Accounting, Tax, Accountant, Business Specialists SMSF, Self Managed Super, Asset Accounting, Caloundra, Queensland, Australia

Superannuation and Parental Leave: Important Updates for Employers from July 2025

Tue, 21 Oct 2025 01:47:43 GMT

Understanding Parental Leave Pay and the New Superannuation Changes

The Paid Parental Leave (PPL) scheme helps eligible working parents take time off to care for a newborn or newly adopted child.

From 1 July 2025 , an important update takes effect — eligible parents will also receive a Paid Parental Leave Superannuation Contribution , helping them keep their retirement savings on track while on leave.

Here’s what employers need to know:

Parental Leave Pay Overview

Parental Leave Pay is funded by the Australian Government and paid to eligible employees while they’re caring for their child. It doesn’t replace or change existing leave entitlements — it’s an additional government support payment .

Employees apply directly to Services Australia for Parental Leave Pay and will arrange their leave with you. If you’re required to provide the payment, Services Australia will contact you and supply the necessary funds.

When Employers Need to Provide Parental Leave Pay

You’ll be required to provide Parental Leave Pay if your employee:

Has worked for you for at least 12 months before the expected birth or adoption
Expects to receive a block of at least 8 weeks of Parental Leave Pay within one year of the child’s birth or adoption
Will be your employee until at least the last day of that block of Parental Leave Pay
Will return to your employment after their leave ends
Lives in Australia

The block of Parental Leave Pay must:

Consist of consecutive weekdays (Monday to Friday) with no breaks
Not include weekends
Be the first payment of Parental Leave Pay for that child
Be paid before the child’s first birthday or adoption anniversary

Services Australia will confirm the payment dates and amounts you’ll need to deliver.

You’ll only be responsible for providing your employee’s first block of Parental Leave Pay. Any subsequent blocks will be paid directly to the employee by Services Australia.

If your employee doesn’t meet all the above criteria, you’re not required to provide the payment — but you can opt in if both parties agree.

Work Test and Eligibility

To qualify, employees must meet the work test , which generally means they’ve worked a minimum number of hours over a 13-month period before the child’s birth or adoption.

There are exceptions if they had to stop work earlier due to circumstances such as pregnancy complications, premature birth, or the loss of a child. In these cases, they may request confirmation from you of their employment details to support their claim.

What You Don’t Need to Do

You don’t fund the payments — the government provides the money.
You’re not required to pay superannuation on Parental Leave Pay (though voluntary contributions are optional).
You won’t deliver Parental Leave Pay for employees who receive certain income-support payments — Services Australia will handle those directly.
You may only make authorised deductions (such as PAYG withholding, child-support, or garnishee orders) from Parental Leave Pay.

New from 1 July 2025: Superannuation Contributions

From 1 July 2025 , the Australian Taxation Office (ATO) will begin paying a Paid Parental Leave Superannuation Contribution (PPLSC) for eligible parents who receive government-funded Parental Leave Pay.

The contribution will:

Be based on the Superannuation Guarantee rate
Be paid directly to the employee’s super fund
Occur after the end of the relevant financial year , with the first payments starting July 2026

Employers don’t need to calculate or process these payments — they’ll be managed entirely by the ATO.

Key Takeaway

The Paid Parental Leave scheme continues to support Australian families — and with the upcoming superannuation contribution, it’s set to provide even greater long-term benefits.

For employers, the main responsibilities are to:

Provide Parental Leave Pay when notified by Services Australia
Keep clear communication with employees about their leave arrangements
Stay informed about the new superannuation changes

If you have questions about how these updates affect your business, our team is here to help.
Contact Asset Accountants & Advisers for advice on employer obligations and payroll compliance.

If you use Xero , check out their guide on:
�� How to set up Parental Leave in Xero for step-by-step instructions on managing these payments in your payroll system.

Work-From-Home Questions Answered!

Tue, 08 Jul 2025 02:55:06 GMT

Get Ready for Tax Time: Your WFH Questions Answered!

For those working from home, understanding deductions is key. Asset Accountants & Advisers are here to help you navigate it!

Here's a summary of your top work-from-home tax questions answered:

· Fixed Rate for 2024-25: The fixed rate for working from home in the 2024-25 income year is 70 cents per hour.

· Minimum Hours: There's no minimum number of hours required to claim a work-from-home deduction. However, you must be working from home to fulfil employment duties, incur additional running expenses due to working from home, and keep proper records.

· Proof of Hours: If using the fixed rate method, you must provide records showing all hours worked from home between 1 July 2024 and 30 June 2025, including start and finish times. This can be a diary, spreadsheet, rosters, or timesheets, and must be recorded at the time or soon after, not as an estimate. For the actual cost method, a continuous 4-week record representing your usual pattern is needed.

· Proving Phone Use: If you use the fixed rate method, phone calls and data usage are included in the hourly rate and cannot be claimed separately. If using the actual cost method, calculate the work-related percentage of your phone use on a reasonable basis, keeping a spreadsheet or diary for a continuous 4-week period to show your work vs private use.

· Claiming Occupancy expenses: Generally, employees working from home aren't eligible to claim occupancy expenses, such as rent, insurance or mortgage interest. This is only possible in limited circumstances where a specific area of your home is set aside as a "place of business," and doing so may have capital gains tax implications.

The ATO will be closely scrutinising work-related expense claims this year, so ensure your expenses directly relate to earning your income and you have proper records.

Division 296 - Superannuation Changes on the Horizon

David@assetaccounting.com.au (David Burnes) — Tue, 01 Jul 2025 06:55:03 GMT

Tax time is just around the corner, and with it, important changes that could impact your financial future!

Important Update: Division 296 – Superannuation Changes on the Horizon!

As your trusted accountants, we're here to get you on the front foot, so let's dive into some superannuation news that's making waves.

Proposed Division 296 Tax: What You Need to Know

The Australian Government is proposing a new tax, called Division 296 (DIV296) , which is set to kick off on 1 July 2025 . This proposed tax looks to introduce an extra 15% tax on superannuation earnings that are attributed to super balances above a $3 million threshold.

Key Takeaways:

· Legislation Pending: This new tax has not yet been formally legislated, so it's a proposed change.

· Proposed Start Date: 1 July 2025 (expected to be deferred)

· Payment timing: If legislated, the first payments for Division 296 tax would not be due until after the end of the 2025–26 financial year.

· Target: Individuals whose total super balances (TSB) exceed $3 million at the end of the financial year.

· Tax Rate: An additional 15% on "earnings" above the threshold (on top of the current 15% fund tax rate).

· "Earnings" Definition: Includes unrealised (paper) gains on your assets. It's not simply the profits you've actually made or locked in. Instead, it’s based on how much your super balance has increased over the year.

· Non-Indexed Threshold: The $3 million limit won't increase with inflation.

What Should You Do?

While it is premature to make drastic changes before the legislation is passed, such as withdrawing money from super to avoid tax, give us a call or shoot us an email if you would like to better understand the implications of this potential change and how it may impact you.

Cyclone Alfred & Disaster Recovery Grants for Small Businesses

Mon, 14 Apr 2025 06:59:48 GMT

Small Businesses Affected by Cyclone Alfred: You Could Be Eligible for $25,000 in Disaster Recovery Grants

If your small business was directly affected by Tropical Cyclone Alfred and Associated Severe Weather (1–16 March 2025) , you may be eligible for up to $25,000 in financial assistance through the Exceptional Disaster Assistance Recovery Grant (EDARG).

This is not a loan. It’s a non-repayable grant to help cover costs for clean-up, damage repairs, and getting your business back on its feet.

�� What Can You Use the Grant For?

This grant can help cover things like:

Hiring or purchasing clean-up equipment or materials
Safety inspections by a licensed tradesperson
Removing and disposing of debris or spoiled goods
Repairs to damaged buildings (non-residential)
Replacing damaged stock or business equipment
Leasing a temporary premises if yours is unusable
Wages for staff assisting with clean-up or reinstatement

�� How It Works

You can apply for:

Up to $5,000 initially (with quotes, tax invoices, or receipts)
Up to a further $20,000 in one or more subsequent applications (with proof of payment like receipts + bank statements)

Total max grant = $25,000.

✅ Who's Eligible?

To apply, you must:

Be a small business owner with an ABN held before the disaster
Have suffered direct physical damage
Be in an eligible local government area (e.g. Sunshine Coast, Noosa, Gympie, Brisbane, etc.)
Intend to resume business in the same affected area
�� Full list of eligible LGAs →

�� What You’ll Need:

5–10 clear, high-quality photos of damage
Tax invoices, quotes, or receipts (showing supplier ABN, business name, date, and what was purchased)
Evidence of payment (bank statement or transfer confirmation)
Proof your premises is in an eligible area (e.g. rates notice or lease)
Photo ID (e.g. license + Medicare card)
Insurance policy and claim outcome (if insured)

�� Application Tips PDF →
�� Interpretation Guide →

�� How to Apply:

✅ Complete the Small Business Application Form
✅ Submit your documents via the QRIDA Application Portal

��️ Deadline : Applications close 2 April 2026
�� Need help from QRIDA? Call: 1800 623 946 or email: contact_us@qrida.qld.gov.au

IMPORTANT:
This blog is designed to help you DIY your application confidently. Please read it thoroughly before calling us — everything you need is here ❤️

The ATO Might Owe You Money - Here’s How to Find Out

Mon, 14 Apr 2025 00:40:56 GMT

�� The ATO Might Owe You Money — Here’s How to Find Out

Yes, you read that right. If you’ve paid your tax early , the ATO might actually owe you money in the form of Interest on Early Payments .

This isn’t a scam, a loophole, or something shady. It’s legit, and it’s laid out on the ATO’s website for all to see. But most people never know to look for it.

Here’s the deal:

What is “Interest on Early Payments”?

If you pay tax before the due date (think PAYG instalments, GST, income tax, etc.), the ATO will calculate interest on the early payment from the date you paid to the due date.

So yes, paying early could earn you a small return ��

You’re eligible if:

You paid a tax bill before its due date
You lodged a tax return that resulted in a debit , not a refund, and paid early

How is it paid?

If you're eligible, you won't receive a cheque in the mail (sorry).
The interest is:

Credited to your ATO account , or
Can be requested , depending on how you lodged

If you lodge through us, good news, we’ll keep an eye on that. But if you’ve done something early yourself, or just want to check, here's how to DIY like a boss:

How to check your ATO balance & early payment credits:

�� Check your account balance on the ATO website
�� How to request a refund or credit transfer

Need to make a payment?
�� Get your payment reference or payment slip

TL; DR (Too Lazy; Didn't Read):

Pay early = possible ATO interest
Not automatic, but you can check it
Links above will show you everything
Still confused? Check the article again... it’s all there ��

Key Super Changes for the 2024-2025 Financial Year

Mon, 01 Jul 2024 01:07:09 GMT

Some of the key changes for Super Funds in the 2024-2025 financial year are:

Superannuation guarantee increases from 11% to 11.5%
Concessional contributions cap increases to $30,000
Non-concessional contributions cap increases to $120,000
Preservation age reaches 60
Income tax stage 3 cuts take effect
Thresholds for Age Pension asset and income tests increase

Important Dates for Employers this EOFY

Mon, 24 Jun 2024 01:27:39 GMT

6 important dates for employers for the end of this financial year.

30/06/2024 - Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2023–24 financial year.
01/07/2024 – Super guarantee rate increases from 11% to 11.5%.
14/07/2024 – Singe Touch Payroll Finalisation declarations due.
28/07/2024 – June quarter Superannuation payments due.
25/08/2024 – June BAS if lodged by a registered tax agent.
28/08/2024 – Taxable payments annual report (TPAR) for payments to contractors due.

ATO 3 key focus areas for this tax time

Fri, 21 Jun 2024 01:59:03 GMT

The ATO announces its priorities for Tax Time 2024.

As tax time approaches, the ATO has announced it will be taking a close look at 3 common errors being made by taxpayers:

Incorrectly claiming work-related expenses
Inflating claims for rental properties
Failing to include all income when lodging

Work-related expenses

Last year the ATO revised their fixed rate method of calculating a working from hoe deduction to broaden what is included, increase the rate and adjust the records you need to keep.

These changes are now in full effect this financial year, meaning you must have comprehensive records to substantiate your claims as you would for any other deduction.

You need records that show the actual number of hours you worked from home (e.g. a calendar, diary or spreadsheet) and the additional running costs you incurred (e.g. copies of your internet or electricity bill).

Remember there are 3 golden rules for claiming a deduction on any work-related expense:

You must have spent the money yourself and weren't reimbursed
The expense must directly relate to earning your income
You must have a record (usually a receipt) to prove it

Rental Properties

ATO data shows 9 out of 10 rental property owners are getting their income tax returns wrong. This year the ATO will be particularly focused on claims that may have been inflated to offset increases in rental income to get a greater tax benefit.

Performing general repairs and maintenance on your rental property can be claimed as an immediate deduction. However, expenses which are capital in nature are not deductible as repairs or maintenance.

You can claim an immediate deduction for general repairs (e.g. replacing damaged carpet or broken windows). If you were to rip out an old kitchen and put in a new and improved one, this is a capital improvement and is only deductible over time as capital works.

As reporting rental income and deductions can be complex, many individual rental owners choose to use a registered tax agent to help them prepare their tax returns.

Get it right - wait to lodge

The ATO is warning against rushing to lodge your tax return on 1 July.

If you have received income from multiple sources, you need to wait until this is pre-filled in your return before lodging.

"We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers. For most people this information will be automatically pre-filled in their tax return by the end of July. This will make the process smoother, save time and help you get your return right.

You can check if your employer has marked your income statement as 'tax ready' as well as if your pre-fill is available in myTax before you lodge, that way an amendment doesn't need to be made later".

2024/25 Federal Budget

Wed, 15 May 2024 00:17:58 GMT

1. Personal income tax measures

The following table outlines the marginal income tax rates and thresholds that apply for resident individuals under the revised stage three personal tax cuts from 1 July 2024

2. Small business measures

Instant asset write-off threshold for small businesses will be increased to $20,000 for the 2025 year.
Energy bill relief for small businesses of $325 to reduce the cost of electricity for 1 million small businesses.

3. Other measures

The indexation rate of HECS & Trade Support Loans will be reduced effective from 1 June 2023.

Maximize Your Super Contributions with Carry-Forward Contributions

Thu, 22 Feb 2024 01:30:00 GMT

What are Carry-Forward Super Contributions?

Carry-forward contributions empower you to utilize any untapped portion of your concessional contributions cap over a rolling five-year period. These contributions are not an exclusive type; rather, they enable members of super funds to benefit from previously unused caps. This means if you don't utilize your full concessional contributions cap (e.g., $27,500 in 2023-24), you can carry forward the remaining amount for up to five years, boosting your savings.

Checking Your Available Balance, Made Easy

Discovering your available carry-forward amount is easy. Simply log in to myGov and access the linked ATO service. Go to the super menu, select information, and click on carry-forward concessional contributions. This will display your unused concessional contributions available to carry forward. If you prefer offline assistance, contact the ATO at 13 10 20.

Eligibility and Process Simplified

To be eligible for carry-forward contributions, ensure your Total Super Balance (TSB) is under $500,000 as of the previous financial year's June 30. The process doesn't require forms or notifications; just make contributions as usual through your employer or personally.

How Carry-Forward Contributions Work: Case Studies

Let's look at two scenarios:

Kylie: with $310,000 Total Super Balance, taps into unused caps from previous years. In 2023-24, she contributes $52,500, exceeding the cap by $25,000. Through carry-forward, she uses her $15,000 leftover cap from 2018-19, followed by $10,000 from 2019-20, leaving $5,000 for later use. Kylie optimizes contributions within limits.

Arun: having $490,000 TSB, employs his $20,000 unused cap in 2023-24. Anticipating $16,500 from his employer, he adds a tax-deductible $31,000. His total contributions amount to $47,500, including the $20,000 carried forward. Arun strategically boosts contributions, considering his TSB's impact.

In a Nutshell

Carry-forward contributions provide flexibility for effective retirement planning, especially for those with unconventional work histories. By utilizing unused caps, you can optimize your contributions while minimizing tax implications. Start harnessing the power of carry-forward contributions to secure your financial future.

More details are available at https://www.superguide.com.au/how-super-works/carry-forward-contributions