Financial influencers – or “finfluencers” – are everywhere on platforms like Instagram and TikTok. With polished content and confident advice, they’ve built large audiences, but it’s important to be cautious. Following financial or tax advice from unqualified sources can lead to costly mistakes. We’re increasingly seeing examples of misleading tips, inflated claims, and outright misinformation. Acting on these could result in unexpected tax bills, penalties, or even legal action from the ATO.

Why It’s a Problem

Many finfluencers generate income by promoting financial products or services, meaning their content may be driven by commercial interests rather than what’s best for you. Most aren’t licensed or qualified to give tax advice, and their tips often lack the accuracy and nuance required for individual circumstances. We have seen so-called “tax hacks” circulating that are not only incorrect but often apply only in very limited situations, if they apply at all.

Some recent examples flagged by the ATO and professional accounting bodies include:

• Claiming your pet as a work-related guard dog
• Writing off designer handbags as work-related laptop bags
• Deducting fuel expenses without any records
• Claiming swimwear as a work uniform

While these might sound clever, they don’t meet the ATO’s strict criteria for deductions and can easily trigger an audit. The ATO uses advanced data matching tools to flag suspicious claims, and incorrect deductions can lead to:

• Increased tax payable
• Interest charge
• Penalties
• In severe cases, criminal prosecution

How to Stay Tax-Safe

• Be skeptical of anything that sounds too good to be true — especially on social media.
• Refer to credible sources like ato.gov.au for accurate, up-to-date guidance.
• Don’t jeopardise your financial integrity for a quick deduction — it’s not worth the risk.

If you’re unsure about what you can and can’t claim, speak to a registered tax professional. We’re here to help — no gimmicks, no filters, just solid advice.

Need Help?

We can assist you in reviewing your tax position before year-end to ensure you’re making the most of the opportunities available while reducing your exposure to compliance risks. Contact us today for a tailored review.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), membership certification of the Australian Society of Certified Practising Accountants (CPA), Registered Australia Tax Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Zoe Ma @ Pitt Martin Tax

The Australian Taxation Office (ATO) is paying close attention to wealthy baby boomers, especially those who own family-run businesses. Many of these individuals are passing on their businesses and assets to their children or selling them. The ATO is concerned that some of these transfers and business restructures are being done in ways that reduce tax payments unfairly.

According to ATO Private Wealth Deputy Commissioner Louise Clarke, succession planning and tax risks are a major focus for 2025. The ATO has noticed a rise in business reorganizations that seem to be linked to business owners retiring and passing on their wealth.

If you belong to the ATO’s Top 500 (the wealthiest private groups in Australia) or Next 5,000 (those who control a net wealth of over $50 million), expect the ATO to closely examine how money moves through your businesses and investments.

Why Business Owners Should Be Careful

For many business owners, their company is more than just a source of income—it’s their biggest asset. Over the years, they’ve earned income through salaries, dividends, or by selling shares. While tax laws allow business owners to structure their assets in ways that protect their wealth, they must do so legally. If the ATO finds that a structure exists only to avoid taxes, it can deny any tax benefits under Part IVA, the rule that prevents artificial tax avoidance.

The ATO is particularly watching business owners who are nearing retirement and want to pass their companies down to their children. Often, these owners transfer wealth through trusts and other financial arrangements. While this is legal, the ATO is looking at whether these methods are being used to reduce tax payments unfairly.

Areas That Concern the ATO

Some of the key things the ATO is monitoring include:

1. Division 7A loans settlements – Some companies lend money to shareholders, and instead of repaying the loan, they remove it from the books by calling it a “distribution.” This raises tax concerns.
2. Moving Assets Without Proper Valuation – If businesses transfer assets between family members or related companies, they must properly value them. If an asset is moved just to avoid paying capital gains tax, the ATO may investigate.
3. Restructuring Family Interests – Changing how family members own or control assets may trigger tax issues.
4. Changes to Trust Deeds – The ATO is checking whether changes to trust agreements are being used to lower tax payments.
5. Delays in Tax Filings – Businesses delaying tax returns after a restructure may face scrutiny.

The Use of Trusts

Trusts are under greater scrutiny in 2025. If a trust makes a Family Trust Election (FTE) or Interposed Entity Election (IEE), it must follow strict rules about distributing income. If the trust distributes money outside the family, a 47% Family Trust Distribution Tax applies.

The ATO is also tightening rules on trust tax returns for private trusts. When a trust distributes money or assets to another trust, it must complete a Trustee Beneficiary (TB) statement, unless there is an exclusion that applies. If the TB statement is missing or late, the trustee may face a 47% Non-Disclosure Tax on the undisclosed income.

How to Avoid Risk

If you control multiple businesses or investment entities, make sure everything is structured correctly. Whether these businesses are in Australia or overseas, failing to report transactions properly could lead to penalties.

Transferring a business to the next generation might require changes to share ownership, trust structures, partnership agreements, or asset transfers. Each of these changes has tax consequences that need to be carefully managed.

Business owners should also keep detailed records of why and how they transfer assets. Proper documentation can help show that the purpose of a transaction was legitimate and not just for avoiding tax.

It’s important to plan succession and tax strategies properly. Seeking professional tax advice before making major changes could be something you might need to take into consideration. Tax laws are complex, and a professional can ensure that business owners comply with regulations while still minimizing tax burdens legally to avoid any issues in the future.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

Exciting news for small businesses! Two significant changes are happening for the 2024 financial year, thanks to new laws passed by Parliament recently.

Instant Asset Write-Off Increase

First, the instant asset write-off threshold has been raised from $1,000 to $20,000 for business annual aggregated turnover less than $10 million. This means that small businesses can now write off purchases of assets costing less than $20,000 in 2024 financial year. This change is a big boost for cash flow, as businesses can claim the tax deduction immediately instead of spreading it out over several years.

To take advantage of this, the asset must be bought and either used or installed and ready to use between 1 July 2023 and 30 June 2024. For example, if you buy an industrial fridge, it needs to be delivered and installed by 30 June 2024 to qualify for the write-off.

If the business is registered for GST, the cost of the asset must be less than $20,000 after deducting GST credits. If the business is not registered for GST, the cost must be $20,000 including GST. If the asset is only partly used for business, to determine the amount you can claim, subtract the portion used for private purposes. The remaining balance, which is the portion used to earn assessable income, is typically considered the taxable purpose portion (or business purpose portion). Although you can only deduct the taxable purpose portion, the total cost of the asset must be below the $20,000 threshold.

This new threshold applies to each asset individually. So, a small business can deduct the full cost of several items as long as each one costs less than $20,000. Additionally, a Bill is currently before Parliament to extend this increased threshold to 30 June 2025.

Small Business Energy Incentive

Another great benefit for small businesses is the new small business energy incentive. This incentive provides an extra tax deduction of 20% for the cost of eligible assets and improvements that make your business more energy-efficient or support electrification, such as purchasing of an air conditioner that replace a gas heater, installing time-shifting devices which allow electrical appliances to operate at off-peak times, etc.

There are some exceptions for the energy efficiency solutions, such as no bonus deduction for electric vehicles, solar panels, capital works, etc. Also, the maximum bonus deduction is $20,000, which means you can spend up to $100,000 on qualifying expenses happened between 1 July 2023 and 30 June 2024. Different from the Instant Asset Write-Off, this incentive is available to businesses with an annual turnover of less than $50 million. However, businesses with an annual turnover less than $10 million may can potentially claim both the Instant Asset Write-Off and Small Business Energy Incentive for the eligible assets and improvements. To read the details about the policy, please refer to our previous article ‘Empowering Your Business with Electrification: Unlocking the $20k Tax Deduction’.

Summary

These changes provide fantastic opportunities for small businesses to improve their cash flow and invest in energy-efficient equipment. With the increased write-off threshold and the energy incentive, make sure to check if your purchases qualify and take full advantage of these new laws.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Australian Tax Office (ATO) is aware of an increasing number of Australians buying and selling cryptocurrency over the past few years, the most popular types are Bitcon (BTC), Ethereum (ETH), Tether (USDT), etc. However, not every one of them are aware of their tax obligations. It is essential for investors and traders to understand the tax implications associated with these digital assets. ATO has provided comprehensive guidelines on how crypto assets are treated for tax purposes. To help you along the way, this article will outline the implication of tax on crypto assets in two aspects, which is Capital Gains Tax (CGT) for crypto investors and income tax for crypto traders.

Investor or Trader?

It is important to identify whether you are a crypto investor or crypto trader to determine whether your activities will be taxed under CGT rules or income tax rules. The most common use of cryptocurrency is as an investment, individuals who buy and sell crypto assets to make a profit would be considered as a crypto investor, any gains made from the disposal of crypto assets will be subject to CGT. On the other hand, for individuals who actively engage in trading cryptocurrency in an organised, business-like manner, would be considered as a crypto trader who carry on a crypto trading business. The trading income from the activities would be treated as business income.

Crypto Assets Investors

For individuals who hold crypto assets as investments, CGT becomes a crucial aspect to consider when selling, trading, or disposing of these assets. According to the ATO, cryptocurrencies are considered to be a form of property for tax purposes. This means that any gains made from the sale or disposal of crypto assets may be subject to CGT.

CGT Event:

A CGT event happens when you sell, gift, trade, exchange or swap crypto assets, even when you convert a crypto asset into Australian or foreign currency or buy goods or services with it. By simply buying or holding a crypto asset, you would not need to calculate any capital gains or losses. You are only required to calculate it when a CGT event happens.

Determining Capital Gain or Loss:

To calculate CGT, the ATO requires investors to determine the cost base of their crypto assets, which includes the original purchase price, transaction fees, and any incidental costs. When a crypto asset is sold or disposed of, the capital gain or loss is calculated by subtracting the cost base from the sale proceeds. If the resulting value is positive, a capital gain has been made, and if negative, a capital loss has been incurred. Any capital loss can be used to deduct against capital gains you made.

Holding Period and CGT Discount:

The duration for which a crypto asset is held can impact the amount of CGT payable. If an investor holds their crypto assets for longer than 12 months before selling or disposing of them, they may be eligible for the CGT discount. This discount allows you to reduce the capital gains by 50%, effectively lowering the overall tax liability.

Record-Keeping:

It is essential to maintain accurate records of all cryptocurrency transactions, including purchase and sale dates, amounts, and values. This documentation is crucial when calculating capital gains and losses for tax reporting purposes.

Crypto Assets Traders

For individuals who actively engage in cryptocurrency trading as a business, the ATO views the trading income as assessable income for tax purposes.

Reporting Trading Income:

As a trader, you are required to report your trading activities and include the profits as part of your taxable income. This includes gains from selling cryptocurrencies, profits from mining activities, and any other trading-related income. Ensure that you accurately track your trading income and report it in the appropriate section of your tax return.

Deductible Expenses:

As a trader, you are entitled to claim deductions for expenses directly related to your trading activities. These may include transaction fees, exchange fees, trading software subscriptions, and other expenses incurred in the process. You would need to keep receipts for everything related to your operating expense to substantiate any claims made.

Business Structures:

Depending on the scale and complexity of your trading activities, you may consider operating as a sole trader or setting up a business structure such as a company or trust. Each structure has its own tax implications, and it is advisable to seek professional advice to determine the most suitable option for your circumstances.

Conclusion

As the cryptocurrency market continues to expand, understanding the tax implications associated with crypto assets becomes increasingly important. Whether you are an investor or a trader, it is essential to comprehend how taxes apply to your specific situation. By adhering to the ATO guidelines, maintaining accurate records, and seeking professional advice, you can ensure compliance with tax obligations and minimise any potential risks or penalties from ATO.

Our team have enormous experience in the crypto compliance work and tax advice. By using professional crypto capital gain/profit calculation platform, we can assure you that your new year tax return could save ample accountant fees this time. Please feel free to contact our friendly team in Pitt Martin Tax at 0292213345 our info@pittmartingroup.com.au.

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

By Zoe Ma @ Pitt Martin Tax