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The Budget speech from the Treasurer and the Budget reply speech from the opposition leader:
There were no substantial and/or immediate tax issues which were announced in last week's Budget speeches, noting that the parties are now in election mode.
The real Budget speech will come post-election from the new Treasurer.
For further information on this topic click the below link
Budget.gov.au | Budget 2025–26
ATO holds firm on trust income ruling pending Bendel appeal outcome:
The Australian Taxation Office (ATO) has released an interim Decision Impact Statement following the Full Court's decision in the Bendel case.
The ATO confirmed that it does not intend to revise its views on private company entitlements to trust income, as outlined in TD 2022/11, until the appeal process is concluded.
Specifically, the ATO will continue to administer the law in accordance with TD 2022/11, which applies to unpaid present entitlements (UPEs) arising on or after 1 July 2022, where the private company beneficiary has not demanded payment. Accordingly, the ATO will be administering the law in a way which is contrary to the current law expressed by the Full Federal Court.
Clients and their advisors in the 2024 lodgment cycle, and in tax planning for 2025, will need to determine which approach is best for them.
Do you stick with the ATO's tax determination, or do you follow the Full Federal Court?
For further information on this topic click the below link
Bendel - Interim Decision Impact Statement
Exposure Draft released for Payday Super and Superannuation Guarantee Reforms:
On 14 March 2025, Treasury released exposure draft materials on key superannuation reforms announced in the 2023–24 Budget, including the introduction of payday super.
This new measure aims to align the payment of Superannuation Guarantee (SG) contributions with the day employees are paid, rather than the traditional quarterly schedule. If passed, the reforms will apply from 1 July 2026.
The proposed amendments, contained in the Superannuation Guarantee Charge Amendment Bill 2025 and the Treasury Laws Amendment Bill 2025, include several key changes to the SG regime:
- SG shortfalls will be determined based on the day contributions are received by a superannuation fund, in line with employee payments.
- A new SG charge calculation and penalty system will be introduced for late payments.
- Employers will be required to voluntarily disclose SG shortfall amounts before the Commissioner issues an assessment.
- The rules surrounding employer failure to comply with choice of fund requirements will be updated.
- Additionally, the draft Bills propose allowing tax deductions for both on-time and late SG contributions, though late-payment penalties will not be deductible.
Further, the Treasury Laws Amendment Bill 2025 includes a proposal to ban advertising certain superannuation products, excluding MySuper products, during the employee onboarding process. These amendments are also expected to begin on 1 July 2026.
Employers will also benefit from greater flexibility when requesting employee superannuation fund details during onboarding under the Employee Onboarding Reforms.
You can submit feedback on these proposed reforms until 11 April 2025.
For further information on this topic Click Here
GIC and SIC Rates for April to June 2025:
The ATO has released the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the period from 1 April 2025 to 30 June 2025.
The applicable rates are as follows:
- GIC rate: 11.17%;
- GIC daily compounding rate: 0.03060274%;
- SIC rate: 7.17%;
- SIC daily compounding rate: 0.01964383%; and
- Interest rate on overpayments, early payments, and delayed refund interest: 4.17%.
GIC and SIC will also not be deductible from 1 July 2025
For further information on this topic click the links below
General interest charge (GIC) rates
Credit interest rates and calculation
Refer article, Squeezing the lemon at both ends, about denying deductions for GIC and SIC is here
