Finance Update

Now we have a quick update from the Finance Team for our Australian members. Within this email there is information regarding how to maximise your access to Super Contribution caps. 

MONTHLY TAX TIPS — Maximising access to SUPER CONTRIBUTION caps

Superannuation contribution caps have increased in the 2025 income year as follows:

  • Concessional (deductible) contributions cap — from 1 July 2024, this cap has increased to $30,000 (from $27,500 in the 2024 income year);
  • Non-concessional (non-deductible) contributions cap — from 1 July 2024, this cap has increased to $120,000 (from $110,000 in the 2024 income year); and
  • CGT small business concessions contribution cap — this cap has increased to $1.78 million for the 2025 income year (from $1.705 million in the 2024 income year).

Eligibility for the CGT Small Business Concessions: To be eligible, you need to qualify for one or more of the small business CGT concessions when selling an active asset. There are four main small business CGT concessions:

  • 15-year exemption: Allows you to disregard capital gains made on an active asset held for at least 15 years, if certain conditions are met, such as retiring after age 55.
  • 50% active asset reduction: Allows you to reduce the capital gain on an active business asset by 50%.
  • Retirement exemption: Allows you to disregard capital gains of up to $500,000 over your lifetime when selling a business asset for retirement purposes.
  • Rollover concession: Allows you to defer the capital gain when selling an active asset if you purchase a replacement asset.

Taxpayers can also maximise their concessional contributions cap by applying the ‘catch-up concession’. Broadly, this concession allows a taxpayer (with a total super balance of less than $500,000 on 30 June of the previous income year) to include ‘unused cap amounts’ from one or more of the last five income years, as part of their concessional contributions cap.

Taxpayers can also maximise their non-concessional contributions cap by applying the ‘bring-forward rule’. As from 1 July 2024, eligible taxpayers who satisfy the relevant criteria can make up to $360,000 of non-concessional contributions by applying this rule. Broadly, the bring-forward rule allows a taxpayer to bring forward their non-concessional contribution cap amounts from (up to) a three-year period and use them over a shorter period (in fact, they can even be fully used in a single income year).

MONTHLY TAX TIPS — 90% of ATO tip offs deemed “suitable” for further investigation

The ATO reported over 47,000 community tip-offs in 2023-24, mostly about tax avoidance in building, hospitality, and beauty services. Around 90% of these were suitable for further investigation. The ATO urges businesses in the shadow economy to consult a registered tax professional or contact the ATO to address their tax obligations.

The Australian Taxation Office (ATO) will acquire government payments data from government entities who administer government programs for 2023–24 to 2025–26 financial years.

The data items include:

  • service provider identification details (names, addresses, phone numbers, email, dates of birth, service type, ABN, ACN)
  • payment transaction details (service provider ID, name of service, type of service linked to program, value of payments received for the financial year, count and type of claim, withholding and re-credit amount).

We estimate that records relating to approximately 60,000 service providers will be obtained each financial year.

It is expected, within the 60,000 service providers approximately 9,000 individuals each financial year will be included. The remainder will consist of companies, partnerships, trusts and government entities.

For this data-matching program, we will match data on government payments made to service providers against ATO records.

The data collected under this program will be used to:

  • identify and address tax and super risks, trends and non-compliance by service providers receiving government payments for delivering services.
  • support government entities by providing feedback at an aggregate agency and/or program level and where allowed by legislation at an individual provider level.
  • Inform methodologies by which we select taxpayers for engagement activities.
  • enhance data currently received from government entities through the Taxable Payments Annual Report.
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