Check you’re using the latest fuel tax credit rates before you claim.

Fuel tax credit rates:

• changed on 1 July for heavy vehicles travelling on public roads, due to the increase in the road user charge
• changed again on 5 August due to the fuel excise indexation.

Different rates apply based on when you acquire fuel. Make sure you use the correct rates when you claim fuel tax credits on your business activity statement (BAS).

Here are some tips to help you get it right:

Tip 1: If you don’t already claim fuel tax credits, check if you’re eligible to claim. You need to register for GST and fuel tax credits. You can only claim for eligible fuels you acquired, manufactured or imported and used in your business.

Tip 2: By lodging with us, could give you extra time to lodge and pay.

Tip 3: Keep records to support your claim.

Tip 4: Use the fuel tax credit calculator to work out:

• the amount to report on your BAS, based on the date you acquired the fuel and fuel type
• any changes or corrections for a previous BAS.

SMSFs cannot acquire an asset from a ‘related party’ (such as a member or their spouse or relative)  unless it is acquired at market value and is:

•       a listed security (e.g., shares, units or bonds listed on an approved stock exchange);
•       ‘business real property’ (broadly, land and buildings used wholly and exclusively in a business);
•       an asset specifically excluded from being an in-house asset; and/or
•       an ‘in-house asset’ as defined, provided the market value of the SMSF’s in-house assets does not exceed 5% of the total market value of the SMSF’s assets.

If the asset is acquired at less than market value, the difference between the market value and the amount actually paid is not considered to be a contribution.  Instead, income generated by the asset will be considered ‘non-arm’s length income’ and will be taxed at the highest marginal rate.

The ATO is advising taxpayers that having records to substantiate claims is essential to prove deductions can be claimed, having regard to the following in particular:

• A bank or credit card statement on its own will generally not be enough evidence to support a work-related expense claim.  Taxpayers instead need detailed written evidence such as a receipt.
• If a taxpayer’s total claim for deductible work expenses is $300 or less, they can claim a deduction without written evidence, but they must still be able to show that they spent the money and how they calculated the amount being claimed.
• While some deduction types do not require receipts (e.g., laundry expenses), some kind of record may still be necessary.  Taxpayers may also need a record that shows their private and work-related use (e.g., a diary), and how the amount claimed as a deduction was calculated.

Taxpayers who have work done on their rental property should consider the following factors in determining claims for expenses.

Repairs and general maintenance are expenses for work done to remedy or prevent defects, damage or deterioration from using the property to earn income.  These expenses can be claimed in the year the expense occurred.

Initial repairs include any work done to fix defects, damage or deterioration existing at the time of purchase.  These are capital repair expenses and cannot be claimed as a deduction.

Capital works are structural improvements, alterations and extensions to the property, claimed at 2.5% over 40 years (with some exceptions).  Deductions for capital works can only be claimed after the work has been completed.

Improvements or renovations that are structural are also capital works.  Work going beyond remedying defects, damage or deterioration which improves the function of the property are improvements.

Repairs to an ‘entirety’ are also capital and cannot be claimed as repairs.  Repairs to an entirety generally involve the replacement or reconstruction of something separately identifiable as a capital item (for example, a depreciating asset).

Depreciating assets must be claimed over time (as ‘capital allowances’) according to their ‘effective life’.

Learn about the 3 regular checks you can do so your RAM authorisations and transactions are up to date.

Relationship Authorisation Manager (RAM) enables you and people in your business to transact with government online services on your business’s behalf. There are different types of authorisations. It’s important you keep all of them up to date. We strongly recommend every business completes these 3 regular checks.

1. Ensure the right people are authorised. As soon as an authorised person’s access is no longer valid, for example if they change roles in your business, or leave, you need to update or remove their authorisations. A principal authority or authorisation administrator can do this or, depending on the authorisation type, the person may be able to remove their own authorisation.

2. Ensure each person with authorisation has the right level of access. You need to regularly check that each authorised person has the right level of access. For example, if someone increases their myGovID identity strength, their current authorisation can be updated to allow access to more services. To do this, they need to contact a principal authority or authorisation administrator.

3. Check that the right actions are being taken for your business. If you’re a principal authority or authorisation administrator, you should regularly check the authorisation and machine credential activities for your business using the History function.

Incentives for hiring eligible individuals

Wage subsidies ranging up to $10,000 may be available to businesses that hire eligible individuals into ongoing jobs.

If you are looking to fill an ongoing position, get in touch with your Workforce Australia, ParentsNext or Transition to Work provider to help you find the right person for your job.

Your provider may offer you a wage subsidy to help with some of the initial costs of hiring a new employee. The wage subsidy is to help with some of the initial costs of hiring the new employee to help ensure the success of their employment.

Eligibility

To be eligible to access a wage subsidy, an organisation must:

• have a valid Australian Business Number and
• have an account registered with Workforce Australia Online for Businesses.

Wage subsidies are for new and ongoing employment positions. They can be for full-time, part-time, casual, or even a traineeship or apprenticeship positions.

It’s important to note that you can’t access a wage subsidy if you are getting other government funding for the same position. The wage subsidy cannot be for a family member, and it must not be a commission-based, self-employment or subcontracted position.

If you are eligible, the provider will work with you to determine whether a wage subsidy is the best type of assistance. Other forms of assistance may also be a good fit, and the provider will be able to suggest the best option to suit both you and your new employee.

Other eligibility criteria will apply. Contact a provider to get more information on eligibility and how wage subsidies can be tailored to suit your business.

How to access a wage subsidy

To access a wage subsidy, you will need to enter into a wage subsidy agreement with your provider.

You will need a Workforce Australia Online for Business account to approve your wage subsidy agreement, update your details and manage wage subsidy payments online.

You must finalise your wage subsidy agreement online within 28 days of the new employee’s start date to be eligible for payment.

Related information

If you employ an Australian apprentice, you may be able to get financial assistance to help you hire, train and retain them. Go to Australian Apprenticeship Incentives System to read more.

If your business provides any of the following services and you pay contractors to provide them on your behalf, you may need to lodge a Taxable payments annual report (TPAR):

• building and construction
• cleaning
• courier and road freight
• information technology (IT)
• security, investigation and surveillance.

TPARs help us keep things fair by making sure contractors report all their income.

On your TPAR, you need to record the:

• contractor’s name, address and ABN
• total amount you paid them for the previous financial year – including any GST and cash payments.

You can find these details on your contractors’ invoices. It’s the same information you use to claim income tax deductions through your tax return, and GST credits through your business activity statement.

The easiest way to lodge your TPAR is through your SBR-enabled software or Online services for business. As your registered tax professional  we can also lodge on your behalf.

Penalties may apply if you don’t lodge your TPAR by 28 August.

The ATO will acquire Medicare Exemption Statement data from Services Australia for the 2024 to 2026 income years, including individuals’ full names, dates of birth, residential addresses, entitlement status, and approved entitlement details.

The objectives of this program are to (among other things) ensure individuals are correctly claiming an exemption from payment of the Medicare levy and Medicare levy surcharge.

The next quarterly due date for SG contributions is 28 July. However, as this falls on a weekend, the super fund must receive your payment by Monday 29 July. Remember to make your payment in full, on time and to the right fund.

If you don’t pay your SG contributions by the due date each quarter, you’ll need to pay the super guarantee charge. This is more than the SG contribution amount and you can’t claim it as a tax deduction.

From 1 July, the SG rate increased to 11.5%, so make sure the payments you make for eligible workers on or after 1 July reflect the new rate.

For the quarter ending 30  June, the 11% SG rate applied to payments you made before 1 July.

The SG rate will progressively increase to 12% by July 2025.

If you need help to work out how much super you need to pay for your employees and eligible contractors after 1 July:

• Use the super guarantee contributions calculator

• Consult with us, your reliable registered tax professional.

Businesses (with an aggregated annual turnover less than $50 million) will have access to a bonus 20% tax deduction with the small business energy incentive (“the incentive”). This applies to new assets, or improvements to existing assets, that support more efficient energy use.

Eligible assets must be both first used or installed ready for use for any purpose, and used or installed ready for use for a taxable purpose, between 1 July 2023 and 30 June 2024. Eligible improvement costs must also be incurred during this period to be eligible for the bonus deduction.

Up to $100,000 of total expenditure is eligible under the incentive. The maximum bonus deduction is $20,000 per business.

What you can’t include or claim 

While this incentive covers a broad range of expenditure, it’s important to know what you can’t claim:

• assets and expenditure on assets that can use a fossil fuel
• assets and expenditure on assets that have the sole or predominant purpose of generating electricity (such as solar panels)
• capital works
• motor vehicles and expenditure on motor vehicles
• expenditure allocated to software development pools
• financing costs.

What you need to do 

When claiming the incentive, make sure you:

• have accurate records that provide evidence of the expenditure you claim;
• can show and explain how you compared different assets when upgrading or making improvements;
• keep up to date with information on what, when and how to claim; and
• contact us, should you have any questions.