The Government has urged Australians to be vigilant regarding scammers who target ATO log-in details to commit tax fraud.

The ATO has received a large number of reports of scammers using fake myGov sites to steal myGov sign-in details, which can be used to commit tax and refund fraud in other people’s names.

These criminals will often use text message or email to lure people into clicking a link using phrases such as ‘You are due to receive an ATO Direct refund’ or ‘You have a new message in your myGov inbox – click here to view’.

The Government says the ATO or myGov will never send an email or text message with a link to sign in to myGov.

Last year, the ATO introduced new fraud controls to help protect Australians from online identity theft.  This included using myGovID to strengthen security during the sign-in processes on myGov accounts, making it more difficult for criminals to gain access.

If you receive any communication whose legitimacy you’re uncertain about, please reach out to our office for verification.

This program provides funding to QLD small businesses to help with new and innovative HR solutions to support their business.

Interested businesses must have engaged with an Industry Workforce Advisor and developed a workforce plan that identifies an immediate need for new and innovative HR solutions to support its workforce to be eligible to apply for this grant.

Eligible activities include:

• engaging with HR specialists to receive advice and coaching to improve workforce issues
• specialised recruitment strategies or practices to attract and retain underutilised or specific cohorts
• new workforce systems or tools that promote human resource support and resources accessible to employees and change the current workforce operations of a business
• other new and innovative approaches that support workforce attraction, retention or participation.

To be eligible, small businesses must:

• have an active Australian business number (ABN)
• be registered for goods and services tax (GST)
• demonstrate their principal place of business is in QLD
• have fewer than 20 employees (by headcount)
• demonstrate that at least 50% of the business’s income is generated directly from the business
• declare that owners/directors are not insolvent or undischarged bankrupt.

How to apply

Small businesses that have worked with Industry Workforce Advisors to develop a Workforce Plan that identifies essential HR support needs can request an application form by emailing wcf@desbt.qld.gov.au.

Email requests must include:

• a copy of the completed small business’s Workforce Plan
• the relevant contact details of the Industry Workforce Advisor that has been working with the small business.

For 2023/24, many of the SBE concessions are also available to medium-sized businesses (‘MSBs’), i.e., businesses with an aggregated turnover of less than $50 million.

The following are common strategies that may be considered for all business taxpayers.

Deductions can be maximised for non-SBE business taxpayers by prepaying expenses, accelerating expenditure and/or accruing expenses that have been incurred.

Prepayment strategies

Any part of an expense prepayment relating to the period up to 30 June is generally deductible.

In addition, non-SBE taxpayers may generally claim prepayments in full for expenditure that is:

• under $1,000;
• made under a ‘contract of service’ (e.g., salary and wages); or
• required to be incurred under law.

Note: Medium-sized businesses (‘MSBs’) may fully deduct prepayments made before 1 July 2024 (refer below).

Accelerating expenditure (including depreciation deductions)

Accelerating expenditure involves bringing forward expenditure on regular, on-going deductible items.

In fact, this is a useful strategy for any business taxpayer (i.e., including SBEs) because businesses can generally claim deductions for expenses they ‘incurred’ during 2023/24, even if the expenses have not actually been paid by 30 June 2024.

Examples of accelerated expenditure that may be incurred and claimed as a tax deduction in 2023/24 by a business taxpayer include the following:

• Repairs.
• Maintenance.
• Consumables/spare parts.
• Advertising.
• Fringe benefits.  Any employee benefits to be provided, such as property benefits, could be purchased and provided prior to 1 July 2024.
• Superannuation  contributions made to a complying fund, to the extent the contributions are actually made (i.e., they cannot be accrued but must be paid by 30 June 2024).

In addition to accelerating expenditure on business items such as those listed above, for 2023/24, non-SBE businesses may claim the following accelerated depreciation deductions for depreciating assets first used (or installed ready for business use) by 30 June 2024:

• Non-SBEs can generally claim the following depreciation deductions (if applicable) for their business assets:

1.  Assets costing less than $1,000 may be allocated to a Low Value Pool and depreciated at a rate of 18.75% (in 2024) and 37.5% thereafter.
2. In most other cases, the asset’s cost is depreciated over its effective life (as determined by the taxpayer or the  ATO).

• Under a proposed measure (which is not yet law), the instant asset write-off threshold that usually  applies to SBEs is to be increased (to $20,000 or $30,000) and potentially extended to non-SBEs with an aggregated turnover of between $10 million and $50 million as from 1 July 2023.

Accrued expenditure

Business taxpayers (including SBEs) are entitled to a deduction for expenses incurred as at 30 June 2024, even if they have not yet been paid.

Examples of expenses that may be accrued and claimed as a tax deduction in 2023/24 include:

• salary or wages and bonuses accrued for the number of days that employees have worked but have not been paid as at 30 June 2024;
• accrued interest outstanding on a business loan that has not been paid;
• commission  payments owing to employees or other external parties;
• the fringe benefits tax (‘FBT’) instalment for the June 2024 quarter, if it is due but not payable until July 2024; and
• directors’ fees payable as at 30 June 2024, where the company is definitively committed to the payment.

Should you have any questions on the above, please don’t hesitate to contact us.

Keeping track of your superannuation balance is key as it impacts how much you can contribute to superannuation and whether you are entitled to other superannuation concessions and measures.

Introduction

Your total superannuation balance (TSB) is an important concept as it impacts your eligibility for up to six favourable superannuation-related measures, including the:

• Bring forward non-concessional contribution (NCC) cap
• Carry forward concessional contributions
• Superannuation spouse tax offset
• Government co-contribution, and more.

In a nutshell, your TSB includes:

• Your superannuation accumulation account balance(s)
• Your superannuation pension account(s), and
• The outstanding limited recourse borrowing arrangement amount in your SMSF that you entered into from 1 July 2018 (in certain circumstances).

Your TSB for the current year is measured on 30 June of the previous financial year (ie, 30 June 2023) when determining your eligibility to make or receive certain types of superannuation contributions.

How to check your TSB

There are two main ways you can track your TSB.

Firstly, you can either contact your superannuation fund or refer to your fund’s statements and records for your TSB. When reviewing your annual statement, the TSB figure your fund reports to the ATO is generally referred to as ‘exit value’ or ‘withdrawal benefit’. This may be different to the 30 June ‘closing balance’.

The second way to check your TSB is by logging into your myGov account which will show your TSB for the previous 30 June as well as other helpful information, such as your:

• Eligibility to use the NCC (after-tax contribution) bring forward arrangement
• Concessional contribution cap
• Unused carry forward concessional contribution cap amounts that have accrued since 1 July 2018
• Employer contributions, and more.

Checking this information can be beneficial before you make any further contributions prior to 30 June 2024 as it can help you avoid exceeding your contribution caps.

The following steps should be taken to track your TSB (and other related superannuation information):

1. Log into your myGov account by visiting my.gov.au. If you don’t have a myGov account you can create an account. Alternatively, if you have a myGov account but have not linked the ATO service to it, you can also link it here too.
2. Select the super tab, then click on the information option and then click on ‘total superannuation balance’ (as shown in the image below). Here you will be able to see your current TSB as recorded by the ATO.
3. You will be able to see your current TSB for each superannuation interest you hold, including your prior year’s 30 June TSB under the ‘History’ button.

Tip – check the information provided 

You should take care when checking your TSB and other amounts displayed in myGov, as depending on the type of superannuation fund you have, your 30 June balance and contribution details may not have been reported to the ATO yet.

For example, SMSFs are not required to report their superannuation information to the ATO as regularly as large APRA-regulated funds so your contributions and your account balance may not be up to date in myGov. This is because the ATO obtains information about SMSFs from the annual return each year. This means any SMSF members will need to check their SMSF records to track their TSB and contribution caps if this information is not up to date in their myGov account.

Need help?

Please contact us if you need more information on how to check your TSB or if you require further information about your superannuation account.

The ATO reminds employers they need to keep on top of their payroll governance.  This includes:

• using their tax and super software to record the amounts they pay;
• withholding the right amount of tax; and
• calculating superannuation guarantee (‘SG’) correctly.

As 30 June gets closer, employers should check their reporting obligations, along with any upcoming key dates, including for:

• PAYG withholding — From 1 July, the individual income tax rate thresholds and tax tables will change, which will impact their PAYG withholding for the 2025 tax year;
• SG rate change — From 1 July, the SG rate will increase to 11.5%.  Employers must pay their SG contributions by 28 July in full, on time and to the right fund; and
• Single touch payroll (‘STP’) reporting — Employers should remember to make STP finalisation declarations by 14 July for all employees the employer has paid during the financial year, and also check their employees’ year-to-date amounts are correct.

From 1 July 2024, non-charitable not-for-profits (‘NFPs’) with an active Australian Business Number (‘ABN’) will be required to lodge a new annual NFP self-review return with the ATO to confirm their income tax exemption status.

This will include sporting, community and cultural clubs, among other organisations.

Non-charitable NFPs that have an active ABN can get ready now by:

• conducting an early review of their eligibility by using the ‘ATO’s guide’ on the ATO’s website;
• checking all their details are up to date, including authorised associates, contacts and their addresses;
• reviewing their purpose and governing documents to understand the type of NFP they are; and
• setting up myGovID and linking it to the organisation’s ABN using ‘Relationship Authorisation Manager’.

FSA, as your Registered Tax Agent can then lodge this on your behalf.

The first return is for the 2023/24 tax year and NFPs will need to prepare and submit their annual self-review between July and October 2024.

As an interim arrangement for the 2023/24 transitional year, eligible NFPs unable to lodge online will be able to submit their NFP self-review return using an interactive voice response phone service.

Companies with an income year that ended on 30 June 2023 must register their Research and Development (R&D) activities with AusIndustry by 30 April 2024. Requests for an extension of 14 days (or less) made before the deadline will be approved.

What’s the benefit?

The R&D Tax Incentive can provide a substantial benefit depending on the company’s turnover as follows:

• Less than $20 million turnover – Access up to a 43.5% cash refund on eligible R&D expenditure incurred in the 2023 income year
• Greater than $20 million turnover – Access a tax saving between 8.5% and 16.5% on eligible R&D expenditure incurred in the 2023 income year

A wide range of R&D expenditure can qualify under the program, including salaries, consultants, materials and overheads such as rent and electricity.

Who can apply?

The R&D Tax Incentive is an industry wide program open to all companies developing new or improved products, processes or services. This includes companies in the following sectors:

• Food and beverage
• Manufacturing
• Technology
• Agribusiness
• Biotech and MedTech

Next steps – Contact FSA

If you are considering submitting a 2023 income year R&D claim, it is important to seek advice as soon as possible in the lead up to the 30 April 2024 application deadline. Our R&D Tax and Government Incentives specialist consultants can help you assess your R&D activities and navigate the application process.

Small businesses with an aggregated annual turnover of less than $50 million may be eligible for the small business skills and training boost. This boost can give you an additional 20% bonus tax deduction for eligible expenditure incurred on training new and existing employees.

Small businesses which are eligible for this boost can claim a deduction on expenditure for external training courses delivered to their employees, either in person in Australia or online. The training must be provided by a registered external training provider.

The boost is available until 30 June 2024, so if you have been thinking about upskilling your employees, now is the time.

Editor: If you would like more information on your businesses eligibility and how to apply, please contact our office.

ASIC has commenced its first prosecution action against a director for failing to comply with their obligation to have a director identification number (director ID). The director was formally charged with one count of contravening section 1272C(1) of the Corporations Act 2001. The defendant in this matter is facing a maximum penalty of $13,320.

This is a reminder to all current and intending directors, that they are required by law to verify their identity and obtained a director ID via the Australian Business Registry Services (ABRS). Failure to do so is a criminal offence and may attract significant criminal and/or civil penalties.

All new directors must apply before being appointed. ASIC Registered Agents are encouraged to remind directors of this obligation and to not proceed with an appointment without proof a director has applied.

This also serves as a warning to any director who has not yet obtained a director ID. The ABRS/ASIC are monitoring compliance and are working with directors to encourage them to apply where they haven’t done so. However, ASIC has shown that it will not hesitate to prosecute if repeated directions to apply are ignored!

Editor: If you need more information regarding applying for your Director ID, please contact our office.

Taxpayers should remember that, if over half their income is from a contract for their personal effort or skills, then their income is classified as personal services income (‘PSI’).

Taxpayers can receive PSI in almost any industry, trade or profession, e.g., as a financial professional, IT consultant, construction worker or medical practitioner.

Taxpayers who earn PSI while running a business (e.g., as a contractor) need to work out if they were a personal services business (‘PSB’) in the year that they received the PSI, as this will affect the deductions they can claim.

Taxpayers can self-assess as being a PSB if they:

• meet the ‘results test’ for at least 75% of their PSI, or
• meet one of the other PSB tests (i.e., the unrelated clients test, the employment test, or the business premises test), and less than 80% of their PSI is from the same entity and its associates.

Taxpayers who self-assess as a PSB still need to report their PSI in their income tax return and keep certain records.