NEWSLETTER - CHRISTMAS 2023
Whatever your requirements, we can help you find the solution.
NEWSLETTER - CHRISTMAS 2023
STAFF UPDATES
We would like to congratulate Lindsey Delozier, and her partner John, on the
arrival of their first child in December.
Annalee Parker and Ella White have joined the Mott Finnis team in recent
months. Both Annalee and Ella are originally from Naracoorte and have
settled well into their roles in bookkeeping and administration respectively.
Bich Tran will complete her gap year and move on to commence her tertiary
studies in Adelaide in the new year. We wish her all the best in her future
endeavours.
In the last twelve months Faith Paech has completed the requirements for
CPA qualification while Carly Graetz completed the Australian Tax Institute’s
intensive Tax Foundations course. Both Faith and Carly are to be congratulated
for their efforts and academic results.
TEMPORARY FULL EXPENSING AND PLANT SALES
Temporary full expensing allowed for the immediate deduction of plant
purchases between 6 October 2022 and 30 June 2023. For businesses with a
turnover less than $50M the plant could be new or second hand. Businesses
with turnover above $50M could only expense new plant.
Going forward, this measure will continue to have an impact when plant
that was written off is traded or sold. With a nil book value, the entire tradein
or sale value will be treated as income. Depending on the value of the
replacement plant, this income may not be fully offset by the depreciation
deduction attributable to the new plant in the year of purchase. Please call us
to discuss the tax implications associated with any proposed disposal of plant.
SIMPLIFIED DEPRECIATION RULES
Businesses with an aggregated turnover of less than $10M are eligible to use
the simplified depreciation rules. The simplified depreciation rules allow for
plant to be placed in a ‘pool’ and the entire pool depreciated annually at 30%.
New additions to the pool are depreciated at 15% in the first year, irrespective
of purchase date. The value of any plant sale is deducted from the closing
balance of the pool. A balancing adjustment will occur if the plant sale value
is greater than the pool balance.
A measure is currently before the senate that will allow businesses using
simplified depreciation to write off any number of plant items purchased, and
installed ready for use, for less than $20,000 (GST exclusive) between 1 July
2023 and 30 June 2024.
SMALL BUSINESS TECHNOLOGY INVESTMENT BOOST
As part of 2023 tax preparation we have been asking clients to identify digital
or technology related expenses incurred in their business. This relates to
legislation that enacted the small business technology investment boost.
This boost is in the form of an additional deduction of 20% of the purchase
cost related to eligible expenditure on digital enabling items, digital media and
marketing, e-commerce and cyber security incurred between 30 March 2022
and 30 June 2023. The boost is capped at $20,000, equivalent to $100,000
spent on eligible expenditure.
Unfortunately, businesses were restricted from gaining the maximum benefit
from this measure due to the bill only receiving royal assent on 23 June 2023,
days before the eligibility period expired.
SMALL BUSINESS SKILLS & TRAINING BOOST
The legislation relating to this boost was introduced on 29 March 2022 and
also received royal assent on 23 June 2023. This bill relates to expenditure
incurred on external training courses for employees, conducted by registered
training organizations in Australia, between 30 March 2022 and 30 June 2024.
Where the training is a component of a larger education program, enrolment
must be entered into on or after 7.30 pm (ACT) on 29 March 2022.Eligible businesses (turnover less than $50M) will be entitled to claim an
additional 20% deduction on eligible expenditure.
REDUCTION OF SUPERANNUATION CONCESSIONS
On 3 October 2023, the Government released draft legislation that will reduce
the concessional tax treatment of individual superannuation accounts with
balances above $3M. The legislation is intended to take effect from 1 July 2025.
Broadly, where an individual’s total superannuation balance exceeds $3 million
at the end of a financial year, an additional tax rate of 15% on the amount of
earnings relating to the proportion of their balance that exceeds $3 million
will be applied. A formula which calculates a deemed earnings amount which
includes notional (unrealised) gains and losses, not just actual realised gains
and losses will be used.If this legislation passes into law we will contact clients who may beimpacted by these changes to discuss potential planning opportunities
SUPER GUARANTEE CHARGE
Single touch payroll and data matching programs are enabling the ATO to
identify when the amount of employee superannuation guarantee contributions
(SGC) are submitted incorrectly or payment of these contributions are late. In
these circumstances it is expected that the employer will lodge and pay the
super guarantee charge. The superannuation guarantee charge includes any
unpaid SGC, additional SGC charges on overtime wages, an administration fee
and an interest component that is calculated up to the date of submission and
payment of the superannuation guarantee charge.
The SGC is currently set at 11% of an employee’s ordinary times earnings (OTE),
when the employee is over 18 years of age or, when under 18 years of age,
works over 30 hours per week. For employees with high OTE, the maximum
OTE on which SGC is payable is $62,270 per quarter for the 2024 financial year.
Unless there is an applicable award or employment agreement that states
differently, SGC is paid quarterly. The due date for SGC is 28 days after the end
of each financial quarter. These due dates being 28 January, 28 April, 28 July
and 28 October.
If you believe you have miscalculated SGC or paid SGC late (irrespective of
lodgment date) please contact us immediately for assistance to lodge the
superannuation guarantee charge forms.
ATO ACCESS
As your tax agent, we are allowed to access personal and business information
that is held by the ATO. We may only access data for entities identified by the
ATO as clients of our practice.
To strengthen the security of access to confidential data, the ATO has introduced
new measures that require ABN holding entities (excluding sole traders) to invite
a tax agent to be their representative to the ATO. Existing clients will not be
affected unless they add a new entity (such as a trust, company or SMSF) to
their operating structure.
The invitation process requires access to the ATO via online services which will
include the set-up of a myGov ID via a smart phone or similar device. The myGov
ID is then linked to your business entities. Many clients may already have myGov
ID’s as they were used as part of the application process for the Director ID roll
out by ASIC last year.
We will be happy to assist clients work through client-to-agent linking but the
process is set up to prevent us from doing it for you.
The ATO has been phasing in electronic identification processes, access to
documents and communications for some time. We recommend clients be
proactive in creating access to ATO online services for their businesses to avoid
potential problems or delays in the future.
LODGEMENT DUE DATES
Please note that the last deadline for the lodgement of 2023 income tax
returns is 15 May 2024.
Any SMSF’s that have not provided their tax information need to do so as
soon as possible. Please note that under SMSF regulations, any real property
held by the fund must be reported at market value in the financial statements
each year. To ensure the fund is compliant, the super fund auditor must be
provided with an appraisal or valuation to support the market value adopted
in the financials.
If you have not had your property re-valued in the last twelve months,
we recommend arranging an updated appraisal or valuation. Appraisals
and valuations must include supporting evidence for the values declared
including the following information:
• Detailed description of property and use;
• Details and quality of any improvements;
• Area of property and if land used for primary production, soil types;
• Direct comparative sales data; and
• Market value of rent.
For other entities, unless we request your information prior, please ensure all
business information has been provided by 31 March 2024.
The BAS for the December 2023 quarter will be due for lodgement on 28
February 2024. The due date for the lodgement and payment of employee
superannuation contributions for the December quarter is 28 January 2024.
CLIENT DOCUMENTS
Our office has been making a concerted effort to convert hard copies of
documents to electronic versions. This has allowed us to commence
returning Trust and Super Fund documents to our clients. When you receive
your documents, please ensure they are kept in a safe place as returned
documents will be originals and should be retained indefinitely.
We have a number of other personal documents from completing client’s tax
returns and we would like to return these also. Documents can be collected
from our office or, alternatively, we can arrange postage if requested.
MOTT FINNIS & CO
66 Smith Street NARACOORTE SA 5271
Phone: 08 8762 3644 | Email: admin@mottfinnis.com.au
www.mottfinnis.com.au
also visiting SAL Bordertown by appointment
DISCLAIMER.
Any of the information contained within this document is not advice. Clients should not
act solely from information in this newsletter. The content of this newsletter is designed
to give a general overview of current topics and therefore clients should seek further
advice before acting in any of these areas.
Mott Finnis Wealth Management Pty Ltd is an authorised representative of
Edwards Marshall Advisory Pty Ltd AFSL No. 479792.
Liability limited by a scheme approved under
We've also developed our accounting practices into innovative client-focused services.
At Mott Finnis & Co we aim to provide you customised advice whenever and wherever you need it.
View our handy online tools and resources featuring key dates, tax facts, useful links and online calculators.