Staying informed about changes in tax regulations is essential for individuals and employers alike. In this blog post, we will discuss some key updates that you should be aware of. From a new super tax for high-income individuals to exemptions for electric cars, these updates can have a significant impact on your financial obligations. Let's dive into the details.

1. New 15% Super Tax: Starting from July 1, 2025, the government plans to impose an additional 15% tax on individuals with more than $3 million in superannuation. This tax will apply to the annual movement in the value of the superannuation balance above the $3 million threshold. It's important to note that there is no limit on the size of superannuation account balances.
2. FBT Obligations: Employers need to be prepared for their Fringe Benefits Tax (FBT) obligations for the 2023 financial year. If you have provided fringe benefits to your employees or their associates between April 1, 2022, and March 31, 2023, you must self-assess your FBT liability, lodge an FBT return if necessary, pay the FBT owed by the due date, and calculate the reportable fringe benefits amount for each employee if it exceeds $2,000.
3. FBT Exemption for Electric Cars: Since July 1, 2022, eligible electric cars and associated expenses are exempt from FBT. To qualify for the exemption, the car must be a zero- or low-emissions vehicle, used by a current employee or their associate, and not subject to luxury car tax. This exemption presents an opportunity for businesses to embrace eco-friendly transportation options.
4. Tips to Reduce Study and Training Loan Balances: If you have a study and training loan balance, it's essential to consider methods of reducing the balance to avoid a hefty tax bill. While interest is not charged on these loans, they are subject to indexation based on the consumer price index. You can inform your employer about study loans, adjust withholding amounts, and make voluntary repayments before June 1 to minimize the impact of indexation.
5. Reminder of March 2023 Quarter Superannuation Guarantee (SG): Employers should be aware that the Superannuation Guarantee (SG) obligation for the January 1, 2023, to March 31, 2023, quarter is due by April 28, 2023. Failing to pay the correct amount on time may result in penalties and interest. Moreover, the compulsory SG rate increased to 10.5% from July 1, 2022, and will further increase to 11% from July 1, 2023.

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