2023 is well and truly underway, and we are excited for what’s on the horizon. To kick things off, we will be posting regular updates about how the tax and accounting landscape is evolving, what changes are happening internally, and what you can expect in the months ahead.
Increasing PAYG Withholding and Super Guarantee audits
The ATO is stepping up its efforts to monitor and enforce business owners’ compliance of employment tax, superannuation and other workplace obligations. An investigation by PwC has found they are doing this through a targeted approach that leverages data analytics and risk assessment techniques. The ATO is particularly focused on high-risk employers and industries.
Ultimately, the whole purpose of these increased audits is to ensure employers are meeting their legal obligations and to provide a fair and equitable environment for all businesses. We are advising all employers to review their tax compliance and other obligations to ensure that they are in line with ATO requirements.
ATO cracking down on international money moves
With more government investment in the ATO from the latest Federal Budget, the tax department is now focusing on international money moves into Australia. In order to avoid suspicion from the ATO, you need to plan carefully about how you are bringing money into the country.
In short, the ATO is increasing its surveillance of international transactions to ensure that all foreign funds are properly accounted for and taxed in accordance with Australian law. We are advising all of our clients to ensure proper reporting and disclosure of foreign funds. Failure to comply could result in extensive fines and penalties.
Bankruptcies potentially on the rise this year
It might not be overly surprising, but it’s still worrying to hear from insolvency specialists about the impact of continual rate rises on personal insolvencies. In fact, national insolvency specialist Michael Chan says “bankruptcies and the cash rate were almost in lock step during the 2007-08 global financial crisis; and it’s a similar situation now”.
If historical trends repeat themselves, bankruptcies in Australia may triple in 2023. Both unemployment and reduced consumer spending may play a major factor in any increase in bankruptcies, so business owners and individuals must be proactive about managing their finances. If you have any concerns, it’s important to seek professional advice from CharterNet Rothsay in order to avoid financial challenges in the months ahead.
FBT exemption for eligible electric cars and associated car expenses
If you’re considering an electric vehicle for business use, there’s good news: From 1 July 2022, eligible electric cars and associated car expenses are exempt from Fringe Benefits Tax (FBT). This means that if you provide an electric car for your employee’s business use then you won’t need to pay FBT on it.
To be eligible for the FBT exemption, the electric vehicle must meet certain criteria:
- the car is a zero or low emissions vehicle
- the first time the car is both held and used is on or after 1 July 2022
- the car is used by a current employee or their associates (such as family members)
- luxury car tax (LCT) has never been payable on the importation or sale of the car.
In addition, the following car expenses are exempt from FBT if they are provided for an eligible electric car:
- repairs or maintenance
- fuel (including electricity to charge and run electric cars).
If you’re interested in learning more about the FBT exemption for electric cars and associated car expenses, visit the Australian Taxation Office (ATO) website for more information. The ATO website provides detailed information about the eligibility criteria and how the exemption works.
Capping off 2022
The inaugural CharterNet Rothsay Christmas Party was held at the beautiful Eveleigh and was a fantastic night of celebration. After such a busy year, it was the perfect time to celebrate our team, our clients, our referral partners and our suppliers.
For 2023 and beyond, we are committed to working towards our shared goal of being the most people-centric advisory firm in Australia. We can’t wait to share in your business successes this year and look forward to many more wonderful years of collaboration in the future.
Strengthen your business with our audit and assurance services
Audit and assurance services are essential for businesses to maintain strong governance and compliance. ASIC continues to demand more from auditors. Clients expect a high level of sophistication and advice as they navigate the complicated financial reporting framework. Our professional team can provide the expertise you need to understand complex financial reporting rules and regulations. Our services include:
- Highly accurate financial statement audits: Our team will provide a thorough analysis of your financial statements to ensure that they are free from material misstatement and comply with Australian accounting standards.
- Compliance and regulatory audits: We can help you meet all the necessary regulatory and compliance requirements, including those related to financial reporting and taxation.
- Due diligence and reviews: Our team can provide a comprehensive review of your financial information to ensure that you have a complete understanding of your financial situation and avoid costly legal action in the future.
- Assurance engagements: Our expert validation systems can keep your assurance engagements up-to-date and accurate during the audit process.
- Risk advisory and internal audit: We can perform an internal audit and provide a comprehensive risk advisory report to help you identify key areas that require attention.
- Financial reporting and advisory strategies: Our team can offer complete financial reporting, preparation, and advisory strategies to help you stay ahead of the game.
Contact us today to learn more about how our audit and assurance services can help strengthen your business.
Upcoming tax dates
Make sure you stay on top of your tax obligations for the remainder of FY22–23. Here are some of the most important dates to remember over the next few weeks:
- 28 February: Quarterly BAS (self-lodged)
- 28 February: Quarterly BAS (lodged by tax agent)
- 31 March: Capture odometer readings for fringe benefits tax (FBT)
- 28 April: Employee Super Guarantee is due
We’re here to help
Get in touch for more insights or direct support – we are here to help you make the most of 2023. You can also find news and resources online, and contact us on (02) 8999 1199 for all your tax, accounting and advisory needs.