Staying informed and up to date with important changes to our tax system is a key part of effective planning and decision-making. In this edition, we’ve brought together the latest updates, reminders and helpful information to keep you informed and prepared for the year ahead. Read on for key insights and updates that may be relevant to you, your family or your business.
You may have received an email or letter from the ATO suggesting tax returns may be stopped for review where high work-related deductions or unusual claims have been identified.
The ATO continues to increase its focus on ensuring that deductions claimed in individual tax returns are accurate, properly substantiated and meet the relevant eligibility requirements. While claiming legitimate deductions is an important part of managing your tax affairs, it is essential that all claims are supported by appropriate records and that you understand the requirements before including them in your tax return.
Some key things to keep in mind when claiming deductions include:
As part of the ATO’s ongoing compliance activities, some taxpayers may be selected for an ATO review. Selection for a review does not necessarily mean there is an issue with your tax return; however, it does mean the ATO may request additional information to confirm that claims are accurate and meet the required guidelines.
To help ensure a smooth process, we recommend keeping your records organised and providing complete supporting information when preparing your tax return. Accurate logbooks, clear documentation and timely responses can significantly reduce delays if further information is requested.
Where a client is selected for an ATO review, our standard process includes the first hour of preparation and response time being provided at no additional charge, this is provided records are complete, organised and supplied in a timely manner.
If additional work is required due to incomplete records, disorganised information, missing documentation or a more complex and extended response process, additional fees may apply in addition to the usual tax preparation fees.
Our goal is to support you through these processes and ensure your tax affairs are managed accurately, efficiently and in line with ATO requirements.
For further insight into the importance of maintaining accurate records and the ATO’s increased focus during tax time, Shane recently shared his thoughts with The Advertiser. We have included a snapshot of the article below.
To assist with keeping accurate records, we have included an example vehicle logbook and working from home template below for your reference.
You may have recently heard about changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements. These changes are part of a broader effort to strengthen Australia’s financial system and help prevent the misuse of professional services for illegal activities.
As part of these new obligations, accounting firms providing certain services are now required to complete additional client due diligence and verification processes. This means we may need to collect and confirm additional information, update records, and ask further questions when providing certain services or onboarding new clients.
We understand that these additional steps may feel like an extra layer of administration, and we appreciate your patience and cooperation as we work through these changes. These requirements are not about creating unnecessary hurdles — they are important legal obligations that help protect our clients, our firm and the wider community.
Our team is committed to making this process as smooth as possible and will continue to guide you through any requirements that apply to your circumstances. Thank you for your understanding and support as we implement these important changes.
The Federal Budget includes a range of measures that may impact individuals, families and businesses. While many announcements are subject to further legislation and guidance, it is important to understand the key changes and how they may affect your future planning.
Some of the key areas to be aware of include:
Changes impacting Self-Managed Super Funds (SMSFs)
The Government has announced changes to the current Limited Resource Borrowing Arrangement (LRBA) rules affecting how SMSFs borrow to purchase residential property. While SMSFs can still hold residential property, they will no longer be able to borrow to acquire them. Commercial property purchases remain unchanged. The restriction is due to kick into effect on the 10th of August.
Existing SMSF borrowing arrangements are not impacted by these changes, and clients who are considering purchasing property through their SMSF should seek advice before entering into any new arrangements to ensure they understand the requirements and implications.
It is important to remember that SMSF property investments continue to be subject to strict superannuation rules, including meeting the sole purpose test, ensuring the investment is for retirement benefit purposes, and complying with restrictions around personal use and related-party transactions.
Planning ahead
With ongoing changes to tax, superannuation and compliance requirements, proactive planning remains an important part of managing your financial affairs. We recommend reviewing any upcoming investment decisions, business changes or major financial commitments with your adviser to ensure they continue to align with your circumstances and objectives.
Our team will continue to monitor further updates and provide guidance as more information becomes available.
Thank you for taking the time to read the latest edition of our newsletter. We appreciate the opportunity to keep you informed of important updates that may impact you, your family or your business.
At Winter & Co, we are proud to have a dedicated and experienced team committed to supporting our clients. If you have any questions about the information shared in this edition or would like advice tailored to your individual circumstances, please don’t hesitate to get in touch. We are always here to help.
The Winter & Co Team