ATO - Move from Quarterly to Monthly BAS!

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

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Self managed super fund (SMSF) Association Conference

By Cogger Gurry • March 24, 2025

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

By Cogger Gurry • March 24, 2025

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.

Increase to the General Transfer Balance Cap

By Cogger Gurry • March 24, 2025

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