Max Accountants

AML/CTF Regulatory Changes - What This Means For You

2026-07-17T01:56:00+00:00

Important Changes to Anti-Money Laundering and Counter-Terrorism Financing Requirements

We are writing to let you know about some upcoming legislative changes that will affect how we work with our clients.

From 1 July 2026, accountants will be brought into Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime.

These reforms are aimed at helping deter, detect and disrupt the movement of illegal funds - including the proceeds of crime - and to prevent money laundering and terrorism financing activities.

In practical terms, this means we will need to request identification documents or additional information as part of our engagement process, and on a periodic basis, when we provide ‘designated services’ to you.

If you are acting on behalf of a company, trust or other structure, we may also be required to obtain and verify the identity of the individuals who ultimately own or control that entity (i.e. have 25% or more ownership or are in senior executive roles). This may include obtaining documentation to confirm their identity. This helps ensure we understand who we are acting for and to meet our regulatory obligations.

We appreciate that providing this information takes time, and we will only request what is legally necessary. Protecting your privacy and confidentiality is important to us, and any information you provide will be managed securely and in accordance with our privacy obligations.

We are working to make this process as smooth and straightforward as possible.

If you would like more information about these legislative changes, please visit the AUSTRAC website.

Australian Federal Budget 2027 Highlights

2026-07-16T03:21:00+00:00

Federal Budget 2027 Highlights

1. Replacing the 50% CGT discount with indexation

From 1 July 2027, the 50% CGT discount will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax on net capital gains.

These changes will apply to all assets, including pre-CGT assets, held by individuals, trusts and partnerships.

Transitional arrangements will limit the impact on existing investments by ensuring the changes only apply to gains accruing on or after 1 July 2027. The 50% CGT discount will continue to apply to gains that accrued before 1 July 2027.

Capital gains on pre-CGT assets that accrued before 1 July 2027 will remain exempt from CGT.

Furthermore, investors in new residential properties will be able to choose either:

• the 50% CGT discount; or

• cost base indexation and the 30% minimum tax

Income support payment recipients, including Age Pension recipients, will be exempt from the minimum tax.

Assets that are sold prior to 1 July 2027 will continue to be subject to the existing rules.

2. Changes to negative gearing for residential property investments

From 1 July 2027, losses from established residential properties will only be deductible against rental income or the capital gains from residential properties. Excess losses will be carried forward and are able to be offset against residential property income in future years.

These changes will apply to established residential properties acquired from 7:30 PM (AEST) on 12 May 2026. Properties acquired prior to this time (including contracts entered into but not yet settled) will be exempt from the changes until disposal.

Eligible new builds will be exempt from the changes.

Properties in superannuation funds and widely held trusts will be excluded, alongside targeted exemptions for build-to-rent developments and private investors supporting government housing programs.

3. Reforming the taxation of discretionary trusts

The Government will introduce a minimum 30% tax on discretionary trusts.

From 1 July 2028 (i.e., from the 2029 income year), trustees will pay a minimum tax of 30% on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee.

Under the minimum tax, corporate beneficiaries will be assessed based on the trust income to which they are entitled, without being able to claim credits for tax payable by the trustee.

The minimum tax will not apply to other types of trusts such as fixed trusts, fixed testamentary trusts, complying superannuation funds, special disability trusts and deceased estates.

Some types of income such as primary production income, certain income relating to vulnerable minors, amounts to which non-resident withholding tax applies, and income from assets of discretionary testamentary trusts existing at announcement will also be excluded.

The Government will provide expanded rollover relief for three years from 1 July 2027 for small businesses and others that wish to restructure out of discretionary trusts into another type of entity, such as a company or fixed trust.

4. Permanent $20,000 instant asset write-off

From 1 July 2026, the Government will permanently extend the $20,000 instant asset write-off for small businesses with turnover of less than $10 million.

Assets valued at $20,000 or more can continue to be placed into the small business depreciation pool. The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years after opting out will continue to be suspended until 30 June 2027.

5. Introducing a Working Australians Tax Offset

The Government will introduce a $250 Working Australians Tax Offset with effect from the 2028 income year. This new offset will provide a permanent annual tax offset for Australians for their income derived from work such as salary and wages and the business income of sole traders.

6. $1,000 Standard Deduction for Work-related Expenses

The Government will introduce a standard tax deduction of up to $1,000 for work-related expenses from the 2027 income year. Draft legislation and explanatory materials have been released for consultation regarding this measure: Treasury Laws Amendment Bill 2026: standard deduction for work-related expenses.

The Draft Bill proposes to amend the tax law to introduce a standard deduction of up to $1,000 for Australian tax residents who earn income from work, starting 1 July 2026. Such taxpayers will not need to itemise or substantiate work-related expenses if they are claiming no more than $1,000.

Individuals who incur work-related expenses greater than the $1,000 maximum standard deduction can continue to claim their deduction in the usual way.

Charitable donations, union and professional association membership fees and other non-work-related deductions can still be itemised separately and claimed on top of the standard deduction.

Tax Stall Opening Hours

2025-07-16T03:15:00+00:00

TAX STALL

Monday to Friday

9:30am - 4:30pm

We will now be opening 9:30am to 4:30pm

with prices starting from $140 at the tax stall
Appointments are available by calling the office on (07) 5580 4455 or email on info@maxaccountants.com.au

Deny deductions for ATO interest charges

2024-09-24T01:25:00+00:00

The cost of tax debt will likely increase from 1 July 2025. The Government has proposed that all taxpayers will no longer be able to claim a deduction for ATO interest charges in the 2025-2026 income year onwards.

Taxpayers with outstanding debts or those currently negotiating repayment plans with the ATO need to consider the potential impact of these changes.

The ATO interest rate applies to taxpayers who fail to pay their taxes on time. At present, the interest rate is 11.38%.

Small businesses will be impacted by this measure as the interest rate are akin to an unsecured loan. There maybe other strategies to implement to minimise this measure.

Contact Max Accountants if you want to discuss this further.

Small Business Incentives

2024-02-20T05:05:00+00:00

Small Business Incentives

The Technology Investment Boost encouraged businesses to adopt digital technologies by providing a 20% bonus deduction for eligible expenditure incurred for the purposes of an entity's digital operations. However, this 'boost' applied to eligible expenditure incurred until 30 June 2023.

However, there are currently two further 'boosts' outlined below, which apply to eligible expenditure incurred up until 30 June 2024:

The Skills and Training Boost to support small businesses to train and upskill their employees, which applies to eligible expenditure incurred from 29 March 2022 until 30 June 2024; and

The Small Business Energy Incentive (Boost) to support small business electrification and more efficient energy use, which applies to eligible expenditure incurred between 1 July 2023 and 30 June 2024.

The Skills and Training Boost provides 'small or medium businesses' with a bonus 20% deduction for eligible expenditure incurred on external training for employees.

The Small Business Energy Incentive (Boost) provides 'small or medium businesses' with a bonus 20% deduction for the cost of eligible depreciating assets and/or eligible improvements incurred in relation to existing depreciating assets that support electrification or energy efficiency.

To be eligible for either of the above 'boosts', a business taxpayer must satisfy a number of conditions. Also, the Small Business Energy Incentive (Boost) is subject to the passage of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (which is currently before Parliament).

Energy Efficiency Grants for SMEs program $10,000 to $25,000

2024-02-20T04:51:00+00:00

Energy Efficiency Grants for SMEs

The Federal Government is delivering a further $41 million in Energy Efficiency Grants (EEG) for small and medium enterprises (SMEs) to improve energy efficiency. The grants between $10,000 and $25,000 can be used to upgrade to more efficient equipment. This includes replacing air conditioners with high efficiency units or gas heating boilers with heat pumps, helping SMEs lower power bills and emissions.

The first round of grants awarded $15.5 million to 674 businesses for energy savings from upgrades to pool covers, heat pumps, air conditioners, as well as more efficient hot water pumps and compressed air improvements. Round two is a $41.2 million investment that will help businesses use less energy and improve competitiveness, while reducing their carbon footprint. The $41.2 million will be allocated to states and territories in proportion to the national distribution of SMEs. Applications for the grants will open across the country on different dates starting from 22 February 2024.

Low and middle income earner tax offsets to be hit in 2023 financial year

2023-06-19T04:52:00+00:00

The low and middle income tax offset (LMITO) ceased on 30 June 2022. As a result, low to middle income earners may see their tax refunds for the 2023 financial year and beyond, reduced by between $675 and $1,500.

For the 2023 financial year, you may be eligible for the low income tax offset (LITO) only, if you earn up to $66,667. The maximum amount of the LITO is $700, with a reduction applying for taxable incomes between $37,500 and $66,667, and reduces to nil above this higher threshold.

Marginal Tax Bracket 2023 - Australia

2023-05-06T12:12:00+00:00

As the 2023 financial year is coming to an end, it is important to understand the Australian tax rates and how it will impact you financially. In this article, we will explore the marginal tax rates in Australia in 2023 and how it is treated if you are an Australian tax resident or a non-tax resident.

What is the marginal tax rate?

The marginal tax rate is the amount of additional tax for every dollar earned. In Australia, there are currently five tax brackets, with the highest being for individuals who earn over $180,000 per year. The tax rate for this bracket is currently 45%.

It is important to note that tax brackets and rates can change from year to year.

So, what will the tax rates be in Australia in 2023?

The table below shows the tax rates in Australia.

ATO tax rates

Taxable income	Resident tax	Non tax resident
$0-$18,200	Nil	32.5 for each $1
$18-201 – $45,000	19c for each $1 over $18,200	32.5c for each $1
$45,000 -$120,000	$5,092 plus 32.5c for each $1 over $45,000	32.5c for each $1
$120,001 - $180,000	$29,467 plus 37c for each $1 over $120,000	$39,000 plus 37c for each $1 over $120,000
$180,000 and over	$51,667 plus 45c for each $1 over $180,000	$61,200 plus 45c for each $1 over $180,000

It is important to understand that the highest tax rate for both resident and non-tax residents is 45%.

So, how does this information impact you? If you are an individual who earns over $180,000 per year, you will continue to be subject to the highest tax rate of 45% in 2023. If you are a non-tax resident you are paying $10,000 more compared to a tax resident on the highest tax scale.

Therefore, it is need to undertake proper tax planning before end of financial year to lower your tax rate.

Also below is a summary of tax differences between an Australian tax and non-tax resident.

Resident for tax purposes	Non resident for tax purposes
Lower tax. Tax free threshold	Higher tax. No tax-free threshold
Tax on worldwide income	Only taxed on Australian sourced income (most commonly Aust real property)
Pay Medicare levy	No Medicare levy
Interest income assessed at taxpayer’s marginal tax rate	Interest taxed at flat 10%, or 45% if no overseas address (or TFN) provided
Liable for CGT on worldwide assets	CGT only on “taxable Australian property” (most commonly Aust real property)

One resource that can be helpful in navigating tax laws and regulations is Max Accountants. Max Accountants is a professional accounting firm based in Australia that offers a range of services, including tax advice and compliance. Their team of experts can help individuals and businesses understand their tax obligations and maximize their financial position.

Tax Planning 2023

2023-03-16T06:01:00+00:00

Year End Tax Planning Reminder

THIS IS A REMINDER FOR THOSE INTERESTED IN TAX PLANNING FOR THE 2023 YEAR

The objective of tax planning is to maximise your after tax income. Good tax planning aims to reduce your tax burden.

Please review below if any of the following apply to you. If so, kindly contact us to discuss if you require tax planning for this year.

Operated a business which derived (incurred) a profit (loss) during the year? Review your latest Profit & Loss statement.
Bought or sold any investment(s) e.g. shares, properties, business, equipment etc?
Received any lump sum payment(s) e.g. salary bonus, inheritance, redundancy, ETP, etc?
Received any investment income(s) e.g. rent, managed funds, trust distributions, dividends, foreign income, etc?
Received any untaxed income(s) e.g. allowances, commissions, contracts, etc?
Have any unpaid compulsory superannuation payment(s) owing to employee(s)/contractor(s) (if applicable)?
Any employee(s) payments for which no PAYG taxes were remitted to ATO?
Any outstanding GST not lodged during the year?
Outstanding shareholder loans owed to the company as at 30 June 2023?

If you have any questions, please do not hesitate to contact our office.

Call: 0755804455

E-mail: info@maxaccountants.com.au

SINGLE TOUCH PAYROLL (STP) PHASE 2 REPORTING

2023-02-28T04:27:00+00:00

Dear all,

SINGLE TOUCH PAYROLL (STP) PHASE 2 REPORTING

STP is a way to communicate your employer's tax and superannuation information to the ATO in a timely manner. Phase 2 provides additional information that will be used by the ATO and Services Australia.

What is STP 2 all about?

Tax file number (TFN) declaration:

STP 2 will eliminate the need to submit a TFN declaration form for new employees.

Employee Separation Certificates:

These certificates are no longer required, as the reason why an employee has left the business will now be provided via STP reports.

Lump Sum E payments (Back pay):

Previously, if an employer makes a payment owing from previous years a Lump Sum E letter would need to be provided to the employee. This information must now be included in Phase 2 reporting, with details of the payment appearing in the employee’s income statement.

Child Support:

Businesses will have the option to include child support garnishees and deductions in their STP report, reducing the need to provide separate advice to the Child Support Registrar.

Employment Type:

Reporting of employment type will now be mandatory. You will need to declare whether your employees are full-time, part-time or cause, in addition to new categories such as labour hire or volunteer.

Disaggregation of Gross:

Income will no longer be reported as a gross sum, instead each component must be itemised including salary sacrifice, overtime, paid leave, bonuses, commissions, director’s fees and allowances (allowances must also be individually itemised).

Country Codes:

If you have Australian resident employees working overseas, businesses will need to provide details of the host country.

We have provided the below hyperlinks to each Payroll Software's STP Phase 2 Hub for more information and further assistance.

XERO

https://www.xero.com/au/programme/single-touch-payroll/stp-2/

MYOB

https://www.myob.com/au/comms/accountants-partners/stp-phase-2

RECKON

https://www.reckon.com/au/single-touch-payroll-phase-2-hub/

QUICKBOOKS

https://quickbooks.intuit.com/learn-support/en-au/help-article/payroll-compliance/single-touch-payroll-stp-phase-2-hub/L99nVN8A1_AU_en_AU

If you are using Xero's payroll software you have until 31 March 2023 to move to STP Phase 2. Please check your payroll system for the due date if you are using MYOB, Reckon or Quickbooks.

If you have already set up your Payroll Software for STP Phase 2 reporting, then there is nothing further to do.

Otherwise, please advise if you require any assistance setting up your STP Phase 2 reporting and we can organise a quote for our estimated time.

If you have any further questions please do not hesitate to contact our office.