costs of running an SMSF. And the research shows SMSFs are cheaper to run than many people may think.

The findings allow SMSF trustees and potential SMSF trustees to compare appropriate estimates of fees for differing SMSF balances with institutional superannuation funds (commonly referred to as APRA regulated funds).

The costs include establishment, annual compliance costs, statutory fees and some investment management fees. Direct investment fees have been excluded.

What does the research tell us?

SMSFs with less than $100,000 are not competitive in comparison to APRA regulated funds (SMSFs of this size would generally only be appropriate if they were expected to grow to a competitive size within a reasonable time).

SMSFs with $100,000 to $150,000 are competitive with APRA regulated funds (SMSFs of this size can be competitive provided the Trustees use one of the cheaper service providers or undertake some of the administration themselves).

SMSFs with $200,000 to $500,000s are competitive with APRA regulated funds even for full administration. (SMSFs above $250,000 become a competitive alternative provided the Trustees undertake some of the administration, or, if seeking full administration, choose one of the cheaper services).

SMSFs with $500,000 or more are generally the cheapest alternative regardless of the administrative options taken. (For SMSFs with only accumulation accounts, the fees at all complexity levels are lower than the lowest fees of APRA regulated funds).

This research highlights that SMSFs with a low complexity can begin to become cost-effective at $100,000. This is a significant departure from what many had believed to be the case. For simple funds, $200,000 is a point where SMSFs can become cost competitive with APRA regulated funds or even cheaper if a low cost admin provider is used. With the proposed expansion to six member SMSFs, we may see many more take up this option at this threshold.

But it's more than cost

When determining whether an SMSF is right for you, your analysis must go further than just a simple comparison of the costs versus APRA Regulated Funds. It should also factor in your retirement and income goals and whether you have the desire, time and expertise to take on the role of an SMSF trustee. It’s also worth factoring in SMSF members may not receive the same level of protection in the event of theft or fraud that members in APRA regulated funds do.

Changes to Work from Home Deductions – Fixed Rate

Mon, 06 Mar 2023 23:08:48 GMT

The ATO has released updated guidelines on the way taxpayers can claim Work from Home (WFH) Expenses from 1 July 2022. Many workers have transitioned to permanent hybrid working models that enables them to work from home for one or sometimes several days a week. With this change the ATO has revised the Fixed Rate method applicable to claim WFH expenses on a cents per hour basis from 52 cents to 67 cents.

The updated rate covers the following expenses that cannot have any additional deductions made on top of the fixed hourly rate:

- Energy Expenses (Electricity & Gas)

- Phone Usage (Mobile & Home)

- Internet

- Stationery

- Computer consumables (Paper, Printer Cartridges etc.)

Items that can continue to be claimed separately are:

- Decline in value of assets used while working from home such as Computers and Office Furniture

- Repairs & Maintenance for the above assets

- Cleaning costs, where a dedicated home office space is in use.

Recordkeeping for the 2023 Financial year requires:

- Accurate records for all hours worked for the entire income year. The ATO will not accept estimates or a 4-week representative diary.

- Records for hours worked from the home can be provided in the following forms: timesheets, rosters, logs spent accessing business systems or a full year diary.

Please note the Actual Cost method has not changes and taxpayers can continue to claim actual work-related portions of all running expenses provided they keep detailed records for all receipts, bills and similar documents to show expenses incurred along with a record on how the taxpayer has calculated the work-related and private portion of their expenses.

If you would like to discuss any questions relating to your working from home deductions, please contact one of our tax specialist at 03 5571 0111.

Low Income Health Care Card Eligibility

Mon, 06 Mar 2023 22:59:33 GMT

In certain circumstances you are able to make a claim for a Low-Income Health Care Card (LIHCC), which upon approval provides the card holder with a number of benefits that include:

· Cheaper medicine under the Pharmaceutical Benefits Scheme.

· Bulk billed doctor visits at the clinic’s discretion.

· Bigger refund for medical costs when the medicine safety net is reached.

· Concessions for utility bills property and water rates, public transport, and motor vehicle registration.

Eligibility for the LIHCC isn’t subject to an asset test, but is based on your average weekly assessable income over the 8 weeks prior to applying and your income must be less than:

The income assessment takes into account a number of different sources, which includes employment income, salary sacrifice, employer fringe benefits, rental income, defined benefit income streams, income from private trusts and companies, plus deemed income from financial investments and account-based income streams.

If you would like to determine if your income falls under the allowable income limits, please contact us and we can assist with completion of the necessary Centrelink documentation.

Our Staff on Holiday

Thu, 02 Feb 2023 04:53:30 GMT

Tamara Milne's son Darcy waterskiing at Lake Charm during a cracker storm

Toni Wright and her husband Brett enjoying a drink at Robe

Tracy Foley and her family at Slea Head County Kerry - Ireland

Chloe Meyers and her dad in Melbourne at the Cricket Boxing Day Test

Billy Easson and her daughter Brydie at Port Fairy

Hamish McDonald sons paddle boarding with the dog at Glendinning

Stacey Shelden on the Tower of London overlooking The London Bridge

Tracey Deary walking through Umpherson Sinkhole

Rebecca Campbell at Forest Gump Hill, Monument Valley

Employee Superannuation - are you allowing enough time to meet your obligations?

Thu, 02 Feb 2023 03:55:59 GMT

The ATO have recently “ramped-up” their monitoring around timely payment of employee superannuation – especially for Small Business employers.

Minimum mandatory superannuation guarantee requirements are the same for all businesses, regardless of size, or number of employees.

Super guarantee (SG) is the minimum amount you must pay to avoid the super guarantee charge. Super guarantee is 10.5% of an employee’s ordinary time earnings.

Employers must pay SG contributions at least quarterly, by the quarterly due dates – 28 days after the end of each quarter to avoid the SG charge, interest and other penalties. It is important to allow at least 5 additional business days for processing by ATO Small Business Clearing House, Xero Automatic Superannuation, or other Super Clearing House, as the effective date of payment is taken to be the date the funds are credited to the employees’ super fund.

SG contributions you make for your employees, in a timely manner, are tax deductible. You can only claim the deduction in the financial year payments are made. To claim a deduction, a contribution must be made on time and in full.

Missed or late super payments may incur the SG charge. The SG charge is not tax deductible.

ATO Lodgement Deadlines - February & March

Thu, 02 Feb 2023 03:50:45 GMT

Upcoming due dates for ATO lodgements as follows:

- 21 ^st February – January Instalment Activity Statements

- 28 ^th February – December Business Activity Statements

- 21 ^st March – February Instalment Activity Statements

- 31 ^st March – Large Taxpayers Income Tax Return

If you have any concerns or issues regarding lodgement of any ATO statements please be in contact with our office.

Director IDs - There is still time

Thu, 02 Feb 2023 03:49:44 GMT

Are you yet to apply for your director identification number (director ID)? You must apply personally. As your advisor, we cannot apply on your behalf. However, we can assist with any questions you may have, for example, around eligibility etc.

If you missed the deadline, you could still apply. The ATO says it will take a reasonable approach with directors who are trying to do the right thing. Directors who need additional time to apply (beyond 14 December 2022) can request an extension of time by completing an Application.

To recap, a director ID is a unique 15‑digit identifier that a company director will apply for once and keep forever. By allowing regulators to trace directors’ relationships with companies over time, director IDs will help prevent illegal activity and level the playing field for businesses.

Director IDs are administered by the Australian Business Registry Services (ABRS), which the ATO manages.

If you have any queries or require further information please contact our office.

Single Touch Payroll Phase 2, are you ready?

Thu, 02 Feb 2023 03:49:15 GMT

In the 2019-20 Budget the government announced that Single Touch Payroll (STP) will be expanded to include additional reported payroll information. The Expansion of this STP is also know as “STP Phase 2”, designed to reduce the reporting burden for employers who need to report payroll information to multiple government agencies.

The Main Payroll Reporting Changes Are;

· Tax File Number Declaration

· Income Type and Country Codes

· Termination Reason

· Paid Leave

· Allowance Types

· Director Fees

· Lump Sum W (Return to Work) Payments

· Tax Treatment Codes

· Bonuses and Commissions

· Lump Sum E Payments

Although you need to provide the ATO with more payroll information, the way you submit your STP Phase 2 Reporting will not change.

To ensure that your payroll records are STP Phase 2 compliant your digital software provider will issue step by step process on how to complete this initial setup to assign these new payroll categorises and update your employee data fields.

These instructions can be found under the STP Reporting Section (STP Phase 2) or the Help Menu Area in your Payroll Software.

The STP Phase 2 compliant deadline date with the ATO is 31 March 2023, for any further assistance regarding “STP Phase 2” please contact us at Coggergurry to step you through this transition.

Scam ATO emails - Four things to remember

Thu, 02 Feb 2023 03:48:45 GMT

An ever-increasing number of email and SMS scams are doing the rounds in 2023, but perhaps most troubling is the fact that they are becoming increasingly believable.

In our industry, they are typically sent from scammers purporting to be the ATO and seeking additional information from you as the taxpayer. There is even anecdotal evidence to suggest that one scam doing the rounds somehow had the specifics of taxpayers’ refunds in the email’s wording.

We thought it timely to pass on four key things to remember if you are confronted with a suspicious email or SMS:

1. The ATO will never ask you for your tax file number (TFN), bank details or other personal information in an electronic communication (including email or text message).

2. Be cautious when clicking on hyperlinks embedded in SMS and emails. You should always access ATO services by visiting ato.gov.au or my.gov.au, or via the ATO app.

3. If you are unsure about the legitimacy of a myGov notification you have received, you should go directly to the myGov homepage and sign in to check your Inbox.

4. Ensure you keep your tax file number (TFN) and passwords secure. Don’t share your password with others.

Merry Christmas

Tue, 20 Dec 2022 04:37:05 GMT

With Christmas fast approaching we would like to take this opportunity to wish you all a very Merry Christmas and hope you have a relaxing summer holidays with friends and family.

We thank you for your continued support of our business, and we look forward to working with you again in 2023. We are taking the opportunity to have a slightly longer Christmas closure than normal to give our staff a well deserved break with the office closing at lunchtime on Wednesday the 21 ^st and reopening and reopening Tuesday the 3 ^rd of January.

Christmas Closure Dates

Mon, 19 Dec 2022 23:07:44 GMT

Our office will be closed from 12pm Wednesday 21 December and reopen on Tuesday 3 December at 8.30am.

Superannuation over summer

Mon, 19 Dec 2022 23:01:16 GMT

The holiday season is fast approaching, and your holiday casuals may now be eligible for super.

From 1 July 2022, you need to pay super for employees at a rate of 10.5%, regardless of how much you pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility has been removed.

Take Jane, for instance. She is a 22-year-old employee working a short-term job at a restaurant over the holiday season, and she works 23 hours a month, earning $430 before tax. In the past, holiday employees such as Jane would not be paid super as they earned below the $450 threshold. Now, Jane will be eligible for super pay on her ordinary time earnings at 10.5%.

This change doesn’t affect other eligibility requirements for SG. Workers who are under 18 still need to work more than 30 hours a week to be eligible.

For example, Anish is a 17-year-old employee working at a hotel over the holiday season. Anish works 32 hours weekly at the hotel and earns $800 before tax. He also works 5 hours at his local café, earning $150. As Anish worked more than 30 hours in one week at the hotel, his employer must pay him super on the $800 earned. As Anish works less than 30 hours a week at the café, he is not entitled to super from this employer . Likewise, Anish isn’t entitled to super for any weeks he works less than 30 hours at the hotel.

Check your payroll and accounting systems are up to date, so you are correctly calculating your employees’ SG payments.

Christmas celebrations and FBT implications

Mon, 19 Dec 2022 22:57:33 GMT

Fringe Benefits Tax (FBT) applies when an employer provides benefits to an employee other than their regular salary or wage. The circumstances that determine an FBT event include:

· the amount you spend on each employee

· when and where your party is held

· who attends – is it just employees, partners, clients, or suppliers also invited?

· the value and type of gifts you provide.

The key here is to know your limits keeping in mind that the $300 “minor and infrequent” benefit threshold for FBT is the key to your Christmas party and gifts remaining tax-free. Note that the $300 threshold applies to each benefit provided, not to the total value of the associated benefit.

If you have any further questions, feel free to get in touch with our office.

Cyber Security Measures at CoggerGurry

Mon, 19 Dec 2022 22:51:23 GMT

At CoggerGurry we have multi-factor authentication (MFA) implemented across all internal systems along with accounting software programs with linked access to client data files.

MFA is a security measure that requires at least 2 proofs of identity to grant access.

Using this at CoggerGurry ensures that all client files and personal information are protected and can only be accessed securely by our staff once the MFA has been approved.

Christmas Closure

Thu, 10 Nov 2022 00:00:21 GMT

The office will be closed :

Thursday, 22nd December @ 5:00pm

Until

Tuesday, 3rd January @ 8:30am

Standing Tall

Thu, 03 Nov 2022 04:32:05 GMT

CoggerGurry is a proud supporter of Standing Tall in Hamilton Inc (STiH), a local charity organisation that runs school-based mentoring programs throughout primary and secondary schools in Hamilton and the surrounding district.

Earlier this year, with the assistance of CoggerGurry, STiH were successful in gaining registration as a charity with the ACNC, and also endorsement as a Deductible Gift Recipient (DGR) with the Australian Tax Office.

CoggerGurry is recognised on the STiH website as a ‘Business Partner’ for this work.

Perennial Pasture Systems

Thu, 03 Nov 2022 04:28:39 GMT

Stacey Shelden, Principal at CoggerGurry recently presented in Ararat to members of Perennial Pasture Systems, a group of 197 farming businesses as part of their Girls & Grass Workshops. This workshop was on business structures and estate planning. This was the second in a series of workshops with Stacey presenting on bookkeeping and software solutions for the first workshop. Both topics generated plenty of discussion and were well received by attendees.

CoggerGurry would welcome the chance to speak with you about your own situation on any of these topics or if you would like us to present at your next group function.

New Website

Thu, 03 Nov 2022 03:42:39 GMT

We have launched our new website which includes, updated, insightful content to help you find out more about us and what we can do to help you.

Our goal with this new website is to provide our visitors with an easier way to learn about CoggerGurry’s service. Our current and prospective clients will find useful information about our services on the homepage of our website.

Amongst the new features, the site contains integrated social media buttons for Facebook, Twitter and Linkedin to foster improved communications with the clients. We will be updating our content with helpful information, articles, blogs, newsletters, and company announcements.

We hope you find the new website with a fresh look, easy to access information and we also wish to establish this portal as a source of information for those who visit our site.

2022-23 Australian Federal Budget

Thu, 03 Nov 2022 03:12:26 GMT

FEDERAL BUDGET

The Federal Budget was handed down on 25 October 2022.

Main outcomes from the budget to note are:

Personal Tax Rates – No Changes to previously slated Tax Rate Changes

As previously introduced by the previous government, Labour ruled out making any changes to the contentious stage three tax cuts package. The third tranche of tax cuts are due to come into effect for the 2024 financial year. The cuts mean anyone earning $45,000 to $200,000 will pay no more than 30c in tax for every dollar they earn.

Superannuation – expanding eligibility for downsizer contributions

The Government will allow more people to make downsizer contributions to their superannuation by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after the Royal Assent of the enabling legislation.

The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Both members of a couple can contribute, and contributions do not count towards non-concessional contribution caps.

This measure provides greater flexibility to contribute to superannuation and aims to encourage older Australians to downsize sooner to a home that better suits their needs, thereby increasing the availability of suitable housing for Australian families.

Low income tax offsets - LMITO not extended to 2022-23

The 2022-23 October Budget did not announce any extension of the low and middle income tax offset (LMITO) to the 2022-23 income year. The LMITO has now ceased and been fully replaced by the low income tax offset (LITO).

With no extension of the LMITO announced in the October Budget, 2021-22 was the last income year for which the offset was available. As a result, low-to-middle income earners may see their tax refunds from July 2023 reduced by between $675 and $1,500 (for incomes up to $90,000 but phasing out up to $126,000), all other things being equal.

Meet Sam Lambevski

Thu, 03 Nov 2022 00:30:21 GMT

I’m the youngest of 4 boys and lived on the East Coast of NSW as a youngster. My family moved to Macarthur in 2006 when I was 4, and I attended Macarthur Primary School and then Baimbridge College for High School. My family are all mad Collingwood supporters, and I loved my sport growing up – especially footy and cricket. My first job was at Maccas in Hamilton, and I worked there for almost 2 years, before leaving to focus on year 12.

I graduated as dux of Baimbridge in 2019 and moved off to Melbourne to study civil engineering at RMIT. After spending my whole first year attending online classes due to COVID, I decided to take a year off and moved back home. I spent the year working as a brickie’s labourer with my brother and his partner, and did a bit of bar work in Port Fairy. I always enjoyed numbers and maths, so decided to switch to a Bachelor of Commerce at Deakin Warrnambool for 2022.

I play footy at Branxholme Wallacedale, and during the summer I enjoy playing golf and going to the beach with Charlie, my yellow lab.

I started my cadetship at CoggerGurry in June 2022. It was a big change, and I was pretty nervous my first few days, but everyone went out of there way to make me feel welcome and I’m really glad I decided to take on the role.

New Income Limits for the Commonwealth Seniors Health Care Card

Thu, 03 Nov 2022 00:20:40 GMT

More than 50,000 additional self-funded retirees are expected to be now eligible for the Commonwealth Seniors Health Care Card following legislation approval by the Government to increase the allowable income limits.

Effective from the 4 November 2022, the following income limits will apply

$90,000 a year if you are single
$144,000 a year for couples
$180,000 a year for couples separated by illness or respite care

There is no asset test that applies to the Commonwealth Seniors Health Care Card. Therefore, if your income falls under the new allowable income limits, please contact us and we can determine your eligibility, plus assist with completion of the necessary Centrelink application.

Public Holiday Announcement

Wed, 12 Oct 2022 01:42:10 GMT

The office will be closed Tuesday, 1 November for the Melbourne Cup

If you have any questions or need advice in relation to these topics please contact us at reception@coggergurry.com.au

Meet Billy - Jay Easson

Sat, 08 Oct 2022 01:34:32 GMT

As a child I grew up in Dartmoor on a small farm with my family and collection of animals. I later went on to complete my schooling at Heywood Secondary College where I was school captain.

I developed a keen interest in photography and was convinced that was what I wanted to do after working with my aunt at the Herald Sun during my school holidays.

After school I received a cadetship at the Hamilton Spectator to become a photographer. I completed 3 years of my cadetship and worked a further 4 years at the Spectator, during that time becoming the senior photographer and winning some awards along the way.

At the start of 2022 I had to revaluate my life as a single mum to my daughter, Brydie, 3, and two snag dogs, Bert & Ernie, and applied for a reception position at CoggerGurry.

Since joining the team, I have been given the opportunity to grow and expand my role to help more within the admin team.

Outside of work I spend my time with my daughter camping, exploring, or catching up with friends.

Key Superannuation Rates and Dates

Thu, 06 Oct 2022 01:32:00 GMT

The superannuation guarantee is the official term for compulsory super contributions made by employers on behalf of their employees.
The superannuation guarantee amount for 2022-23 is 10.5% of an employee’s ordinary time wages or salary. This rate is scheduled to increase progressively to 12% by July 2025, as outlined in the table below.

Employers must pay super for eligible employees. To avoid the super guarantee charge (SGC) payments must be received by the employee's fund on or before the quarterly super due dates.

Payments can be made at least 4 times a year. This applies from the day employees start working for you. Payment due dates occur quarterly.

Quarterly super payment due dates

Living a Long Way From Work and Travel Expenses

Tue, 04 Oct 2022 01:25:39 GMT

This is not an unusual situation that is becoming more prevalent (post lockdown), with a hybrid model acceptable to employers whereby people may work from home, travelling to work on specific days when needed in the office. This ATO example covers this situation.

Example: living a long way from work – travel expenses aren’t deductible

Ainsley lives in Brisbane with his family. He accepts a job on a long-term project that is being carried out in Sydney. His employment contract indicates that his place of work is the office located on the project site in Sydney.

As Ainsley lives in Brisbane and does not need to be physically on-site all the time, he has an informal agreement with his employer to work from home whenever he is not required on-site. When Ainsley must be on-site, he is generally there for no longer than 2 weeks. As Ainsley’s regular workplace is in Sydney, his employer does not cover the cost of his flights to Sydney or his accommodation, meal and incidental expenses when Ainsley stays near the site.

Ainsley can’t claim a deduction for the accommodation, meal and incidental expenses he incurs when he travels and stays in Sydney to work at the project site. The expenses are private expenses, and Ainsley incurs them as a consequence of his personal circumstances; that is, he decides to live in Brisbane and work in Sydney.

Ainsley can’t claim the cost of his flights between Brisbane and Sydney for the same reasons.

Mental Health and Wellness First Aid

Mon, 03 Oct 2022 01:21:14 GMT

Toni, Tamara and Leah attended a mental health and wellness first aid course from WDEA which was run over two days. The course gave some insights into how to assist and what to look out for when people are dealing with mental health problems.

We strongly encourage everyone to attend one of these courses if you have the opportunity, we all need to look out for each other.

Crypto and Tax – Avoid Crypto Tax Headaches

Sat, 01 Oct 2022 01:15:14 GMT

Crypto assets tend to be one of those polarising topics that people either love or hate. Since January 2022 crypto has suffered a major crash with its flagship asset Bitcoin suffering prices drops from $67,000 USD in November 2021 to currently sitting just over $19,000 USD per Bitcoin. You may still be holding or if you have sold or exchanged crypto for other currencies you will have tax obligations.

If you have already invested in crypto assets or are thinking about it, you should seriously consider how you record your transactions and manage the documentation, so you are not left in a mess come tax time.

At CoggerGurry we recommend CryptoTaxCalculator software and can help you set up a file to track and manage your crypto assets. The ATO is now data-matching on some crypto assets and you risk being put under the ATO microscope if you do not include your gains or losses from these assets.

Come talk to us today to avoid the tax headache later.

Meet our New Practice Manager Jane Evans

Thu, 22 Sep 2022 00:35:44 GMT

Jane grew up on a farm in the Hamilton area attending school locally before going to boarding school in Geelong. From school she worked in Melbourne before attending the University of New England completing a Bachelor of Arts degree.

Living in Sydney, London and Melbourne Jane worked in Human Resources and Event Co-ordination roles. Returning to Hamilton in 2011 with her family, Jane worked in several part time positions before commencing with Livestock Logic and Cox Street Vets for eight years.

Jane has two sons who keep her on her toes and busy with cricket, basketball, and football amongst other things! Oh and the three family dogs are pretty busy too.

ASIC Director ID

Thu, 15 Sep 2022 00:34:06 GMT

From the 30th of November this year, ASIC requires all company directors to be issued with a director ID number.

There is an identity verification process which needs to be completed as part of the application which means ID numbers will need to be applied for individually and unfortunately, we cannot complete the application on your behalf.

The verification process is completed through the myGovID app – note myGovID is different to the myGov website and requires you to download the app and verify your identity with your driver’s license/passport etc.

Full instructions are available on the Australian Business Registry Service website – www.abrs.gov.au

You can complete the process via phone if you are unable to online, or you can contact the office and we will walk you through the process.

We will be directly contacting all company directors on our ASIC database over the coming weeks with further instructions on the necessary steps.

Brentnalls Conference 2022

Mon, 05 Sep 2022 00:20:56 GMT

After three virtual conferences the April 2022 Brentnall Affiliation Conference was able to be held in person in Adelaide.

The Brentnall’s affiliation comprises seven independent Chartered Accounting firms from Hamilton, Brisbane, Sydney, Melbourne, Adelaide, Perth and Auckland and collectively offers a comprehensive range of financial, superannuation, wealth and business advisory services covering all industry sectors. The affiliate firms meet twice a year to share ideas regarding ways to advance client services and compare our challenges and achievements during the year.

The April conference was held at Sky City, Adelaide located on the banks of the Torrens River and started with the Brentnalls Executive (including our own Andrew Heazlewood as Vice Chair) and Tax Team meeting to discuss current issues in the accounting world.

The conference highlights included a presentation by renowned psychologist Michael Carr-Gregg on the topic the 8 secrets of well-being and the importance of mental health – a very important issue faced by all firms. All affiliates presented a Practice Update on their own firms and completed a deep dive into people and culture – which was incredibly valuable with multiple take aways for each organisation.

The conference provided an opportunity to explore some of Adelaide’s amazing restaurants and for all attendees to establish and make new connections with friends and colleagues – we are all looking forward to the Perth conference in October!

Temporary Full Expensing for Business Assets Provision - Extension

Fri, 02 Sep 2022 00:18:36 GMT

The ATO have confirmed that an extension has been put in place for the Temporary Full Expensing provision for Business Assets until 30 June 2023.

This means that eligible businesses will continue to be able to claim for taxable purposes the full cost of assets in the year they are first used or installed ready for use.

Meet our Staff

Wed, 01 Dec 2021 00:56:53 GMT

Take a closer look at one of our young stars, Chloe Meyers.

Meet Chloe Meyers

My name is Chloe, and for the past two years, I have been the receptionist at CoggerGurry.

After two enjoyable years in reception, I decided to expand my knowledge of the accounting environment and successfully gained a new role in the tax services team, which has so far been an enjoyable and a valuable learning experience. As well as moving into the tax team in February I also started studying Bachelor of Commerce at Deakin University. This was a very different pathway for me as I always had my mindset on a career in Nursing as I was originally accepted into a Bachelor of Nursing course at Deakin after completing year 12 in 2018.

Since working in the tax services team, I have thoroughly enjoying getting back into study. I have received much support from not only my family but the entire team at CoggerGurry, they have made the transition and learning experience enjoyable, and I am looking forward to what will be ahead of me in the future.

When I am not working and studying, I enjoy playing netball and basketball, as well as spending time with family and friends.

The Cadetship Program at CoggerGurry has given me the opportunity to work and study, which has enabled me to put my study into a practical environment.

2021 Brentnalls Conference

Wed, 01 Dec 2021 00:52:55 GMT

For the third time the Brentnalls Conference was held over video
conferencing.

Once again, the Brentnall National Conference was held on online – this is our third time participating in an online conference – we have been very grateful still being able to connect and network with our affiliate firms during the Covid Pandemic.

The Brentnall National Affiliation is currently ranked 31 ^st in the Australian Financial Review Top 100 Accounting Firms in Australia. The six organisations that comprise the Affiliation are in Brisbane (Harris Black), Sydney (Brentnall NSW), Melbourne (OHM Accountants), Western Australia (Brentnall WA), New Zealand (Chester Grey) and Hamilton.

Brentnall SA were the hosts this time around expertly led by the National Affiliate Chairman Matt hew Holden. Points for discussion this conference were comparing our six different organisations to find common themes and success and expand in these areas in our individual firms. A theme that was explored in the highest level was the working from home option for staff after the enforced lockdowns experienced by different states. Another theme discussed was the option of outsourcing different components of a firm's work requirements.

The success of the collaboration of all firms was highlighted again in the online forum however it was very much a hope that the next conference can be held in person to be able to utilise the team building opportunities and networking that is a huge part of the benefits of these conferences.

Australian Securities & Investments Commission Director ID

Wed, 01 Dec 2021 00:50:24 GMT

Recent legislation changes requiring company Directors to obtain a
personal director identification number.

Australian Securities and Investments Commission Director ID

You may be aware of recent legislation which will bring new obligations for company directors requiring them to obtain a personal director identification number.

We will be reaching out to all company directors early in the new year with further instructions on the required steps. Note the registration process is via myGov, so we cannot complete this process on your behalf, however we will certainly assist as required.

Registrations need to be completed by the 30 ^th November 2022 for all directors appointed before 31 ^st October 2021. For new directors appointed after this date the timeframe is 28 days from appointment.

Digital Signing and Document Exchange

Wed, 01 Dec 2021 00:47:50 GMT

A secure portal powered by Xero and Adobe Sign allows for signing
and exchange of your sensitive information. All you need is an email
address.

We are excited to announce our service offering now includes

Secure portal for digital signing and document exchange.

A secure portal powered by Xero and Adobe Sign allows for signing and exchange of your sensitive information. All you need is an email address for each person to be able to access these services. You may receive a call from the office to confirm your preferred email on initial setup.

Digital signing allows for fast, efficient signing of your documents wherever you are, and you can feel confident your data is in a safe and secure site that only you will be able to access. Your information will be available in one place to download for your use whenever you need it.

Document exchange can be handled via our queries portal where you can upload documents and provide comment to answer queries from us, without having to worry about office hours!

Support will be provided to help you when first accessing the system including short how to video or calling us at CoggerGurry.

Alternatively, if you do not have the means to receive documents electronically you have the option to opt-out of these new services and continue with the previous method of communication.

Capital Gains Tax Concessions in Succession and Estate Planning

Wed, 01 Dec 2021 00:43:53 GMT

Careful planning may now be required to avoid an undesirable
Capital Gains Tax liability.

The recent increase in rural land values and commodity prices has meant that where historically a typical family farming enterprise has been considered a small business, careful planning may now be required to avoid an undesirable capital gains tax liability.

There are capital gains tax (CGT) concessions for small business entities which can eliminate all or part of the CGT on an asset sale or transfer. To be eligible for the small business entity status, the entity needs to amalgamate the assets and income turnover for all its connected and affiliated entities before applying the tests.

Under the current legislation your business must meet 'basic conditions' for the entity to be eligible for these small business concessions. To be eligible you must satisfy one of the following tests.

1) Your business entity's aggregated turnover (income from ordinary business such as produce sales) is less than $2 million for the current or previous financial year; or

2) The maximum net assets value test - the total net value of CGT assets owned by you and certain entities does not exceed $6 million just before the CGT event. That is, the market value of the CGT assets less any liabilities which are related to those assets.

There is a strategy to take advantage of the small business entity CGT concessions in the financial year following that which you do not satisfy at least one of the tests for the first time. In this subsequent year, the CGT concessions will still apply. For example, the entities assets were above the $6 million threshold and the income turnover is above the current $2 million threshold for the first time in the 2021/22 tax year, there is an opportunity to transfer suitable assets either directly to the next generation or into a discretionary trust as part of your succession and estate plan. This could uplift the cost base of the asset in the 2022/23 tax year whilst taking advantage of the CGT concessions. If this asset was transferred or sold in the future, the CGT will be reduced as the previously low-cost base has been uplifted to market value in the 2022/23 tax year.

Succession and estate planning

A discretionary trust structure can provide some asset protection and will enable you to pass control of the trust to your successor(s) and to split any future CGT between the beneficiaries of the trust.

While transferring land to a discretionary trust may save CGT in the future, this structure may not be suitable for all situations. Before starting this process, it would be worthwhile to review your current plans and ensure they are adequate.

Act now

If you believe that your entity's business may be impacted by not satisfying one of the conditions of the small business entity test in the future, please contact us to discuss your situation and we will develop a tailored plan to meet your needs.

coggergurry

EOFY Check-In: Cars, Cashflow & Key Tax Moves

Giving Back to the Communities that Support Us

Giving Back to the Communities That Support Us

Fuel cost pressures - ATO support now available

Getting Ready for Payday Super

Using AI in Your Business: Practical Tips (and Where It Really Adds Value)

Major Superannuation Tax Changes – What You Need to Know

We are now Brentnalls Western Victoria!

Aged Care “Deposits” Explained

Start Your Year-End Payroll, Tax And Employee Leave Planning Now

PayDay Super

Medicare Levy

The Truth About FBT And Your Business’s Work Ute

Family Tax Benefit And Your Tax Return: Common Misunderstandings

Unlock The Benefits Of Downsizer Super

Big Changes Coming To AML/CTF Laws- What Our Clients Need To Know

Vouchers And GST In Your Business

What the new TASA legislation means for clients

Important Update: Our Terms and Conditions Have Been Updated ﻿

Why These Changes Were Made

What’s Been Updated

1. Registration and Compliance Details

2. Confidentiality and Information Management

3. Professional Conduct and Independence

4. Advice and Documentation Practices

5. Fee and Charge Updates

What This Means for You

Review the Updated Terms

Understanding the Farm Household Allowance

Understanding the Farm Household Allowance (FHA)

Support for Farmers Facing Hardship

What is the Farm Household Allowance?

Why Apply?

Who Can Apply?

Mutual Obligation Requirements

Frequently Asked Questions

How to Apply

We’re Here to Help

Understanding the new 20% student loan reduction

Celebrating Kieran Neeson’s Appointment as Principal

Celebrating Kieran Neeson’s Appointment as Principal

A Journey of Growth and Dedication

Leadership That Inspires

Celebrating With Family

Looking Ahead

Making Electronic Signing Easier for You

Understanding The 20% HECS-HELP Debt Reduction

Division 296 Tax Update

ATO Interest Charges No Longer Tax-Deductible For Businesses

Xero Accounting Software – Changes to Subscription Features

End-of-year Finalisation Through Single Touch Payroll (STP)

Business Advisory Services at CoggerGurry

Get It Right This Tax Time Preparing Your 2024–25 Individual Tax Return

When someone dies: The Tax to-do List

Victorian State Taxes: What’s Changing in 2025 and Beyond?

Working Out Your WFH Expenses This Tax Time

Minimum Wage Increase from 1 July 2025: What You Need to Know

ATO Interest Charges

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