Practice Update - July 2020

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Welcome to the New Financial Year

It goes without saying there has been significant and wide-reaching change in 2020. Like so many other businesses, Crawford Accountants has adapted new ways to make sure that our services to you are unaffected.


We have been in regular contact with you regarding State and federal funding including Jobkeeper and Cashflow boost. We are committed to assisting you and your business with reliable advice and compliance services. At Crawford Accountants, its business as usual. So please get in touch for your 2020 taxes or any queries you may have. We strongly recommend frequent communication more than ever to collectively navigate through this time.

Phone appointments, Zoom and electronic signing can also be accommodated to meet your needs.


Victorian Business Support Fund – Expanded

The Victorian Government has announced a $ 5,000 grant to employing businesses that were affected by the 6-week lockdown.

If you are a business that:

  • employs staff
  • currently receives Job keeper
  • affected by the lockdown


Please contact our office urgently as the applications close on the 19 August 2020.
(Guidelines for the grant attached)


ATO Audit Protection

Even if you can substantiate your claim for an allowable deduction, if queried you must still go through the audit process. To alleviate the cost and stress we encourage you to take out our audit protection. It is a cheap and efficient way of dealing with an ATO audit. For more information, please contact our office.


Treasury Laws Amendment (2020 Measures No 3) Bill 2020

Treasury Laws Amendment (2020 Measures No 3) Bill 2020 has passed both Houses of Parliament and is now law.


Extending the Instant Asset Write-Off

This legislation amends the income tax law to allow a business with an aggregated turnover for the income year of less than $500 million to immediately deduct the cost of a depreciating asset (instant asset write-off). The asset must cost less than a threshold of $150,000 and be first used or installed ready for use for a taxable purpose by 31 December 2020. Without these amendments the $150,000 instant asset write-off would have ended on 30 June 2020.


By extending the previous end date of 30 June 2020 to 31 December 2020, the amendments give businesses additional time to access the $150,000 instant asset write-off for their acquisitions of depreciating assets, including those purchases that have been delayed by supply chain disruptions. Further, the amendments extend cash flow support to businesses through the early stages of the recovery from the economic conditions caused by COVID-19.


It will be interesting to see if this timeframe is further extended at some later point. Note that, come 1 January 2021, if there is no further extension, the $150,000 threshold for the instant asset write-off for depreciating assets will collapse to $1,000 and the turnover threshold for eligibility for the outright deduction of less than $500 million will fall to a turnover of less than $10 million.


Editor: Please contact our office if you are considering purchasing a depreciating asset for your business and want to know if you will be eligible for the instant asset write-off.


Treasury Laws Amendment (2019 Measures No 3) Bill 2019

Treasury Laws Amendment (2019 Measures No 3) Bill 2019 has passed both Houses of Parliament and is now law.


Testamentary trusts and minors

This legislation contains amendments to ensure the tax concessions available to minors in relation to income from a testamentary trust only apply in respect of income generated from assets of the deceased estate that are transferred to the testamentary trust (or the proceeds of the disposal or investment of those assets).


Broadly speaking, when a trustee distributes income to a minor it is taxed at the highest marginal rate (plus Medicare levy). However, there are certain exceptions to this rule. One such exception is where the trust is a testamentary trust – being a trust that was established as a result of the will of a deceased individual. Income from a testamentary trust is a type of ‘excepted trust income’ that is generally taxed at ordinary rates.


Prior to this legislation being passed, the previously existing law did not specify that the assessable income of the testamentary trust be derived from assets of the deceased estate (or assets representing assets of the deceased estate). As a result, assets unrelated to a deceased estate that were injected into a testamentary trust may, subject to anti-avoidance rules, generate excepted trust income that was not subject to the higher tax rates on minors. This was an unintended consequence, which allowed some taxpayers to inappropriately obtain the benefit of concessional tax treatment.


This legislation clarifies that excepted trust income of the testamentary trust must be derived from assets transferred to the testamentary trust from the deceased estate or from the accumulation of such income.

This change will apply in relation to assets acquired by or transferred to the trustee of a testamentary trust on or after 1 July 2019.


Please contact our office if you have any concerns about testamentary trusts making distributions to minor beneficiaries.


Regulations confirm no SG obligation on JobKeeper payments where work is not performed

The federal government has registered the Superannuation Guarantee (Administration) Amendment (Jobkeeper) Payment Regulations 2020.


These regulations ensure that amounts of salary or wages that do not relate to the performance of work and are only paid to an employee to satisfy the wage condition for getting the JobKeeper payment are prescribed by the Regulations as excluded salary or wages.


The effect is that these amounts are excluded from the calculations of an employer’s superannuation guarantee shortfall and the minimum compulsory superannuation contribution an employer is required to make in respect of an employee to avoid a superannuation guarantee charge liability.


Likewise, the Regulations recognise that an employer is only entitled to a JobKeeper payment for its employees if the business has suffered a substantial decline in turnover. In these circumstances, it is appropriate to require employers to only make minimum superannuation contributions in respect of amounts that are required to be paid to an employee for the performance of work. 


Employers would not be required to make contributions in relation to additional amounts paid to satisfy the wage condition (for example, the amount by which $1,500 exceeds an employee’s normal pay). 

Editor: If you are concerned about the calculation of compulsory superannuation for any employees supported by JobKeeper, please contact our office.


COVID-19 and Division 7A relief

The ATO has announced some limited relief for private companies that have loans to their shareholders or related parties that are governed by what are referred to as “complying loan agreements”.

A complying loan agreement is entered into to avoid triggering an assessable deemed dividend that could potentially be equal to the amount of the loan from the private company.


When there is a complying loan agreement between a private company and a borrower, the borrower must make the minimum yearly repayment (MYR) by the end of the private company’s income year. This avoids the borrower being considered to have received an unfranked dividend, generally equal to the amount of any MYR shortfall.


As a result of the COVID-19 situation, the ATO understands that some borrowers are facing circumstances beyond their control. To offer more support, the ATO will allow an extension of the repayment period for those borrowers who are unable to make their MYR by the end of the lender’s 2019–20 income year (generally 30 June).


Requesting the extension

A request for a 12-month extension can be made through the completion of an online application. Borrowers will be asked to confirm the shortfall, that the COVID-19 situation has affected them and that they are unable to pay the MYR as a result.


When the ATO approves an application, it will let the borrower know they will not be considered to have received an unfranked dividend. This is subject to the shortfall being paid by 30 June 2021. It will not be necessary to submit further evidence with the application.


This particular streamlined process established by the ATO only applies to applications for an extension of up to twelve months for COVID-19 affected borrowers.  It is still open to a borrower to apply to obtain a longer extension of time outside the streamlined process.


Editor: If you have been affected by the COVID-19 situation and need more to time to make your minimum yearly repayment (MYR) in relation to complying loans from private companies, contact our office for assistance.


Please Note: The comments in this publication are general in nature and if you are intending to apply the information to your circumstances please get in touch with us to verify their interpretation and the information’s applicability to your particular circumstances.

Crawford News

September 2026 - Update

September 9, 2026
Payday Super and contractors Businesses generally need to pay super where they engage an independent contractor mainly for their labour, personal effort, skills or time. This can apply even if the contractor: has an ABN; invoices the business for their work; or is described as a contractor in a written agreement. It is not mandatory to report payments made to independent contractors through Single Touch Payroll. However, if a business reports them voluntarily, it must meet the STP reporting requirements, including reporting qualifying earnings and super liability information. Where an independent contractor is entitled to super, the contribution must be paid for each payday and reach their super fund within seven business days after payday. Payday Super timeframe Under Payday Super, contributions must be received by an employee’s super fund within seven business days after payday. To keep on track, the ATO recommends that employers: use the new member verification request to verify that an employee’s super fund details are valid and that the fund can accept a contribution before it is made; check with the relevant payroll provider or clearing house that the fund is responding to MVRs; monitor payments, as funds have three business days to allocate or reject a payment; and if a payment is rejected or returned, act quickly to correct any errors and resubmit to the correct fund. For new employees, or where an employee changes their fund, employers generally have 20 business days to make the initial contribution. $21 billion in lost super The ATO is urging individuals to check whether they have lost or unclaimed super, with more than $21 billion waiting to be reunited with its owners. Super can become lost when an account is inactive and the fund cannot contact the member, often following a change of job, address or phone number. In some cases, the balance may be transferred to the ATO to hold until it can be reunited with the individual. The ATO reports that last year, more than $1.1 billion was returned through consolidations and direct payments to eligible individuals. ATO motor vehicle registries data-matching program The ATO acquires motor vehicle registries data from state and territory authorities from the 2026 to the 2030 income years. The information will be matched against ATO records to identify taxpayers who are not meeting their registration, lodgment, reporting, or payment obligations. The data will also be used to support ATO compliance activities through modelling, risk profiling and case selection. The data collected may include identification details for purchasers, sellers and other relevant parties, together with transaction dates and types, sale prices, market values, vehicle garage addresses, intended use, vehicle specifications and registration details. $1,000 deduction for work expenses From 1 July 2026, employees may choose either the standard deduction for work-related expenses of up to $1,000, or a deduction for the actual work-related expenses they incur. You should continue keeping records for deductible work expenses incurred from 1 July 2026. If, at the end of the 2027 income year, you choose to claim actual expenses, you must have the required written evidence for those expenses. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.

August 2026 - Update

August 4, 2026
Government extends the $20,000 instant asset write-off The Government has recently introduced legislation to extend the $20,000 instant asset write-off for small businesses. If enacted, the changes would set the instant asset write-off threshold at $20,000 for eligible depreciating assets first used, or installed ready for use, for a taxable purposes from 1 July 2026. The changes would also further suspend the 'lock-out rule' until 30 June 2027. Loss carry back rules to be reintroduced The Government has introduced legislation to re-introduce the loss carry back measure for companies from 1 July 2026. If enacted, this will allow most companies to carry back a tax loss and apply it against tax paid in either, or both, of the previous two income years, basically giving rise to a tax refund for the loss year. New restrictions on LRBAs New legislation imposes restrictions on the use of limited recourse borrowing arrangements by SMSFs. LRBAs entered into on or after 10 August 2026 to purchase real property can now only be used to acquire business real property. These changes do not apply if an SMSF: has already entered into an LRBA to finance a real property acquisition before 10 August 2026; or maintains or refinances that LRBA on or after 10 August 2026. 'Business real property' generally means land and buildings used wholly and exclusively in one or more businesses. Division 7A benchmark interest rate The ATO has published a Division 7A benchmark interest rate of 8.77% for the income year ending 30 June 2027, up from 8.37% for the previous income year. The benchmark interest rate is applied when calculating minimum yearly repayments for complying Division 7A loans. ATO scam warning The ATO has received reports of a new email impersonation scam claiming to be from the ATO. The email states that a phone appointment with the ATO has been scheduled and includes appointment details such as the date and time. The email claims that recipients must open an attachment included in the email to securely access relevant services or reschedule the appointment. The attachment contains a link to a legitimate looking myGov sign-in page designed to steal usernames, passwords and other personal information. The ATO has advised recipients not to respond to the email or interact with it in any way. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.

July 2026 - Welcome to the New Financial Year

By Inzi Pethiyagoda • July 5, 2026
Welcome to the start of the new financial year, we sincerely thank you for your support and for partnering with us over the past 12 months. Our team is up to date with the changes to tax rules this year, so it’s time to start thinking about completing your 2026 tax returns. If you have not yet organised your tax appointment, please book an appointment using the link below or get in touch with us asap. https://www.crawfordaccountants.com.au/schedule-an-appointment We conduct appointments at the office, via Zoom or Phone. 03 9853 1000 admin@crawfordaccountants.com.au www.crawfordaccountants.com.au Book Now Are you Audit Safe? The possibility of being selected for an audit or investigation is increasing each year as the Australian Taxation Office (ATO) and other government agencies widen the scope of their investigation activities utilising data collection/detection capacity, data matching and benchmarking/risk profiling. Even if you can substantiate your claim for an allowable deduction, if queried you must still go through the audit process. To alleviate the cost and stress, we have offered you to take out our audit protection and you should have received an offer letter from us few weeks ago. It is a cheap and efficient way of dealing with an ATO audit. For more information, please contact our office. Tax Deductions Tax deductions will help you minimise your tax, but there are three golden rules for tax deductions: Expenses must be related to business/ work and not private. If a portion of the expense if private, the deduction must be apportioned. You must have records to prove the deduction such as receipts The expense must not be reimbursed Pay day super is now active From 1 July 2026, Payday super applies. Employers will need to pay super to an employee’s nominated super fund each payday, and it must reach the fund within 7 business days after the payday. The STP lodgement obligations remain. If you require assistance with the process, please contact our office. Changes to car thresholds from 1 July The car limit for the 2027 income year is $69,883. This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2027 income year. If a taxpayer is buying a car and the price is more than the car limit, the highest input tax (GST) credit they can claim except in certain circumstances is one-eleventh of the car limit. For the 2027 income year, the highest input tax credit they can claim is $6,353. The luxury car tax threshold for the 2027 income year is $91,661 for fuel-efficient vehicles, and $80,809 for all other luxury vehicles. Input tax credits need to be claimed within the four year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes. Recap – Tax Reforms The Government has recently legislated several of the tax reform measures announced in the 2026 Federal Budget. Replacing the CGT discount with cost base indexation and a 30% minimum tax on gains accruing from 1 July 2027. This applies to pre-CGT assets as well. Increasing the small business turnover threshold for the 50% active asset reduction from $2 million to $10 million. Limiting negative gearing for residential property to new residential dwellings from 1 July 2027. Existing properties are grandfathered. Introducing the Working Australians Tax Offset from 1 July 2027, and the $1,000 instant tax deduction for work-related expenses from 1 July 2026. The Government has also announced further proposed measures, including: A new targeted CGT discount for investors in innovative start-ups. Barring SMSFs from utilising future limited recourse borrowing arrangements to acquire residential property. Exempting income of discretionary testamentary trusts from the minimum tax proposed for trusts. Fuel excise relief extended for July The Government has announced a further temporary extension of fuel excise relief for July, together with a reduction in the Heavy Vehicle Road User Charge and based on the government announcements, these measures will make petrol and diesel 16 cents per litre cheaper than they otherwise would have been during July. Dental clinic liable for super guarantee charge The Administrative Review Tribunal recently considered whether an oral health therapist engaged by a dental clinic was an employee for super guarantee purposes. The clinic argued that the therapist was not an employee but was instead an independent contractor and, as such, the clinic was not liable for the super guarantee charge. The ART held that the therapist was an employee under the extended definition. In particular, the ART found that: the contract contained features consistent with an 'employment' arrangement; the therapist was part of a regulated profession and could not practise independently; the purpose of the contract was to engage the therapist personally to work as a member of an integrated team. the clinic did not establish that she had a genuine right to delegate/subcontract her work. the therapist was not directly rewarded for her services, as her remuneration was subject to adjustments applied by the clinic on patient invoices. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.

June 2026 - Update

June 10, 2026
ATO warns of Tax Time misinformation and focus areas ATO is warning the community to be wary of incorrect or misleading information this Tax Time, particularly claims promising greater refunds, shortcuts or hacks. The ATO has reported a rise in tax-related content and tips being shared online and is urging taxpayers to treat unverified advice with caution and seek professional advice. Taxpayers should think twice before acting on information from third-party sources such as artificial intelligence platforms, influencers, or advice from family or friends. Although AI can be a useful tool, it can lead to inaccurate advice: and your tax return isn’t the place for guesswork that could lead to hefty penalties. The ATO also revealed that, this Tax Time, it will be focusing on areas where taxpayers are likely to make errors, including work-related deductions and expenses and properly apportioning such expenses, and omitted income from 'side-hustles', cash jobs, and rental income. Time for Tax Planning The month of June is ideal for businesses and taxpayers to take some time to look at tax minimisation strategies, consider legislative changes including significant changes announced in the recent budget, ensure compliance and review your financial position. Take some time to review that your compliance and tax payment obligations are fulfilled. This will steer you clear from expensive penalties and interest charges and put you in an optimum financial position. Individuals must consider if any voluntary superannuation contributions could assist you minimise tax before 30 June. Employers may pay superannuation guarantee obligations early to take advantage of the deduction during the current financial year. Instant asset write-ff may assist with business assets. Key considerations for small and medium businesses and investors are: Trust distributions and resolutions Dividends from private companies Super contributions Div 7a compliance Tax governance STP requirements TPAR requirements Pensions and TBAR events Preparation for payday super A meeting with your accountant in June for a tax planning session may add value to your overall financial position. Please contact us if you wish to discuss further. 2026 Budget Announcements Summary of the main announcements: Limiting residential property negative gearing to new builds from 2027/28. Existing investments made before 7:30pm AEST on 12 May 2026 are announced to be grandfatherd. Replacing the 50% CGT discount with inflation‑adjusted indexation from 1 July 2027 with a minimum tax rate of 30% on realised capital gains. This will apply to all assets including pre-CGT assets except new builds of residential properties where taxpayers may choose either the old or new rules. Gains accrued on existing investments prior to 1 July 2027 to retain the 50% discount where eligible. Applying a minimum 30% tax on discretionary trusts from 1 July 2028. Individual beneficiaries to be eligible for a non-refundable offset while corporate beneficiaries will not be eligible for any offset. All workers to receive a $ 250 tax offset. $ 1,000 instant tax deduction for work-related expenses. Caution: taxpayers may be eligible for larger deductions using alternative methods. Instant asset write-off for assets below $ 20,000 to continue for small businesses. Two year tax loss carry back to return for companies with turnover below $ 1 billion. Payday Super During July 2026, employers need to pay the June 2026 quarter superannuation guarantee by 28 July and also pay July 2026 superannuation guarantee on paydays. If employers do not finalise their June quarter payments by 28 July 2026, they must lodge a super guarantee charge ('SGC') statement by 28 August and pay the SGC to the ATO for the June quarter. The late payment offset is not available and any super payments received on or after 29 July will be applied under the new Payday Super rules, even if the employer intended these payments to be made for any super owed for the June quarter. From 1 July 2026, employers must calculate, pay and report super guarantee for their employees and eligible contractors on the same day wages are paid. This includes ensuring the money is in their employees super accounts generally within 7 business days after payday. Note that superannuation for pay runs in July may be due before their final quarterly super payment is due on 28 July, but contributions received on or before 28 July will reduce any super owing for the June quarter first. If there is any remainder, contributions will then be used under Payday Super. However, ATO assures employers that pay on time for quarterly and Payday Super that they will not risk incurring penalties. It is prudent to pay June 2026 quarter superannuation as soon as the quarter ends. The ATO Small Business Superannuation Clearing House officially closed The Small Business Superannuation Clearing House will permanently close on 1 July 2026. Therefore, employers still using it have less than a month to transition to an alternative service. If you still use SBSCH, please contact us urgently to organise an alternative service. The information provided in this Newsletter is general in nature and if you have any queries or require further information or assistance with the above, please contact our office.

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