From the ATO

Pay Less Capital Gains Tax (CGT)

You can reduce the capital gains you’ve made by offsetting them with any capital losses, including from previous years. This will reduce your CGT bill. You need to use losses you’ve carried forward from previous years before using any current year losses. If losses from previous years reduce your current year gains to zero, you can carry over any remaining losses to offset future gains for as long as you need.

You can choose which gains to offset. The only exception is the gains you make from collectables, such as artwork, jewellery and antiques. You can only use a capital loss from collectables to offset a capital gain from collectables.

Think carefully about which gains you want to offset first. Starting with gains that are not eligible for the CGT discount will help reduce your CGT as much as possible.

You cannot offset a gain with a loss you’ve made from certain assets, including:

• personal use assets, such as boats or furniture;
• CGT exempt assets, such as cars and motorcycles;
• collectables that cost you $500 or less (if they cost more, the loss can only be offset against gains from collectables).

Tip!
Talk to your tax adviser if you have capital losses.

Let’s Talk Record-Keeping

The ATO is encouraging taxpayers to consider what work-related expenses they will be looking to claim for the 2024–25 income year, and what records they will need to substantiate those deductions.

Keeping good records can reduce the cost of managing your tax affairs and ensure you can claim all expenses that you are entitled to.

Generally, you won’t know at the start of the financial year exactly what you can claim come tax time, but you can set yourself up for success by checking what work-related expenses you can claim, what records you will need to prove them, and making a plan to store those records for when you’ll need them.

Records can be kept as a paper version, an electronic copy or a true and clear photo of an original record. You can use any electronic device or app to keep your electronic records. However, the ATO recommends backing up your electronic records regularly.

The ATO has also published information on its website busting some common myths concerning records, deductions and work-related expenses.

Bank Statements

In most cases, a bank or credit card statement on its own won’t be enough evidence to support a work-related expense claim. You will need written evidence (usually a receipt) that shows:

• the supplier
• the cost
• the date of purchase
• the date the document or receipt was produced
• the nature of the goods or services being claimed

Claiming More Than $300 of Work-Related Expenses

If your total claim for work-related expenses is more than $300, you must have written evidence to support all those claims.

If your total claim for deductible work expenses is $300 or less, you can claim a deduction without written evidence (such as a receipt), but you must be able to:

• show that you spent the money, and
• show how you calculated the amount being claimed

No Automatic Deductions

While some deduction types don’t require receipts (such as laundry expenses), some kind of record may still be necessary. For any work-related expense claim, you need to meet the three golden rules:

1. You must have spent the money yourself and were not reimbursed.
2. The expense must directly relate to earning your income.
3. You must have a record to prove it (usually a receipt).

If the expense was partly private, you may claim only the portion that relates to your work.

You cannot claim a deduction if your employer pays for the expense or reimburses you.
The ATO may confirm this with your employer.

Non-Work-Related Expenses You Can Claim

You can claim some expenses even if they are not related to your work:

• gifts and donations
• expenses for earning investment income
• personal superannuation contributions
• income protection insurance
• the cost of managing your tax affairs

When you claim any deduction, you must keep records that show you incurred the expense.

Your Tax Residency

If you are coming to Australia or going overseas, you may need to work out your residency for tax purposes.

The rules for tax purposes are not the same as those used by the Department of Home Affairs. This means:

• You may be an Australian resident for tax purposes without being an Australian citizen or permanent resident; or
• You may hold an Australian visa but not be a tax resident.

There are four tests used to determine tax residency:

• the resides test
• the domicile test
• the 183-day test
• the Commonwealth superannuation test

Only one test needs to be satisfied for you to be considered an Australian tax resident.

Resides Test

The primary test is the resides test (or the ordinary concepts test).
If you reside in Australia, you are an Australian tax resident.

However, it isn’t always obvious.

For example, someone who lives and works overseas may still be considered an Australian resident if they:

• maintain strong connections to Australia
• frequently visit family in Australia
• own property in Australia
• maintain bank accounts here

Factors considered under this test include:

• physical presence
• intention and purpose
• family ties
• business/employment ties
• maintenance and location of assets
• social/living arrangements

Working holiday makers generally do not satisfy this test.

Domicile Test

You are an Australian tax resident if your domicile is in Australia, unless you have a permanent place of abode outside Australia.

Your domicile is your legally recognised permanent home:

• by origin (place of birth), or
• by choice (if you permanently moved elsewhere)

183-Day Test

You are an Australian resident under this test if:

• you are physically present in Australia for more than half the income year,
• unless your usual place of abode is outside Australia and
• you have no intention of taking up residence in Australia.

Commonwealth Superannuation Test

This test automatically applies if you are a member of:

• Commonwealth Superannuation Scheme (CSS), or
• Public Sector Superannuation Scheme (PSS)

(Not PSSap.)

If so, you, your spouse, and your children under 16 are considered Australian residents.

Tip!
Talk to your tax adviser if you are uncertain about your tax residency — it can significantly affect your tax outcomes.

Tax and Superannuation Schemes

The ATO is warning taxpayers about a range of tax avoidance and evasion schemes, including:

• mass-marketed schemes
• boutique schemes
• schemes targeting individuals, large private groups, and public companies

Schemes typically aim to:

• reduce taxable income
• increase deductions
• increase offsets
• inflate refunds
• avoid tax obligations
• access super early (illegally)

They may involve:

• incorrect classification of revenue as capital
• exploitation of concessional tax rates
• obscured fund sources or relationships
• illegal early release of super
• movement of money through entities, such as SMSFs, trusts, companies

Common high-risk areas include:

• dividend stripping
• unit trust/unpaid present entitlement schemes
• foreign trust payments
• reimbursement agreements
• private company benefits
• R&D tax incentive misuse
• illegal SMSF property schemes
• asset-protection schemes
• NALI (non-arm’s length income)
• problematic employee benefit arrangements
• misclassified business activities
• private use of business assets
• illegal early release of super

Tip!
Always speak to your tax adviser before entering any tax minimisation scheme.

Self-Managed Super Funds (SMSFs)

Lodging the SMSF Annual Return

If you have an SMSF, you must lodge an SMSF annual return, even if:

• the fund has no tax liability
• no contributions were made
• no payments were made

You can lodge:

• electronically using Standard Business Reporting (SBR), or
• on paper

Your SMSF audit must be completed before lodging.

Lodgment Dates

An SMSF preparing/lodging its own return must lodge by the first applicable date below:

If multiple dates apply, the earliest must be used.
Weekends/public holidays extend due date to next business day.