There are a number of structures that you can choose from when starting or expanding your business including:

• sole trader – the simplest structure, especially when you do not know the level of business turnover/profit you may achieve, this will give you a full control at the beginning. When the business expands, you can consider the other structure like a company.
• company – A company is a more complex structure of business as it requires more accounting and financial assistance in managing your tax, payroll and superannuation. A company limits your liability because it’s a separate legal entity.
• partnership – made up of 2 or more people who distribute income or losses.
• trust – where a trustee is responsible for business operations. The trustee can be a company or persons. The trust does not normally pay tax on its profit. Profits are distributed to the beneficiaries. The beneficiaries will include the trust distribution to his/or her tax return.
• co-operative – a member-owned business structure with at least five members.

How to choose a business structure

When you decide on a structure for your business, choose the one that best suits your business needs. Consider each option carefully, as there are key factors and rules to consider for each structure.

Your business structure can determine:

• the licenses you require
• how much tax you pay
• whether you’re considered an employee, or the owner of the business
• your potential personal liability
• how much control you have over the business
• ongoing costs and volume of paperwork for your business

You can change your business structure throughout the life of your business. As your business grows and expands, you may decide to move to a different type of business structure. CGT rollover elections from one structure to another may be available.

Key differences between business structures

The post What Business Structure Will Suit Me? appeared first on Kasker Associates.

• sole trader
• partnership
• company
• trust.

Sole trader

A sole trader is an individual running a business. It is the simplest and cheapest way to run a business.

If you run your business as a sole trader, you are:

• the sole owner and controller of it
• legally responsible for all aspects of the business, including debts and losses you incur in running it.

You can employ workers in your business, but you can’t employ yourself.

As a sole trader, you are responsible for paying your worker’s superannuation, known as super guarantee. You don’t have to pay super guarantee for yourself but you can choose to make personal super contributions to save for your retirement.

Key tax obligations

As a sole trader, you:

• use your individual tax file number (TFN) and ABN when lodging your tax return
• report all your income in your individual tax return.
• must register for goods and services tax (GST) if
  • your annual GST turnover is $75,000 or more
  • you provide taxi, limousine or Uber services (regardless of your GST turnover)
  • you want to claim fuel tax credits
• may be required to lodge business activity statements, for example if you’re registered for GST, have employer obligations such as PAYG withholding, or have PAYG instalments
• pay tax on all your income, including income from your business, based on your individual tax rate
• may voluntarily use, or be required to make, PAYG instalments to prepay your income tax
• can claim a deduction for any personal super contributions you make after notifying your fund
• can hire workers, and need to meet all employer and super obligations for them.

As a sole trader, you can claim a deduction for salary, wages and allowances you pay your workers on your tax return.

You can’t claim a deduction for money or assets you take from the business for personal use.

Partnership

A partnership is a group or association of people who run a business together and share the income or losses from the business between themselves.

A written partnership agreement is not required for a partnership to exist but can help:

• prevent misunderstandings and disputes about what each partner brings to the partnership
• set out how business income and losses are to be shared between the partners (equally between partners or not)
• set out how the business is to be managed.

If there is no written agreement, income and losses are equally distributed between partners.

The partners in a partnership are not employees of the partnership, but they are able to employ other workers.

Partners are responsible for their own superannuation. However, the partnership is required to pay super for its employees.

Key tax obligations

A partnership:

• has its own TFN and ABN for business activities.
• must lodge an annual partnership return showing all business income and deductions and how its income or losses are distributed to the partners
• partnership does not pay tax. The profit is paid to each partner according to the share percentages. Each partner reports the distribution to his/or her income tax return.
  • GST liabilities are the same as all other business structures.

A partnership can claim tax deductions for partner’s wages and superannuation payments.

Change of partners: as soon as there is a change or retirement of a partner in the partnership, the partnership is dissolved. In other words, a new partnership or a new business structure must be entered into if the business is still in operation.  

An unlimited liability partnership (often called a General Partnership) is a business structure where two or more people share ownership. Because the business is not a separate legal entity from its owners, every partner is personally accountable for all business debts, legal liabilities, and financial obligations.

Company

A company is a separate legal entity with its own tax and superannuation obligations, run by its directors and owned by its shareholders.

A company’s income and assets belong to it, not its shareholders. There may be tax consequences if you are using your company’s money and assets for private purposes.

A company can distribute profits to its shareholders through dividends and may be able to attach franking credits to those dividends. This allows its shareholders to receive a credit for the tax already paid by the company on its profits.

While a company provides some asset protection, its directors can be liable for their actions and, in some cases, certain tax and superannuation debts of the company under the director penalties rules.

All company directors are legally required to verify their identity and apply for a director identification number (director ID) prior to being appointed as a director of a company.

Companies are regulated by the Australian Securities and Investments Commission (ASIC).

Companies have higher set-up and administration costs than other types of business structures and have additional reporting requirements.

Key tax obligations

A company:

• is responsible for its own tax and superannuation obligations
• must apply for its own TFN
• is entitled to an ABN  if it is registered under the Corporations Act 2001
  • if the company is not registered under the Corporations Act 2001 it may still register for an ABN if it is running a business in Australia
• must register for GST if it
  • has annual GST turnover of $75,000 ($150,000 for not-for-profit organisations) or more
  • provides taxi, limousine or ride-sourcing services (regardless of GST turnover)
  • wants to claim fuel tax credits
• may be required to lodge business activity statements, for example if it is registered for GST, has employer obligations such as PAYG withholding, or has PAYG instalments
• owns the money that the business earns (you may have to pay tax on any money taken out for personal use)
• must lodge an annual company tax return
• usually pays its income tax by instalments through the pay as you go instalments system
• pays tax at its applicable company tax rate
• must pay super guarantee for any eligible workers (this includes any company directors)
• must issue distribution statements to any shareholders it pays a dividend to.

There is information you need to know if your company will be deregistered.

Trust

A trust is an obligation imposed on a person or other entity to hold and manage property for the benefit of beneficiaries. If a trust is set up to run a business, it will normally have a trust deed that, among other things, sets out the powers of the trustees and the interests of the beneficiaries in the trust.

The trustee manages a trust’s tax affairs. The trustee can be an individual or a company. The net income of the trust is usually distributed to beneficiaries.

Key tax obligations

A trust:

• must have its own TFN
• must lodge an annual trust tax return, which includes a statement of how its income was distributed
• must apply for an ABN and use it for all business activities
• must register for GST if it
  • has annual GST turnover of $75,000 ($150,000 for not-for-profit organisations) or more
  • provides taxi, limousine or ride-sourcing services (regardless of GST turnover)
  • want to claim fuel tax credits
• may be required to lodge business activity statements, for example if it is registered for GST, has employer obligations such as pay as you go withholding, or has pay as you go instalments
• must pay super for eligible employees (this may include the trustee if employed by the trust).

Who pays income tax?

The trustee must lodge an annual trust tax return. Who pays tax on the trust’s income is determined by how the trust income is distributed and who it is distributed to.

Generally, the beneficiaries will be responsible for paying tax on the trust net income distributed to them.

The trustee is liable to pay tax on any undistributed income and may be liable to pay tax on behalf of certain beneficiaries, like non-residents or minors.

There may be other circumstances where the trustee is responsible for paying tax.

If the trust makes a loss, it cannot be distributed to the beneficiaries and they can’t claim it as a loss against their income.

However, the trust may be able to carry forward losses and offset them against future income it earns.

ATO QC31723

The post Key tax obligations for business structures appeared first on Kasker Associates.

The Fringe Benefits Tax (FBT) lodgement and payment deadline for the FBT year (1 April to 31 March) is 21 May. However, if you lodge electronically using a registered tax agent, your deadline is generally extended to 25 June.

A fringe benefit is like a payment to an employee, but in a different form to salary or wages.

There are different types of fringe benefits. Examples include:

• allowing an employee to use a work car for private purposes
• car parking
• paying an employee’s gym membership
• providing entertainment by way of free tickets to concerts
• reimbursing an expense incurred by an employee, such as school fees
• giving an employee a discounted loan
• giving benefits under a salary sacrifice arrangement with an employee.

The following are not fringe benefits:

• salary and wages
• employer contributions to complying super funds
• shares or rights provided under approved employee share acquisition schemes
• employment termination payments (including, for example, the gift or sale at a discount of a company car to an employee on termination)
• payments deemed to be dividends under Division 7A
• benefits provided to volunteers and contractors
• exempt benefits, such as certain benefits provided by religious institutions to their religious practitioners.

Who receives fringe benefits?

FBT applies to fringe benefits provided to your employees, or to your employees’ families or other associates.

For FBT purposes, an employee includes a:

• current, future or past employee
• director of a company
• beneficiary of a trust who works in the business.

If you’re a sole trader or a partner in a partnership, you are not an employee. Benefits you provide to yourself are not subject to FBT.

Your clients are not employees. Benefits you provide to clients, such as entertainment, are not subject to FBT.

Who pays FBT?

The employer pays FBT.

This is the case even if the benefit is provided by a third party under an arrangement with the employer.

How much FBT do you pay?

To work out how much FBT to pay, you ‘gross-up’ the taxable value of the benefits you’ve provided. This is equivalent to the gross income your employees would have to earn, at the highest marginal tax rate (including the Medicare levy), to buy the benefits themselves.

The FBT you pay is 47% of this ‘grossed-up’ value of the fringe benefits.

Fringe Benefits Tax (FBT) calculations for GST items depend on whether you can claim a GST input tax credit for the benefit.

GST-inclusive items require a “Type 1” gross-up rate of 2.0802,

while non-GST items use a “Type 2” rate of 1.8868.

Example: FBT on gym membership (type 1)

Jenni runs a small consulting firm. She provides her employee, Anton, with a gym membership that costs $1,100 (including $100 GST).

This is a fringe benefit. Jenni works out the FBT as follows:

Taxable value of the benefit ($1,100 GST inclusive)

× the gross-up rate (for a GST-inclusive fringe benefit the rate is 2.0802)

× the FBT rate (47%)

1100 x 2.0802 x 47% = 1075.46

= FBT of $1,075.46.

Jenni must prepare and lodge an annual FBT return, and pay her FBT liability.

She may also need to calculate and report Anton’s reportable fringe benefits amount in his end-of-year payment information.

As the gym membership is subject to FBT, Jenni can claim:

• an income tax deduction and GST credit for the cost of the gym membership
• an income tax deduction for the FBT paid.

Can employers claim deductions and GST credits?

As an employer, you can claim:

• an income tax deduction and GST credits for the cost of providing fringe benefits
  • if you can claim GST credits, you claim the GST-exclusive amount as an income tax deduction
  • if you can’t claim GST credits, you claim the full amount as an income tax deduction
• an income tax deduction for the FBT you are required to pay.

What do you need to do?

As an employer, you need to:

1. Identify the types of fringe benefits you provide.
2. Check for FBT concessions and ways you can reduce FBT.  
3. Some Benefits FBT exempted: general work-related expenses.

Portable electronic devices

Portable electronic devices that are mainly used for work purposes are exempt from fringe benefits tax (FBT).

The exemption applies to one item per FBT year for items with a substantially identical function (unless it is a replacement item).

However, small businesses can provide employees with more than one work-related portable electronic device in an FBT year – even if they have substantially identical functions. A SMALL BUSINESS ENTITY (SBE) is a business with an aggregated turnover of less than $50M in an income year that starts or ends in the relevant FBT year.

A portable electronic device is a device that:

• is easily portable and designed for use away from an office environment
• is small and light
• can operate without an external power supply
• is designed as a complete unit.

Portable electronic devices include:

• mobile phones
• laptop and tablet computers
• portable printers
• calculators
• portable global positioning system (GPS) navigation receivers.

Software, protective clothing, tools of trade

The following work-related items are exempt from FBT where they are mainly used for work purposes:

• computer software
• protective clothing
• briefcases
• tools of trade.

There is a limit of one item per employee in an FBT year for items that are basically the same, unless it is a replacement item.

• You can reduce your FBT liability by using alternatives to fringe benefits or providing benefits that are eligible for a concession.
• If you’re a not-for-profit employer, you may be eligible for an exemption or rebate for not-for-profit organisations.

The post A Guide for Fringe Benefit Tax appeared first on Kasker Associates.

Generally, you can claim the cost and laundry expenses for acquiring and washing compulsory or protective uniforms which have business logos attached to them.

Occupation‑specific

You can claim a deduction for occupation‑specific clothing that distinctively identifies you as a person associated with a particular occupation – for example, a police officer, judge’s robe or chef’s chequered pants.

If the clothing may be worn by multiple professions, it is not considered occupation specific.

You can’t claim for clothes you wear for work that are not specific to your occupation. For example, you can’t claim:

• a bartender’s black trousers and white shirt
• a business suit
• a swimming instructor’s swimwear.

ATO Example: occupation-specific clothing

Joe is a chef with 2 jobs. When working at a restaurant he wears the traditional chef’s uniform of chequered pants, white jacket and chef’s toque. He also works on a food truck, but just wears jeans and a t-shirt at that job.

Joe can claim his traditional chef’s uniform, but not his food truck clothing. The chef’s clothing is relevant to his profession, but the jeans and t-shirt are conventional clothes.

Protective clothing

You can claim a deduction for clothing and footwear you wear to protect you from the real and likely risk of illness or injury from your work activities or your work environment.

There has to be a link between your work-related activities, the risk presented by your work environment and the form and function of the clothing to mitigate that risk.

To be considered protective, the items must have both:

• protective features or functions
• a sufficient degree of protection against the risk of illness and injury you are exposed to in carrying out your work.

Protective clothing includes (from ATO publication):

• fire-resistant clothing
• sun protection clothing with a UPF sun protection rating
• safety-coloured vests
• non-slip nurse’s shoes
• protective boots, such as steel-capped boots or rubber boots for concreters
• gloves and heavy-duty shirts and trousers
• occupational heavy duty wet-weather gear
• boiler suits, overalls, smocks or aprons you wear to avoid damaging or soiling your ordinary clothes during your work activities.

You can’t claim a deduction for conventional clothes that don’t have features for protection against the risks of illness or injury at your work. For example, you can’t claim for jeans, drill shirts, shorts, trousers, socks or everyday enclosed shoes.

Laundry expenses

You can claim the costs for (1) home washing (2) wash in the laundromat and (3) dry and iron work clothing from one of the categories above.

A reasonable home washing rate:

• $1 per load for washing your uniform
• 50c per load if you mix personal items of clothing with work clothing from one of the categories above.

If you receive an allowance from your employer for laundry expenses:

• Your employer may include a uniform and laundry allowance on your income statement. It is an assessable income. You can claim the actual uniform and laundry expenses incurred by you.

Dry-cleaning and repair expenses

You can claim a deduction for the actual costs you incur to dry-clean and repair uniforms from one of the categories above.

Keeping records for clothing, laundry and dry-cleaning

You need to keep receipts to claim a deduction for buying, dry-cleaning or repairing work-related clothing.

Your records need to show:

• the name or business name of the supplier
• the amount you spent
• the nature of the items you paid for
• the date you made the payment
• the date the receipt or other document was produced.

If you don’t (or can’t) get a receipt, you can provide other forms of evidence for your expenses. This evidence needs to show all of the information described above. Other forms of evidence might include:

• bank statements
• invoices
• purchase orders.

If you claim a deduction for laundering (washing and drying), you must keep details of how you work out your claim.

If your laundry expenses (washing, drying and ironing but not dry-cleaning expenses) are $150 or less, you can claim the amount you incur on laundry without providing written evidence of your laundry expenses.

If your laundry claim is over $150, you must have written evidence, such as diary entries and receipts.

The post Work-related Uniform & Laundry Expenses appeared first on Kasker Associates.

If you claim a tax deduction for them, they’re concessional contributions and are effectively from your pre-tax income. They are taxed in the fund at a rate of 15%.

Claiming deductions for personal super contributions

To claim a deduction for your personal super contributions, you must give your super fund a notice in the approved form and get an acknowledgment from the fund. There are other eligibility criteria you must meet.

The personal super contributions you claim as a deduction will count towards your concessional contributions cap.

When deciding whether to claim a deduction for super contributions, you should consider the possible impacts, including whether:

• you will exceed your concessional (before-tax) contributions cap, which limits the amount that can be contributed to your super fund that is taxed at the concessional rate of 15%
• you will have to pay Division 293 tax, which applies when your combined income and concessional super contributions for Division 293 purposes is more than $250,000
• you wish to split your contributions with your spouse
• it will affect your super co-contribution eligibility.

If you exceed your cap, you will have to pay extra tax, and any excess concessional contributions you leave in super will count towards your non-concessional contributions cap.

Carry forward unused contribution cap amounts

If you have unused concessional cap amounts from previous years, you may be able to carry them forward to increase your contribution caps in later years. You’re eligible to do this if you have both:

• a total super balance of less than $500,000 at 30 June of the previous financial year
• unused concessional contributions cap amounts from up to 5 previous years.

The unused cap amounts you can carry forward depends on the amount you have contributed in previous years, starting from 2018–19. You can carry forward unused cap amounts from up to 5 previous financial years, including when you were not a member of a super fund.

Unused cap amounts are available for 5 years and expire after this. For example, a 2020–21 unused cap amount that is not used by the end of 2025–26 will expire.

The oldest available unused cap amounts are carried forward first. For example, unused cap amounts from 2020–21 would be used to increase your cap first before unused cap amounts from 2021–22.

Unused concessional cap amounts are applied automatically once you exceed the cap in any year.

If you still have made excess concessional contributions (ECC) after applying unused cap amounts, you may need to pay extra tax.

For more information, refer to the ATO QC19749

The post Personal Super (Concessional) Contribution with Intention to Claim Tax Deduction appeared first on Kasker Associates.

What is a DGR?

A deductible gift recipient (DGR) is an organisation or fund that can receive tax deductible gifts or donations.

Not all charities are DGRs. Many of these crowdfunding websites are not run by DGRs, so donations to them are not deductible. You can check whether your donation was made to an endorsed DGR on the Australian Business Register website.

Deductible gift recipient lookup: https://abr.business.gov.au/Tools/DgrListing

• Any material benefit received like a raffle ticket or sponsored lunch or dinner is not deductible.
• it must be money or can be shares issued.
• it must comply with any relevant gift conditions – for some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.

You must have a receipt. If you receive a material benefit in return for your gift or donation to a DGR – for example, something that has a monetary value – it is considered a contribution and extra conditions apply.

Political party and independent candidate donations

In some circumstances, you can claim a deduction for gifts and donations of $2 or more to registered political parties or independent candidates.

This includes paying a membership subscription to a registered political party.

You must have made the gift or donation as an individual (not in the course of carrying on a business) and it can’t be a testamentary donation (a donation made in a will).

If the gift is property, the property must have been purchased within 12 months of making the donation.

The most you can claim in an income year is:

• $1,500 for contributions and gifts to political parties
• $1,500 for contributions and gifts to independent candidates and members.

To claim a deduction, you must have a written record of your donation.

Gifts and donations you can’t claim

You can’t claim a deduction for gifts or donations made to any person or organisation without a current DGR status of endorsed or listed, or where the donation provides you with a personal benefit such as:

• social media or crowdfunding platforms
• religious organisations
• raffle or art union tickets – for example, an RSL Art Union prize home
• items that have an advertised price, such as chocolates, mugs, keyrings, hats or toys
• the cost of attending fundraising dinners – you may be eligible to claim a deduction as a contribution if the cost of the event was more than the minor benefit applied as part of the event
• club membership fees
• payments to school building funds made in return for a benefit or advantage – for example, as an alternative to an increase in school fees or placement on a waiting list
• payments where you have an understanding with the recipient that the payments will be used to provide a benefit to you
• gifts to family and friends, regardless of the reason
• donations made under a salary sacrifice arrangement
• donations made under a will.

Information from ATO QC72185

The post Gifts And Donations appeared first on Kasker Associates.

If you choose to use this rate and your vehicle doesn’t have the ability to accurately determine the home charging percentage, you can’t claim commercial charging station costs you incurred during the income year as a separate deduction.

1. 2. Alternatively, you can choose to claim the electricity used for charging your PHEV by determining the actual cost incurred. Owners of zero emissions electric vehicles (EVs) can continue using the EV home charging rate provided they meet the relevant requirements.

(This guidance doesn’t apply to electric motorcycles or electric scooters).

4. From 1 July 2026, taxpayers won’t need receipts to claim a deduction of less than $1,000 for work-related expenses in their tax return (it is still $300 limit until 30 June 2026). While the ATO won’t ask you for receipts if your claim is below this amount, they may still ask you to explain what it was, how you paid for it, and how it is related to your work.
5. From 2026 FY and same in 2027 FY, Employer Superannuation Guarantee is to be increased to 12% of gross wages.
6. Businesses’ Instant write-offs: The Instant Asset Write-Off threshold is $20,000 (GST inclusive) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $10 million where those assets are first used or installed ready for use after 1 July 2024.
7. Payday Super starts from 1 July 2026: From 1 July 2026, Employers pay super guarantee for each payday, instead of quarterly.

Payments are due in employees’ super accounts within 7 business days after payday (unless longer applies, such as for new employees).

The Small Business Superannuation Clearing House (SBSCH) will be closed. Businesses need to switch to an alternative provider before it shuts down permanently on 30 June 2026.

8. Housing tax incentives – build to rent developments: The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to an accelerated deduction of 4% for capital works relating to build to rent developments and a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development). For more information, see ATO: Build to rent development tax incentives.
9. HECS repayment rate changes: From 2026 FY, compulsory repayments for student and training support debts have moved to a marginal repayment system:

They are only calculated on the income above minimum repayment threshold instead of the total repayment income.

The minimum repayment income needed to make a compulsory repayment is $67,000 for the 2025–26 income year.

These rates and thresholds will be indexed each year in line with average weekly earnings.

The post Latest Tax changes 2026/2027 appeared first on Kasker Associates.

Personal Income Tax:

• From 1 July 2026, the tax rate for income between $18,201 and $45,000 drops from 16% to 15%, then to 14% from 1 July 2027.
• From 1 July 2027, every working Australian will automatically qualify for the $250 Working Australian Tax Offset.
• From 1 July 2026 (2027 FY), many people will be able to claim a flat $1,000 deduction without keeping receipts (replacing $300 in the past).

Negative gearing (properties):

• Negative gearing (where rental losses are deducted from taxable income) will be limited to new builds only.
• Existing properties owned before Budget night (12 May 2026) are not affected.
• Held property before the Budget night as a main residence and subsequently changing the property to rental, negative gearing will still be applicable.
• Properties purchased under SMSF are not affected.

Capital Gains Tax (CGT)

• The Capital Gains Tax (CGT) discount will move from a flat 50% discount to an inflation-based model with a minimum effective tax of 30% on gains (waived in years you receive means-tested support, e.g. Age Pension, JobSeeker).
• Assets include real estate, shares, managed funds, cryptocurrencies and most businesses.

Pre-1 July 2027 Gains: For assets held before 1 July 2027 and sold before 30 June 2027, any capital gains accrued on the existing assets sold before 1 July 2027 will remain eligible for the traditional 50% CGT discount.

Post-1 July 2027 Gains: For any assets acquired before 1/7/2027, when you eventually sell the asset after 1 July 2027, the gain must be split into two periods. For the growth before 1 July 2027, the 50% CGT concession rule applies provided the asset is held for more than 12 months. The growth following 1 July 2027 will be subject to the new law, which replaces the 50% discount with cost-base indexation and enforces a minimum 30% tax rate on the gain.

•  A legitimate valuation report is required as at 1/7/2027.
• Share prices and crypto prices published on 1/7/2027 need to be obtained.
• New build election: Investors who buy a qualifying new residential build can elect either the old 50% discount or the new indexation + 30% minimum tax – whichever produces a better outcome. A subsequent buyer of the same property will lose this election.
• Knock down and rebuilding is not treated as a new built home as there is still one home on the same block of land. Exceptions apply to multiple dwellings (e.g. duplex or units).
• A granny flat is not treated as a newly built home.
• Properties purchased or built as new residential builds after Budget night retain the choice to use either the legacy 50% CGT discount or the new indexation rules.
• Death and Divorce Transfer Rules: Transitional rules ensure that grandfathered CGT concessions on jointly owned assets are protected and can be maintained in the event of a partner’s death or a family law court order.
• The 6-Year CGT exemption Rule: Main residence GST exemption rule is not affected (the property has to be your principal residence as soon as it was purchased).

SMSF

• The SMSF CGT regime remains unchanged. Unlike personal investments, SMSFs retain the statutory one-third CGT discount, meaning realised gains are taxed at an effective rate of only 10% in the accumulation phase (or 0% in the pension phase).
• Residential Property Ban: SMSFs can no longer take out new loans to buy residential homes.
• Existing Loans Grandfathered: Current residential Limited Recourse Borrowing Arrangements (LRBAs) are not affected.
• Commercial Properties: SMSFs can still borrow to buy commercial real estate (e.g., factories, warehouses, or shops)
• Transition Windows: For contracts signed prior to the law being passed, the LRBAs are not affected.

Small businesses:

• From 1 July 2026, the $20,000 (GST inclusive) instant asset write-off will become permanent, making it easier to immediately deduct the cost of business essentials like tools, equipment or vehicles.
• The 50% capital gain tax discount for small businesses will be extended to those with a turnover of up to $10 million instead of $2 million.

Not passed – The proposed 30% minimum tax on beneficiary’s distributions under Discretionary Trust structures.

Limitation of Liability  Our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils’ website: http://www.professionalstandardscouncil.gov.au

The post 2026 Federal Budget appeared first on Kasker Associates.

2026–27 financial year

 These rates apply to Australian tax residents and are marginal, meaning each rate applies only to income within that bracket. The Medicare levy of 2% is additional, and Low Income Tax Offset (LITO) and other offsets may also apply

Foreign resident tax rates 2026–27 (same in 2024 and 2025 FYs)

 2025–26 financial year

Money Smart Tax Calculator:

https://moneysmart.gov.au/work-and-tax/income-tax-calculator

The post Income Tax Rates appeared first on Kasker Associates.

1. The corporate tax rate for companies are base rated entities is 25% from the 2022 and future years.
2. Work from home fixed rate: The fixed rate for work from home expenses for 2024–25 is 70c per hour.
3. Cents per kilometre increase
4. The cents per kilometre rate for work-related car expenses for 2024–25 is 88c per kilometre.
5. Electric vehicle home charging rate – plug-in hybrid electric vehicles
   • From 1 July 2024, if you own and use a plug-in hybrid electric vehicle (PHEV) you can use the EV home charging rate to calculate the cost of charging your PHEV at home.
     • To use the EV home charging rate of 4.2c per kilometre to determine the cost of your electricity, you must:
       • have kept the relevant records for the income year
       • be claiming your car expenses using the logbook method or claiming your actual work-related vehicle expenses.
       • If you choose to use this rate and your vehicle doesn’t have the ability to accurately determine the home charging percentage, you can’t claim commercial charging station costs you incurred during the income year as a separate deduction.
     • Alternatively, you can choose to claim the electricity used for charging your PHEV by determining the actual cost incurred. Owners of zero emissions electric vehicles (EVs) can continue using the EV home charging rate provided they meet the relevant requirements.
       • (This guidance doesn’t apply to electric motorcycles or electric scooters).
6. From 2026, taxpayers won’t need receipts to claim a deduction of less than $1,000 for work-related expenses in their tax return (it is still $300 limit until 30 June 2026 F). While the ATO won’t ask you for receipts if your claim is below this amount, they may still ask you to explain what it was, how you paid for it, and how it is related to your work.
7. From 1 July 2024, Employer Superannuation Guarantee is to be increased from 11.5% of the gross wages.
8. From 1 July 2025, Employer Superannuation Guarantee is to be increased from 12% of the gross wages.
9. Businesses’ Instant write-offs:
   6. As part of the Federal Government’s Coronavirus Stimulus Package, the Instant Asset Write-Off threshold is $20,000 (GST inclusive) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $10 million, where those assets are first used or installed ready for use after 1 July 2024.
10. “Technology Investment Boost” – deductions ended 30 June 2024.
11. Digitising “Taxable Payments Reporting” system
    • From 1 January 2024, businesses can able to report Taxable Payments Reporting System data via their accounting software on the same lodgement cycle as their activity statements
12. Digitalising trust income reporting
    • Trust and beneficiary income reporting and processing can digitalise with all trusts being provided with the option of lodging income tax returns electronically.
13. Selling and purchasing property
    • From 1 January 2025 the foreign resident capital gains withholding (FRCGW) rate increased to 15% (ALL properties). Australian residents selling property need a clearance certificate to avoid having an amount withheld from the sale price.
14. Housing tax incentives – build to rent developments
    • The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to an accelerated deduction of 4% for capital works relating to build to rent developments and a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development).  For more information, see ATO: Build to rent development tax incentives.

The post Latest tax changes 2025/26 appeared first on Kasker Associates.