Autumn 2025
As we say goodbye to the heat of summer, we can look forward to enjoying the cooler days ahead. Along with the drop in temperature, the RBA brought much relief to mortgage holders and dropped the cash rate by 25 basis points in February. The cash rate is now sitting at 4.10 per cent following the first rate-reduction since November 2020.
Inflation remained steady in February, at 2.5 per cent and core inflation at 2.8 per cent; however, the RBA remains cautious and has not guaranteed further cash rate cuts in 2025. Some economists are predicting further cuts in 2025, but time will tell.
While there is ongoing tension between Russia-Ukraine and the Middle East, and a looming trade war due to Trump’s proposed tariffs, the global economic outlook continues to remain unpredictable.
US markets reacted to the lower-than-expected consumer spending and continued geopolitical issues, with another month of volatility.
It’s also been volatile on the Aussie share market, with the ASX 200 losing ground earlier in the month, bouncing back to reach an all-time high, only to start falling again to close at it’s lowest point in two months.
A similar pattern has been happening with the Aussie dollar, reaching a high of $0.64US cents mid-February, then losing momentum, and now hovering around $0.62US cents.
Tax update March 2025
New year, new rules: ATO’s 2025 focus areas for small businesses
The Australian Taxation Office has kicked off 2025 by announcing its major areas of interest when it comes to small businesses. It has also highlighted a tougher stance when it comes to super guarantee (SG) compliance and GST fraud. Here’s a roundup of the latest tax news.
The regulator has announced its key small business tax issues for this financial year.
The three main areas the ATO is focusing on are:
- deductions and concessions (non-commercial losses and small business CGT concessions)
- incorrect use of business income (business money and assets used for personal use of benefit), and
- businesses operating outside the system (GST registration and income for taxi, limousine and ride-sourcing services).
The ATO intends to review and publish quarterly focus themes to help small businesses work on fixing issues in these areas.
GST fraud warning
The ATO-led Serious Financial Crime Taskforce is warning businesses against trying to cheat the tax and super system by committing GST fraud, saying it is on the lookout for potentially fraudulent activities.i
New information shared between government agencies shows some businesses are using complex financial arrangements to disguise transactions with the aim of obtaining larger GST refunds.
The arrangements include false invoicing between related entities, deliberately misaligning GST accounting methods across a group, duplicating GST credit claims, and claiming for fake purchases.
Tax penalties increase
The cost of penalty units imposed by the ATO if you fail to meet your tax obligations has increased again, rising from $313 to $330 per penalty unit.ii
The new rate applies to infringements occurring on or after 7 November 2024. For example, the penalty for failing to keep or retain tax records as required is 20 penalty units (20 units x $330 = $6,600).
Other penalties apply to missed and late SG payments, individual and corporate SMSF trustees and GST when buying or selling new residential premises.
SG compliance under scrutiny
With more timely data now available from Single Touch Payroll reporting, SG reporting and payments have become a priority area for the ATO. It is reminding employers to keep good records, report accurately and pay their obligations on time.
As part of its firmer response towards non-payment of SG contributions, the ATO issued 8,710 director penalty notices relating to 6,500 companies during 2023-24.iii
Although the regulator found 92.4 per cent of employers paid their SG obligations without intervention, it still collected and paid $932 million in SG entitlements into the super accounts of 797,000 employees.
GST and fuel tax credit time limits
The ATO is encouraging businesses eligible for GST and fuel tax credits to claim their credits within four years of the due date of the earliest Business Activity Statement (BAS) where a claim could have been made.
Once the time limit passes, you are no longer eligible to claim the credits. Lodging an amendment to an original assessment or requesting a private ruling are not considered as claiming.
Old credits can be claimed in your next BAS (provided it is within the eligibility period), by lodging a revised BAS for the original period via ATO Online Services, or by lodging a valid objection during the time limit to preserve your entitlement to the credits.
Change to myGovID
The Australian Government’s digital ID app myGovID, used to access government services, has been renamed myID.
The app provides secure access to government services using your existing login details (including email address), with the identity strength remaining the same. Existing app users should find the app automatically updated on their smart device, or it can be manually updated from the Apple app store or Google Play.
The ATO is warning users that scammers are seeking to take advantage of the name change. Any message or email asking you to set up a new myID or reconfirm your details is a scam.
i Taskforce issues GST fraud warning to dishonest businesses | Australian Taxation Office
ii Penalty units | Australian Taxation Office
iii Our SG compliance results are here | Australian Taxation Office
How to master FBT compliance
Preparing for the Fringe Benefits Tax (FBT) year-end is never a walk in the park and, with the ATO now using increasingly sophisticated data matching programs, it is more important than ever to get your return right.
As part of the ATO’s post-pandemic campaign to improve taxpayer compliance and payment of tax debts, the ATO is using data matching tools to check whether businesses should be reporting employee fringe benefits and paying tax on them.i
As a small business owner, you shoulder full responsibility for accurately calculating the taxable value of all fringe benefits, lodging the FBT return, paying any required tax, and reporting fringe benefits on an employee’s payment summary if the individual benefits exceed $2,000.ii
Areas to check in your FBT return
Vehicle benefits are a continuing source of mistakes when it comes to FBT returns. The ATO is particularly interested in commercial vehicles (mainly dual cab utes) provided to employees. Many employers wrongly believe these vehicles are fully FBT-exempt. But an exemption only applies where private use of the vehicle is minor and infrequent.
FBT rules about the use of employee car parking have also been tightened. FBT usually applies if you provide your employees with parking in a commercial car park, although many small businesses are eligible for an FBT exemption under specific conditions.iii
Dining and EV benefit rules
Entertainment and in-house dining fringe benefits are another area where it’s easy to be caught out.
Ensure you have detailed records related to these types of benefits (including any contributions made by employees) and check the benefits provided have met the ‘minor and infrequent‘ rule.
Also keep an eye on the implications of new rules covering electric vehicle (EV) benefits.
Getting employees to play their part
To simplify the process of putting your FBT return together, it helps if your employees play their part.
For example, encourage employees who use salary packaging to spend all of their available annual balance before 31 March to avoid the headache of unspent or claimed benefits rolling over into the next FBT year.
If employees do not use their unspent balance, it still needs to be reported and deducted from their cap limit in the new FBT year, which can create additional paperwork.
Employee declarations
If you plan to use the FBT exemptions and concessions on offer, you may also need to obtain detailed records from your employees (such as travel diaries, logbooks, declarations and odometer records).iv
Any change in car usage due to a new work role needs to be noted and the business use percentage adjusted, or a new logbook started.
Start collating this information as early as possible to simplify the calculation and lodgement process.
Meeting the lodgement deadline
Unlike the normal tax year, the FBT year ends on 31 March, with the 21 May lodgement and payment deadline giving you only a short window to get your paperwork in order. If you lodge with an accountant the deadline is 25 June.
You need to determine the taxable value of the different fringe benefits your employees have received during the year, calculate the tax you need to pay and collect any required employee declarations.
All employee declarations must be obtained by the time your FBT return is due to be lodged. Even if you do not have to lodge a return, you must have the declarations by 21 May.
We can help with any questions you may have and assist you with preparing your FBT return.
i Addressing collectable tax debt – Tax Institute’s Tax Summit 2023 | Australian Taxation Office
ii Reportable fringe benefits | Australian Taxation Office
iii Fringe benefits tax – a guide for employers | Legal database
iv Employee declarations | Australian Taxation Office
Combining work and play when you’re away
For years it was thought that technology would make business travel obsolete, but as anyone who has had to suffer through a videoconference with a bad connection will probably agree, sometimes, face to face interaction can’t be replaced.
In recent years, the landscape of work and travel has been evolving and intersecting in exciting ways. Two travel opportunities that are gaining traction are “bleisure”—the blend of business and leisure travel—and “workcation”, which involves working while on vacation.
With more professionals embracing remote work and organisations supporting flexibility of working arrangements and redefining what “being at work” looks like, these concepts are not just fads; they are reshaping how we think about our work-life balance.
According to a report from Expedia Group, 60 per cent of business travellers have extended their trips for leisure, demonstrating that many are eager to combine work and play.i Moreover, a survey found that 86 per cent of remote workers expressed interest in travelling while working, signalling a significant appetite for this lifestyle.ii
The appeal of bleisure and workcations
So, what makes these trends so enticing? From a financial standpoint, both employees and employers stand to benefit. For instance, by returning on a Tuesday during the day instead of a Friday evening and taking a few days off; the return flight may be cheaper (since mid-week flights are usually the least expensive) and the employee only has to pay for the extra accommodation days.
The environmental benefits are another aspect. By decreasing the number of flights taken, organisations contribute to lower carbon emissions, aligning with sustainability goals that are increasingly important today.
Plus, supporting bleisure and workcations cultivates a positive workplace culture. When employees feel that their organisation values work-life balance, they’re more likely to stick around. Higher satisfaction translates to better retention, creating a loyal and motivated team.
And finally, beyond the excitement of spending time in a different location, there’s also mental health and productivity benefits for employees, with a study finding that experiencing new places can enhance creativity and improve problem-solving skills.iii
Tips for managing work and play
While the idea of blending work and leisure sounds delightful, managing this effectively requires some thoughtful planning and care when you are in the swing of things.
Set clear boundaries: Before you embark on your trip, be clear on your work commitments. Designate specific work hours and stick to them. This helps ensure that your leisure time is truly enjoyable and free from work distractions. Note that bleisure doesn’t necessarily mean squeezing in a few days around a business trip, it can also mean just taking advantage of the fact that you are in another city to go to a show or try a new restaurant after the work is done for the day.
Budget wisely: Keeping track of expenses is crucial. Use separate credit cards for business and personal spending, so there is no possibility of a personal expense getting mixed up with work costs (and vice versa). If that’s not feasible, then keep detailed records and receipts daily so you can submit expense reports correctly once back. Apps like Expensify or Mint can be useful to log your costs and categorize them.
The ATO continues to focus on work-related and personal travel expenses at tax time to ensure people are not ‘double-dipping’ when claiming expenses.
Remember, many companies cover travel costs but understanding what’s reimbursable is key to avoiding surprises when you are back.
Stay organised: Make sure you have the right tools to work efficiently while on the go. A reliable laptop, mobile hotspot, and noise-cancelling headphones can enhance your productivity. Also, check the local Wi-Fi situation before you arrive to avoid any connectivity issues.
Prioritise self-care: It’s easy to over-schedule your days with work and activities and when you are juggling work it can make for a frenetic pace. Make sure to carve out time for rest and relaxation. Enjoy a leisurely breakfast or take an afternoon stroll. Balancing work with downtime is essential for maintaining energy and focus.
So, next time you book a business trip, consider how you could transform it into a bleisure adventure or extend your next holiday and include a productive workcation. After all, life is too short not to mix a little work with a bit of play!
i The return of business travel, and the rise of the flexcation | Expedia Group
ii Balancing Work And Vacation For Optimal Career Performance | Forbes
iii How Travelling Can Boost Your Creativity and Problem-Solving Skills | paddl
The top 5 foods to fight inflammation
Have you ever sprained your wrist, bumped your head, or had any sort of injury that caused swelling? This sort of inflammation is healthy and the body’s response to injury or infection.
Conversely, chronic inflammation, or prolonged inflammation, can lead to a host of health issues including heart disease, diabetes, arthritis, and even cancer.
Making mindful dietary choices can help mitigate inflammation and promote overall health and well-being. Here are 5 foods you can incorporate into your diet to help decrease chronic inflammation in the body:
1. Turmeric
Turmeric is a bright yellow spice commonly used in traditional medicine for its potent anti-inflammatory properties. It contains a compound called curcumin, which has been shown to inhibit inflammatory pathways in the body and reduce the production of inflammatory molecules. Studies have shown that curcumin supplementation can alleviate symptoms of inflammatory conditions such as arthritis, irritable bowel syndrome (IBS), and metabolic syndrome. Adding turmeric to curries, soups, stir-fries, or smoothies can provide a flavorful way to reduce inflammation and support overall health. It’s best to combine curcumin with agents such as piperine (found in black pepper) to enhance its bioavailability and maximize its anti-inflammatory properties.
2. Berries
Berries such as strawberries, blueberries, raspberries, and blackberries are packed with antioxidants called polyphenols, which have anti-inflammatory effects. These compounds help neutralize free radicals and reduce oxidative stress, which mitigates inflammation in the body. One group of polyphenols is called anthocyanins, which are responsible for the color of berries and contain anti-inflammatory properties. Additionally, berries contain fibre and vitamin C, which further support immune function and reduce inflammation.
3. Fatty fish
Fatty fish such as salmon, mackerel, sardines, and trout are rich sources of omega-3 fatty acids, which have potent anti-inflammatory properties. Omega-3 fatty acids, particularly eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), help reduce inflammation by inhibiting the production of inflammatory molecules called cytokines and prostaglandins. Regular consumption of fatty fish or omega-3 supplements can decrease levels of inflammatory markers in the body, lowering the risk of chronic diseases like heart disease and arthritis. Studies show that our bodies “break these fatty acids down into compounds called resolvins and protectins that help manage inflammation. These compounds limit our inflammatory response and sweep away damaged cells.”We suggest seeking local or wild-caught fish if possible, as high-quality fish support our health and environment.
4. Ginger
Ginger contains bioactive compounds such as gingerol, shogaol, and paradol, which are believed to have anti-inflammatory properties. These compounds have been studied for their ability to inhibit the production of pro-inflammatory molecules in the body, such as cytokines and prostaglandins. Additionally, ginger contains antioxidants, which can help neutralize free radicals and reduce oxidative stress, another factor that contributes to inflammation.
5. Olive oil
Olive oil is rich in monounsaturated fatty acids (MUFAs), particularly oleic acid, as well as phenolic compounds such as oleuropein and hydroxytyrosol. These components are believed to contribute to olive oil’s anti-inflammatory properties. MUFAs have been shown to reduce inflammation by modulating immune responses and decreasing the production of inflammatory cytokines in the body. Incorporating extra virgin olive oil into the diet as a primary fat source can help mitigate inflammation and promote overall health. It’s important to choose high-quality, unrefined olive oil, as processing can degrade its beneficial compounds.
Source:
Reproduced with the permission of the Food Matters team. This article by THE FOOD MATTERS TEAM was originally published a https://www.foodmatters.com/article/top-5-foods-fight-inflammation
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