tax tips

If you've spotted what looks like an amazing investment opportunity from Bunnings recently, beware! The Australian Securities and Investments Commission (ASIC) has issued an urgent warning about scammers impersonating the retailer to promote fake "sustainability investment bonds". These scammers claim that the investments will have suspiciously high returns (up to 9%) and are protected by the government, but this is entirely false.

The scam targets people through fake websites and direct spam emails, posing as a responsible entity or broker. The website features Bunnings branding and hyperlinks that direct back to the retailer's genuine webpage. However, Bunnings does not offer bonds or any other investment products. Legitimate bonds are traded through licensed financial institutions, not retailers.

To avoid falling victim to scams like this one, remember the three key steps: stop, check and protect:

• Stop and think before acting.
• Check if the investment is legitimate and if the person or entity offering it is licensed or authorised to do so.
• Protect yourself by acting quickly if something feels wrong: contact your bank to stop any transactions and report any suspicious activity to Scamwatch.

Broadly speaking, bonds are generally considered a safer investment compared to stocks, offering regular interest payments. They are issued by governments or corporations, and when held to maturity, they return the face value of the bond.

If you're interested in investing in bonds, visit the Moneysmart website to learn more about the different types, including government bonds and corporate bonds. You can also check the investor alert list there to see if the company or entity offering the investment is legitimate.

To report a scam or find more information about scams, visit the National Anti-Scam Centre's Scamwatch website at www.scamwatch.gov.au.

As a small business owner, you know how important it is to get your GST right. If you've realised you've incorrectly charged GST on a sale, don't panic - there are steps you can take to rectify the situation.

First, let's look at how this might have occurred:

• You treated something that's not actually a sale as a taxable sale.
• You treated a GST-free or input taxed sale as a taxable sale.
• You miscalculated your GST liability, resulting in a higher amount reported on your business activity statement (BAS).

So what happens now? The key factor is whether you've passed on the excess GST to your customer.

In most cases, if you've charged GST and issued a tax invoice, it's considered to have been passed on to the customer. In this situation, the excess GST is treated as correctly payable under the law, and the ATO cannot refund it to you directly.

Your options are to:

• Reimburse your customer: If you choose to reimburse the customer for the excess GST, you can make a decreasing adjustment on your next BAS to recover the amount. Your customer, if GST-registered, will need to make a corresponding increasing adjustment.
• Request a discretionary refund: In limited circumstances, you can apply to the ATO for a discretionary refund of excess GST that hasn't been reimbursed to the customer. However, this is only granted in very specific situations where it wouldn't result in a "windfall gain" for your business.

If you have clear evidence that you didn't pass on the excess GST to your customer (which is rare), you can treat this as a GST error. You have two options: to correct it on a later BAS, or to revise the earlier BAS where the error was made.

Correcting GST errors on a later BAS is often simpler than revising an earlier period. However, this option's only available if the later BAS is lodged within the review period for the earlier period when the error was made. For most small businesses (GST turnover under $20 million), you can correct debit errors up to $12,500 within 18 months of the due date of the original BAS. Remember too that you can't correct an error to claim additional GST credits if the four-year time limit for claiming those credits has expired.

If you're ever in doubt about your GST obligations or how to hand le a specific situation, it's best to consult a qualified tax professional or contact the ATO directly for guidance.

Choosing the right investment option for your superannuation is important for your retirement savings. It's essential to understand the different types of investment options and their associated risks to ensure you choose the one that's right for you.

Super funds typically offer a range of premixed investment options that usually have different asset allocations:

• Growth: These options primarily invest in shares or property and aim for high returns over the long term. They come with higher probability of short­ term losses, so they're generally suited to people with a longer investment horizon.
• Balanced: With about 70% in shares and property, balanced options strive for moderate returns with less risk than growth options. They offer a middle ground for investors who seek growth but prefer less volatility.
• Conservative: Investing primarily in fixed interest and cash, these options focus on preserving capital with lower returns.
• Cash: With 100% investment in cash or equivalent, these options offer stability and capital preservation, suitable for very risk-averse individuals or those close to accessing their funds.
• Ethical: These investments exclude companies that don't meet certain ethical standards and vary in market risk, allowing you to align your investments with your personal values.

Some super funds offer single asset class investments (eg Australian shares or international shares) and you can choose what percentage you invest in each asset class yourself. Some "platform" style funds also let you pick direct investments. This can include investing in individual shares, exchange-traded funds (ETFs) or term deposits. Direct investing like this is not restricted to just self-managed superannuation funds.

Many super funds also offer lifecycle investment options, which automatically reduce your exposure to higher-risk growth assets as you age. These can be a good choice if you want to take a hands-off approach to your investments.

It's important to consider your risk profile - essentially, your comfort level with potential investment losses in pursuit of returns. Here are some considerations:

• Risk tolerance: Determine how much market risk you're willing to take. Are you comfortable with the possibility of short-term losses for higher long-term gains, or do you prefer stability?
• Investment horizon: The amount of time before you access your super can influence your risk tolerance. Longer horizons may allow for more aggressive investments, while shorter ones might necessitate a conservative approach.
• Standard market risk measure: Super funds provide a standardised risk rating that predicts how often an investment might deliver a negative return over 20 years. This measure helps compare the risk levels of different investment options.

Overall, choosing the right investment option for your super requires careful consideration of your individual circumstances and goals. Resources such as ASIC's Moneysmart website can help you make an informed decision, and many super funds offer free guidance. It's also a good idea to consider getting professional advice, for example from a financial adviser.