1. What happened to the 30% ‘Super Tax’?

In February 2023, the Federal Government announced a new tax for individual superannuation balances over $3 million. It was described as a 30% tax, but in fact was a second 15% tax on balances over $3 million.

The scary part was that the tax would have been a tax on unrealised gains in value of assets, not just on income or gains realised upon the disposal of the asset. That opens the door to another form of wealth tax.

Well .. the Bill was rejected by parliament. And with the Federal Election looming, it is unlikely to become legislation in the short term. However, it could well become a core component of the government’s electoral commitment.

So, it is definitely not dead yet.

2. Electric Vehicles and FBT exemptions. It just gets better!

Since we wrote about the best tax break in years a few things have changed.

Put simply, the world is awash with electric vehicles and the anticipated demand just isn’t there. China is the world’s largest electric vehicle manufacturer, and they are producing these things in eye watering quantities, and they are very cheap. There are more unpronounceable brands coming to our roads over the next few years.

Right now, there are vast stocks of unsold cars out there looking for a home. And the dealers are discounting heavily. Yes, cars from traditional manufacturers.

How heavily?

We have seen examples of clients and colleagues who have acquired (even demo vehicles) that were once priced well over $100k being sold to the first owner (an important qualifying test) for under the Luxury Car Tax threshold for EVs (of $91,387 – a cap excludes the on-road costs of the vehicle).

Those same, very luxurious cars are being driven (totally privately and legitimately) for around $800 a month after tax.

Now if that doesn’t get your attention …

By the way, the limited time Plugin Electric Hybrid Vehicle (PHEV) qualification ends on 1 April. To qualify for this one, you will need to be driving and enjoying your hybrid before that date. PEHV are more akin to current technology vehicles.

3. Payment of Super. Now I am nagging you again.

This is just so silly.

If you don’t pay your employees’ super on the day due, you simply don’t get a tax deduction. And the penalties are awful.

4. Short Stay levy now in force. Another Victorian property tax!

Finally got your head around the new Vacant Land Levy? There is more.

As from 1 January 2025, a 7.5% levy applies to all short-stay accommodation bookings. A short stay is less than 28 days. The levy applies to the accommodation fee, plus booking and other fees, cleaning charges and GST.

If a booking is not made through a booking platform (Air BNB, Stayz), the property owner needs to register for the levy through the SRO portal.

Apparently, the aim of this tax is to boost the supply of long-term rental accommodation and to provide funds for more social housing.