by Roann Castro | Mar 5, 2025 | Taxation
The Australian Taxation Office (ATO) has introduced key changes to Fringe Benefits Tax (FBT) exemptions for electric vehicles (EVs) in 2025, impacting businesses and employees who benefit from employer-provided EVs. Understanding these updates is crucial for businesses looking to manage tax obligations effectively while leveraging EV incentives.
Changes to Electric Vehicle Exemptions
The FBT exemption for eligible EVs has been a significant incentive for businesses adopting sustainable vehicle options. However, in 2025, modifications to eligibility criteria and compliance requirements mean businesses must reassess their current fleet policies.
Key Updates:
- Revised Eligibility Criteria: Some EV models may no longer qualify for FBT exemptions due to updated pricing thresholds and specifications.
- Luxury Car Tax Considerations: Vehicles exceeding the defined luxury car tax (LCT) threshold may now attract FBT, increasing costs for businesses.
- Reporting and Compliance: Employers will need to ensure accurate reporting to align with ATO requirements, including proper valuation and documentation of exempt benefits.
ATO Announcements and FBT Deadlines
The ATO has also released important deadlines for FBT returns and payments for the 2024–25 financial year:
- FBT Year-End Date: 31 March 2025 – Businesses should ensure they have accurate records of fringe benefits provided during the financial year.
- FBT Return Due Date: 21 May 2025 (for self-lodged returns).
- FBT Payment Deadline: 28 May 2025 (for payments associated with lodged returns).
- Lodgment via Tax Agent: If using a registered tax agent, businesses may have extended deadlines, but it is essential to confirm individual lodgment dates.
How These Changes Affect Businesses
For businesses that provide EVs to employees, these updates may impact financial planning and fleet management strategies. Employers must:
- Review existing EV benefits to determine continued eligibility for exemptions.
- Assess the cost implications of non-exempt vehicles.
- Stay updated with ATO guidelines to ensure compliance and avoid unexpected tax liabilities.
With these changes, businesses should work closely with their accountants to evaluate the tax impact and explore alternative solutions. Lowrys Accountants can help navigate these FBT updates, ensuring compliance while maximising tax efficiency.
For tailored advice on managing your FBT obligations and meeting ATO deadlines, contact Lowrys Accountants today.
by Roann Castro | Feb 18, 2025 | Taxation
As we settle into the new year, it’s crucial for business owners to stay on top of their tax obligations. The Australian Taxation Office (ATO) has set key deadlines for February 2025 that require your attention. Failing to meet these deadlines can result in penalties, so ensure you’re prepared ahead of time.
Important Dates to Remember
21 February 2025 – Monthly BAS Lodgment & Payment
If your business lodges Business Activity Statements (BAS) on a monthly basis, your December 2024 BAS is due for lodgment and payment by 21 February 2025. This applies to businesses registered for GST that report monthly.
28 February 2025 – Quarterly BAS & IAS Deadline
For businesses lodging on a quarterly basis, the October–December 2024 BAS must be submitted and paid by 28 February 2025. Additionally, if you are required to lodge a monthly Instalment Activity Statement (IAS) for Pay As You Go (PAYG) withholding tax, the January 2025 IAS is also due on this date.
Why Meeting These Deadlines Matters
Timely lodgment and payment of your BAS and IAS help you:
- Avoid ATO penalties and interest charges
- Maintain a good compliance record
- Keep accurate cash flow planning for your business
ATO Updates & Announcements
The ATO regularly provides updates on tax obligations and potential changes to reporting requirements. If there are any recent announcements regarding lodgment extensions, payment deferrals, or relief measures, ensure you stay informed through official ATO communications.
Need Assistance? Lowrys Accountants Can Help
Navigating tax obligations can be complex, but you don’t have to manage it alone. At Lowrys Accountants, we provide expert BAS and IAS lodgment support, ensuring you meet your tax responsibilities on time and without hassle. If you have any concerns about your upcoming deadlines, reach out to us for guidance and tailored advice.
📩 Get in touch today to ensure your BAS and IAS are lodged on time!
by Roann Castro | Dec 2, 2024 | Bookkeeping, Business
Whether you’re an individual managing your personal finances or a business owner keeping operations running smoothly, good bookkeeping is a must. Staying organised, informed, and proactive with your finances can make all the difference. With updates like MyGov’s MYID feature and advancements in digital tools, here are some practical tips for Australians to get the most out of their bookkeeping services in 2025.
1. Take Advantage of MyGov’s New MYID Feature
The Australian Government has introduced the MYID feature to simplify access to government services, making it easier to stay on top of your financial obligations. For individuals, this means keeping track of tax refunds, Medicare claims, and other key updates. Business owners can use MYID to monitor tax obligations, superannuation updates, and compliance requirements.
Tip: Check your MyGov account weekly to stay informed and pass on relevant updates to your bookkeeper. For more information, visit the official MyGov announcement.
2. Keep Your Records Organised
Timely and accurate record-keeping is essential. Whether you’re tracking personal expenses or managing business finances, having your records in order makes everything easier. For individuals, this means saving receipts and documenting income. Business owners should ensure their bookkeepers receive regular updates, including invoices, payroll records, and bank statements. Staying organised can help avoid surprises and identify opportunities to save.
3. Embrace Cloud-Based Accounting Tools
Cloud accounting platforms like Xero, MYOB, and QuickBooks are game-changers for Australians. These tools allow real-time access to your financial data, making it easier for individuals to monitor their spending and for business owners to collaborate effectively with bookkeepers. Ask your bookkeeper about the best platform for your needs and how to set it up for maximum efficiency.
4. Schedule Regular Financial Check-Ins
Regular communication with your bookkeeper is critical. For individuals, a periodic review of personal finances can highlight opportunities to save or improve budgeting. Business owners should schedule regular meetings to review reports, discuss tax planning, and strategise for the months ahead. These check-ins ensure you’re on top of your finances and ready for any challenges.
5. Leverage Your Bookkeeper’s Business Advisory Expertise
Bookkeepers are more than number-crunchers—they’re valuable advisors. They can offer insights into cash flow, budgeting, and planning to help businesses improve efficiency and profitability. For individuals, they can assist in identifying tax-saving opportunities. Don’t hesitate to seek their advice and use their expertise to make informed decisions.
Why Bookkeeping Matters for Australians
Whether you’re managing a household budget or running a business, effective bookkeeping keeps your finances on track and compliant with regulations. By staying informed with tools like MYID, organising your records, embracing digital solutions, and tapping into your bookkeeper’s expertise, you’ll be set for a successful 2025.
At Lowrys Accountants, we’re committed to helping Australians achieve their financial goals with expert bookkeeping and business advisory services. Let’s work together to make 2025 a standout year for your personal or business finances.
by Roann Castro | Dec 2, 2024 | Business
Artificial Intelligence (AI) is transforming the finance sector, revolutionising traditional practices and unlocking powerful capabilities. At Lowrys, we harness the power of AI to offer advanced financial analysis and reporting services tailored to meet your business needs. Here’s how AI is reshaping the way we approach finance:
AI-Powered Data Analytics
For businesses looking to optimise performance, AI-powered data analytics is a game changer. With the ability to process large volumes of transactional data in real-time, AI tools uncover valuable insights into market trends, customer behaviours, and sales patterns. By working closely with our expert team, we can turn these insights into strategic recommendations, helping you navigate industry-specific challenges with precision.
Predictive Modelling and Forecasting
Accurate forecasting is key to managing financial risks and opportunities. AI-driven predictive modelling at Lowrys analyses historical data, economic indicators, and relevant market factors to offer reliable predictions. Our experts enhance this analysis with their deep understanding of market sentiment, regulatory developments, and macroeconomic factors, ensuring that forecasts are actionable and relevant to your business goals.
Automation of Routine Tasks
Routine administrative tasks can take up significant time and resources in any finance department. At Lowrys, we use AI to automate repetitive processes such as data entry, reconciliation, and report generation. This allows your team to focus on higher-value activities, improving efficiency and outcomes.
Enhanced Risk Management
AI is a powerful tool in risk management. By analysing behavioural patterns, transactional data, and historical trends, AI tools can detect potential fraud and flag suspicious activities. While AI identifies these risks, our experts assess the severity, interpret findings, and develop proactive risk mitigation strategies, ensuring that your business is protected against emerging threats.
Improved Compliance and Regulatory Reporting
Staying compliant with financial regulations is more important than ever. AI-powered compliance tools automate the process of transaction monitoring, data analysis, and reporting. Our experts ensure that all reports generated are accurate, comprehensive, and aligned with regulatory requirements, providing peace of mind and helping your business stay ahead of regulatory changes.
The Role of Human Expertise
While AI offers powerful capabilities, human expertise remains essential. At Lowrys, our professionals bring:
- Contextual Understanding: We provide industry-specific insights and ensure that AI-generated data is contextualised to your business needs.
- Quality Assurance: Our experts validate all AI outputs, ensuring that you receive accurate and actionable information.
- Strategic Decision-Making: We use our judgement to interpret AI findings and develop long-term strategies that align with your goals.
AI is transforming financial analysis and reporting, but the real value comes when it’s combined with human expertise. At Lowrys, we bring together cutting-edge technology and expert insight to deliver personalised financial solutions that drive business success. Reach out today to learn how AI, combined with our expert team, can enhance your financial strategy and reporting capabilities.
Let’s work together to unlock the full potential of your business with AI-powered financial services.
by Roann Castro | Nov 4, 2024 | Business, Superanuation, Wealth Management
Australia’s superannuation system plays a crucial role in the country’s retirement landscape, ensuring people are financially secure in later years. Recent updates, including the introduction of Payday Super, have been implemented to protect retirement savings further, increasing transparency and accountability for both employers and workers.
What is Payday Super?
Payday Super requires employers to make superannuation contributions at the same time as they pay wages. This change is intended to strengthen the super system by ensuring contributions are paid more regularly, reducing the risk of missed or late payments, and helping workers grow their retirement savings.
For employers, this shift brings both opportunities and obligations. With greater scrutiny and reporting requirements, businesses must adapt to stay compliant with these evolving obligations.
How Does Payday Super Benefit Employees?
With Payday Super, employees can track their super contributions in real-time. This transparency lets workers see their super payments align with their pay cycle, giving peace of mind that their retirement savings are on track. It also enables individuals to promptly address any discrepancies with their employer or super fund.
Employer Responsibilities Under Payday Super
Employers need to stay updated on their super payment obligations under the Payday Super requirements, including:
- Timely Super Payments: Super contributions must now be made on the same day as salary or wages are paid.
- Accurate Reporting: Employers must submit accurate super reports to the Australian Tax Office (ATO), ensuring contributions are processed correctly.
- Avoiding Penalties: Late or incorrect payments can result in penalties or interest charges from the ATO, affecting a business’s financial standing.
How Lowrys Accountants Can Help
At Lowrys Accountants, we understand that staying compliant with changing superannuation requirements can be challenging for businesses of any size. Our team of experts is here to streamline your payroll and super processes, ensuring you meet your obligations while reducing the risk of penalties.
- Super Compliance: We help you navigate the superannuation landscape, making sure all payments are made correctly and on time.
- Payroll Integration: Our services integrate seamlessly with your payroll, making super contributions straightforward.
- Business Advisory: We provide tailored advice to help your business stay ahead of legislative changes and make informed decisions about managing super obligations.
Whether you’re a small business or a large organisation, Lowrys Accountants offers the support you need to manage your super responsibilities efficiently. Let us take care of the details so you can focus on growing your business.
