Small Business Superannuation Clearing House And Self-Managed Superannuation Fund Bank Account Validation

If you are a either a member of a SMSF or have employees who are members of a SMSF and use the ATO Small Business Superannuation Clearing House (SBSCH) the ATO is rolling out a new security feature to assist with fraud prevention and misconduct. The new feature consists of checking for a match between an employee’s SMSF bank account details and the SMSF record when electronic payments are made via the SBSCH. Where there’s a mismatch, the SBSCH cannot accept payments to an employee’s SMSF until the error is resolved. Employees need to ensure that the bank account listed with the ATO is the one receiving contributions from their employer. This may be an issue where a SMSF has multiple bank accounts within the Fund.

If you are unsure of which bank account to process payments for an employee, please confirm with them prior to processing of the March 2024 quarterly superannuation payment. If you are an employee and are unsure of your SMSF bank account listed with the ATO please contact our office and we will be able to confirm the account to provide to your employer.

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CoggerGurry Sponsorships

By CoggerGurry • 16 May, 2024

Proud sponsors of Branxholme Wallacedale Football Netball Club in 2024.

2024 Budget - Personal Tax Rates

By CoggerGurry • 16 May, 2024

In the 2024–2025 Federal Budget, the Government did not announce any further changes to the personal tax rates. The Government’s revised Stage 3 tax changes (as announced on 25 January 2024 and enacted into law by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 ) commence from 1 July 2024. The Treasurer said all 13.6 million taxpayers will receive a tax cut from 1 July 2024. The average annual tax cut is $1,888 (or $36 a week). The tax rates and income thresholds from the 2024-25 for residents (as already legislated) are: • taxable income up to $18,200 – nil; • taxable income of $18,201 to $45,000 – nil plus 16% of excess over $18,200; • taxable income of $45,001 to $135,000 – $4,288 plus 30% of excess over $45,000; • taxable income of $135,001 to $190,000 – $31,288 plus 37% of excess over $135,000; and • taxable income of more than $190,001 – $51,638 plus 45% of excess over $190,000. This means, when compared to 2023–2024, that for 2024–2025 the 19% tax rate has been reduced to 16%; the 32.5% tax rate has been reduced to 30%; the 37% tax rate threshold has been increased from $120,000 to $135,000; and the 45% tax rate threshold has been increased from $180,000 to $190,000.

2024 Budget - HECS/HELP debt

By CoggerGurry • 16 May, 2024

The Government recently proposed changes to HECS/HELP debt contained in the budget papers. A student who receives a HELP loan under any of the student loan schemes has an “accumulated HELP debt” with the ATO. The loan is subject to yearly indexation but is otherwise interest-free. Loans that are covered by the system include the following: • HECS-HELP; • FEE-HELP; • OS-HELP; • SA-HELP; • Student Start-up Loan (SSL) Scheme; • ABSTUDY Start-up Loan (ABSTUDY SSL) Scheme; and • Australian apprenticeship support loan (AASL) scheme (renamed from the Trade Support Loan (TSL) Scheme). HELP debts are repaid through the tax system (voluntary repayments can be made at any time). The amount to be repaid each year is a percentage of the taxpayer’s HELP repayment income (and is notified on the income tax assessment for the year). The percentage increases as the HELP repayment income increases. Indexation is applied to any HECS/HELP debt that’s older than 11 months, once a year on 1 June. The CPI number is currently used to index debts and it was recently announced that debts will increase by 4.7% on 1 June 2024. In addition, inflation pushed the indexation rate for 2022–2023 debts to 7.1%, the highest since 1990. This generated much negativity and the Prime Minister subsequently announced that “there’d be help on HECS” as part of the Budget. Indexation changes The Government has flagged two proposed changes (which require legislative amendments to the Higher Education Support Act 2003 ). First, the indexation factor will be the lower of the CPI or the Wages Price Index (WPI). The quarterly WPI measures change in the price of wages and salaries in the Australian labour market over time. In a similar way to the CPI, it follows changes in the hourly rate paid to a fixed group (or “basket”) of jobs. More can be found about it on the ABS website. Second, the change will be backdated to 2022–2023, meaning the new system will apply to the 2022–2023, 2023–2024 and following years (noting again that the factor is applied to debts on 1 June, not 1 July). As the WPI was lower than the CPI in 2022–2023, the indexation that was applied on 1 June 2023 will be retrospectively cut from 7.1% to 3.2%. This means that students with an outstanding debt will have it reduced with effect from 1 June 2023. Those students who have subsequently paid off their debt based on the 7.1% rate presumably will be eligible for some sort of refund. If you would like to know more or want to make a voluntary repayment please contact us at CoggerGurry.