Monthly Archives: March 2025

A new name and new era for Maggs Reid Stewart

Welcome to our new-look group of businesses!  We are thrilled to introduce you to this exciting evolution of our offerings and with our brand.

For the last 20 years, we have been unwavering in our commitment to provide dedicated and thorough accounting support, and are proud of the unique way in which we service our clients:

  • We are a mature team with years of experience between us.
  • We look to our clients’ future and how we can support their long-term success and security – unlike many accountants who only look back at the previous financial year.
  • We use cutting-edge software and have even beta-tested one of the country’s premier software solutions to market.
  • We have accreditations in specialist areas that set us apart from other accountants.

Whilst we honour our long history as Maggs Reid Stewart Pty Ltd, it no longer reflects who we are, what we do, and how we do it. Importantly, it doesn’t truly reflect our value to you.

From today, Maggs Reid Stewart Pty Ltd will trade as SMARTA Accounting Solutions.

Why SMARTA?

SMARTA stands for Strategic Management And Reliable Tax Advice.

It embodies our commitment to provide forward-thinking, dependable solutions tailored to your unique needs, whether that’s complex financial support, or the simple but assuring knowledge that you can rely on your taxes being correct.

 

But that’s not all…

Meet SMARTA Super Solutions!

From today, Maggs Reid Financial Planners Pty Ltd will trade as SMARTA Super Solutions.

Whilst SMARTA Super Solutions can’t provide investment or insurance advice, we can help and guide you with advice about such crucial matters as :

  • Making super contributions.
  • Starting or stopping super pensions (with the right amount at the right time).
  • Opening or closing a self-managed super fund (SMSF).
  • Buying a property in a SMSF.
  • Death benefit nominations (so making sure your super doesn’t go to someone else).
  • Managing your total super balance and maximum amount within super.
  • Downsizer contributions.
  • Maximising contributions from a sale of a small business.

Crucially, if you make a mistake with your SMSF, then SMARTA Super Solutions has the expertise and qualifications to help you rectify it.  Unlike unlicensed accountants who are unqualified in this area and therefore prohibited from providing such assistance (and who in any case don’t have the training, software or experience), SMARTA Super Solutions can guide you through the resolution process.

Finally, we’re pleased to officially launch:

SMARTA Protection Solutions Pty Ltd

SMARTA Protection Solutions Pty Ltd is a new brand which provides advice regarding succession, asset protection, and estate planning (please note, wills and related documents are prepared by trusted lawyers who we refer to).

SMARTA Protection Solutions Pty Ltd has three key offerings:

  • The experience to identify how your assets might be exposed.
  • The knowledge to advise you on how to best protect your assets.
  • A library of trust deeds, company constitutions and other key documents tailored to reflect your wishes.

This new offering ensures that your assets are protected from falling into the hands of others, so they go the right people in the most efficient manner.

SMARTA Protection Solutions Pty Ltd is a critical addition to our suite of services and underpins our overall focus of making our clients more successful and more secure.

 

What does all this mean for you?

 As we enter this new phase of our business, you can enjoy:

  • Expanded services: The rebrand of SMARTA Accounting Solutions and SMARTA Super Solutions as well as the introduction of SMARTA Protection Solutions Pty Ltd means we offer you a greater range of specialised services.
  • Increased expertise: You will continue to benefit from our extensive experience and qualifications, particularly in areas where most accountants are not licensed and/or not experienced to provide advice.
  • A client-centric approach: This new evolution emphasises our commitment to support your long-term success and security, with a continued focus on offering a personalised service and strategic advice.

Importantly, you don’t need to do take any action. Just keep an eye out for any future correspondence from our three new brands.

 

What’s next?

 You’ll notice our refreshed branding being rolled out across all communications.

You will hear more about our services as we approach June and all the forward tax planning that takes place around that time.

Please also keep an eye out on invitations to a series of webinars focusing on making you more successful and secure.

Please visit our new web page at – https://smartaaccountingsolutions.com.au

As always, we’re here to answer any questions you may have.

Thank you for your continued trust in us.

 

Alex Stewart

2025/26 Federal Budget

I will begin by making the usual but important comment in that it must kept in mind that the Budget is just a series of announcements.

Bills still have to be put before the House of Representatives and then passed by the Senate.  Some bills may pass quickly.  Others may take a while to pass or be substantially modified.  Or on rare occasions, not even passed.

And of course we have an election looming.

As you will have heard many times already, there are few announcements.  One analysis briefing scheduled for the usual hour didn’t even get to the half hour mark!

Of more interest is what was not in the Budget.  We will address those in our analysis paper which we will release on Monday.

In the meantime, here is our initial Budget briefing paper:-

MRS Initial Budget paper 2025-26

We welcome any questions you have (particularly after you read our Budget analysis paper to be issued on Monday).

 

Bucket companies – you have to wait!

 

We reported three weeks ago that the ATO lost a significant case on bucket companies – you can read that blog – here.  The Full Federal Court in a 3 – 0 decision decided that unpaid entitlements from a trust to bucket companies did not constitute a loan within the meaning of Division 7A.

That is they did not have to:-

  • Be paid out before lodgment of the year of the loan’s Tax Return or otherwise
  • Put under the terms of a Division 7A loan agreement.

This Full Federal Court decision was favourable to taxpayers.

The ATO have filed a special leave application to have the matter re-heard by the High Court (the highest court in the land).

It has been said by some commentators that the ATO’s post 2009 view was controversial.  Other tax experts have pointed out how the legislation has been subject to amendment after amendment in order for the way they want it to work.  Others have said they had to appeal as there is way too much at stake.  And do so even though they have unanimously lost a decision before 3 very senior judges.

And so we wait.

We understand the appeal may be heard by August.

In the meantime, the ATO have issued what they call a Decision Impact Statement.

In that Statement the ATO have advised that:-

  • The ATO will continue to administer the law as it now stands.
  • The ATO will not issue any amendments or private rulings nor consider any objections until the High Court hears the appeal.
  • In tax speak, the ATO will continue to consider reimbursement agreement issues where no complying Division 7A loan agreement exists.

We will keep you posted.

And so we wait …

Timely reminder about unclaimed monies

Unclaimed monies is such an important but hidden sleeper that it is worth returning to this.

We blogged on this 5 years ago when there was $1,100,000,000 of unclaimed monies in bank account, shares and life insurance.  2 years ago it had grown to $1,500,000,000 (we can’t find a more current number).

How can I lose money that is mine?

The balance of any bank account unused for more than 7 years is transferred to the government.

So too is a life policy which is not claimed within 7 years of maturity also becomes unclaimed money.

It is not easy to reclaim one’s money as what one might think. So to avoid the problem of trying to recoup unclaimed monies, you need to:-

  • Create and check a list of bank accounts, shares and endowment life insurance policies (and store it securely).
  • Transact on any bank account every seven years. Please remember that charges debited or interest credited by a bank to your account do not keep an account active.  So you need to either make a payment from or deposit into an account for it to be considered active.  Make a habit of transacting on every bank account in the first week of January (or July if you’re finance minded like me and think in financial years).
  • Update contact details after a move.

If you want to know more or undertake a search on a closed bank account or shareholding or matured life insurance policy, go to http://tinyurl.com/qjozgon

Good news for bucket companies?

So is the Full Federal Court decision in Bendel’s case good news for bucket companies?  We will have to wait and see as we will explain.

The Full Federal Court has just handed down a 3-0 decision in favour of bucket companies (being companies that receive trust distributions).  The judges’ decision ruled in favour of distributions by trusts to companies not being a loan and therefore by extension not coming under Division 7A.

So what do we do now?

Nothing.

We wait.

We wait until 19th March by which time the ATO must seek leave to appeal the case to the High Court.

Will the ATO appeal?

On the one hand they have just lost the case 3-0 before some of the country’s most senior judges.  Their chances appear slim.

On the other hand, the ATO has a lot to loose so may well appeal.  And if they appeal, we wait for certainty until the appeal is heard by the High Court.

The ATO may also seek to have the law amended.

So for the time being, we wait and see.

If this decision of the Full Federal Court holds or is upheld by the High Court or the law not subsequently changed, this means either that distributions to bucket companies:-

  • Do not have to be paid out in full to bucket companies before the year of a loan’s Tax Return is lodged to paying interest or
  • If not fully paid out, ensuring subsequent payments comply with an interest and principal repayment formula.

This is particularly good news for small businesses as they will be able to retain funds to meet working capital needs – rather important with all the cost and cash flow pressures being experienced by small businesses.

We will keep you posted.