Individual income tax rates and threshold changes

On 25 January 2024, the government announced proposed changes to Individual income tax rates and thresholds from 1 July 2024. These changes are not yet law.

From 1 July 2024, the proposed tax cuts will: 

• reduce the 19 per cent tax rate to 16 per cent
• reduce the 32.5 per cent tax rate to 30 per cent
• increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
• increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.

For more information see Tax cuts to help with the cost of living | Treasury.gov.au

The ATO is warning Business that pay contractors to provide certain services to lodge their taxable payments report (TPAR) for 2023.

The TPAR is used to report the payments made during the financial year to subcontractors or contractors. It is due on 28 August each year.

 Be aware, from 22 March 2024, the ATO will apply penalties to those Businesses that haven’t lodged their TPAR from 2023 or previous years or have received three reminder letters about overdue TPAR.

If this is you, act now to avoid paying penalties.

Other – Outstanding Debts

From January 2024, the ATO has an external debt collection agency actioning tax cases they have referred.

This will apply to Taxpayers who haven’t responded to previous ATO contacts attempts or referral warning letters and are not engaged in debt repayment.

Don’t wait, contact the ATO or speak with our team at Blackburn Accounting asap.

Unsure of your responsibilities or what to do?

Need help!

Contact Blackburn Accounting we understand taxation matters,

or contact the ATO directly or check their website for further information. 

Be prepared! 

•  If you are a not-for-profit Organisation, be prepared for new reporting requirements to maintain your tax-exempt status.

The ATO has announced this change, which is expected to affect a range of Organisations, from small sporting clubs to major sporting groups, cultural, educational and community and health providers.

• From July 1, not-for-profits claiming exempt status will need to fill out an online questionnaire on the tax office website. The questions are based on the rules for each of the eight categories of exemption.

 Need help with understanding these requirements! Contact Blackburn Accounting, we can help you navigate the changes.

The ATO has registered three data-matching notices on 26 August 2024 for compliance related purposes:

• Notice of a lifestyle assets: The ATO will acquire lifestyle assets data from insurance providers for 2023-24 through to 2025-26 for specified classes of assets, where the relevant asset value is equal to or exceeds the nominated thresholds. The data items include client identification and policy details. 

• Notice of a Property management: The ATO will acquire property management data from property management software companies for 2018-19 through to 2025-26. The data items include property owner identification and property transaction details. 

• Notice of an Officeholder: The ATO will acquire officeholder data from ASIC, the ORIC, the ACNC, and ABRS for 2023-24 through to 2026-27. The data items include name, contact details, date of birth, ABN, organisation details, state of incorporation, officeholder type, including officeholder role start and end dates. 

• ATO ramps up warnings on $50b in tax debts. 

This warning from the new Tax Commissioner as the ATO chases $50 billion in outstanding debts, claiming increasing numbers of Australian small Businesses operators are falling behind on tax and superannuation obligations. 

• At a recent small Business summit in Sydney the Commissioner said ‘it’s critical that all employers, big and small, keep on top of their obligations to their employers first and foremost, as well as their obligation to government in respect to GST, income tax and other taxes’. 
• Previously, in November, the ATO warned Business to stop using unpaid tax and superannuation liabilities to prop up their cash flow, stressing its debt book was not a bank.  

If these matters concern you, act now, heed the warnings!  

Need help? contact Blackburn Accounting, we are experts in taxation matters.

• Tax Debts can affect your credit ratings 

Disclosure of Business Tax Debts: 

Be aware that in certain circumstance the ATO may disclose your debt information to credit reporting bureaus (also known as credit reporting agencies).

The ATO lists a number of criteria where they may report your Business tax debt. These are provided on the ATO website.

 Note: It will not report your debt information to credit reporting bureaus (CRBs) if you are already engaged with them to manage your tax debts and may also decide not to report your tax debt information if you are experiencing exceptional circumstances.

You can find full details on the ATO website.

More from the ATO

Reminder from the ATO that its focus is on Businesses that use cash to avoid their tax and Business obligations.  

It stresses that this behaviour isn’t just a bad habit, it's a deliberate action that affects everyone and undermines the integrity of the tax system, erodes public trust and reduces funding for essential services. It also gives dodgy Business an unfair advantage over those doing the right thing. 

To detect Businesses that aren't doing the right thing the ATO is using sophisticated data and analytics and targeting cash-only Businesses that deliberately avoid their obligations.

The ATO encourage, don’t put your Business or workers at risk.  

If you are a small Business owner, it’s important to understand your responsibilities and take the steps to get it right.  

Have questions, need help? Blackburn Accounting is your Family Business Specialist. We can assist with all your taxation and accounting needs. Contact us today. 

Payday Super Switch 

A friendly reminder about Payday Super changes that came into effect from 1 July 2026. Full details are available on the ATO website. 

Payday Super is a change to how you pay your employees’ super guarantee. From 1 July 2026 you must: 

• pay employees their super guarantee for each payday (instead of quarterly) 

• calculate super based on an employee's qualifying earnings, which is a new term that brings together ordinary time earnings and other payments. 

Small Business 2026 - Closer scrutiny

The ATO is increasing its focus on small Business compliance using improved reporting systems, better data matching and targeted reviews.

Payday Super is a change to how you calculate and when you pay your employees’ super guarantee.  

From 1 July 2026. Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. 

There are some exceptions to the 7-day deadline, such as for new employees. 

Need help, have questions contact us today, Blackburn Accounting. Let us help you navigate the changes. We also offer a range of services to support small and family Businesses which include Family Business Management, Cashflow Mangement and Business Development.

The ATO also provides information on their website. 

The Tax Office is taking compliance seriously. 

This recent message from the Tax Office highlights the need for Insurance brokers to provide details of customers with high-value assets. If you have any of these, luxury vehicles, fine art, aircraft or motorhomes the ATO is keen to know! 

And Employers have been put on notice to ensure compulsory superannuation payments are on time as new details emerge about the rollout of ‘payday super’. The ATO has released a Fact Sheet targeting employers and employees to explain how the system will work when changes kick in on July 1, 2026. More about this to come! 

If this information raises any questions, contact Blackburn Accounting. We are your family Business specialists, available to advise on all your Taxation and Accounting matters.  

Planning is at the heart of achieving the best results and outcomes whatever task, activity or goal you are pursuing!

Simply put, planning is deciding in advance what to do, how to do it, when and who should do it! 

So, when it comes to managing your Business and personal financial affairs and tax obligations, doesn’t it make sound business sense to adopt a ‘tax planning’ strategy. If you are one of the smart operators, you have answered Yes!

Tell me more!

Tax planning is:

• the process of analysing financial affairs from a taxation perspective, with the aim to achieve tax efficiency. That means arranging your affairs, (your financial plan) and functioning to keep your tax to a minimum within the intent of tax laws. Be aware of tax schemes outside the bounds of the law will attract ATO attention.
• an important process that benefits Businesses to plan for their tax requirements. For example, by using deductions to reduce the total taxable income, such as structuring salaries and appropriate business planning.
• proactive planning and structuring all about flexibility, whether you are an existing Business, starting new, thinking retirement, or overseas opportunities. The right fit, structure and ownership model influence many areas, including tax planning and regulatory compliance, asset protection, wealth creation through business, growth and succession.
• compliance with statutory and regulatory reporting requirements.

What is the ATO looking at in 2024! 

The Australian Taxation Office (ATO) has announced it will be taking a close look at three common errors being made by taxpayers:

• Incorrectly claiming work-related expenses
• Inflating claims for rental properties
• Failing to include all income when lodging.

According to the ATO assistant Commissioner ‘the ATO is focused on supporting taxpayers to get their lodgement right the first time’. The above areas are where mistakes are most likely to occur, genuine errors but also sometimes deliberate. Taxpayers are being encouraged to get it right the first time.

• Work-related expenses

Last year, the ATO revised the fixed rate method of calculating a working-from-home deduction to broaden what is included, increase the rate, and adjust the records taxpayers need to keep.These changes are now in full effect this financial year, meaning you must have comprehensive records to substantiate your claims as you would for any other deduction. Important care needs to be taken as other home-related deductions such as internet expenses cannot be claimed if you choose to use the working-from-home deduction option.

If you are one of the many Taxpayers hoping for a tax refund it is crucial to submit your return ‘right’!

That is, submit it with all the necessary supporting documentation. This step can save you and the ATO time and effort.

And with Tax Time fast approaching,

• it is a timely reminder to start now and get your ‘paperwork in order’.  
• Also, make sure you have all the ‘evidence’, such as receipts, to substantiate your claims for deductions.  This applies to all claims.
• Be aware, the ATO recently announced it is putting the microscope on tax deductions. Remote workers, landlords and workers taking a liberal approach when claiming travel expenses can expect scrutiny as part of a compliance crackdown. 
• Have a job second that generates income remember to declare it! Freelancers, Influencers are also on the ATO's radar. 
• Taxpayers, those ‘work-from-homers' are reminded of the changes to the generous tax concessions offered during the pandemic. Changes, effective from March 1 this year. Anyone making these claims must now prove how much time they spent working from home and what were actual work expenses, not to be confused with household expenses.

 To claim or not to claim! 

It’s important to know what a legitimate claim is and isn’t and that can be confusing. Avoid mistakes, if you need advice contact Blackburn Accounting, we are experienced and available to help you maximise your return within the ATO guidelines.   

With costs of living spiraling what better way to add to your cashflow than with a tax refund cheque! 

If you have been organised, Tax Time doesn’t create a paperwork nightmare. Files are orderly, and you have your ‘Business’ matters tidy and in order.  

On the other hand, if you have been less diligent, you might find the shoe-box overflowing with receipts or the bottom drawer in disarray, a collection of bits and pieces. But don’t despair, start preparing now with these 7 Tips.  

1. Getting ready – start by sorting and filing, whether you are lodging your own return or have an agent. DIY, need advice, contact Blackburn Accounting, we can help take the stress out of tax time. 

2. Missing documents – don't wait to follow up if you need copies of receipts or expense records. Many deductions need supporting evidence to verify. 

 It's that time of year! 

Follow these 7 Tips to take the worry out of your Tax-Time. 

1. Prepare now. Start gathering all the information you need.  Receipts, tabs stored in a shoebox or bottom drawer, it’s time to take action. Sort, file, label and get your records up to date. You will need documents such as Income statements, bank statements, investment records, and private health insurance statements. If you are self-employed or a freelancer, you need Business income and expense records. 

2. Getting it right the first time saves both you, your accountant and ATO Office valuable time, work and effort.  Make sure your end of year Income Statement is complete with all relevant details before submitting. Don’t guess vital facts. Mistakes can be costly, causing delays in processing and attracting potential penalties. It also slows down receiving your refund if you are due.  

3. Declare all sources of income. This includes all types of employment and occupations, such as ‘side-hustles’, or selling services via an app. Each source of income will have different deductions available, depending on the nature of the income and the occupation. 

   Read more...

The following tips will help guide you when preparing this year's tax return, whether you or a Professional are lodging it.

1. Get it Right the first time

2. Support deductions with evidence

3. Know what is ‘claimable’

1.Getting it ‘right’ the first time saves both you and the ATO time and effort. Make sure your end of year Income Statement is complete with all relevant facts. Don’t guess vital information and avoid submitting incorrect or misleading data. Mistakes can cause delays in processing, there is potential for penalties and can slow down receiving a refund if due.

2.Support your deductions with evidence. If you are claiming any expenses, such as ‘remote’ or working from home costs be prepared to provide proof, (receipts/ documents) to support eligibility. All deductions require evidence to back a claim.

3.Know what is claimable. Know what you are entitled to claim! For example, work-related education and training and donations to charitable organisations. Also, subscriptions, union and membership fees if they are work related. But remember if your company pays for them, you are not entitled to claim the cost.

Call on an expert to help you get the most out of your hard work and tax dollar!

Contact Blackburn Accounting, we tick all the boxes when it comes to tax matters.

We will work closely with you to help avoid any mistakes, to stay in compliance with tax laws and make sure you claim all the deductions you are entitled to.  Don't delay, contact us now to make your appointment.

• ATO General interest charges are no longer tax-deductible. 

From 1 July 2025, interest charged by the ATO for late payments or underpayments will no longer be tax deductible.  

• Super Guarantee (SG), from 1 July 2025, will increase to 12%. 

Message from the ATO. ‘The 12% rate will need to be applied for all salary and wages paid to eligible workers on and after 1 July. This is even if some or all of the pay period it relates to is before 1 July. This is the final scheduled increase’. 

Don’t hesitate, contact Blackburn Accounting if you have any questions or concerns regarding these changes or enquiries about other taxation matters. 

If you are a small Business operator, as the dust settles, you may be wondering how this Budget affects you. 

The Budget brought a mix of tax changes, regulatory reforms, and investment incentives. Depending on your Business circumstances, the announced measures can impact you differently.  

Blackburn Accounting can help navigate the changes and provide professional advice. To stay up to date, we are monitoring the latest announcements as they come to hand. Don’t second-guess or put it off. Contact us today. 

Instant Asset Write-off 

• The $20,000 Federal Government instant asset write-off will become a permanent tax scheme available to small Business owners. 

• This allows eligible small Business owners to claim immediate deductions for new or second-hand plant and equipment asset purchases, such as, tools, office equipment, and vehicles. 

• The assets must first be used or installed for use in the income year you are claiming for. 

Are you an enterprising entrepreneur participating in the ‘gig’ economy? 

Yes!  

With the summer holidays, a busy time of the year for some, your side activities may be popular and well patronised. If so, be prepared for your next tax-time reporting. 

But whatever your product, goods or service, be aware that income generated from side-hustles is now in focus by the ATO. 

With record numbers of taxpayers now working multiple jobs or supplementing their income with ‘side hustles’ or ‘gig’ economy activities, the ATO is reminding taxpayers to declare all their income when lodging their tax returns. 

Earnings are no longer hidden. Digital service platforms are now legally required to report income earned by their users under the Sharing Economy Reporting Regime  (SERR). 

 How is your Business heartbeat! Is it pumping steadily? 

Is your Business flourishing, functioning at full capacity or coughing and spluttering along. 

Not well!  

Don't put it off, seek help! 

• Just as we are encouraged to look after our own health with an annual check-up, it makes good sense to undertake a health check of your Business.  
• We all know the importance of having our body's major systems running smoothly and effectively to let us enjoy our activities, work, leisure and play. Our check-ups are the means to assess functioning ability and detect any problems. No different to your Business, a Health Check-up will assess components, measure performance, and identify deficiencies, and ailments. It will also reveal what is working well.  
• In essence, a full diagnosis provides a current and comprehensive review of the Business financial stability, compliance risk, structure and key operational functions and processes. It allows you to see the ‘results’ and know the actual health of your Business! Importantly, if any ‘signs of disease’ determine what treatment is needed if any. 

The benefits of undertaking a Business Health Check-up are many! 

Let’s start with the top 7 areas to examine: 

1. Goal Setting 

2. Financial Status 

3. Mental Health & Wellbeing 

4. Workplace Safety 

5. Policies, Processes & Procedures 

6. Marketing 

7. Seek expert help if needed 

1. Goal Setting: Provides a solid framework or skeleton, supporting your Vision and Mission statements that are both inspirational and motivational forces. Having well defined goals with a set of criteria helps you take control of your Business direction, provides guidance and the opportunity to monitor targets and outcomes.  Following the SMART goal setting method is an option. 

2. Financial Status: Debt, earnings and equity! Finances, the heart of every Business. Know your bottom line! A complete examination looks at stability, profitability, cashflow, and balance sheet. We all need a healthy heart beating! 

As fast-food giants’ stores battle cost-of-living challenges, the uncertainty of global markets and the changing economic environment, I'm pleased to report that the good news is that the Big Mac burger is still being served. 

You may recall we explored in March 2024, as ‘the Humble Burger, A Great Takeaway Meal or Measure of Success! 

We learned that the Big Mac Index is a price index, an informal economic metric created in 1986 by The Economist in the United States to measure purchasing power parity (PPP) between different global currencies.  It operates on the theory that an identical basket of goods should cost the same worldwide when converted to a common currency. In this scenario, a Big Mac is the basket item.  

What this Index offers depends on the audience and the reader. If you are a world traveller and a Big Mac addict, you may find this helpful or distressing on your journeys. How much are you prepared to pay?  And the story continues.

What’s happening in the world of the humble burger?