As we approach the end of the December 2024 quarter, we want to share a friendly reminder about key tax planning and compliance obligations in Australia. This period is a great opportunity to review your financial strategies and ensure you’re on track for the rest of the 2024–2025 financial year.
1. Business Activity Statements (BAS)
- Due Date: BAS for the October–December quarter generally falls on 28 January 2025, unless you’re eligible for a deferral through a registered tax agent.
- Key Actions:
- Ensure that all your records—sales, purchases, and other transactions—are up to date.
- Double-check GST calculations and any PAYG withholding amounts for accuracy.
Staying organized now helps prevent stress and potential penalties later.
2. Superannuation Contributions
- Rate Increase: Remember, the Superannuation Guarantee rate for 2024–2025 is 11.5%, continuing its gradual rise toward 12%.
- Quarterly Deadline: Super payments for the December quarter are due by 28 January 2025.
- Why It Matters: Late super contributions can attract penalties and missed deduction opportunities, so be sure to pay on time.
3. Fringe Benefits Tax (FBT) Considerations
- FBT Year-End: The FBT year ends on 31 March 2025, but the December quarter is a good chance to assess any benefits you’ve provided to employees (e.g., car benefits, entertainment).
- Record-Keeping: Keeping detailed records of benefits provided will save you time and potential headaches when it’s time to lodge your FBT return.
4. Individual Tax Planning
- Stage 3 Tax Changes: Effective from 1 July 2024, the 37% tax bracket has been removed. Income between $45,000 and $200,000 is now taxed at 30%, and income above $200,000 at 45%. Review your PAYG withholding to ensure you’re on track.
- Personal Deductions: Whether you’re an employee or a sole trader, make the most of legitimate deductions. Now is a good time to review work-related expenses, charitable donations, and any other potential tax offsets.
5. Cash Flow and Budgeting
- Year-End Goals: With half of the financial year nearly behind us, use the December quarter to refine your cash flow projections for the coming months.
- Plan for Growth: If you’re considering expanding, purchasing assets, or restructuring, assess whether it’s more beneficial to finalize decisions before or after 31 December—especially with changing tax thresholds and concessions.
6. Record Maintenance and Reviews
- Software Updates: If you’re using cloud-based or desktop accounting software, ensure it’s up to date and configured for the latest tax rates.
- Data Accuracy: Accurate data will help you make sound decisions and reduce the risk of ATO queries or audits down the track.
7. Seek Professional Guidance
Tax laws can be complex and subject to change, especially around year-end and quarter-end. If you’re uncertain about any of the above points—be it BAS lodgements, super compliance, or strategic tax planning—please reach out to us or consult a registered tax agent. Proactive advice can save you time, stress, and money in the long run.
In Closing
We value your partnership and want to ensure you have a smooth, compliant, and prosperous close to the December 2024 quarter. By staying ahead of your BAS, super contributions, and other financial responsibilities, you’ll be set up for a more successful transition into 2025.
If you have any questions or need tailored advice, don’t hesitate to get in touch. We’re here to help you navigate the ever-evolving tax landscape so you can focus on what you do best—growing your business and achieving your goals.
Wishing you a productive quarter and a wonderful start to the new year ahead.
Warm regards,
Ming Tan
Managing Director
Healthbiz Accounting