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Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

Our office will be closed for the Easter Holiday from Friday the 18th till Monday the 21st April, reopening on Tuesday the 22nd April 2025 Everyone here at CoggerGurry would like to wish you all a safe and happy Easter break

The 2025–26 Federal Budget has reinforced the Albanese Government’s commitment to tax compliance, with a major boost in funding to the ATO to strengthen enforcement—including Fringe Benefits Tax (FBT). With that extra funding comes increased ATO scrutiny on employers. If you're responsible for FBT compliance, now’s the time to get your house in order. High-Risk Areas Under the ATO Microscope : 🚗 Car Fringe Benefits Incorrect vehicle classification (especially dual cab utes and SUVs). Invalid or poor-quality logbooks. Incorrectly treating private use (e.g. home to work, errands) as business use. Misuse of the statutory formula method. 🍽️ Meals & Entertainment Misunderstanding what qualifies as deductible vs. entertainment. Inadequate documentation for functions or staff events. Incorrect application of the "otherwise deductible" rule. ⚡ Electric and Plug-in Hybrid Vehicles From 1 April 2025 , PHEVs lose their FBT exemption unless: The car was in use before 1 April 2025, and There is a binding agreement to continue use post-1 April. Many employers are still unaware of these transitional rules. 🚨 What the ATO Is Watching Nil or non-lodged returns where fringe benefits were likely provided. Incorrect treatment of employee contributions . Mismatches between FBT and income tax reporting. Penalties can be up to 75% of the shortfall , so it pays to be proactive. ✅ What You Should Do Review the benefits you've provided in the 2025 FBT year. Reassess logbooks, vehicle use, and entertainment records. Seek advice on grey areas like PHEVs or meal benefits. Lodge and pay on time. 📞 Need help reviewing your FBT exposure before the deadline? Get in touch today—we’re here to help you stay compliant and penalty-free. Read more about this on our website HERE or give us a call on 03) 5571 0111 📅 Key FBT Dates for 2025 FBT year ends : 31 March 2025 Lodgment due (paper) : 21 May 2025 Lodgment due (tax agent) : 25 June 2025 Payment due : 28 May 2025

Recent cyberattacks targeting accounts within industry superannuation funds have highlighted just how important it is for all of us to stay vigilant about online security. While no breaches have been reported among Self-Managed Super Funds (SMSFs), these incidents are a timely reminder that cybercriminals are becoming increasingly sophisticated—and no one is completely immune. What you can do to protect yourself: Use strong, unique passwords for each of your financial accounts Enable multi-factor authentication (MFA) wherever possible Regularly check your accounts for any unusual activity Be cautious of phishing attempts—never click on suspicious links or provide personal information via email or text Cybersecurity is everyone’s responsibility. A few simple precautions can go a long way in protecting your personal and financial information. If you want to find out more, please contact us on 03) 5571 0111

The 2025 Federal Budget has just been announced, and it brings a mix of cost-of-living relief, tax cuts, and support for both individuals and small businesses. We’ve broken down the key points in plain English so you can quickly understand what’s changing and how it might affect you. Personal Income Tax Cuts Coming in 2026 and 2027 Good news if you pay tax — the government is planning to lower personal income tax rates starting in July 2026, with a further drop in July 2027. Anyone earning above $18,200 will benefit from the reduction in the marginal tax rate currently 16% applied to earnings between $18,200 and $45,000, reducing to: 15% in 2026, and 14% in 2027 This means a tax cut of: Up to $268 in 2026, and Up to $536 in 2027 When combined with existing Stage 3 tax cuts, the average Australian could save about $2,548 a year by 2027–2028—that’s roughly $50 a week back in your pocket. For someone earning around $79,000, the total tax cut will be $2,190 by 2027–2028. These cuts are designed to ease the cost of living and help part-time and lower-income workers. The government also expects these changes to encourage more people to increase their working hours. 2. Student Debt Relief for More Than 3 Million Australians If you’ve got a HELP or student loan, here’s what you need to know: The government plans to reduce HELP debts by 20% before indexation is applied on 1 June 2025. This could wipe around $16 billion in debt for over 3 million people. From 1 July 2025, the new system is proposed, subject to parliamentary approval, that aims to: -Raise the repayment income threshold, so you can earn more before you start repaying. -Switches to a fairer repayment structure that increases gradually with income. Also, a change already in place (backdated to June 2023) has capped indexation to whichever is lower — the Consumer Price Index (CPI) or Wage Price Index (WPI) — and has already reduced debts by $3 billion. you’ve got a HELP or student loan, here’s what you need to know: 3. Energy Bill Rebate Extended — Small Businesses Included The energy rebate is sticking around until the end of 2025 — and now includes small businesses too. Here’s what you’ll get: Another $150 rebate in total, split into two $75 quarterly payments, starting 1 July 2025. This applies automatically to eligible households and about one million small businesses — no need to apply.  Treasury expects this will: Cut the average power bill by about 7.5%, and Help reduce overall inflation slightly in 2025. 4. Instant Asset Write-Off Extended — Still Being Finalised Small businesses may soon be able to immediately write off new asset purchases under $20,000 again — but the rules haven’t officially passed yet. If approved, this will apply to: Assets bought and ready to use between 1 July 2024 and 30 June 2025. Multiple assets under $20,000 each — there’s no limit on how many. Larger purchases (over $20,000) can still be claimed gradually using the simplified depreciation rules. If your depreciation pool ends up under $20,000 at the end of the year, you can write the whole amount off too. This rule is for businesses with a turnover of less than $10 million. 5. ATO Getting More Power to Crack Down on Tax Dodging The ATO is getting nearly $1 billion over four years to boost its tax compliance programs — which means more focus on catching and preventing tax mistakes or fraud. The funding will be used to: Expand audits on big companies and multinationals. Crack down on the “cash economy” — such as under-the-table payments or not reporting income. Target individuals who might be incorrectly claiming deductions or not reporting income. if you’d like to chat about how these changes apply to your situation, feel free to give us a call on 03 5571 0111 — or head to the Budget 2025-26 websit e for more information.

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2025. Farm Management Deposits (FMD) FMDs are a powerful tax deferral strategy for eligible primary producers. A few points to consider include the following: Funds must be held for at least 12 months to retain the deduction. Deposits are fully tax-deductible in the year made. The withdrawals are assessable income in the year they’re taken out. So, with adequate planning, we can help you identify: If depositing into a FMD before 30 June year end will save you tax, and how much Or whether it may be a good time to withdraw FMD’s. If you are having a loss year or experiencing a downturn, it may be good timing to pull money out of FMD’s, minimising your tax on this income and improving your cashflow. Prepaying Deductible Expenses If your taxable income is tracking high, an effective tool is prepaying deductible expenses. Under ATO rules, primary producers can prepay up to 12 months of eligible expenses and claim the deduction this year, as long as the services are provided within that 12-month period. Fencing, Water Facilities and Fodder Storage Assets If you are a Small Business Entity (SBE) with a turnover under 10m you are eligible to use the simplified depreciation rules. This means that a SBE can choose to claim deductions under the simplified depreciation rules for certain depreciating assets used in the course of carrying on a business of primary production. The choice is available for water facilities, fencing assets, fodder storage assets and depreciating assets relating to land care operations, electricity connections and phone lines. Please contact our office for specific advice or assistance with any Tax queries. T: 03 5571 0111 E: reception@coggergurry.com.au or make an online enquiry www.coggergurry.com.au/coggergurry_contact_us

BASIC TAX PLANNING: With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2025. Superannuation Contributions The concessional contributions cap for 2025 has increased to $30,000, up from $27,500 from the 2024 financial year. A concessional contribution is a voluntary payment from your before-tax income to your superannuation fund and includes SGC Super Guarantee Contributions paid by employers. The contributions are then taxed at a concessional rate of 15% in the superfund, rather than your individual tax rate. Concessional contributions are capped each year to prevent people taking advantage of the lower tax environment offered by superannuation funds. For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions. A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances. Instant Asset Write-Off Temporary full expensing ended on 30 June 2023. However, for the 2024 financial year small businesses, with aggregated turnover of less than $10 million, could immediately deduct purchases of eligible assets costing less than $20,000 under the Instant Asset Write-Off. The expectation is this threshold will be extended for the 2025 financial year. See our section on “What the latest Federal Budget means for you” for more details. For assets that are priced at $20,000 or above, which do not qualify for immediate deduction, there is still a provision. These assets can be added to the small business simplified depreciation pool. In the first year, these assets can be depreciated at a rate of 15%, with subsequent years at 30%. If you would like to know more, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au

In February, Hamish McDonald represented our team at the SMSF Association's annual conference in Melbourne, joining over 1,600 SMSF professionals from around the country. The conference covered a wide range of current and emerging issues in the self-managed super fund (SMSF) space. Some of the key highlights included: The proposed Division 296 tax (commonly referred to as the "$3 million super tax") failing to pass through Parliament. Growing interest in SMSFs holding carbon credits and involvement in carbon farming initiatives. Considerations for SMSFs holding land impacted by natural disasters. Strategic opportunities through contribution splitting between spouses. If you’d like to learn more about any of these topics and how they might apply to your circumstances, feel free to get in touch with our Superannuation Team on (03) 5571 0111 to book an appointment.