2024-2025 Business Year End Checklist
Lowe Lippmann Chartered Accountants
Many business clients like to review their tax position before the end of the income year and evaluate any strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for profitable small businesses is based around accelerating deductions and deferring income.
The Year End Checklist in the link below explains some common strategies that may be considered for all business taxpayers.
Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.
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Treasury announced new changes to Division 296 from 1 July 2026 During October the Treasurer announced some key changes to the proposed Division 296 tax measure to deal with some of the more contentious features of this proposed new tax. The Government is planning to make a number of significant changes to the way this tax will apply, including moving from a total superannuation balance change methodology to a fund-level realised-earnings approach and introducing a second threshold of $10 million, with CPI indexing applying to both thresholds. The Government also announced that the start date for the new Division 296 tax will be deferred to 1 July 2026 to allow further consultation and implementation work. For a full explanation of the announced new changes, see our Tax Alert ( click here ).
Further guidance on proposed changes to Division 296 from 1 July 2026 Earlier this week, we released a Tax Alert ( click here ) after the Government announced some significant changes to the proposed superannuation rules to increase the concessional tax rate from 15% to an effective 30% rate on earnings on total superannuation balances ( TSB ) over $3 million – known as Division 296. These proposed superannuation rules were set to commence on 1 July 2025, but the Government has now announced significant changes that will delay the start date until 1 July 2026 and apply to the 2026-27 financial year onwards.
In response to continuing criticism and significant industry feedback, Treasurer Jim Chalmers has announced substantial revisions to the proposed Division 296 tax. The government has decided not to apply the tax to unrealised capital gains on members superannuation balances above $3 million. The removal of the proposed unrealised capital gains tax is undoubtedly a welcome change. Division 296 was initially set to take effect from 1 July 2025. The revised proposal, effective from 1 July 2026, still imposes an additional tax but now only on realised investment earnings on the portion of a super balance above $3 million at a 30 percent tax rate To recover some of the lost tax revenue, the Treasurer announced a new 40 percent tax rate on earnings for balances exceeding $10 million. It is also anticipated that both tax thresholds will be indexed in line with the Transfer Balance Cap. We will provide more details and guidance on the new proposal as they become available.
