STAFF UPDATES

We would like to congratulate Lindsey Delozier, and her partner John, on the

arrival of their first child in December.

Annalee Parker and Ella White have joined the Mott Finnis team in recent

months. Both Annalee and Ella are originally from Naracoorte and have

settled well into their roles in bookkeeping and administration respectively.

Bich Tran will complete her gap year and move on to commence her tertiary

studies in Adelaide in the new year. We wish her all the best in her future

endeavours.

In the last twelve months Faith Paech has completed the requirements for

CPA qualification while Carly Graetz completed the Australian Tax Institute’s

intensive Tax Foundations course. Both Faith and Carly are to be congratulated

for their efforts and academic results.

TEMPORARY FULL EXPENSING AND PLANT SALES

Temporary full expensing allowed for the immediate deduction of plant

purchases between 6 October 2022 and 30 June 2023. For businesses with a

turnover less than $50M the plant could be new or second hand. Businesses

with turnover above $50M could only expense new plant.

Going forward, this measure will continue to have an impact when plant

that was written off is traded or sold. With a nil book value, the entire tradein

or sale value will be treated as income. Depending on the value of the

replacement plant, this income may not be fully offset by the depreciation

deduction attributable to the new plant in the year of purchase. Please call us

to discuss the tax implications associated with any proposed disposal of plant.

SIMPLIFIED DEPRECIATION RULES

Businesses with an aggregated turnover of less than $10M are eligible to use

the simplified depreciation rules. The simplified depreciation rules allow for

plant to be placed in a ‘pool’ and the entire pool depreciated annually at 30%.

New additions to the pool are depreciated at 15% in the first year, irrespective

of purchase date. The value of any plant sale is deducted from the closing

balance of the pool. A balancing adjustment will occur if the plant sale value

is greater than the pool balance.

A measure is currently before the senate that will allow businesses using

simplified depreciation to write off any number of plant items purchased, and

installed ready for use, for less than $20,000 (GST exclusive) between 1 July

2023 and 30 June 2024.

SMALL BUSINESS TECHNOLOGY INVESTMENT BOOST

As part of 2023 tax preparation we have been asking clients to identify digital

or technology related expenses incurred in their business. This relates to

legislation that enacted the small business technology investment boost.

This boost is in the form of an additional deduction of 20% of the purchase

cost related to eligible expenditure on digital enabling items, digital media and

marketing, e-commerce and cyber security incurred between 30 March 2022

and 30 June 2023. The boost is capped at $20,000, equivalent to $100,000

spent on eligible expenditure.

Unfortunately, businesses were restricted from gaining the maximum benefit

from this measure due to the bill only receiving royal assent on 23 June 2023,

days before the eligibility period expired.

SMALL BUSINESS SKILLS & TRAINING BOOST

The legislation relating to this boost was introduced on 29 March 2022 and

also received royal assent on 23 June 2023. This bill relates to expenditure

incurred on external training courses for employees, conducted by registered

training organizations in Australia, between 30 March 2022 and 30 June 2024.

Where the training is a component of a larger education program, enrolment

must be entered into on or after 7.30 pm (ACT) on 29 March 2022.Eligible businesses (turnover less than $50M) will be entitled to claim an

additional 20% deduction on eligible expenditure.

REDUCTION OF SUPERANNUATION CONCESSIONS

On 3 October 2023, the Government released draft legislation that will reduce

the concessional tax treatment of individual superannuation accounts with

balances above $3M. The legislation is intended to take effect from 1 July 2025.

Broadly, where an individual’s total superannuation balance exceeds $3 million

at the end of a financial year, an additional tax rate of 15% on the amount of

earnings relating to the proportion of their balance that exceeds $3 million

will be applied. A formula which calculates a deemed earnings amount which

includes notional (unrealised) gains and losses, not just actual realised gains

and losses will be used.If this legislation passes into law we will contact clients who may beimpacted by these changes to discuss potential planning opportunities

SUPER GUARANTEE CHARGE

Single touch payroll and data matching programs are enabling the ATO to

identify when the amount of employee superannuation guarantee contributions

(SGC) are submitted incorrectly or payment of these contributions are late. In

these circumstances it is expected that the employer will lodge and pay the

super guarantee charge. The superannuation guarantee charge includes any

unpaid SGC, additional SGC charges on overtime wages, an administration fee

and an interest component that is calculated up to the date of submission and

payment of the superannuation guarantee charge.

The SGC is currently set at 11% of an employee’s ordinary times earnings (OTE),

when the employee is over 18 years of age or, when under 18 years of age,

works over 30 hours per week. For employees with high OTE, the maximum

OTE on which SGC is payable is $62,270 per quarter for the 2024 financial year.

Unless there is an applicable award or employment agreement that states

differently, SGC is paid quarterly. The due date for SGC is 28 days after the end

of each financial quarter. These due dates being 28 January, 28 April, 28 July

and 28 October.

If you believe you have miscalculated SGC or paid SGC late (irrespective of

lodgment date) please contact us immediately for assistance to lodge the

superannuation guarantee charge forms.