October 2023 Newsletter

Please click on the following link to view this month's newsletter for October 2023. We would like to highlight the following articles:-

SMSF Compliance Activity

The ATO wants to remind Self-Managed Super Fund (SMSF) trustees that they have a responsibility to ensure that members have met a condition of release before any funds are released.

Common conditions of release include, but are not limited to:

Members who have reached the preservation age and have retired from the workforce.
Members who have initiated a transition-to-retirement income stream.
Members who cease their employment arrangement on or after reaching the age of 60.
Members who have reached 65 years of age, even if they have not officially retired.
In the unfortunate event of a member's passing.

If the common conditions of release aren’t met, where a member meets eligibility requirements under certain special circumstances, they are able to have at least part of their super benefits released before reaching preservation age.

These special circumstances include that the fund member:

Is temporarily or permanently incapacitated.
Is suffering severe financial hardship.
Meets conditions for compassionate grounds.
Has a terminal medical condition; or
Is taking part in the first home super saver scheme.

Digital Adoption Boost: ATO Clarification

Small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction to support their digital operations and to digitise their operations. The boost applies to eligible expenditure incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023.

An annual cap applies so that expenditure up to $100,000 is eligible for the bonus deduction, with the bonus deduction capped at $20,000 per year.

To determine eligibility, the ATO suggests "considering whether the expense would have been incurred if the business did not operate digitally". It's essential to evaluate the purpose and link of the expenditure to digitising the operations of the specific small business. For instance, a multifunction printer's cost would be eligible if used to convert paper documents for digital use and storage.

The ATO now confirms that new and ongoing subscription costs can qualify for the boost. For example, an ongoing subscription to an accounting software platform for the business would qualify, as would a new subscription for digital content that is used in developing web content to advertise the business.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.