Talking Concepts

March 2025

What's been going on this quarter? Stay current with Concepts & Results and any updates in the market

We would love to get your feedback!

Both good and bad, we want to know how we can improve our service for you.

Dates to Remember

31st March 2025 – FBT. Look out for detailed correspondence sent to you prior to end of March and article below

25 April 2025 – ANZAC Day

28th April 2025 – Super Guarantee Contributions

15th May 2025 – Last day for Income Tax Returns lodgements

26th May 2025 – March BAS Due (if ELS lodged with C&R)

30th June 2025 – End of Financial Year

Starting INTEREST RATES

5.54% p/a Fixed Rate
6.47% p/a Comparison Rate

Based on our lender panel, ME Bank’s 2 Year Fixed Rate, provides the most competitive Interest Rate. Interest rates are correct as at 27/02/2025 and subject to change at anytime. The comparison rate is based on a loan amount of $500,000, over a 30 year term.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Join our Facebook & Instagram groups

Stay connected and in the loop! Join our Facebook and Instagram groups for updates, tips, and a community that shares your interests. Don’t miss out—be part of the conversation!

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BAS & Financial Statement Preparation

Our goal is to ensure accurate BAS and Financial Statements while helping you plan for ATO payments or refunds efficiently.

To streamline this process, we need timely submission of required documents. Moving forward, if multiple follow-ups for missing documents are needed, additional charges may apply.

For timely BAS lodgement, we may finalise it based on available data (e.g., without missing bank statements) and note any outstanding items for later review.

This policy enhances efficiency, giving you more control while ensuring smooth and accurate reporting.

Staff updates

Welcome Back, Bethany!
Bethany has returned from maternity leave and is stepping into the role of Special Projects Manager. We’re thrilled to have her back and look forward to her contributions in this new role.

New Team Members
We’re pleased to welcome Jesslyn to our Accounting Team. We’re excited to have her on board and look forward to the expertise she brings.

Client Success Stories:

Chris B

What the Client Needed:

Our client was facing a potential Payroll Tax liability of $68K and needed expert guidance to dispute the assessment with the State Revenue Office (SRO).

What We Did:

Challenge 1: The client had been assessed as liable for Payroll Tax, despite their unique business structure.
Challenge 2: Proving the exemption required extensive documentation, clear argumentation, and persistence in dealing with the SRO.
Challenge 3: Weeks of back-and-forth communication with the SRO were necessary to present the case effectively.

Result:

Our senior bookkeeper, Allan, leveraged his deep understanding of the client’s business structure to prove they were exempt from Payroll Tax. Through weeks of phone calls, emails, and supporting evidence, he successfully argued the case—saving the client a potential $68K liability!

House Valuation Guide for Australian Homeowners

Whether you’re selling, buying, or refinancing, knowing your home’s market value is essential. A well-prepared home can secure a better valuation, leading to higher offers or better loan terms.

Step-by-Step House Valuation Checklist

Curb Appeal

First impressions count. A well-maintained exterior can boost your property’s perceived value.
Mow the lawn, trim hedges, and clean pathways.
Ensure fences, walls, and the driveway are in good condition.
A fresh coat of paint can increase value by up to 10%.

Minor Repairs & Cleanliness

Even small issues can lower your valuation.
Fix leaking taps, cracked tiles, and chipped paint.
Clean and declutter all rooms, including outdoor spaces.
Turn on lights to create a bright and inviting atmosphere

Home Improvements & Documentation

Provide details on upgrades and renovations.
Have records of building approvals, renovation costs, and property plans.
Highlight value-adding improvements like solar panels or modern kitchens.

Working with a Real Estate Agent

A knowledgeable agent helps you set a competitive price and navigate the selling process.

Choose an agent experienced in your local market.
Request a market appraisal to understand current trends.
Keep them informed about any property updates.

Common Mistakes to Avoid

Neglecting small repairs – These can reduce your valuation.
Overlooking presentation – A cluttered home may appear poorly maintained.
Overvaluing renovations – Not all upgrades yield a dollar-for-dollar return.

Valuation Day Tips

Ensure the valuer has full access to the property, including sheds and garages.
Highlight special features like energy-efficient upgrades or scenic views.
Secure pets to avoid distractions.

What Happens During a Property Valuation?

A valuer assesses:

Property size, layout, and condition.
Fixtures, fittings, and potential repair needs.
Location, accessibility, and local zoning rules.
Recent sales of similar properties.

After the inspection, they compare your home to similar properties and issue a valuation report with an estimated market value.

Why Get a House Valuation?

A valuation helps you:

Set a realistic selling price.
Avoid overpaying when purchasing a home.
Secure refinancing or a loan.
Measure the impact of home renovations.

Final Thoughts

Proper preparation can significantly impact your home’s valuation. Focus on presentation, minor repairs, and documentation to get the best possible outcome.

Need a professional valuation?

Contact Duo Tax today!

Your March 2025 Tax Checklist

As we move through the first quarter of the year, now is a great time to check in on your tax obligations. Staying proactive can help you avoid penalties, take advantage of tax-saving opportunities, and set yourself up for a smooth EOFY.

Why Take Action in March?

Getting on top of your tax responsibilities now will help you stay ahead of deadlines, reduce stress, and position yourself for a successful EOFY. A little preparation today can save a lot of hassle down the track!

Construction Costs Surge, Adding Pressure to the Industry

✍️ Broker Daily

The cost of residential construction continues to rise, with CoreLogic’s latest Cordell Construction Cost Index (CCCI) showing a 3.4% increase over the 12 months to December—the biggest annual jump since September 2023 (4%).

Rising Costs & Industry Challenges

While quarterly construction cost growth is expected to stabilize around 1% in the second half of 2024, builders are already facing tight profit margins.

CoreLogic economist Kaytlin Ezzy called the rising costs “another challenge for an industry already struggling,” with the CCCI up 30.8% since COVID. Alongside labour shortages, the industry is also seeing a shrinking project pipeline.

New dwelling commencements hit 10-year lows in June 2024 (ABS).
Construction insolvencies soared, with 2,832 companies collapsing in FY 2023-24—the highest among all industries.
Dwelling approvals (12 months to November) were 7.1% below the decade average, indicating a continued slowdown.

Mixed Trends in Construction Costs

CoreLogic’s John Bennett reported varied cost movements:

Concrete blocks dropped 15%, while plumbing PEX fittings rose 5%.
Labour costs remain a key driver of rising expenses.

Workforce Shortages Threaten Housing Targets

Australia’s housing supply goals are at risk due to a severe skills shortage. According to the HIA’s Matt King, meeting the 1.2 million home target over five years requires 83,000 more skilled workers.

Private sector job vacancies hit 308,000 in November 2024 (ABS).
The skills shortage is worsening cost pressures and project delays.

While recent funding for apprenticeships is a step in the right direction, King warns that more action is needed to ensure Australia can meet housing demand and keep affordability in check.

Major Changes to HECS Home Loan Rules

✍️The Adviser

The federal government is making it easier for Australians with student debt to qualify for a home loan.

Treasurer Jim Chalmers has instructed ASIC and APRA to update their guidance on how Higher Education Loan Program (HELP) debts are treated by lenders. Currently, student debt is assessed like other liabilities, reducing borrowing power for first-home buyers—even though repayments are income-dependent and don’t apply below certain thresholds.

Chalmers said the changes will help “unlock more finance” and get more Australians into homes. APRA will consult on HELP’s role in debt reporting, while ASIC will adjust its guidance after consultation.

Industry Response

The Mortgage and Finance Association of Australia (MFAA) welcomed the move, calling it a key recommendation in its submission to last year’s Senate inquiry. CEO Anja Pannek said brokers had flagged HELP debt as a major hurdle for first-home buyers.

The Australian Banking Association (ABA) also supported the change, with CEO Anna Bligh stating that responsible updates to lending rules could help more people access credit.

However, Matt Turner, managing broker at GSC Finance Solutions, questioned whether this would truly address affordability. “By removing HELP from the servicing calculation, we ignore a real expense in people’s budgets. This just pushes up prices instead of tackling supply issues,” he said.

Boosting Apartment Construction

Chalmers also directed regulators to remove barriers to apartment construction financing, particularly around pre-sale requirements.

APRA’s 2017 guidance led some lenders to require 100% pre-sales before financing projects, limiting supply. The regulator has now clarified that while pre-sales are important, full pre-sale coverage is not mandatory.

Westpac CEO Anthony Miller and Property Council CEO Mike Zorbas welcomed the shift, saying it could help address Australia’s undersupply of apartments. “Apartment construction has halved since 2017–18. These changes strike the right balance,” Zorbas said.

Lenders Confirm They Will Pass Through Rate Cuts

✍️ The Adviser

Following the RBA’s first cash rate cut in four years, major banks and several non-major lenders have confirmed they will reduce home loan variable rates by 25 basis points (bps). The official cash rate dropped from 4.35% to 4.10% on 18 February 2025, with rate reductions taking effect from 28 February to early March across lenders.

Major Bank Announcements

ANZ: Rates drop 0.25% p.a. from 28 February.
CBA: 0.25% p.a. reduction from 28 February. Customers can adjust mortgage repayments via the CommBank app.
NAB: 0.25% p.a. reduction from 28 February. NAB’s Ana Marinkovic highlighted the relief for borrowers after a long period of high rates.
Westpac: Rate cut applies from 4 March. Also reducing select savings rates and introducing multiple offset accounts with no extra fees.

Non-Major & Non-Bank Lenders

Several lenders outside the big four also confirmed they will pass on the full rate cut, including:

Auswide Bank, Macquarie, ING, Athena, Bluestone, Pepper Money, and Resi.
Athena implemented its rate cut immediately and criticized delays, estimating borrowers could pay $115 million in excess interest due to the lag.
Pepper Money: Rates drop from 5 March, including residential, commercial, construction, and SMSF loans.
Bluestone: Immediate rate reduction across products, with an additional 0.25% p.a. discount for eligible new loans.
Resi: Rate cut effective 19 February for new customers and 28 February for existing borrowers.

Industry Reactions

Lenders emphasized that the rate cut offers relief amid cost-of-living pressures. Many also encouraged brokers to engage with clients for home loan health checks and refinancing opportunities.

While borrowers welcome the news, some industry experts warn that delayed rate cut pass-throughs cost Australians millions.

Is Your Will Up to Date? Protect Your Family & Assets Today!

If you don’t have a will, or it’s outdated, your family could face unnecessary stress and costs.

Did you know that over 50% of Australians don’t have a valid Will? If something happens to you, your assets may not go to the people you intended, and your loved ones could face financial and legal hardships.

Without a Will and Power of Attorney (POA):
❌ Your estate could be tied up in legal battles
❌ Your family may face unnecessary taxes and delays
❌ Medical and financial decisions may be out of your control

The good news? We’re here to help.

We would like to let you know that in conjunction with our solicitors Abbott and Mourly, Concepts & Results has exclusive access to their online Will preparation platform called Lightyear Doc’s. What this means that Concepts & Results can provide a Will service to all our clients using this platform.

For the next 14 days we would like to invite you to complete a fast and simple three-step process to implement your Will and POA’s:

Complete the attached Authority to Proceed and return to us with preferred day or time for your online meeting with Phillip. We will then enter all the information we already have about you into our software.
Schedule an online appointment with Phillip using Calendly, alternatively I will be in touch with you once we receive the authority and we can work out a suitable time together.
Meet with Phillip online (using Webex internet meeting) to input remaining details and information for the preparation of your documents.

This is a very limited offer with a special discounted rate for our clients only. Please refer to the Authority to Procced for schedule of costs. Your fee will depend on which documents you require and Phillip will confirm this at your meeting.

So if you wish to ensure you put the wheels in motion and get your Wills and POA’s in order for your family, act now and get:-

✅ Expert guidance to structure your estate properly
✅ Legally sound Will & POA tailored to your needs
✅ Peace of mind knowing your wishes will be followed

Don’t leave it to chance—take control today. Book your consultation now before the offer expires!

Fringe Benefits Tax (FBT) – Key Considerations for 2025

The Fringe Benefits Tax (FBT) year ends on 31 March 2025, and with ongoing economic pressures, the Australian Taxation Office (ATO) continues to prioritize FBT compliance. The ATO has reported that the ‘FBT gap’—the shortfall between expected and actual FBT revenue—remains a significant concern, prompting increased scrutiny to ensure businesses are meeting their obligations.

Does Your Business Need to Register for FBT?

If you provide benefits to employees (including Directors), such as cars, car parking, entertainment (food and drink), employee discounts, loans, or reimbursements of private expenses, your business may be liable for FBT. There are 13 defined Fringe Benefit categories under FBT law, and if your business offers any of these, FBT registration may be required.

Who Pays FBT?

Although FBT applies to benefits enjoyed by employees, the tax is levied on the employer. Unless an employment agreement explicitly states that employees must reimburse any applicable FBT, businesses will bear the cost with no recourse for recovery.

Should You Lodge an FBT Return?

Even if no FBT is payable, lodging an FBT return is strongly recommended. Why? Because submitting an FBT return starts the three-year audit window for the ATO.

Without a lodged return, the ATO retains the discretion to audit back indefinitely. This could result in unexpected FBT liabilities, even for employees who no longer work for your business. Without sufficient records (such as signed declarations, logbooks, and meal entertainment records), businesses may struggle to prove that FBT was not payable in previous years, potentially leading to costly assessments.

Workhorse Vehicles and Safe Harbour Provisions

Certain workhorse vehicles are exempt from FBT under the car fringe benefit rules, provided they are used only for work-related travel, including commuting between home and work. Any private use must be minor, infrequent, and irregular—for example, occasionally dropping off or picking up children on the way to or from work.

If private use exceeds this threshold, a residual fringe benefit arises, requiring a different calculation to determine the FBT liability.

A workhorse vehicle typically includes:

Panel vans
Utilities (utes)
Other commercial vehicles not designed primarily for passenger transport (e.g., dual-cab utes with a carrying capacity of at least one tonne).

Key Updates for 2025

Stronger ATO enforcement: The ATO has announced increased data-matching initiatives to detect unreported fringe benefits.
Hybrid and Electric Vehicles: Certain electric and hybrid vehicles may qualify for exemptions or concessions under FBT law, depending on usage.
Remote Work Considerations: Businesses providing home office equipment, reimbursements, or allowances should assess whether these create an FBT liability.

Insights & Expertise: Explore Our Latest Resources

We believe that informed clients make the best financial decisions. That’s why we’ve curated a collection of free resources to help you understand the lending process, mortgage strategies, and financial planning.

Superannuation Payment Obligations for Employers

Ensuring that superannuation payments for your employees are made on time is crucial to maintaining compliance with your employer obligations.

Payment Deadlines

Superannuation payments must be received by the employee’s super fund by the due date, which is within 28 days after the end of each quarter. Missing this deadline can have significant financial and legal consequences.

Consequences of Late

Payments If a superannuation payment is not made on time, it becomes non-deductible for that quarter. Additionally, employers must prepare and submit a Superannuation Guarantee Charge (SGC) statement to the ATO.

The SGC includes:

The unpaid super amount
Interest charges accrued daily
An administration fee of $20 per employee per quarter

Penalties for Non-Compliance Employers who fail to meet their superannuation obligations may face:

Daily interest charges on unpaid super amounts
Administrative penalties from the ATO
Significant fines and legal action for deliberate non-compliance

Best Practices for Compliance

To ensure compliance with superannuation obligations, consider the following:

Automate Payments: Set up automated super payments well in advance of the due date to avoid late payments.
Use a Clearing House: The ATO’s Small Business Superannuation Clearing House (SBSCH) or your payroll provider’s superannuation clearing house can streamline payment processing.
Maintain Records: Keep detailed records of superannuation payments to demonstrate compliance and resolve any disputes if they arise.
Increase payment frequency: A fortnightly or monthly basis will ensure super payments are always made on time.

2025 Cancer Council Fundraising Initiative

In previous years, C&R has supported the Cancer Council with a single annual fundraiser. This year, we’re taking it further by hosting multiple smaller fundraising events throughout 2025, with the goal of raising $6,000 by December 31st. 💛

Our planned events include Australia’s Biggest Morning Tea 🍰, Dry July 🚫🍷, Daffodil Day 🌼, and more! All can join our Cancer Council team and donate through a dedicated link, and we encourage everyone—colleagues, family, and friends—to participate as events are announced.

Cancer has personally impacted many of us, and we’re committed to doing what we can to support research, prevention, and those affected. Together, we can make a difference! 💙✨

By electronic signing you've helped save...

323m

KG of wood
100 Central Parks

7.2bn

L of Water
2,886 Olympic Pools

727m

Kg of CO2
1,778 Fire Tucks

47.7m

KG of Waste
3,754 Garbage Trucks

See our previous newsletters below

Visit us

Want to discuss the above face to face? Come visit our specialised team members to find out more.

612 Warrigal Road, East Malvern PO Box 61, Holmesglen, Vic 3148

Call us

Have any questions? Further discussions on the above can be may be held over a telephone appointment.

(03) 9569 5676

Contact us

For any and all queries regarding the above, you may contact Concepts & Reuslts by emailing us

admingroup@cr.com.au

DISCLAIMER: Whilst all care is taken in the preparation of the material in this newsletter, the information provided is of a general nature and individuals should seek advice as to their own specific needs. Accordingly, no responsibility for errors or omissions is accepted by Concepts & Results group of companies or any member or employee.