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1.
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The next Federal election announced for 3 May 2025
The Government is now in caretaker mode noting that the next Federal election will be held on 3 May 2025.
Tax bills that did not pass Parliament before 31 March 2025 when the writs were issued, for example the Division 296 tax on unrealised gains in superannuation funds, have now lapsed.
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Key dates from the AEC
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2.
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The Budget speech from the Treasurer and the Budget reply speech from the opposition leader
There were no substantial and/or immediate tax issues which were announced in last week's Budget speeches, noting that the parties are now in election mode.
The real Budget speech will come post-election from the new Treasurer.
More to come.
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Budget.gov.au | Budget 2025–26
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3.
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ATO holds firm on trust income ruling pending Bendel appeal outcome
The Australian Taxation Office (ATO) has released an interim Decision Impact Statement following the Full Court's decision in the Bendel case.
The ATO confirmed that it does not intend to revise its views on private company entitlements to trust income, as outlined in TD 2022/11, until the appeal process is concluded.
Specifically, the ATO will continue to administer the law in accordance with TD 2022/11, which applies to unpaid present entitlements (UPEs) arising on or after 1 July 2022, where the private company beneficiary has not demanded payment. Accordingly, the ATO will be administering the law in a way which is contrary to the current law expressed by the Full Federal Court.
Clients and their advisors in the 2024 lodgment cycle, and in tax planning for 2025, will need to determine which approach is best for them.
Do you stick with the ATO's tax determination, or do you follow the Full Federal Court?
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Bendel - Interim Decision Impact Statement
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4.
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Exposure Draft released for Payday Super and Superannuation Guarantee Reforms
On 14 March 2025, Treasury released exposure draft materials on key superannuation reforms announced in the 2023–24 Budget, including the introduction of payday super.
This new measure aims to align the payment of Superannuation Guarantee (SG) contributions with the day employees are paid, rather than the traditional quarterly schedule. If passed, the reforms will apply from 1 July 2026.
The proposed amendments, contained in the Superannuation Guarantee Charge Amendment Bill 2025 and the Treasury Laws Amendment Bill 2025, include several key changes to the SG regime:
- SG shortfalls will be determined based on the day contributions are received by a superannuation fund, in line with employee payments.
- A new SG charge calculation and penalty system will be introduced for late payments.
- Employers will be required to voluntarily disclose SG shortfall amounts before the Commissioner issues an assessment.
- The rules surrounding employer failure to comply with choice of fund requirements will be updated.
- Additionally, the draft Bills propose allowing tax deductions for both on-time and late SG contributions, though late-payment penalties will not be deductible.
Further, the Treasury Laws Amendment Bill 2025 includes a proposal to ban advertising certain superannuation products, excluding MySuper products, during the employee onboarding process. These amendments are also expected to begin on 1 July 2026.
Employers will also benefit from greater flexibility when requesting employee superannuation fund details during onboarding under the Employee Onboarding Reforms.
You can submit feedback on these proposed reforms until 11 April 2025.
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Click here
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5.
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Important dates
- There is a 31 March lodgment deadline for not-for-profits' first annual self-review return, to notify of their eligibility to self-assess as income tax exempt.
- The end of the 2024–2025 fringe benefits tax year was on 31 March.
- You may need to be prepared to lodge your quarterly transfer balance account report for your superannuation fund. If you fund had transfer balance account events in the last quarter, you must lodge a TBAR by 28 April 2025.
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Click here
Click here
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6.
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GIC and SIC Rates for April to June 2025
The ATO has released the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the period from 1 April 2025 to 30 June 2025.
The applicable rates are as follows:
- GIC rate: 11.17%;
- GIC daily compounding rate: 0.03060274%;
- SIC rate: 7.17%;
- SIC daily compounding rate: 0.01964383%; and
- Interest rate on overpayments, early payments, and delayed refund interest: 4.17%.
GIC and SIC will also not be deductible from 1 July 2025.
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General interest charge (GIC) rates
Credit interest rates and calculation
Refer article, Squeezing the lemon at both ends, about denying deductions for GIC and SIC is here
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7.
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ATO releases updated Small Business Benchmarks for 100 Industries
The ATO has introduced new financial benchmarks for small businesses, covering over 100 industries from April to June 2025.
These updated benchmarks offer a tool for businesses to compare their performance with industry standards, helping identify areas for improvement. The benchmarks cover industries such as accommodation, construction, healthcare, retail, and manufacturing.
ATO Assistant Commissioner Tony Goding emphasised that these benchmarks act as a "health check" for businesses, helping to detect potential issues and improve financial performance. Businesses operating within the benchmark ranges are less likely to face scrutiny from the ATO, which uses these tools to address the shadow economy, where tax non-compliance costs the economy billions annually.
The benchmarks are available on the ATO website and through the ATO app for business performance checks.
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ATO releases new small business benchmarks for 100 industries | Australian Taxation Office
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