Tax and compliance update 

Some of the key tax and compliance updates to look out for include: 

• 20% Technology Investment Boost for the 2023 financial year 
• 20% Skills and Training Boost for the 2023 financial year 
• 20% Proposed Efficient Energy Use Boost for the 2024 financial year 
• Temporary Full Expensing has ended on June 30, 2023 but Instant asset write-off still applies to assets under $20,000 for FY24 and FY25 
• ATO is extending compliance programs/digital ID systems 

Stage three personal tax cuts

Superannuation guarantee 

Superannuation rate changes for compulsory employer super contributions are increasing each year to 12% in FY2025-26. 

• 2023         10.5% 
• 2024         11% 
• 2025         11.5% 
• 2026         12% 

It is worth noting that superannuation funds and the Australian Taxation Office now have more visibility than ever of a business’ superannuation obligations. The ATO has also signalled that in future obligations will need to be paid in real time (i.e. PAYGW & Super) when wages are paid. 

Business reporting obligations 

The following are some of the business reporting obligations you need to be aware of when finalising your end-of-year accounts and tax returns. 

• Wages reconciliation and STP finalisation 
• Superannuation obligation reconciliation – this is not deducible if paid late, and employers must note the change in the SGC rate 
• Payroll tax obligations – check you haven’t exceeded thresholds if not registered 
• Taxable payment annual reporting (TPAR) 

- Building and construction 

- Cleaning services 

- Road freight and courier services 

- IT services 

- Security, investigation or surveillance services 

• Review accounting data files for potential conversion or rate changes 

What to do before year end  

• Review year to date figures to determine likely tax liability 
• Consider strategies for management of the likely tax position 
• Determine dividends to be declared for companies 
• Prepare distribution minutes for trusts 
• Consider owners remuneration and optimise tax outcome 
• Small Business Entities – cash vs. accruals/prepayments/depreciation 
• Make superannuation payments as they are only deductible when paid 
• Debtor analysis – consider bad debts/timing of invoicing 
• Creditor analysis – bring forward expenses to get a tax deduction 
• Stock take – undertake a stock take and consider obsolete stock 
• Plant and equipment – consider any new equipment needed and ensure its available and ready for use prior to June 30 
• Fringe Benefits Tax – if FBT return not lodged consider private portion of expenses and GST adjustments 
• Capital Gains Tax – consider the sale of any investments and prepare likely tax calculations 

Business structures and tax outcomes 

Consider the relevance of the existing structure of your business.

• Section 100a and trust distributions – keep records of payments to beneficiaries to satisfy new ATO rules 
• Potential trust distributions to investment companies to retain corporate tax rate 
• Division 7a – check owners drawings from companies and ensure repayments are made or enter into a Division 7a loan agreement 

Other considerations 

• Planning for one off transactions – e.g. Business sales or purchases 
• Self-managed Super Fund (SMSF) – do you have a SMSF? Consider the impact on the business 
• Purchase of property or business premises 
• Consider relevance of existing accounting systems and consider new technology 
• ESG reporting – this begins in January 2025

CCIWA and Optima Partners are here to support your business at whatever stage you are at. 

We offer a one-hour free consultation where you can discuss your unique circumstances and provide insights into possible strategies specific to your business. For more email: [email protected]