Practice Update – March 2024

Lowe Lippmann Chartered Accountants

Super contribution caps to rise


The big news story for those contributing to super is that the contribution caps are set to increase from 1 July 2024.

  • The concessional contribution cap will increase from $27,500 to $30,000.

This 'CC' cap is broadly applicable to employer super guarantee contributions, personal deductible contributions and salary sacrificed contributions.

  • The non-concessional contribution cap will increase from $110,000 to $120,000.

This 'NCC' cap is generally applicable to personal non-deductible contributions.


The increase in the NCC cap also means that the maximum available under the three-year bring forward provisions will increase from $330,000 to $360,000.  This is provided that the 'bring forward' is triggered on or after 1 July 2024.


The 'total superannuation balance' threshold for being able to make non-concessional contributions (and the pension general transfer balance cap) will remain at $1.9 million.


We recently released a Tax Alert on this topic, to see full details click here.

Small business concessions


The ATO has recently issued a reminder that small business owners may be eligible for concessions on the amount of tax they ultimately pay.  This depends on their business structure, their industry and their aggregated annual turnover.


For example, small business owners who have an aggregated annual turnover of less than:

  • $2 million can access the small business CGT concessions;
  • $5 million can access the small business income tax offset; and
  • $10 million can access the small business restructure roll-over.


The ATO expects small business owners to check their eligibility each year before they apply for any of these concessions.


Furthermore, taxpayers generally need to keep records for five years to prove any claims they make.

FBT time is fast approaching


The ATO has advised employers that 'FBT time' is just around the corner, and they need to stay on top of their fringe benefits tax (FBT) obligations.


Employers need to ensure they have attended to the following matters this FBT time:

  • Identify if they have an FBT liability regarding fringe benefits they have provided to their employees or their associates between 1 April 2023 and 31 March 2024.
  • Identify if they have an FBT liability as they will need to lodge an FBT return and pay the amount due by 21 May.
  • Identify if they are currently registered for FBT and let the ATO know if they do not need to lodge an FBT return (and your Lowe Lippmann Relationship contact can assist with lodging an ‘FBT non-lodgment notice’) to prevent the ATO seeking a return from them at a later date.
  • Employers should also remember that when the new FBT year starts on 1 April, they can choose to use existing records instead of travel diaries and declarations for some fringe benefits.


Furthermore, the ATO has released Practical Compliance Guideline PCG 2024/2 (click here) which provides a short cut method to help work out the cost of charging electric vehicles (EV) at an employee's home for FBT purposes.  Eligible employers can choose to use either the EV home charging rate of 4.2 cents per kilometre or the actual cost.



Ultimately, all employers need to make sure they understand their FBT obligations and the records they need to keep to avoid an FBT liability.


Jail sentence for fraudulent developer


A developer who conspired to lodge fraudulent business activity statements has been convicted and sentenced to 10 years in jail with a non-parole period of six years and eight months.


The developer was involved with two companies that formed part of a group known as the 'Hightrade Group' which developed properties such as a hotel and golf course in the Hunter Valley, NSW.


The developer fraudulently obtained GST refunds by using three tiers of companies (developers, building companies and suppliers) to grossly inflate the construction costs of his developments. 


The companies he was involved with also claimed to have purchased goods when no such purchases had occurred.  In total, the developer intended to cause a loss to the Commonwealth of more than $15 million.


His sentencing has closed a complex case, known as Operation 4.  The ATO noted that "Tax crime, like the fraud uncovered in Operation 4, affects the whole community”.


Penalties soon to apply for overdue TPARs


Businesses that pay contractors to provide certain services may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August each year.


From 22 March, the ATO will apply penalties to businesses that:

  • have not lodged their TPAR from 2023 or previous income years;
  • have received three reminder letters about their overdue TPAR.


Taxpayers that do not need to lodge a TPAR can submit a 'non-lodgment advice form'.  Taxpayers that no longer pay contractors can also use this form to indicate that they will not need to lodge a TPAR in the future.


Avoiding common Division 7A errors


Private company clients who receive payments, benefits or loans from their private companies need to ensure compliance with their additional tax obligations (which are often referred to as their 'Division 7A' obligations).


There are multiple ways in which business owners may access private company money, such as through salary and wages, dividends, or what are known as complying Division 7A loans.


Division 7A is an area where the ATO sees many errors and the ATO is currently focused on assisting taxpayers in managing their obligations when receiving payments and benefits from their private companies.


In this regard, the ATO has recommended that business owners do the following:

  • keep adequate records;
  • properly account for and report payments and use of company assets by shareholders and associates; and
  • comply with rules around Division 7A loans.


Understanding these Division 7A obligations is essential in order to:

  • make informed decisions when receiving private company money and using private company assets; and
  • avoid unexpected and undesirable tax consequences.



Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

Liability limited by a scheme approved under Professional Standards Legislation


Audit Lowe Down – Costs incurred in acquiring / forming a business

September 9, 2025
Costs incurred in acquiring / forming a business. Further to the recent blog about capitalisation of costs when acquiring an asset, we have received a number of questions in relation to costs incurred in setting up / purchasing a business. Formation costs on establishing a business: These costs would include: Incorporation fees ASIC registration fees Legal fees Business name registration Pre-operating costs Pre-opening costs. The relevant standard for these costs is AASB 138 Intangible Assets and paragraph 69a confirms that these start-up costs are expensed when incurred. There is no identifiable asset controlled by the entity when the costs are incurred as the entity does not exist. Business acquisition costs These costs would include: Legal and accounting fees Due diligence and valuation costs Stamp duty Advisory or brokerage fees Project management costs related to the acquisition Internal costs allocated to the transaction In contrast to the asset acquisition discussed previously, AASB 3 Business Combinations requires all acquisition costs to be expensed as incurred. This means that they are not included as part of the consideration paid and therefore do not affect calculated goodwill.  Entities purchasing businesses should be aware that these costs are not able to be capitalised as they can often be substantial, and purchasers often do not expect the costs to be taken directly to the income statement

Practice Update – September 2025

September 8, 2025
ATO to include tax 'debts on hold' in taxpayer account balances From August 2025, the Australian Taxation Office ( ATO ) is progressively including 'debts on hold' in relevant taxpayer ATO account balances. A 'debt on hold' is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold where the ATO decides it is not cost effective to collect the debt at the time. The ATO is currently required by law to offset such 'debts on hold' against any refunds or credits the taxpayer is entitled to. The difficulty with these debts is that the ATO has not traditionally recorded them on taxpayer's ATO account balances. Taxpayers with 'debts on hold' of $100 or more will receive (or their tax agent will receive) a letter before it is added to their ATO account balance (which can be viewed in the ATO's online services or the statement of account). Taxpayers with a 'debt on hold' of less than $100 will not receive a letter, but the debt will be included in their ATO account balance. The ATO has advised it will remit the general interest charge ( GIC ) that is applied to 'debts on hold' for periods where they have not been included in account balances. This means that taxpayers have not been charged GIC for this period. The ATO will stop remitting GIC six months from the day the taxpayer's 'debt on hold' is included in their account balance. After this, GIC will start to apply.

Audit Lowe Down – How do we account for the costs incurred when acquiring an asset?

August 26, 2025
How do we account for the costs incurred when acquiring an asset? When we acquire an asset such as property, plant and equipment, intangibles or inventory there are often significant other costs incurred as part of the purchase process, including delivery, stamp duty, installation fees. Whether we capitalise these to the value of the asset or expense them as incurred can make a significant difference to an entity’s reported position or performance. Since we have accounting standards for specific assets, the treatment can vary depending on the asset and the relevant standard. A summary of some common expenses and their treatment under four accounting standards has been included below. The four standards considered are: AASB 102 Inventories AASB 116 Property, Plant and Equipment AASB 138 Intangible Assets AASB 140 Investment Property.
More Posts