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

< Older Post

Newer Post >

Easy Ways to Protect Yourself from Scams

By Cogger Gurry • May 13, 2025

Scams are getting trickier, but there are some simple things you can do to keep your accounts safe: Use strong passphrases, not just passwords Instead of using the same password everywhere, try a passphrase—like a short sentence or four random words. Make it at least 14 characters long and mix in numbers, symbols, and upper/lowercase letters. Turn on Multi-Factor Authentication (MFA) MFA means you need more than just a password to log in—like a code sent to your phone or using your fingerprint. It makes it much harder for scammers to get in, even if they have your password. Keep your devices safe Lock your phone and computer with a passcode or biometrics (like Face ID). Set them to auto-lock if you leave them for a bit. Turn on “find my device” features so you can lock or erase your data if your device goes missing. Be suspicious of unexpected calls, emails, or texts If someone contacts you out of the blue, don’t rush. Don’t click on links or share personal info unless you’re sure it’s legit. Go directly to the organisation’s website and contact them using the official phone number or email. If you have any concerns or feel as though you may be a victim of a scammers, please contact us 03)5571 0111

Upskilling? You May be Able to Claim Your Self-Education Expense

By Cogger Gurry • May 13, 2025

If you’re planning to upskill or undertaking professional development this year, you may be eligible to claim some of your self-education expenses in your 2024–2025 income tax return. You incur self-education expenses when you: • take courses at an educational institution (even if you don’t gain a formal qualification); • undertake training provided by an industry or professional organisation. • attend work-related conferences or seminars; or • do self-paced learning and study tours in Australia or overseas. Your self-education expenses need to have a sufficient connection to your current employment income in order to make a claim. This means that your study must either maintain or improve the specific skills or knowledge you use in your current role or be likely to result in increased income in your current role. If you meet the eligibility criteria you may be able to claim a deduction for: • tuition, course or seminar fees incurred in enrolling in a full fee paying place; • general course expenses (eg stationery, internet usage); • depreciation on assets like laptops; • transport costs between home or work and your place of study. • accommodation and meals when your course requires you to be away from home for one or more nights; or • interest on loans where you use the funds to pay for deductible self-education expenses. If you would like to know more, you can click Here

Beyond the Booking: Tax Implications for Short-Term Rentals of Your Home

By Cogger Gurry • May 13, 2025

In today's sharing economy, platforms like Airbnb have made it easier than ever to earn extra income by renting out a spare room or your entire home – but many Australians are unaware of the tax implications that come with these arrangements. The ATO has intensified its focus on all aspects of the sharing economy, particularly short-term rental arrangements, and has sophisticated data-matching capabilities with third-party platforms like Airbnb. This means they can identify discrepancies between what’s reported on your tax return and what the platforms' records show. When you rent out all or part of your residential property through digital platforms, the ATO requires you to declare this income on your tax return. Keeping meticulous records of all rental income earned is essential, as is maintaining documentation of expenses you intend to claim as deductions. One area where many property owners get caught out is capital gains tax (CGT). While your main residence is typically exempt from CGT, this exemption can be partially lost when you rent out portions of your home. The reduction in your exemption is calculated based on the floor area rented and the duration of the rental arrangement. This is a crucial consideration if you're thinking of selling your property in the future, as it could significantly impact your tax position. When it comes to deductions, you can claim a portion of expenses related to the rented space, including council rates, loan interest, utilities, property insurance and cleaning costs. The deductible amount depends on both the percentage of the property being rented and the duration of the rental period throughout the financial year. Platform fees or commissions charged by services like Airbnb are often 100% deductible, providing some relief against your rental income. As with all income items, you will need to maintain statements from rental platforms showing your income, along with receipts for any expenses you plan to claim. Without proper documentation, you risk having legitimate deductions disallowed during an ATO review or audit, potentially leading to additional tax liabilities. If your property is located in Victoria, the short stay levy of 7.5% of total booking fees may also apply. Please contact our office if you have any questions or queries - 03) 5571 0111