Octopus Accounting & Tax Advisory

Octopus Accounting & Tax Advisory We are committed to providing bespoke and expert accounting services.

ATO Responds to High Fuel CostsThe ATO recognises that high fuel costs are affecting some businesses, and it will provid...
03/06/2026

ATO Responds to High Fuel Costs
The ATO recognises that high fuel costs are affecting some businesses, and it will provide targeted support to eligible businesses that are unable to meet their payment obligations for three months, from 1 April 2026 to 30 June 2026.

In particular:
1. The ATO will provide streamlined access to more flexible payment plan arrangements, including longer payment terms, no upfront payment, and access to general interest charge ('GIC') remission where payment and lodgment conditions are met;
2. High fuel costs will be a relevant factor in consideration of additional requests for remission of GIC and other penalties; and
3. The ATO will provide support to vary pay as you go ('PAYG') instalments where there has been a reduction in taxable income.

Businesses can assess their eligibility and notify the ATO of their interest in accessing a tailored payment plan and intention to vary PAYG instalments through the ATO's online services. The ATO will then contact these businesses or their representatives with more information and next steps.

18/05/2026

Thank you to our valued business partners, clients, and local community for your continued support.

At Octopus Accounting & Tax Advisory, we are proud to support Hunters Hill, our wider Australian community, and international clients.

As a local business, we believe in creating value beyond accounting and tax. We hire people, create employment opportunities, contribute to the economy, and do our part to give back to society.

Thank you for being part of our journey.

📢 ATTENTION: Foreign Property Owners in Australia🏠 New Withholding Tax Rules Starting 1 July 2025From 1 July 2025, the w...
13/05/2026

📢 ATTENTION: Foreign Property Owners in Australia

🏠 New Withholding Tax Rules Starting 1 July 2025

From 1 July 2025, the withholding tax (WHT) on rental income and property sales for non-resident owners will increase to 15% — up from the current rate.

🔍 What this means for you:
✅ A larger portion of your rental income will be withheld
✅ This applies to non-resident individuals and foreign entities
✅ You may need to reassess your tax strategy or cash flow plans

💼 Whether you're leasing, selling, or investing in Australian property — this change matters.

📌 Now’s the time to plan ahead.

📞 Contact us for expert guidance:
📞 02 9660 2222
📧 [email protected]
🌐 www.octopusaccounting.com.au

Correctly dealing with rental property repairsTaxpayers who have had work done on their rental property should ensure th...
13/05/2026

Correctly dealing with rental property repairs

Taxpayers who have had work done on their rental property should ensure the expense is categorised correctly to avoid errors when completing their tax return. A deduction for 'repairs and maintenance' expenses can be claimed for work done to remedy, or prevent defects, damage or deterioration from using the property to earn income. These expenses can be claimed in the year they were incurred. However, some 'capital' expenditure may not be immediately deductible, such as for 'initial repairs', 'capital works', 'improvements' and depreciating assets. Initial repairs include fixing any pre-existing damage or deterioration that existed at the time of purchasing the property, even if the damage or deterioration was unknown to the taxpayer at the time of purchase. Initial repairs are treated as part of the acquisition cost and included in the cost base of the property for CGT purposes, unless they are capital works or depreciating assets. Capital works are structural improvements, alterations and extensions to the property, and can generally be claimed at 2.5% over 40 years. Capital works deductions can only be claimed after the work has been completed, regardless of when the taxpayer pays the deposit and instalments. Improvements or renovations that are structural are also capital works. Work that goes beyond remedying defects, damage or deterioration that improves the function of the property is regarded as an improvement. Repairs to an 'entirety' are capital and cannot be claimed as repairs. Repairs to an entirety generally involve the replacement or reconstruction of something separately identifiable as a capital item. Depreciating assets are treated as follows: Deductions for 'new' assets must generally be claimed over time according to their effective life. Second-hand depreciating assets generally cannot be deducted.

Time limits on GST and fuel tax credit claimsTaxpayers should note that GST credits and fuel tax credits will expire if ...
06/05/2026

Time limits on GST and fuel tax credit claims

Taxpayers should note that GST credits and fuel tax credits will expire if not claimed within the 4-year credit time limit (i.e., generally four years from the due date of the original BAS in which the taxpayer could have claimed them). Once credits expire, the ATO has no discretion or ability to amend the assessment to include those credits. The 4-year credit time limit is different to the period of review and applies more strictly. There may be situations where the ATO is able to amend for overpaid or underpaid GST or overclaimed credits, but additional credits cannot be included in an amendment assessment. If credits are near expiry, instead of writing to request an amendment, taxpayers should consider: claiming the credits in their next BAS that is still within the 4-year credit time limit; requesting the amendment by lodging a revised BAS for the tax period to which the credits are attributable (these are generally processed faster than amendment requests in other forms); or lodging a valid objection against their assessment for the period to which the GST credits are attributable before the end of the 4-year credit time limit. If you identify any unclaimed input tax credits, we can assist with actioning the above options to try and ensure the credits are not lost.

Work-related expense claims rejected by ART The Administrative Review Tribunal ('ART') recently disallowed a taxpayer's ...
29/04/2026

Work-related expense claims rejected by ART

The Administrative Review Tribunal ('ART') recently disallowed a taxpayer's claims for many different types of work-related expenses.
The taxpayer was employed full-time as an engineer, working from home two days a week. For the 2023 income year, he claimed deductions totalling over $61,000, in relation to (among other things) car expenses, travel expenses, clothing expenses, and home office expenses, all of which he claimed were work-related.
The ATO largely disallowed these deductions, and the ART affirmed the ATO's decision, primarily due to problems with substantiating these claims.
For example, in relation to the car expenses, the ART noted that none of the books were contemporaneous, and the log book entries were inconsistent with independent records (e.g., car service records).
In relation to travel expenses (taxi and Uber fares), the ART noted that the taxpayer did not provide evidence clearly identifying which travel expenses had been reimbursed by his employer, and the ride share documentation did not include the date, time or destination of travel.
In relation to home office utility expenses, the ART noted that the taxpayer only provided calculations estimating the business use proportion of those expenses, without providing any documentary evidence to substantiate the expenses themselves. In any case, the ART was not satisfied that the taxpayer's apportionment of those expenses.

Paying super guaranteeThe ATO is reminding employers that they must pay super guarantee ('SG') contributions for eligibl...
08/04/2026

Paying super guarantee

The ATO is reminding employers that they must pay super guarantee ('SG') contributions for eligible employees. Employers need to pay a minimum of 12% (the current SG rate as from 1 July 2025) of each employee's ordinary time earnings into a complying super fund on a quarterly basis (the due date for the March 2026 quarter is 28 April 2026). In most cases, employees can choose the super fund. Employers who do not pay in full, on time or to the correct super fund will have to pay the SG charge, which is made up of the super they owe, nominal interest on those amounts (currently 10%), and an administration fee of $20 per employee, per quarter. These payments must be made through SuperStream (where super payments and information move through the system electronically). Employers who use the Small Business Superannuation Clearing House to make super contributions should note that this service will be permanently closed from 1 July 2026. Existing users should switch to an alternative method to pay their employees' super guarantee. Also, when new employees start, employers may have an extra step to take to comply with the 'choice of fund rules' if the new employee does not choose a super fund. Employers may now need to request the new employee's 'stapled super fund' details from the ATO.

Check GST credit claims before lodging BASs Taxpayers who are registered for GST can claim GST credits (or 'input tax cr...
01/04/2026

Check GST credit claims before lodging BASs

Taxpayers who are registered for GST can claim GST credits (or 'input tax credits') for the GST included in the price of goods and services they buy for their business. However, if they buy something for both business and private use, they need to apportion their GST credit to only claim the business use.
For example, if they buy a car for ride-sourcing (e.g., to use as an Uber driver), they should work out the percentage they use it for business purposes and only claim a GST credit on that amount.

FY2025 Tax Return Reminder(Year ended 30 June 2025)If you have not yet lodged your FY2025 tax return, please note the st...
25/03/2026

FY2025 Tax Return Reminder(Year ended 30 June 2025)

If you have not yet lodged your FY2025 tax return, please note the standard lodgement deadline for individuals, companies, trusts, and SMSFs is 15 May 2026 (when lodged through a registered tax agent).

At Octopus Accounting & Tax Advisory, we are proud to support families and small business clients not only with tax returns, but also with the day-to-day accounting, tax, and business matters that come with running a business.

📘 What is a BAS & Why It MattersRunning a business in Australia?Your Business Activity Statement (BAS) is more than just...
24/09/2025

📘 What is a BAS & Why It Matters

Running a business in Australia?
Your Business Activity Statement (BAS) is more than just a tax form—it’s how you keep your business ATO-compliant and your finances in check.

💡 Your BAS reports and pays for:

✅ GST (Goods & Services Tax) – collect it from customers and pass it to the ATO.
✅ PAYG Withholding – tax withheld from your employees’ wages.
✅ PAYG Instalments – pre-payments towards your own income tax.
✅ Fringe Benefits Tax (FBT) and other obligations if applicable.

📊 Why it matters:

• Keeps your cash flow accurate by tracking money in and out.
• Avoids late fees and penalties from the ATO.
• Gives you a clear snapshot of how your business is performing each quarter or month.

🧾 Whether you lodge monthly or quarterly, lodging on time and accurately is essential.

👉 Need a hand?
Octopus Accounting can prepare, review, and lodge your BAS so you can focus on growing your business instead of juggling tax deadlines.

📍 Based in Sydney | Supporting clients Australia-wide
📞 02 9660 2222
✉️ [email protected]
🌐 octopusaccounting.com.au

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