GFM February 2025 Newsletter

Happy New Year

Now the cobwebs from the Christmas Break are well and truly wiped off, GFM are looking forward to working with all our clients and friends in 2025.  We  have already held 42 meetings with business clients in January, spreading advice across areas such as succession planning, cashflow, finance needs and wealth creation.  If you would like to discuss your plans for 2025, please contact us to arrange a meeting.

Property owners – please be aware of the Vacant Land Tax (Victoria only) issues that many are facing and Land Tax assessment notices (Victoria) have started to be issued.  It’s important to understand the cashflow needs for a second property before you decide that you may wish to sell. 

The Federal election is around the corner and we all hope that we see some Interest Rate relief very soon.

Please reach out to our hard working team at any stage to discuss your questions on any matters.

Regards
Darren, Brent and the Team at GFM

Pre-30^th June Business Review

As we approach the end of the 2025 financial year, now is the perfect time to assess where your business stands. Are you prepared for your year-end tax liabilities? Is there room to improve your personal financial position? Have you considered a Pre-30th June Business Review?

Our Pre-30th June Business Review is designed to help you make informed decisions and improve your business’s financial health. By working with us, you will gain:

• Tax Strategies: Practical recommendations to reduce your potential tax liability before the 30th of June—and into the future.
• Compliance: Insights on staying compliant with existing and emerging legislation, crucial with the many changes to tax laws in 2025.
• Cashflow Management: Tools to effectively manage cashflow and optimize your financial operations.
• Wealth Creation: Strategic options to consider for building wealth through your business.

Please note, it takes approximately 7-10 days to compile your interim reports, so we encourage you to book early to allow ample time.

If you have any questions or would like to schedule your review, please reach out to your preferred accountant at our office.

We look forward to helping you prepare for a successful end to the 2025 financial year.

Payday Superannuation

From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.

On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages.

This measure is not yet law.

Treasury and the ATO will engage with industry and stakeholders on these changes.

On 18 September 2024, the government announced further details, including:

• Contributions of super. From the start of the measure, employers will be required to pay their employees’ SG at the same time as their salary and wages. They will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within 7 days of payday. Payday is the date that an employer makes an ordinary time earnings (OTE) payment to an employee. Each time OTE is paid, there will be a new 7-day ‘due date’ for contributions, with some limited exceptions.
• Updated super guarantee charge. Where employers fail to pay contributions in full and on time, they are liable for SGC.

The SGC will be updated and consist of

• Outstanding SG shortfall: any contributions that remain unpaid when the SGC is assessed. The shortfall calculation will be based on OTE, creating consistency with the calculation of SG contributions. Late contributions paid by an employer before they are assessed for the SGC will reduce the outstanding SG shortfall.
• Notional earnings: an interest component to put employees in the same position that they would have been had the contributions been received in full and on time.
• Administrative uplift: an additional charge levied to reflect the cost of enforcement.
• Once SGC is assessed, additional interest and penalties may apply if the SGC liability is not paid in full.
• The SGC will be tax-deductible, ensuring the income tax consequences for paying employees’ super are consistent.

Updates

• SuperStream updates. The deadline for super funds to allocate or return contributions will be reduced to 3 business days, down from 20. The SuperStream data and payment standards will be revised to allow payments made via the New Payments Platform and improve error messaging to ensure employers and intermediaries can quickly address errors.
• STP updates. Employers will be required to report in Single Touch Payroll (STP) both the OTE and the total super liability for an employee, ensuring the SG can be correctly identified.

Reminder: The 2024 Tax Return Lodgement Deadline is Approaching!

As the end of the 2024 tax return lodgement year draws near, now is the perfect time to get your income tax return sorted. If you haven’t yet completed your 2024 or any back year/s tax return/s, we’re here to help you navigate the process with ease.

Here’s how we can assist you:

• Option 1 – Email Your Information: Simply complete your tax details using our online personal tax return questionnaire, and we’ll draft your return. We’ll then get in touch to review it with you and finalize everything before sending it for signature via our secure “Pandadoc” electronic signature platform.
• Option 2 – Telephone Meeting: Book a phone consultation with us using our online booking system, and we’ll go through your return together, prepare it, and then email it to you for signing via “Pandadoc.”
• Option 3 – Face-to-Face Meeting: Prefer to meet in person? Book a face-to-face meeting and we’ll discuss and complete your income tax return with you directly.

No matter which option you choose, we’re committed to making the process simple and hassle-free.

If you have any questions or need assistance, please don’t hesitate to contact our friendly reception team on 03 9374 2422. We’re always happy to help!

New criminal underpayment laws have started

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This doesn’t include honest mistakes.

ATO can investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.

There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements.

Further information is available here on the FairWork website.

Employee or Independent Contractor?

Common myths causing businesses to get it wrong when determining if a worker is an employee or independent contractor.

Here the ATO clarify common misconceptions regarding this topic.

Key Dates

• Lodge and Pay January 2025 Payroll Tax – 10^th February 2025
• Lodge and Pay January 2025 Monthly BAS/IAS – 21st February 2025
• Lodge and Pay December 2024 Quarterly BAS – 28th February 2025
• Lodge and Pay December 2024 quarter Superannuation Guarantee Charge Statement – 28th February 2025
• Lodge and Pay February 2025 Monthly BAS/IAS – 21st March 2025
• Record Vehicle Odometer Readings for FBT – 31^st March 2025