What You Need to Know
July brings a wave of tax updates that could significantly impact Australian individuals and businesses. One of the most talked-about is the proposed Division 296 changes to SMSF’s with balances over $3m. If passed, this legislation will impose an additional 15% tax on superannuation earnings for super balance exceeding $3 million. While not yet law, it’s crucial to prepare if your fund is impacted.
Another major shift is the removal of tax deductions for ATO interest charges. From 1 July 2025, General Interest Charges (GIC) and Shortfall Interest Charges (SIC) will no longer be deductible, increasing the real cost of tax debt. We explore the best strategy to minimising the impact of this change.
This month’s newsletter warns against the rise of “finfluencers” aka social media personalities offering questionable tax advice. From claiming pets as guard dogs to writing off luxury handbags, these tips can lead to audits, fines, or worse.
Trust structures, long favoured for their flexibility, are under scrutiny with increased compliance demands from the ATO. Regardless, Trusts can be valuable with the right guidance.
Finally, the U.S. “One Big Beautiful Bill” could impact Australian super funds with U.S. investments by potentially reducing returns. Stay informed and ensure your retirement planning is adaptable in this rapidly evolving financial environment. If you’re unsure how these changes affect you, reach out.
