Victorian State Budget 2023-24


The State Budget 2023–24 has just been released, included in this budget is a number of announcements related to legislation administered by the State Revenue Office.

These measures have to be approved by the Victorian Parliament before they can start. You should only rely on the exact detail of the changes once the legislation is passed.

Please get in touch with us at Glance Consultants for more information or if you have any queries.



  • Land transfer duty (stamp duty) on commercial and industrial properties will be abolished and replaced with an annual property tax.  From 1 July 2024, commercial and industrial properties will transition to the new system as they are sold, with the annual property tax to be payable from 10 years after the transaction.The annual property tax for commercial and industrial property will be 1 per cent of the property’s unimproved land value.

Expected start date: 1 July 2024


  • COVID-19 debt  — temporary payroll tax surcharge

A temporary payroll tax surcharge will apply on wages paid in Victoria by businesses with national payrolls over $10 million a year.  A rate of 0.5% will apply for businesses with national payrolls above $10 million, and businesses with national payrolls above $100 million will pay an additional 0.5%.

The surcharge will apply for 10 years until 30 June 2033.

Expected start date: 1 July 2023


  • COVID-19 debt — temporary land tax surcharge

A new COVID-19 debt temporary land tax surcharge will apply in addition to existing land tax from the 2024 land tax year for ten years.

Exempt properties — including your home — remain exempt from this surcharge. This means the value of exempt property is not included in your landholdings.


  • General land tax rates

– For taxable landholdings between $50,000 and $100,000 — a $500 flat surcharge will apply

– For taxable landholdings between $100,000 and $300,000 — a $975 flat surcharge will apply

– For taxable landholdings over $300,000:

    • a $975 flat surcharge
    • an increased rate of land tax by 0.10 percentage points.


  • Trust surcharge land tax rates

– For taxable landholdings between $50,000 and $100,000 — a $500 flat surcharge will apply

– For taxable landholdings between $100,000 and $250,000 — a $975 flat surcharge will apply

– For taxable landholdings over $250,000:

    • a $975 flat surcharge
    • an increased rate of land tax by 0.10 percentage points.

Expected start date: 2024 land tax year


  • The absentee owner surcharge rate will increase from 2 per cent to 4 per cent and the minimum threshold for non-trust absentee owners will decrease from $300,000 to $50,000. (The threshold for land held by an absentee trust remains unchanged at $25,000.)

Expected start date: 2024 land tax year


  • The land tax exemption for principal places of residence under construction or renovation will be expanded to provide the Commissioner of State Revenue with discretion to extend period by two years if builder goes into liquidation.

Expected start date: 2024 land tax year


  • A new land tax exemption will apply to land protected by a conservation covenant with Trust for Nature.

Expected start date: 2024 land tax year


  • A new land tax exemption will apply to land owned by an immediate family member and used as the home of an individual eligible to be a beneficiary of a special disability Trust, including where a special disability trust has not been established.

Expected start date: 2024 land tax year


  • The deduction threshold for the land transfer duty special disability trust concession will increase from $500,000 to $1.5 million for principal place of residence transfers.

Expected start date: 1 July 2023


  • A new land transfer duty concession will apply for the transfer of a home valued up to $1.5 million by an immediate family member to an individual eligible to be a beneficiary of a special disability trust.

Expected start date: 1 July 2023


  • The land transfer duty pensioner exemption and concession thresholds will be aligned with the thresholds for first home buyers, at $600,000 and $750,000 respectively.In addition, eligibility will be assessed on the total value of the purchase.

Expected start date: Contracts entered into from 1 July 2023


  • The payroll tax-free threshold will be increased:
    • commencing 1 July 2024 — from $700,000 to $900,000
    • commencing 1 July 2025 — to $1,000,000.

    The deduction associated with tax-free threshold will begin phasing out for every dollar of wages above $3 million. This means businesses with wages above $5 million will not receive any benefit associated with the payroll tax-free threshold.

Expected start date: 1 July 2024


  • Payroll tax exemption for high-fee non-government schools to be removed.

Expected start date: 1 July 2024


  • Business insurance duty will be abolished over a 10-year period. The rate of duty, currently 10 per cent, will be reduced by 1 percentage point each year

Expected start date: 1 July 2024


  • The wagering and betting tax rate will increase from 10 per cent to 15 per cent of net wagering revenue.

Expected start date: 1 July 2024


Please click the link below for the SRO announcement in relation to the budget overview:


6 Reasons to Credit Check Your Customers


It is fundamental to credit-check your customers, mainly if you are a small business with cash flow pressures. Efficiently checking your customers’ credit scores is a great way to prepare for potential issues while establishing a healthy cash flow. 

Below, we will detail the top reasons for credit checking your customers and how these reasons feed into the above-mentioned benefits.

  • Avoid Delayed Payments

If a customer has a poor credit history, there is a significant chance that they have had an experience of missing payment deadlines and not sending payments on time. Devising a credit check will ensure you can outline these risks and prevent your business from receiving missing or late payments. 

  • Reduce Payment Default 

With a credit check, you can identify if your potential customers have good credit scores and are, therefore, less likely to default on payments. If your customers were to default payments to your business, your company might have issues with profits and business liquidity. Credit checks are an accurate way to prevent this, ensuring your business has a healthy cash flow. 

  • Avoid Invoice Financing 

As payments become more delayed, your business may require finance to manage cash flow issues. Invoice financing result in increased costs such as fees and interest charges.

  • Keep Your Supply Chain Active

Even having just one customer make a late payment can affect your supply chain as a small business. When you have tight margins to meet and suppliers to pay, you can’t afford to take on customers with poor credit scores. These delays can massively impact your supply chain and stunt new orders, affecting your business reputation. 

  • Payment Consistency 

Although it may sound harsh to credit check long-standing, loyal customers, doing so will help you to minimise the risks of inconsistent payments. After all, your customers’ financial situations and credit scores can change with the current financial climate being so unpredictable. 

While you don’t need to conduct persistent customer credit checks, implementing a credit check routine on a semi-annual basis can give you peace of mind and ensure you have an idea of your customers’ financial situations and how best to move forward with your customer base.

  • Got Issues With Your Business Cash Flow? Glance Consultants Can Help 

We recognise that every business is different, and you may need a helping hand with your cash flow management. Get in touch today to learn how we can elevate your business’s accounting. 


Federal Budget 2023-2024 Overview


2023–24 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2023–24 Federal Budget at 7:30 pm (AEST) on 9 May 2023.

The Budget forecasts the underlying cash balance to be in surplus by $4.2 billion in 2022–23, the first surplus since 2007–08, followed by a forecast deficit of $13.9 billion in 2023–24.

Putting forward a “responsible budget” for uncertain economic times, the Treasurer has described the tax measures as “modest, but meaningful”, including changes to the Petroleum Resources Rent Tax and confirmation of a 1 January 2024 implementation of the BEPS Pillar Two global minimum tax rules.

A range of measures provide cost-of-living relief to individuals such as increased and expanded JobSeeker payments and better access to affordable housing. No changes were announced to the Stage 3 personal income tax cuts legislated to commence in 2023–24.

As part of the measures introduced for small business, a temporary $20,000 threshold for the small business instant asset write-off will apply for one year, following the end of the temporary full expensing rules.

Several tax measures of the former Coalition government have also been amended or dropped, including the patent box tax incentive measures.

The full Budget papers are available at and the Treasury ministers’ media releases are available at The tax, superannuation and social security highlights are set out below.



  • The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.
  • An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.
  • FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.
  • An increased capital works deduction rate and reduced withholding on managed investment trust (MIT) payments will apply to new build-to-rent projects.
  • The clean building managed investment trust (MIT) withholding tax concession will be extended from 1 July 2025 to eligible data centres and warehouses, where construction commences after 7:30 pm (AEST) on 9 May 2023.
  • The start date of a measure to prevent franked distributions funded by certain capital raisings announced in the 2016–17 Mid-Year Economic and Fiscal Outlook has been postponed from 19 December 2016 to 15 September 2022.
  • The patent box regime announced in the Coalition government 2021–22 Budget, and expanded in the 2022–23 Budget, will not proceed.
  • The introduction of tradeable biodiversity stewardship certificates issued under the Agriculture Biodiversity Stewardship Market scheme will be delayed to 1 July 2024.
  • The Location Offset rebate and the Qualifying Australian Production Expenditure thresholds will be increased to boost investment in film production in Australia.
  • Deductible gift recipients list to be updated.



  • Income support payment base rates will be increased by $40 per fortnight.
  • The minimum age for which older people qualify for the higher JobSeeker Payment rate will be reduced from 60 to 55 years.
  • The workforce participation incentive measures to support pensioners who want to work without impacting their pension payments will be extended for another 6 months to 31 December 2023.
  • Eligibility for Parenting Payment (Single) will be extended to support single principal carers with a youngest child under 14 years of age.
  • Housing measures will be introduced to increase support for social and affordable housing and improve access for home buyers.
  • The maximum rates of the Commonwealth Rent Assistance (CRA) allowances will be increased by 15% to help address rental affordability challenges for CRA recipients.
  • CPI indexed Medicare levy low-income threshold amounts for singles, families, and seniors and pensioners for the 2022–23 year announced.
  • Eligible lump sum payments in arrears will be exempt from the Medicare levy from 1 July 2024.



Australia will implement key aspects of the Pillar Two solution of the OECD/G20 BEPS Project, meaning certain large multinationals will be subject to a 15% minimum tax in the jurisdictions in which they operate.

  • The scope of the general anti-avoidance rules in Pt IVA of ITAA 1936 will be expanded from 1 July 2024.
  • Changes will be made to petroleum resource rent tax (PRRT), including the introduction of a cap on deductible expenditure at 90% of assessable income for projects that produce liquefied natural gas from 1 July 2023.
  • The meaning of “exploration for petroleum” in the petroleum resource rent tax legislation will be amended to reflect the government intent and ATO guidance.
  • Taxation legislation will be amended to realign the taxation law with the reissued AASB 17: Insurance contracts effective for income years beginning from 1 January 2023.



Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.

  • Employers will be required to pay their employees’ superannuation guarantee entitlements at the same time as they pay their salary and wages from 1 July 2026.
  • The non-arm’s length income (NALI) provisions will be amended to provide greater certainty to taxpayers.


Tax administration

  • Funding will be provided to the ATO over 4 years to lower the tax-related administrative burden for small and medium businesses, cut paperwork and reduce time small businesses spend doing taxes.
  • Reduction in GDP adjustment factor for pay as you go and GST instalments.
  • Funding to improve the administration of student loans.
  • Additional funding will be provided to address the growth of businesses’ tax and superannuation liabilities, and a temporary lodgment penalty amnesty program will be provided to small businesses.
  • The Personal Income Tax Compliance Program will be extended for 2 years from 1 July 2025 and its scope expanded from 1 July 2023.


GST and other indirect taxes

  • Funding for GST compliance will be extended for a further 4 years to address emerging risks to GST revenue.
  • The Heavy Vehicle Road User Charge rate will increase 6% per year from 2023–24 to 2025–26.
  • Indirect Tax Concession Scheme: diplomatic and consular concessions extended.
  • The start date for streamlining of excise administration measures announced in the Coalition government’s 2022–23 Budget will be amended.
  • Tobacco excise and excise-equivalent customs duty will be increased by 5% per year for 3 years from 1 September 2023, in addition to ordinary indexation.


Please check the following link for our PDF report on the 2023-2024 Budget:

Federal Budget PDF 2023-2024




Glance Consultants May Newsletter 2023

Temporary Full Expensing: get in quick!

This could be the final opportunity for your business to take advantage of Temporary Full Expensing (TFE)…but get in before 1 July!

To recap, TFE encourages and supports businesses by allowing an immediate deduction for the business portion of the cost of a depreciating asset. There is no cost threshold – the whole cost of the asset can be written off in the relevant year. However, cars can only be depreciated up to the car limit which is currently $64,741. The car limit does not, however, apply to vehicles fitted out for use by people with a disability.

For background, a ‘car’ is defined as a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers (excluding motor cycles and similar). Therefore, for those vehicles, the car limit has no application, and full depreciation is available.


The principal benefit of TFE is cashflow. TFE enables businesses to bring forward their depreciation claims, and therefore their deductions upfront, into a single year rather than having them spread out over multiple future years. Ultimately, this assists cashflow which itself is one of the main challenges faced by businesses.


The vast majority of businesses including sole traders will be eligible for TFE as their aggregated, annual turnover will be less than $5 billion. Until 30 June 2023, under TFE, businesses can claim both new and second-hand depreciating assets where those assets are used or installed ready for use for a taxable purpose. From a timing standpoint, this means you will not be eligible for TFE in this financial year if you merely order or pay for an eligible asset before 1 July, 2023 – rather, the asset must be used or installed ready for use in your business before this date.

Ineligible assets 

Most business assets are eligible including machinery, tools, furniture, business equipment etc.

There are however some ineligible assets as follows:

■ buildings and other capital works for which a deduction can be claimed under the capital works provisions in division 43 of the Income Tax Assessment Act 1997
■ trading stock
■ CGT assets
■ assets not used or located in Australia
■ where a balancing adjustment event occurs to the asset in the year of purchase (e.g. the asset is sold, lost or destroyed)
■ assets not used for the principal purpose of carrying on a business
■ assets that sit within a low-value pool or software development pool, and
■ certain primary production assets under the primary production depreciation rules (including facilities used to conserve or convey water, fencing assets, fodder storage assets, and horticultural plants (including grapevines)).

Business plan

Because under TFE you cannot claim any extra depreciation deductions than under the standard depreciation rules, you should stick to your business plan and only continue to buy assets that align with that plan and that you were contemplating buying anyway…and then enjoy the cashflow benefits of TFE.

If you have any questions about TFE – especially around asset eligibility and timing leading up to 30 June – reach out to us.



How to claim an early tax deduction on SG contributions

Are you an employer who needs to make superannuation guarantee (SG) contributions for your employees? If so, it may be worthwhile bringing forward these SG contributions to before 1 July to benefit from a tax deduction this financial year. However the timing of when SG contributions are deductible to an employer can be tricky if employers pay SG contributions for their employees via a superannuation clearing house (SCH).


The ATO’s free Small Business Superannuation Clearing House (SBSCH) is the only ‘approved’ clearing house – none of the many commercial clearing houses have this status. The SBSCH is a free service that small businesses with 19 or fewer employees, or an annual aggregated turnover of less than $10 million, may use to make superannuation contributions to employees.

The SBSCH aims to reduce compliance costs for small business employers by simplifying and streamlining the process of making employee superannuation contributions, by allowing employers to make a single lump payment of their contributions to the SBSCH each quarter. That lump sum payment is broken into individual payments by the SBSCH, and then contributed to each employee’s respective super fund or RSA.


Employers can claim income tax deductions for SG contributions made to a superannuation fund on behalf of their employees, subject to certain conditions being met.

As the income tax deduction is available in the financial year the contribution is made, some employers may wish to improve their current year tax position by bringing forward the June quarter SG contributions to before 1 July, even though these SG contributions are not due until 28 July 2023.


As mentioned above, SG contributions are tax deductible in the year in which they are made. That said, a contribution is not made until it is received by the fund, and when that happens depends on the way in which the contribution is made.

This is clear cut where an employer pays SG contributions directly to an employee’s nominated superannuation fund. That is, the contribution will be made when it is received by the fund.

However, the timing of the tax deduction and when the contribution counts towards the employee’s contribution cap is not as straightforward where SG contributions are made to a SCH for all employees. Here, the SCH electronically transfers SG contributions to employees’ funds on the employer’s behalf.

In this situation, the contribution is not made at the time the clearing house is credited with the funds from the employer.

Rather, the contribution is made and therefore deductible when the funds are credited to the respective employee’s superannuation fund (following an electronic transfer of money from the clearing house) and then allocated to the employee’s superannuation account.

Tip: Employer SG obligations – For SG purposes, an employer who makes contributions via the SBSCH is treated as having satisfied its SG obligations when the monies are received by the clearing house.


The ATO is aware that there may be a period of time between an employer’s payment to the SBSCH and superannuation fund receiving the contribution. Further, the SBSCH may be unavailable over a weekend close to the end of the financial year for scheduled system maintenance.

This means that payments made towards the end of a financial year may not be received by an employee’s superannuation fund in the same financial year. This may therefore impact when an employer is entitled to an income tax deduction for the SG contributions.


For those employers who do not use the SBSCH but instead use commercial clearing houses, for the contributions to be deductible in 2022/23, it is recommended that it be made up to 21 days before the end of the financial year.

For employers who make contributions directly to their employees’ superannuation funds, the contributions should be made a few days before the end of the financial year to ensure they are received before 1 July and therefore deductible in the current financial year.


Federal Budget -what to watch out for

It’s now only a week or so until the Federal Budget, which is to be handed down on 9 May.

Some of the things to look out this year potentially include:

Abolition of Temporary Full Expensing

Under current legislative settings, TFE (see earlier) is set to cease on 1 July 2023 with the write-off set to revert to just $1,000 from that date. If no action is taken in the Budget to extend TFE, this will have a cashflow impact on businesses in the sense that depreciation deductions will be spread out over a number of years rather than being claimed upfront. Record keeping will also be more burdensome in this space.

Stage three tax cuts

The fate of these tax cuts is also expected to be revealed. This round of tax cuts follows the first two stages which are now law, and which largely benefited lower income earners. If the stage three tax cuts are to proceed, from 1 July 2024, they will abolish the current 37% tax bracket, lower the existing 32.5% bracket to 30%, and raise the threshold for the top tax bracket from $180,001 to $200,001. The following table illustrates how the rates and thresholds will change if the tax cuts proceed (see below).

On the face of it, lowering the 32.5% tax bracket to 30% and removing the 37% tax bracket altogether seems like a big win for middle and upper-middle income earners. But it will actually be a much bigger win for higher-income earners, in dollar terms.

For example, an individual who earns:

■ $75,000 will be better off by $750 per year compared to now
■ $125,000 will be better of by $2,225
■ $200,000 will be better off by $9,075.

Low and middle income tax offset (LMITO) replacement?

This $1,500 tax offset ceased from 1 July 2022. The LMITO was introduced by the former Coalition government in 2018. It was only meant to be paid out once but was twice extended due to the COVID-19 pandemic. We will wait until Budget night to see what, if any, alternative tax relief is offered to low and middle income earners, or indeed whether the LMITO is reinstated. If not, then low-income earners may face an increased tax liability of up to $1,500 when upcoming 2022/23 tax returns are lodged.

CGT concessions trimmed?

While it’s unlikely the CGT main residence concession on the family home will be reduced, the 50% CGT discount for other investments held more than a year could be partially on the chopping block for some people. It’s possible to imagine a reduction in the discount for capital gains over a certain threshold – say $3 million, in line with the threshold for the recent increase to superannuation earnings – limiting the impacts to a smaller, wealthier cohort of individuals.


In the days following, please contact us if you have any questions around how the Budget may impact your business, investments, or you as an individual.


Financing motor vehicles

One of the most common decisions facing business is how to finance and account for the acquisition of a motor vehicle. There are numerous ways of doing so, with each resulting in differing accounting, taxation and GST treatment.


How should you go about purchasing a vehicle? While it may seem a relatively straightforward question, there are numerous ways of doing so. Some of the more common methods are:

■ Outright purchase
■ Lease
■ Hire purchase, or
■ Chattel mortgage.

Outright purchase

The advantage of purchasing a vehicle outright, as opposed to financing the acquisition of the vehicle, is that there will be no ongoing costs of finance. This is a real benefit now that interest rates are on the rise.

On the downside, the outright purchase of a vehicle can impact greatly on the cash resources of an entity when those funds may be better utilised elsewhere.

It is far easier to obtain finance for the acquisition of a vehicle than it is for the acquisition of trading stock. Care should therefore be taken not to cripple your business’s cashflow if considering an outright purchase.


Rather than choosing to acquire a vehicle outright, your business may elect to finance the acquisition. The central issue that surrounds any form of financing, and how it is to be accounted for, is whether the person providing the asset under the finance arrangement is the legal owner of that asset. This issue goes to the heart of how the finance transaction is to be treated and is often the subject of ATO scrutiny.

The ATO has warned taxpayers about the trap of claiming deductions for what appear to be lease payments when in fact the finance arrangement is a hire purchase or similar type of transaction. The only way to identify the difference is to read the terms and conditions of the finance agreement.

The ATO will consider a finance arrangement to be a lease when:

■ there is no option to purchase the vehicle written into the agreement, and
■ the residual value reflects a bona fide estimate of the vehicle’s market value at termination.

If these two conditions are not met, the ATO considers the finance agreement to be a hire purchase or other instalment type agreement.

Under a leasing arrangement, the lease payments are a deductible amount to the extent the vehicle is used for income producing purposes, and the financed sum is not typically booked on the balance sheet of the entity.

Hire purchase

This is simply another form of finance. Its tax and GST treatment however is vastly different from both that of leasing and acquisition by chattel mortgage. As a result, this form of finance needs to be considered on its own merits.

In essence, a hire purchase arrangement is an agreement to purchase goods by instalments. The term hire purchase is defined as:

“ a contract for the hire of goods where:

i) the hirer has the right or obligation to buy the goods; and
ii) the charge that is or may be made for the hire, together with any other amount payable under the contract (including an amount to buy the goods or to exercise an option to do so), exceeds the price of the goods; and
iii) title in the goods does not pass to the hirer until the option to purchase is exercised; or
iv) where title in the goods does not pass until the final instalment is paid”.

Unlike a lease, where there is no obligation to acquire the goods at the end of the instalment period, a hire purchase arrangement provides for this obligation and as such the goods will be eventually owned by the purchaser.

Chattel mortgage

A chattel mortgage from the perspective of recording the asset purchase and recognising the liability is identical to that of a hire purchase arrangement. The difference between a chattel mortgage and other forms of finance such as hire purchase and lease comes when dealing with the GST consequences.

Not sure? Please contact us if you would like to discuss your options and the tax consequences.



Upcoming trust distribution strategies –latest developments

If you run your business through a family trust, there’s some good news on the distribution front.

In mid-April, the ATO responded to the landmark trust distribution case, namely the Guardian AIT appeal ruling in January by the Full Federal Court, with a decision impact statement that where the ATO concedes that it will have to amend its position on trusts, section 100A of the Income Tax Act and reimbursement agreements. In the Guardian appeal, the Full Federal Court rejected the ATO’s position that a reimbursement agreement existed in the Guardian case and so section 100A did not apply.

To recap, the ATO in February 2022 updated its guidance around trust distributions made to adult children, corporate beneficiaries and entities that are carrying losses. Depending on the structure of these arrangements, potentially the ATO may take an unfavourable view on what were previously understood to be legitimate trust distribution arrangements. The ATO is chiefly targeting arrangements under section 100A, specifically where trust distributions are made to a low-rate tax beneficiary, but the real benefit of the distribution is transferred or paid to another beneficiary usually with a higher tax rate. In this regard, the ATO’s Taxpayer Alert (TA 2022/1) illustrates how section 100A can apply to the quite common scenario where a parent benefits from a trust distribution to their adult children.

Moving forward, there are a number of tax-effective strategies that can be employed that will not fall foul of the ATO’s interpretations in this area including:

Only distribute to Mum and Dad

This would be quite safe from section 100A scrutiny. No person pays less tax as a result of any agreement, and this is unlikely to be seen as high-risk by the ATO.

Continue to distribute to young adult beneficiaries, but hand over the money

If you are happy to give money to your children, this can be achieved while at the same time optimising tax.

Charge board and current university fees

If adult beneficiaries are living at home, they should pay board (just as if they had a job). This will not add up to large sums, but arm’s-length board for a full year could come to about $18,000. This allows for some tax arbitrage without handing the kids any money.

Use of bucket company

Having a private corporate beneficiary caps the tax rate imposed on trust income. Franked dividends can subsequently be flexibly allocated through having a trust structure interposed between the bucket company and the beneficiaries. The present entitlement can be lent back to the trustee for use in the business of the trust, although there are minimum repayment conditions. Avoid having the main trust as a shareholder in the bucket company.

The ATO considers circular income flows to be high-risk.

Be alert for the “no reimbursement agreement” argument

If you are contemplating making a gift or an interest-free loan to another person, ask questions about the circumstances behind this plan. If it was not in contemplation at the time of the relevant appointment of trust income (up to two years ago), but has arisen because family circumstances have changed recently, there may not be a reimbursement agreement.

If making gifts, go once and go big.

There are also other slightly bolder strategies.

If you operate your affairs through a discretionary trust, chat with us around your distribution options prior to the 30 June deadline.



New reporting arrangements for SMSFs from 1 July 2023

From 1 July 2023, trustees and directors of SMSFs must report certain events that affect their members transfer balance account quarterly.

These events must be reported by lodging a ‘transfer balance account report’ (TBAR) no later than 28 days after the end of the quarter in which they occur.

The purpose of this change is to streamline the reporting process and bring all SMSFs under a single reporting framework. This means there will no longer be an ‘annual reporter’ option.

What is a transfer balance account and a TBAR event?

The introduction of a transfer balance cap (TBC) from July 2017 introduced a limit on how much an individual could transfer from their superannuation accumulation account into a retirement phase pension. In order to track an individual’s use of their TBC, a ‘transfer balance account’ (TBA) is created to record necessary transactions from the time an individual first commences a retirement phase pension.

Importantly, a TBAR is only required when a member has an event which affects their TBA. The most common reporting events include:

■ Commencement of a pension
■ Lump sum withdrawals from a pension account
■ Commencement of a death benefit pension.

For many SMSFs, the members will have only one or two TBAR events in their lifetime.

Other events that do not affect a member’s TBA and therefore do not need to be reported include:

■ Pension payments
■ Investment earnings or losses
■ When an income stream ceases because the capital has been depleted
■ Death of a member.

Changes from 1 July 2023 

From 2023/24 onwards:

■ A member’s total superannuation balance will no longer be relevant in determining whether an SMSF reports on a quarterly or annual basis, and
■ All SMSFs must lodge a TBAR within 28 days after the end of the quarter in which the TBC event has occurred (ie, by 28 January, 28 April, 28 July, and 28 October).

The new TBAR timeframes will therefore be due from1 July 2023 as follows:

This means that SMSFs that have previously been permitted to lodge a TBAR on an annual basis will no longer be permitted to do so from 1 July 2023.

However, the obligation for SMSFs to report earlier will remain in cases where a fund must respond to a pension excess transfer balance determination or a commutation authority from the ATO.

Action items for SMSF trustees

For those SMSFs that already report on a quarterly basis, there will be no change to the reporting frequency for TBAR events.

The changes impact SMSFs that are annual reporters only.

Note, if you’re currently lodging your TBAR annually at the same time as your SMSF annual return, you will need to report all events that occurred in the 2023 financial year by 28 October 2023.

Should you have any questions on your TBAR reporting obligations, please contact us today as we can help you prepare for these upcoming changes.


Click here to view Glance Consultants May 2023 newsletter via PDF





How to Choose the Right Accounting Software for Your Small Business


Gone are the days of manual record keeping processes. Accounting software provides excellent opportunities for all types of businesses, whether you’re a startup, established, or small business. Today, we will cover how small businesses can determine which accounting software suits their needs. 


Consider Your Priorities

You know your business better than anyone, from its operation to areas you struggle to manage. The accounting software you choose should reflect your business’s revenue, industry, and size. As a small business, you will likely need to use affordable accounting software that may not be industry-specific, but that doesn’t mean it can’t be effective and significantly benefit you. 

For example, one of your priorities at this stage is to spot potential growth areas. Many accounting software can help you achieve this by providing organised tools that collate financial data over a specific period, helping you create financial statements pointing to improvement areas. 


Focus on Cloud-Based Solutions 

As a small business, you don’t want to use software that requires buying excess storage and physical space. Instead, a cloud-based platform will provide an accessible and affordable solution to securely storing financial data while not requiring a specific IT department to run it. 


Don’t Forget Your Budget

It’s easy to get whisked away by the fancy features of specific software, but you need to keep your budget in mind to avoid facing additional expenses. Your accounting software is here to make your life easier, not to put you out of pocket!


Enlist the Help of a Professional 

You want your small business to thrive without worrying about who you can trust, and putting your faith in a third-party source isn’t always easy. Talking to an accountant or bookkeeper will ensure that you only use trusted software that you can rely on.


Need a Hand Deciding on Accounting Software? We Can Help 

With hundreds of accounting platforms readily available, it’s not surprising that business owners struggle to find software most suited to their needs. If you need support using or finding the most suitable accounting software, Glance Consultants can help! Get in touch today.


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