The ATO has flagged a number of risks that attract its attention when small businesses incorrectly claim deductions and concessions.

The ATO is warning taxpayers about unlawful tax schemes that are being promoted online and offered to taxpayers when they least expect it.  

Tax professionals are being encouraged to inform clients about the risks of tax schemes that may be promoted online on social media, which promise to avoid or significantly reduce tax. Taxpayers who become involved in tax schemes can end up facing heavy penalties.  

The ATO is focusing on small businesses that deliberately operate outside the tax, super and registry system. In particular, it is focusing on contractors that incorrectly report or omit income and taxi and ride-sourcing providers that are not registered for GST.

The ATO is focusing on Division 7A issues that arise where small businesses use money and assets belonging to a private company for personal use or benefit.

The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.

The transfer balance cap - the amount that can be transferred to a tax-free retirement account – is indexed to the Consumer Price Index (CPI) released each December. If inflation goes up, the general transfer balance cap (TBC) is indexed in increments of $100,000 at the start of the financial year.

If credit card surcharges are banned in other countries, why not Australia?  We look at the surcharge debate and the payment system complexity that has brought us to this point.

In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?

“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke

The Australian Taxation Office (ATO) thinks that wealthy babyboomer Australians, particularly those with successful family-controlled businesses, are planning and structuring to dispose of assets in a way in which the tax outcomes might not be in accord with the ATO’s expectations.