Blog | RGA Business and Tax Accountants

Anzac Day

Fri, 24 Apr 2026 18:00:05 GMT

Anzac Day 2026

ANZAC Day is Saturday, April 25th and a time to remember the sacrifices made for the freedoms we enjoy.

We honour the service and sacrifice of all Australians and new Zealanders who have served their country.

We pause to remember their courage and legacy.

We will remember them. Lest we forget.

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Is your business as profitable and efficient as it could be? Take 5 minutes to complete this free survey and uncover your top 3 strengths and top 3 improvement opportunities across 10 key business drivers. You’ll also see how your performance stacks up against global benchmarks. Start now to pinpoint where to focus for better results here .

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Credit: Russell Cummings from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The Secret to Continuous Progress

Thu, 23 Apr 2026 23:12:57 GMT

The Secret to Continuous Progress

Change is inevitable, but improvement is intentional. As Winston Churchill wisely remarked, “To improve is to change; to be perfect is to change often.” This principle sits at the heart of the Mindshop PDCA (Plan-Do-Check-Act) cycle—a tool that transforms not just profits but the very fabric of how we do business.

Why ‘Continuous Improvement’ Matters

In the whirlwind pace of today’s markets, it’s easy to lose sight of what truly brings success: adaptability, tenacity, and a culture always looking to get better. Whether you’re focused on boosting profitability or streamlining workflow, embedding a continuous improvement approach means your team never stops learning. Every process becomes an opportunity to pivot, update, and evolve, ensuring profits and quality don't just survive—they thrive.

Breaking Down PDCA

The PDCA cycle sounds simple—and therein lies its magic. Here’s a quick look:

Plan: Spot a problem or chance for improvement. Define it, set goals, and craft an action plan. As the documents highlight, choose areas with the biggest returns for the effort invested.
Do: Roll up your sleeves and put that plan into action. Engage your team, use technology, and go after quick wins to build momentum.
Check: Now, don’t just charge ahead—step back and ask if it’s working. Are the KPIs being met? What hasn’t worked, and why? This honest evaluation sets you up for real improvement.
Act: Time to lock in what’s going well, adjust processes, or pivot if needed. Make the changes part of your daily routine via QA systems so success isn’t fleeting—it becomes the norm.

Real-Life Application

For example, a manufacturer facing frequent downtime due to inefficient machine setups could use the PDCA cycle to address the issue:

Plan: Gather data on setup times and identify which processes are causing delays.
Do: Introduce new standardised setup procedures and hold team strategy meetings before a shift starts.
Check: Test the new procedure on a couple of machines and monitor whether setup times decrease.
Act: If the test works, roll out the updated process across all machines, and continue to refine and audit the approach regularly to sustain efficiency.

By following this method, the company not only reduced setup times by 25 percent, but also saw marked improvements in productivity with limited upfront investment.

Key Takeaway: Progress Over Perfection

You can only fail if you stop trying. The PDCA wheel keeps turning, always moving upwards if you stick with it. Tenacity is the key—don’t let initiatives lose steam, and don’t let fear of imperfection slow you down. Repeated cycles of plan, implementation, review, and refinement make improvement perpetual and sustainable.

So, next time you approach a project or a pesky recurring problem, remember: the continuous improvement cycle isn’t just jargon—it’s a mindset. Let’s embrace progress over perfection and celebrate each step up the hill together.

Ready to Try?

Click here to begin your free Manufacturing Excellence diagnostic.

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What Fuel Price Pressures Really Mean for Your Business

Fri, 10 Apr 2026 04:03:53 GMT

Why the next 90 days matter more than the headlines

Right now, it feels like everything is getting more expensive. Fuel. Freight. Materials. Labour. And every time the news says “things might settle”… they don’t. Here’s the real issue: It’s not just fuel prices rising. It’s the ripple effect across your entire business.

Most business owners are watching it happen. Very few are planning for it. Across construction, transport and trade businesses, a clear pattern is starting to show:

Costs are rising faster than they can be passed on
Margins are getting squeezed
Cash flow pressure is building quietly in the background
And uncertainty is stopping people from making decisions

Even if things stabilise tomorrow, the reality is: There’s a 3–6 month lag effect before anything returns to normal. That means the pressure you’re starting to feel now… is likely just the beginning. But here’s the key point. The businesses that came through COVID and the GFC strongest weren’t the smartest…They were the ones who:

Planned early
Made decisions faster
And didn’t wait for certainty

Because waiting? That’s where most businesses get caught.

WHAT SMART BUSINESS OWNERS ARE DOING RIGHT NOW

The businesses getting ahead are doing three simple things:

1. They’re planning for multiple scenarios

Not guessing what will happen — but preparing for:

Short-term disruption
Medium-term cost pressure
Worst-case supply constraints

Because you don’t need to predict the future…you just need to be ready for it.

2. They’re setting trigger points

This is powerful. Instead of reacting emotionally, they decide in advance:

“If fuel hits $X → we increase pricing”
“If margins drop by X% → we cut costs”
“If cash hits this level → we act immediately”

No hesitation. No delay. Just clear, pre-made decisions.

3. They’re getting on the front foot with clients

The biggest wins? Businesses that are proactively communicating :

Talking to customers early
Explaining cost pressures
Renegotiating where needed

Because waiting too long is where margins get squeezed and options disappear.

THE REAL RISK

It’s not fuel. It’s not suppliers. It’s not even the economy. It’s slow decision-making. This is what happens:

Delay → creates risk
Risk → hits margins
Margins → hit cash
Cash → creates stress

And by the time action happens… it’s often too late. You can’t control fuel prices. But you can control how your business responds. Right now is the time to:

Get clear on your numbers
Build a simple plan
Set your trigger points
And act early, not late

If you want help working through this for your business, we can sit down and map out:

Your risk areas
Your cash flow pressure points
And your action plan for the next 90 days

If you would like a little help, please get in touch with us for assistance. Because the businesses that act early…Are the ones still standing — and growing — on the other side.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

The Hidden Cost of Hybrid Cars: What Changed and Why It Matters

Thu, 09 Apr 2026 21:00:04 GMT

PHEVs were tax-friendly… until they weren’t. Here’s what caught businesses off guard.

You invested in a plug-in hybrid vehicle—saving fuel, reducing emissions, and even scoring an FBT exemption. Then the rules changed. And suddenly, what looked like a tax win could quietly become a compliance risk.

Let’s break it down simply—because this is where a lot of business owners get caught out. First, the good news . The ATO has introduced a shortcut method to calculate home-charging costs for PHEVs. If your employee charges their vehicle at home, you no longer need complex electricity calculations. You can use a simplified rate—as long as you meet the eligibility rules. That’s a win for admin. Less paperwork, more clarity. But here’s where it shifts.

From 1 April 2025 , plug-in hybrid electric vehicles are no longer treated as zero or low-emission vehicles for FBT purposes .

That means:

No automatic exemption
No more “set and forget”
And potentially new FBT liabilities for the 2025/26 year

Even if nothing changed in how you use the vehicle… the tax treatment did. And this is where many businesses get exposed—
because they’re still operating under last year’s assumptions.

This isn’t about doing anything wrong. It’s about staying aligned with what’s changed. If you provide vehicles to your team—or are thinking about it—this is your moment to pause and review:

Are your vehicles still FBT-exempt?
Are you capturing private use correctly?
Are you using the new home-charging method properly?

Because small oversights here don’t stay small. They turn into amended returns, penalties, and unnecessary stress. Let’s get ahead of it—before the ATO does.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system , give us a call on 07 3289 1700 , or email us at reception@rgaaccounting.com.au .We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The moment a hobby becomes a business (and why it matters for tax)

Thu, 09 Apr 2026 08:14:15 GMT

When Your Side Hustle Crosses the Line

It starts small. A few weekend jobs. A bit of extra cash. Maybe something you genuinely enjoy doing. Then suddenly… it’s regular.
Money is coming in. People are relying on you. And without realising it—you may have crossed a line that matters more than you think.

The Side Hustle

Many people don’t see their side hustle as a business. It feels too informal. Too small. Too “on the side.” But the ATO doesn’t look at what you call it—they look at what you do.

If your activity is consistent, organised, and aimed at making a profit, it can be classified as a business. That often includes situations where you are:

Regularly selling goods or providing services
Taking steps to operate professionally (like licences or registrations)
Keeping records and managing income and expenses

On the flip side, not everything is a business. If what you’re doing is occasional, unstructured, or not driven by profit—it may still be just a hobby.

Think:

One-off or irregular transactions
No real intention to generate profit
Working purely as an employee, not independently

The challenge?

The line between hobby and business isn’t always obvious—but getting it wrong can impact tax, deductions, and reporting obligations.

Here’s the bottom line:

If money is coming in regularly, don’t assume it’s “just a hobby.” This is where smart advice changes everything. Because when you get this right early, you stay compliant, avoid surprises, and set yourself up to grow properly. So if you’ve started something on the side—even if it feels small—let’s have the conversation. We’ll help you draw the line clearly, structure it right, and make sure you’re building something that works for you—not against you.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder of March 2026 Quarter Superannuation Guarantee ('SG')

Tue, 07 Apr 2026 21:00:03 GMT

Don’t Let Super Deadlines Catch You Off Guard

You take a breath over Easter. A few slower mornings. Time with family. Maybe a couple of extra chocolate eggs. For a moment, business isn’t front of mind — and that’s exactly how it should be. Then reality taps you on the shoulder… April is already here.

If you’re an employer, this is your reminder: superannuation for the March quarter (1 January – 31 March) must be received by employees’ funds by 28 April. And here’s where many good businesses get caught — not because they don’t care, but because they leave it just a little too late.

They process super on the 28th and assume it’s done. But the ATO doesn’t measure when you pay it. They measure when it arrives. If you’re using a clearing house, processing delays can mean that a “last-minute payment” becomes a late payment .

And late super comes with real consequences:

It’s non-deductible
You may be liable for the Superannuation Guarantee Charge (SGC)
Interest and penalties apply
And it creates stress that no business owner needs

Now here’s the shift — strong businesses don’t leave this to chance. They build a simple rhythm:

Review payroll reports early in April
Confirm your clearing house and processing times
Schedule super payments well before 28 April

Because getting this right isn’t about compliance… it’s about control.

And one more thing to keep firmly on your radar: from 1 July 2026, “payday super” begins . That means super gets paid at the same time as wages — not quarterly. The habits you build now will determine how smooth that transition is. On top of that, the ATO Small Business Super Clearing House is being phased out from 1 July 2026, so if you rely on it, now is the time to move to a payroll-integrated solution (like Xero or similar) and get ahead of the change.

Bottom line — 28 April is the deadline. But your real deadline is earlier. Get on the front foot now, protect your deductions, and keep your business running clean, calm and compliant. If you want a second set of eyes on your process, this is exactly the kind of thing we help clients tighten up — before it becomes a problem.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Logbook Trap: When “Set and Forget” Costs You

Mon, 06 Apr 2026 21:00:02 GMT

Why your car logbook could quietly be costing you money—or triggering ATO risk

Most business owners think once their car logbook is done… it’s done. Locked in. Filed away. Job finished. But here’s the truth—this is one of the most common silent mistakes we see. And it can cost you more than you realise.

The logbook method is powerful. It lets you claim a fair share of your car expenses—fuel, rego, insurance, depreciation—based on actual business use. And yes, a logbook can last up to five years.

But life doesn’t stay the same for five years… and neither does your car usage.We see it all the time:

You move house or change job sites
Your role shifts (less site work, more office—or vice versa)
You buy a new car and assume the old logbook still applies

Suddenly, that “accurate” logbook isn’t accurate anymore. And now you’re either:

Claiming too much → audit risk
Or claiming too little → leaving money on the table

It gets even trickier:

If you have multiple cars → each needs its own logbook
If you replace a car → you must formally nominate it in writing before lodging your return
If the car isn’t yours (employer car or novated lease) → you can’t claim anything at all

And beyond the logbook, the ATO expects proper records:

Odometer readings
Purchase details
Expense receipts or reasonable estimates

Miss this—and the whole claim can fall apart. This isn’t about paperwork—it’s about control. A simple check today could:

Protect your deductions
Eliminate audit risk
Put real money back in your pocket

If your situation has changed—even slightly—it’s time to review your logbook. Because the smartest operators don’t guess… they stay ahead. pIf you’re unsure, reach out. We’ll make sure you’re claiming exactly what you should—no more, no less.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Payday Super Is Coming — Is Your Business Ready?

Mon, 06 Apr 2026 00:45:21 GMT

The business impact of Payday Super — and how to prepare early

A major payroll change is on the way — and it could hit your cash flow sooner than you think. From 1 July 2026 , businesses will need to pay super at the same time as wages, rather than holding it until quarter-end. That means less delay, less float, and a much greater need for payroll systems and cash flow to work together seamlessly. If you run a business, now is the time to get ahead of it.

The new Payday Super rules are designed to help employees receive their super faster and reduce late or missed contributions. For business owners, though, the impact is practical: super will need to be managed in real time, alongside each pay run. That changes the game for cash flow, payroll processing, and compliance.

Instead of relying on quarterly super payments, employers will need systems that can handle regular contributions accurately and on time. Businesses already using compliant payroll software and automated super processing will be in a strong position. Others may need to review their setup sooner rather than later. The good news? You don’t have to wait until 2026 to start preparing. In fact, the earlier you adjust your processes, the easier the transition will be.

The smartest move is to start building the habit now. Moving from quarterly to monthly super payments can help smooth the transition, improve discipline around cash flow, and reduce the pressure when the new rules take effect.

If you’d like to know whether your payroll systems are ready, or how Payday Super could affect your business cash flow, now is the perfect time to talk to us. Download our Payday Super Readiness Checklist . Need help preparing for Payday Super? Let’ s make sure your business is ready well before 1 July 2026.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT Crackdown on Work Vehicles: What the ATO Isn’t Telling You

Sun, 05 Apr 2026 06:55:01 GMT

One wrong assumption on your ute could cost you thousands in tax, penalties and stress

Most business owners think they’re doing the right thing with work vehicles… until the ATO proves otherwise. Right now, the ATO is using data-matching to zero in on vehicle benefits—and what used to slip through quietly is now triggering audits, penalties, and interest.

And here’s the real problem…It’s not fraud that’s catching people out. It’s assumptions.

We’re seeing it across construction and trade businesses. A dual-cab ute gets provided to a team member. It’s used mostly for work. Everyone assumes: “No FBT issue.”

But that’s where it goes wrong. Because the ATO doesn’t look at what you intended—they look at what you can prove .

Dual-cab utes are not automatically exempt
Even minor private use can trigger FBT
No records? The ATO assumes the worst

Then it escalates:

No apportionment of private vs business use
No logbook-style evidence
No FBT return lodged because “it didn’t seem material”

Suddenly, what felt like a non-issue becomes:

Backdated FBT
Interest
Penalties up to 200%
Time lost dealing with audits

And remember—FBT sits with the employer. Not the employee. Not the bookkeeper. You.

Here’s the shift smart business owners are making:They stop guessing… and start documenting.

Review every vehicle in your business
Be clear on private vs business use
Keep proper records (even if not strictly required)
Lodge when needed—no assumptions

Because getting FBT right isn’t just about compliance…It protects your cash flow, your time, and your reputation. If you’re unsure where you stand, now’s the time to get clarity before the ATO does.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The $31 Million Wake-Up Call: What the Kilgour case Teaches About Business Valuations

Sat, 04 Apr 2026 06:27:06 GMT

Why “paper discounts” can cost you real money when selling your business

Most business owners think they understand valuations… until the tax bill proves them wrong. Here’s the trap: You assume your slice of the business is worth less—because it’s a minority stake. Sounds logical. Sounds textbook. But what if that assumption costs you access to valuable CGT concessions?

That’s exactly what happened in the recent Full Federal Court decision in Kilgour v Commissioner of Taxation—and it’s a wake-up call for every business owner thinking about selling.

Back in 2016, three family trusts sold an online wagering business for $31 million. On paper, it was clean:

60% owner
Two minority owners at 20% each
A commercial, arm’s length deal with a major buyer

Now here’s where it gets interesting… The minority owners wanted to access small business CGT concessions. To qualify, they needed their net assets under $6 million. So they did what many advisers would consider “normal”: They applied a minority discount to reduce the value of their shares.

But the ATO stepped in and said: “Not so fast.” Their argument was simple: This wasn’t a piecemeal sale. This was a coordinated 100% sale.

And when the case went to court? The Court agreed with the ATO.

The Shift That Matters

The Court leaned on the classic “willing buyer, willing seller” principle—but applied it in a real-world, commercial way (from Spencer v Commonwealth).

Two powerful lessons came out of it:

1. Reality beats timing rules
Even though tax law looks at value “just before” signing, the Court said you can’t ignore what’s already unfolding. If a deal is effectively locked in… That price becomes your best evidence of value.

2. Commercial context beats theory
Yes, minority discounts exist. But not when:

All shareholders are selling together
The buyer wants 100% control
The deal only works as a whole

In that situation? Your “minority stake” isn’t really minority anymore. It rides the value of the entire deal.

This is where smart business owners separate themselves. Because the lesson isn’t just technical—it’s strategic:

Don’t rely on textbook valuations when real money is on the table
Don’t assume your stake is worth less—it might actually be worth more
Don’t wait until the deal is signed to think about tax outcomes

The biggest takeaway

Valuation isn’t about theory. It’s about leverage, intent, and commercial reality. If you’re planning to sell, restructure, or even bring in investors—get your valuation strategy right early.

Because the difference between a “paper assumption” and a “defensible valuation”……can be the difference between unlocking CGT concessions—or missing them entirely. And in deals like this, that difference isn’t small.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Hidden FBT Trap in Family Businesses

Fri, 03 Apr 2026 06:12:19 GMT

Why “owner perks” aren’t always safe — and the court case every business owner needs to understand before the ATO comes knocking

What if the perks you’ve always treated as “just part of being an owner” suddenly became a tax problem? Right now, as FBT season approaches, that’s exactly where many family businesses are exposed — not because they’ve done anything wrong, but because the lines between “owner” and “employee” aren’t as clear as people think.

A recent high-profile case put this issue under a microscope. Three brothers ran a large family business through a discretionary trust. No formal salaries. No employment contracts. Just profits and benefits flowing through the trust — the way many family groups operate.

They had access to luxury vehicles — Bentleys, Ferraris — used for both business and personal purposes. The ATO stepped in and said: “These are fringe benefits. FBT applies.” At first, the outcome swung in the ATO’s favour. That sent a ripple of concern through family businesses everywhere. But then came the turning point.

The Full Federal Court stepped back and asked a deeper question: What is the real substance of what’s happening here?

And the answer changed everything. The Court found:

These individuals weren’t necessarily “employees” in the traditional sense
The benefits weren’t clearly linked to employment
The arrangements were grounded in their roles as business owners and beneficiaries

In other words — not every benefit equals FBT. That’s the opportunity. But here’s the catch… it wasn’t luck that saved them. It was structure, evidence, and clarity.

This case is a wake-up call — not because the rules changed, but because enforcement is getting sharper. If you’ve got:

Vehicles
Phones
Travel
Or “informal perks” flowing through your business or trust

You need to ask one simple question: Is this documented and structured properly — or are we hoping it passes? Because hope is not a strategy when the ATO comes knocking.

The smart move? Review it now — while you’re in control. Get the structure right. Get the documentation right. And make sure what you’ve built is protected — not exposed.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Profit Leak You Can’t See

Fri, 03 Apr 2026 02:47:56 GMT

Why most businesses stay stuck—and the simple shift that turns effort into real profit

Most business owners don’t have a revenue problem. They have a structure problem. And here’s the kicker… until you fix the structure, every “new idea”, every “marketing push”, every “cost cut” is just pouring effort into a system that can’t deliver profit.

That’s exactly what was happening for an electronics business. A solid business, five years in, good products, good customers… yet profits were going backwards. Sound familiar?

Where Profit Really Gets Lost

Let’s break it down. This electronics business wasn’t failing because of one big mistake. It was death by a thousand small leaks:

Too much stock sitting on shelves
A store footprint bigger than demand required
Clunky systems slowing everything down
Missed sales from a poor online experience
Wages and overhead creeping higher than they should

On the surface, it looked like “competition” was the issue. But underneath? It was structure first… then waste. And that’s the lesson most business owners miss. If you jump straight to cutting costs or chasing more sales without fixing the foundation, you just create more chaos.

Instead, the smart move is:

Fix the structure — people, pricing, products, processes
Eliminate waste — the hidden profit killers
Then refine thinking and behaviour (beliefs)

Because once the structure is right, everything else starts working with you, not against you. And here’s where it gets powerful… Once the plan is in motion, you don’t just “hope it works.” You move into the Check phase — measuring, reviewing, adjusting. Watching your KPIs like a hawk. Making decisions based on data, not emotion.

This Is Where Profit Is Won

Most businesses stay stuck because they never step back and ask: “Is my business actually built to be profitable?” They just keep pushing harder. More clients. More hours. More stress. But the businesses that win? They do something different. They pause. They restructure. They remove waste. They measure what matters. And suddenly…

Profit isn’t something they chase. It’s something their business is designed to produce. If you’re feeling like you’re working too hard for the return you’re getting right now… this is your signal. Not to do more. But to step back—and fix what’s underneath.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The $3 Million Super Shift: What Division 296 Really Means

Thu, 02 Apr 2026 05:52:48 GMT

If your super is nearing $3M, it’s time to rethink your strategy.

There’s a quiet shift coming to super… and for a small group of Australians, it’s a big one. If your balance is pushing past $3 million, the rules of the game are about to change — not for everyone, just for those who’ve built serious wealth inside super.

Division 296

From 1 July 2026, the new Division 296 tax comes into play. And here’s the real story… it’s not about punishing success — it’s about tightening the generosity of super tax concessions at the top end. Until now, super has been one of the most tax-effective environments available. But the government has drawn a line in the sand.

If your total super balance is:

Under $3 million → nothing changes (still 15% tax on earnings)
Between $3M and $10M → an extra 15% tax applies to that portion (effective 30%)
Above $10M → an extra 25% tax applies (effective 40%)

So what does that mean in plain English?

The more you hold above $3 million, the less “tax shelter” super becomes. Now here’s where it gets technical — but important.

This tax isn’t applied at the fund level like normal super tax. It’s assessed personally based on your share of earnings, including unrealised gains. That means you could have a tax bill… even if you haven’t sold anything.

And for SMSFs, there’s an added layer: Earnings are calculated with specific adjustments, Actuaries may be involved,

The ATO calculates your liability personally.

Even estate planning gets pulled into this conversation — because super isn’t automatically part of your estate, yet this tax can still arise in the year of death. So this isn’t just a “tax change”… It’s a strategy shift moment .

If you’re anywhere near that $3 million mark, this is your window. Not to panic — but to plan. Because the real opportunity here isn’t avoiding tax… It’s making smarter decisions about where your wealth lives, how it grows, and what it delivers for you long-term .

This is the time to sit down, model scenarios, review structures, and make intentional moves — not reactive ones. The clients who get ahead of this now? They’ll be the ones who stay in control.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

April 2026 Tax Newsletter

Wed, 01 Apr 2026 02:00:20 GMT

April 2026 Tax Newsletter

Welcome to our April 2026 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

What the New Div 296 Tax Means for Individuals with Large Super Balances

The Better Targeted Superannuation Concessions measure (known as the Division 296 tax) is now law and takes effect from 1 July 2026. For those with large super balances, it’s important to understand what the new tax does, why it’s been introduced, and the practical steps you and your financial adviser should consider.

The Purpose of the Tax

Division 296 is designed to make superannuation tax concessions fairer and more sustainable. Rather than changing the way super is taxed for everyone, the law targets a small group of people who hold large super balances, ensuring they pay more tax on the portion of investment earnings that relate to those large balances.

Who it Applies to — Thresholds and Rates

From 1 July 2026, the tax treatment of super earnings will depend on the size of your total superannuation balance (TSB). If your balance is $3 million or less , nothing changes — earnings in your super fund will continue to be taxed at the standard rate of 15% . If your balance is between $3 million and $10 million , an additional 15% tax will apply to the earnings attributable to the portion above $3 million. This brings the effective tax rate on that portion of earnings to 30% . If your balance is above $10 million , a higher additional tax of 25% will apply to the earnings on that portion, resulting in a total effective tax rate of 40% . In simple terms — the larger your super balance, the higher the tax rate applied to the earnings on the excess above the thresholds.

Certain people will be excluded from having this new tax levied upon them, notwithstanding that their TSB may exceed the threshold. Excluded persons include child recipients of death benefit pensions and individuals who have made structured settlement superannuation contributions for a personal injury compensation payment.

Further, where a person dies, they will no longer have a TSB. However, other than the first year of operation (ie, 2026-27), there can still be a Division 296 tax assessment in respect of the financial year in which they die, where they had a TSB of more than $3 million at the start of the year. Given superannuation is not an estate asset, this scenario should be considered as part of a review of an individual’s estate plan.

How the Tax Works

From an SMSF perspective, the fund will calculate its Division 296 earnings, which is based on its taxable income with adjustments for assessable contributions; net exempt income attributable to pensions; any non-arm’s length income (which is already taxed at 45%) and income relating to investments in a pooled superannuation trust. There may also be adjustments for any capital gains made from the disposal of fund assets, if the fund has made the relevant small-fund CGT election.

The calculated Division 296 superannuation earnings is then attributed to fund members using an attribution percentage calculated by an actuary. This information will be used by the ATO to assess the member’s Division 296 tax liability. Division 296 tax is levied on the individual, not a superannuation fund. However, the tax can be paid either by the individual or they can elect for the amount to be deducted from their nominated superannuation interest.

Next Steps

If your total super balance is near—or already above—the thresholds, it is important that you contact your financial adviser to arrange tailored modelling and to discuss whether the small-fund CGT election is suitable. Early planning will help you manage cashflow, reporting and any actuarial requirements efficiently. This will also be an opportunity to review the suitability and benefits of holding investment capital in a superannuation structure versus alternatives for amounts in excess of the large threshold.

A Wake-Up Call for Family Businesses on Fringe Benefits Tax

As Fringe Benefits Tax (FBT) lodgement season approaches, family businesses should carefully review the perks they provide to working directors and family members. A high-profile case involving luxury vehicles provided to three brothers who run a large business empire through a discretionary trust highlights the complexities — and potential risks — of informal arrangements. While the case initially appeared to expand FBT exposure, the latest decision handed down by the Full Federal Court offers reassurance that not all benefits provided to working owners will automatically trigger FBT.

What may seem like harmless "owner entitlements" or beneficiary perks can still attract scrutiny from the Australian Taxation Office (ATO). However, the courts have emphasised the importance of substance, documentation, and the capacity in which benefits are provided.

The Background

Three brothers operate a substantial business involving petrol stations, convenience stores, fast food, tobacco outlets, and gift shops. They serve as shareholders, directors, and key decision-makers (with powers as appointors under the trust deed), working long hours in executive-style roles without drawing formal cash salaries or wages. Profits and benefits flow through the family discretionary trust (SFT Trust), of which their corporate trustee (SEPL Pty Ltd) is the trustee. The brothers and family members are beneficiaries.

The business provided them with exclusive access to over 40 luxury and high-performance vehicles (including Bentleys and Ferraris) for both business and personal use. Costs associated with personal use were debited to the matriarch’s beneficiary account and later cleared by trust distributions — a mechanism consistent with beneficiary entitlements rather than employment remuneration.

The ATO assessed FBT on the private use component of these car benefits, arguing they were fringe benefits provided to the brothers as "employees" in respect of their employment.

What the Court Decided

The Administrative Appeals Tribunal (AAT) initially ruled in favour of the taxpayer (Re BQKD and Commissioner of Taxation [2024] AATA 1796). It found that the brothers were not "employees" for FBT purposes and that, even on a hypothetical basis, the vehicle benefits were not provided "in respect of" any employment. The benefits were instead linked to their capacities as beneficiaries, proprietors, and controlling family members.

The Commissioner appealed to a single judge of the Federal Court, who in June 2025 (Commissioner of Taxation v SEPL Pty Ltd as trustee of the SFT Trust [2025] FCA 581) allowed the appeal. Justice O'Sullivan held that the brothers were employees under the broad FBT definitions (including via the hypothetical deeming rule in s 137 of the Fringe Benefits Tax Assessment Act 1986 (Cth) — FBTAA) and that the benefits were provided in respect of their employment.

The taxpayer then appealed to the Full Federal Court. On 27 March 2026, in SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36 (Perry, O’Callaghan and Thawley JJ), the Full Court unanimously allowed the appeal. The Full Federal Court basically restored the AAT's decision.

Key findings:

· Employee status: It was open to the AAT to conclude the brothers were not "employees" for FBT purposes. The definitions of "employee" and "salary or wages" ultimately draw on common law concepts of employment. The AAT properly considered factors such as the absence of employment contracts, no wages or leave entitlements, the presence of employed managers for operational roles, and the brothers' control being referable to their proprietorial and governance roles rather than traditional employment.

· "In respect of" employment: Even assuming (hypothetically) that the brothers were employees, it was open to the AAT to find there was no sufficient material connection between the benefits and any employment relationship. Here, access to the vehicles was not a substitute for salary or wages. The AAT correctly weighed competing explanations and found the benefits arose primarily from family/trust relationships, not employment.

Why This Matters for Your Business

The case underscores the ATO's ongoing focus on dual-capacity individuals (e.g., directors who are also beneficiaries and active workers in trust structures). However, the Full Court's reasoning provides important boundaries:

· Informal perks for working family members in discretionary trusts are not automatically subject to FBT.

· Substance and documentation matter: How benefits are provided, funded, and recorded (e.g., via trust distributions vs. remuneration) can help in determining the outcome.

· Common law employment concepts remain relevant in interpreting FBT definitions.

· Blending roles does not inevitably trigger FBT if the dominant characterisation is beneficiary-based.

Family businesses should still exercise caution. The ATO may continue to scrutinise similar arrangements, particularly where benefits appear to represent a substitute for remuneration or lack clear documentation. Superannuation contributions or executive titles can sometimes support employee characterisation, though they were not decisive here.

Practical Steps to Protect Your Business

Don't wait for an audit—review your arrangements now:

· Document clearly: If a benefit is a trust distribution to a beneficiary, record it via trustee resolutions. If it's tied to work duties, treat it as a fringe benefit and calculate FBT accordingly. Or confirm why they fall outside the regime.

· Consider FBT properly: Apply statutory formulas or operating cost methods for cars. Employee contributions (e.g., reimbursing personal use) can reduce or eliminate liability.

· Consider exemptions/concessions: Minor benefits under $300, or salary packaging for EVs, might help.

· Audit overlaps: We also need to check for Division 7A loan issues or deemed dividends if benefits flow through private companies.

· Plan proactively: With ATO focus intensifying (as highlighted in recent compliance updates), model scenarios to minimise tax without losing commercial perks.

Remember that if the ATO discovers some unreported FBT liabilities then the business can also be exposed to penalties and interest.

The SEPL case ultimately favours the taxpayer and reinforces that FBT does not capture every benefit provided to working owners in family trust structures. However, every arrangement turns on its specific facts and evidence.

If your business provides vehicles, phones, travel, or other perks to family members actively involved in operations — especially without formal salaries — now is a good time to review. Our team can help analyse your structures, run FBT calculations or risk assessments, and implement practical fixes to protect profits while maintaining flexibility.

The law in this area is fact-sensitive and continues to evolve. Professional advice tailored to your circumstances is essential.

Key Lessons from the Kilgour Case: Smarter Valuations in Business Sale Transactions

When selling a business—or even a slice of one—how you value the assets involved can have a major impact on the tax bill. A recent Full Federal Court decision, Kilgour v Commissioner of Taxation [2025] FCAFC 183, offers timely guidance on how “market value” is really determined for capital gains tax (CGT) purposes.

When preparing for transactions, restructures or potential exit events, the case is a useful reminder: valuations must reflect real commercial conditions, not just theoretical models.

What Happened?

In 2016, three family trusts sold 100% of the shares in Punters Paradise Pty Ltd, an online wagering business, to News Corp for approximately $31 million. The ownership split was:

· Pettett Trust – 60%

· Kilgour Family Trust – 20%

· Reuhl Family Trust – 20%

The sale was negotiated at arm’s length, involved extensive due diligence, and included a working-capital adjustment after completion.

The minority beneficiaries (20% holders) sought to use the small business CGT concessions, which in this case required the seller’s net assets to be below $6 million. To fall below the threshold, they argued their 20% minority interests should be heavily discounted in value—because a small holding is usually worth less on a standalone basis.

The ATO disagreed, saying each 20% parcel formed part of a coordinated 100% sale and should simply be valued as 20% of the final $31 million deal price. The Court agreed with the ATO.

How the Court Approached Market Value

The Court applied the long-standing “willing buyer/willing seller” principles from Spencer v Commonwealth—but with a modern, commercial twist. Two practical messages emerge:

1. Real-world expectations matter more than rigid valuation dates

Although the tax rules in this area require looking at value “just before” signing the sale contract, the Court said you cannot ignore things that were reasonably predictable at that point. Here, the sale was essentially locked in through negotiations, so the final agreed price was the best evidence of market value.

Practical takeaway: If a purchaser is clearly willing to pay a premium—for control, synergies, strategic value or expansion opportunities—those factors will likely shape the valuation for tax purposes.

2. Actual deal terms beat theoretical discounts

The taxpayers tried to argue for a typical “minority discount”. However, the Court said the real commercial context matters more:

· All shareholders intended to sell together.

· The buyer wanted all the shares, not bits and pieces.

· A coordinated, 100% sale typically lifts the value of each parcel.

Because of that, the hypothetical buyer would not insist on a discount. The minority interests effectively rode on the value of the full-stake sale.

Practical takeaway: When shareholders act collectively, the tax valuation of each interest can increase—sometimes significantly.

What This Means for Business Owners

· Don’t undervalue your stake - If the buyer is pursuing synergies or control, your interest might be worth more than a textbook minority valuation suggests. Make sure your advisers consider the wider commercial picture.

· Evidence is everything - Keep thorough records such as negotiations, emails, valuations, buyer motivations. These can be powerful in supporting your tax position and accessing concessions.

· Plan CGT concession eligibility early - If you’re relying on the small business concessions, test different deal scenarios before signing any contracts or other paperwork, including a heads of agreement. Sometimes restructuring ownership or staging a sale can make a material difference, but integrity and anti-avoidance rules in the tax system still need to be considered carefully.

· Align shareholder expectations - In family groups and private companies, minority owners often assume their shares will be valued as a standalone piece. Kilgour shows that courts will often look at the transaction as a whole—not each slice in isolation.

The Bottom Line

Kilgour reinforces that valuations for tax purposes work best when they reflect the real commercial world, not theoretical models. Before you sell, restructure or negotiate with a potential buyer, involve your accountant early. A well-supported valuation can mean the difference between accessing valuable CGT concessions—or missing out.

The ATO Targets FBT on Work Vehicles: Don’t Let Assumptions Cost You

The ATO is turning up the heat on employers who provide work vehicles for private use. Sophisticated data-matching means assumptions and shortcuts can quickly lead to audits, penalties, interest charges—and even reputational damage. You can see the latest ATO FBT audit warning here: Misreporting FBT on personal use of work vehicles | Australian Taxation Office

If you provide vehicles to your team, whether to support fieldwork, boost morale, or offer a valuable perk, now is the time to ensure your FBT reporting is watertight. Here’s what the ATO is focusing on—and how to protect your business.

Don’t Assume Dual-Cab Utes Are Automatically Exempt

Dual-cab utes are popular in trades and construction, but despite popular opinion, they’re not automatically FBT-free. Whether an FBT exemption applies can depend on the vehicle’s design and also how it is used across the FBT year.

Even if a ute is designed to carry a load of at least 1 tonne (ie, it is not classified as a car for FBT purposes) or it isn’t designed mainly to carry passengers (there is a specific formula used for this purpose) FBT could still be triggered if there is some private use of the ute.

The ATO has identified many cases where employers wrongly claimed full FBT exemptions, leading to back taxes plus interest. The best way to handle ATO enquiries around the FBT exemption for commercial vehicles is to ensure that appropriate evidence is already in place to support the application of that exemption. While the FBT rules don’t specifically require formal logbooks when looking at this exemption, failing to keep records that are similar to a logbook can make it difficult to navigate ATO review or audit activities.

Accurately Apportion Private vs Business Use

If a full FBT exemption doesn’t apply then FBT is typically calculated on private use of work vehicles. You need to determine what portion of running costs—fuel, maintenance, depreciation—relates to personal trips. Ignoring this step can seem harmless but can quickly escalate during an audit.

Thorough record-keeping and proper apportioning can sometimes reduce your FBT liability even if the vehicle is used mainly for business purposes.

Remember that if a FBT liability is triggered it is the employer’s problem.

Lodging FBT Returns

Even if you think the FBT liability for the year might be small or immaterial, you might find that there is still an obligation to lodge an FBT return. The ATO’s analytics flag non-lodgers automatically. Penalties can reach up to 200% of the tax owed, plus interest.

Tip: Mark your calendar—FBT returns are due June 25 each year. Timely filing keeps your business compliant and avoids cash flow shocks.

Keep Reliable Logbooks and Records

A valid logbook tracks odometer readings, trip purposes, and business-use percentages over a 12-week period (renewable every five years). While not every scenario involving a motor vehicle specifically requires a valid logbook, failing to keep logbooks can sometimes lead to significant FBT liabilities that could otherwise have been avoided. Efficiency tip: Digital logbook apps simplify tracking, save time, and reduce errors. Good records can also support deductions.

Why it Matters Commercially

Non-compliance isn’t just a numbers game. ATO audits divert time and energy from running your business, and ATO attention can affect your reputation with clients, partners, or lenders. Conversely, getting FBT right ensures you pay only what’s required, protects cash flow, and may even reveal tax efficiencies.

Next steps: Review your vehicle policies, update records, and ask us if you need help. We help businesses manage FBT with confidence—making compliance straightforward and stress-free.

Remember: assumptions can be costly, but a proactive approach protects your business, your people, and your peace of mind.

Know when a new logbook is required

Keeping a car logbook may be required to accurately calculate the business-use percentage of vehicle expenses (e.g., fuel, registration, insurance and depreciation) for tax deductions.

Taxpayers can keep the same logbook for their car for five years, but there are circumstances where they may need a new one during that period.

Relying on a logbook that no longer represents a client's work-related travel may result in them claiming more, or less, than they are entitled to.

A new logbook may be required when a taxpayer:

moves to a new house or workplace — updating their residential or work address may then be necessary;
has changes to their pattern of use of the car for work purposes — checking that they are still doing the same role and routine may then be necessary.

Taxpayers using the logbook method for two or more cars need to keep a logbook for each car and make sure they cover the same period.

Clients who purchase a new car during the income year and want to continue relying on their previous car's logbook must make a nomination in writing. The nomination must be made before they lodge their tax return and state:

they are replacing their original car with a new car; and
the date that nomination takes effect.

Taxpayers should remember that, if their employer provides them with a car or they salary sacrifice a car using a novated lease, they are not entitled to claim work-related car expenses using the logbook or cents per kilometre method, as they do not own the car.

When claiming car expenses using the logbook method, taxpayers also need to keep various types of other records, including (among other things) odometer records for the start and end of the period they own the car, proof of purchase price, decline in value calculations, and fuel and oil receipts (or records of a reasonable estimate of these expenses based on odometer readings).

Please contact our office if you require assistance regarding the above, including in relation to claiming car expenses using the logbook method or determining if a new logbook is required.

Reminder of March 2026 Quarter Superannuation Guarantee ('SG')

Employers are reminded that employee super contributions for the quarter ending 31 March 2026 must be received by the relevant super funds by Tuesday, 28 April 2026.

If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.

The SG rate is 12% for the 2026 income year (increased from 11.5% for the 2025 income year).

When a hobby becomes a business

Taxpayers may not think they are running a business from their hobby or 'side hustle' activities. However, if they start to earn money from doing these activities regularly, they may be carrying on a business without realising it.

Generally, carrying on a business involves ongoing and repeated activities with the intention of making a profit. These activities can include:

regularly providing goods or services;
obtaining and maintaining any necessary licences or permits; and/or
keeping records of their work.

However, a taxpayer's activities may indicate that they are not operating a business where:

their transactions are one-off;
they do not intend to make a profit; and/or
they work solely as an employee rather than independently.

Please keep us informed of all your income-earning and side hustle activities so we can help with this distinction.

Hybrid vehicles and FBT changes

Employers that provide plug-in hybrid electric vehicles ('PHEVs') to employees (or associates) for personal use should remember the following.

Home-charging expenses — new shortcut method

The ATO has updated its guidelines to include a new method to make it easier to calculate PHEV electricity costs when a vehicle is charged at an employee's home.

To use the shortcut home-charging rate, employers and other individual taxpayers must meet the relevant eligibility requirements (or they can still choose to calculate the actual electricity costs instead of using this optional method).

Eligibility for FBT exemption

Since 1 April 2025, PHEVs are not considered a zero or low emissions vehicle under FBT law and no longer qualify as exempt. Employers that provide PHEVs to their employees for private use, or that have PHEVs that are available for private use, may now have FBT obligations for the 2025/26 FBT year (subject to transitional arrangements).

Taxable payments annual report lodgment reminder

Businesses that pay contractors for 'Taxable payments reporting system services' may need to lodge a 'Taxable payments annual report' ('TPAR') by 28 August each year.

Editor: This includes businesses paying contractors in the building and construction, cleaning and IT industries (among others).

The ATO will apply penalties to businesses that have not lodged their TPAR from 2025 or previous years, and/or that have been issued three reminder letters about their overdue TPAR.

Businesses that do not need to lodge a TPAR can submit a 'non-lodgment advice ('NLA') form'. Businesses that no longer pay contractors can also use this form to let the ATO know that they will not need to lodge a TPAR in the future.

Expenses incurred to obtain employment were non-deductible

The Administrative Review Tribunal ('ART') recently held that medical expenses incurred by a taxpayer to obtain (or regain) employment were not deductible as they were not incurred in gaining or producing his assessable income.

The taxpayer was an airplane pilot. In July 2021, the Civil Aviation Safety Authority advised the taxpayer of the steps that he needed to take to regain the medical certificates that were a prerequisite to him holding a licence to work as a pilot.

The taxpayer incurred expenses relating to this between July 2021 and May 2022, and he claimed a deduction for these expenses in his tax return for the 2022 income year.

The ATO disallowed these deductions, and the ART affirmed the ATO's decision.The ART noted that the medical expenses incurred by the taxpayer "merely put him in a position to undertake employment as a pilot, and as such are not deductible." That is, the expenses were not deductible because they were incurred to put the taxpayer in a position to earn income (i.e., to regain his certification), rather than in the course of earning that income, and they were therefore incurred "too soon" (despite some being incurred after his employment commenced in March 2022).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2026: What the ATO Is Targeting Right Now

Mon, 23 Mar 2026 22:05:54 GMT

Electric vehicles, work vehicles, contractors and record-keeping—what you must get right before 31 March

The Fringe Benefits Tax (FBT) year ends on 31 March. Most FBT problems don’t come from doing the wrong thing…They come from missing small details before 31 March.

And this year, the ATO is looking closely at exactly those details—especially around vehicles, entertainment and record keeping.

Here’s what we’re seeing right now

We’re already reviewing client files and the same issues keep coming up:

Work vehicles assumed to be “exempt” when they’re actually subject to FBT
Staff meals claimed as deductions, but no FBT reported
Logbooks missing, expired or not audit-ready
Contractor arrangements that may actually be treated as employees
Employee contributions recorded late or incorrectly

Individually, these seem small. But together, they can turn into unexpected tax, penalties and interest .

The ATO is actively data-matching and reviewing these areas—so getting it right before year-end is critical.

What you should do before 31 March

To stay on the front foot, we recommend:

✔ Take odometer photos for all vehicles on 31 March
✔ Confirm your logbooks are current and accurate
✔ Review any staff meals, entertainment or functions
✔ Check contractor arrangements are correctly classified
✔ Finalise any employee contribution arrangements
✔ Make sure your records are complete and accessible

These simple steps can prevent costly adjustments later.

Important FBT issues

FBT exemption for electric cars

Employers that provide employees with the use of eligible electric vehicles (EVs) can potentially qualify for an FBT exemption. This should normally be the case where:

The employer owns or leases the car and allows a current employee to use the car;
The car is a zero or low emission vehicle (battery electric, hydrogen fuel cell or plug-in hybrid electric);
The car is both first held and used on or after 1 July 2022; and
The value of the car is below the luxury car tax threshold for fuel efficient vehicles (which is $91,387 for 2025-26 financial year).

Plug-in hybrid vehicles no longer FBT exempt

From 1 April 2025, plug-in hybrid electric vehicles will no longer qualify for the FBT exemption unless:

The use of the vehicle was exempt before 1 April 2025, and
There is a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.

If there is a break or change to that commitment on or after 1 April 2025 then the exemption won’t normally be available any more.

Overlooking or misreporting FBT on private use of work vehicles

The ATO is actively using sophisticated data analytics to target employers who fail to report or incorrectly report fringe benefits. ATO compliance teams are specifically looking for businesses that:

Fail to lodge FBT returns despite providing vehicles for private use.
Misunderstand exemptions, particularly the common misconception that dual-cab utes are automatically exempt from FBT.
Neglect record-keeping, such as failing to maintain valid logbooks or odometer readings to support their claims.
Incorrectly apportion usage, often treating private travel—including garaging a vehicle at an employee's home—as business use.

To ensure compliance, the ATO emphasises that a vehicle is considered "available for private use" if it is garaged at or near an employee's home, regardless of whether they have permission to use it.

Employers are expected to:

Correctly identify the vehicle type (which impacts on whether they are providing a car benefit or a residual benefit).
Maintain robust documentation, as invalid logbooks can lead the ATO to apply the "statutory formula method," often resulting in higher tax liabilities.

The ATO uses the case study of a Melbourne restaurant to illustrate the severity of non-compliance. In that instance, the lack of valid logbooks and failure to lodge returns resulted in a total liability of $938,000, which included the base tax, a 75% penalty for reckless behaviour, and significant interest charges. This highlights that the ATO is prepared to impose heavy financial penalties on businesses that deliberately avoid or carelessly manage their FBT obligations.

Does FBT apply to your contractors?

The FBT rules tend to apply when benefits are provided to employees and certain office holders, such as directors. FBT should not apply when benefits are provided to genuine independent contractors but determining whether a worker is an employee or contractor can be a complex process in some cases.

Are your contractors really contractors?

The ATO’s ruling TR 2023/4 helps determine whether a worker is an employee or an independent contractor.

If the parties have entered into a written contract, then you need to focus on the terms of that contract to establish the nature of the relationship (rather than looking at the conduct of the parties). However, merely labelling a worker as an independent contractor doesn’t necessarily mean that they won’t be treated as an employee if the terms of the contract suggest that the parties have entered into an employment relationship.

The ATO has also issued PCG 2023/2 that sets out four risk categories. Arrangements will tend to be viewed in a more favourable light where:

There is evidence to show that you and the worker have agreed on the classification;
There is a comprehensive written agreement that governs the relationship;
There is evidence that you and the worker understand the consequences of the classification;
The performance of the arrangement hasn’t deviated significantly from the terms of the contract;
Specific advice has been sought confirming that the classification is correct; and
Tax, superannuation, and reporting obligations have been met when the worker is classified as an employee or independent contractor (whichever relevant).

If your business engages contractors, you should have a process in place to ensure the correct classification of the arrangements and to determine the ATO’s risk rating. These arrangements should also be reviewed over time.

Even when a worker is a genuine independent contractor, just remember that this doesn’t necessarily mean that the business won’t have at least some employment-like obligations to meet. For example, some contractors are deemed to be employees for superannuation guarantee and payroll tax purposes.

Reducing the FBT record keeping burden

Record keeping for FBT purposes can be onerous. However, due to some recent developments your business will have a choice to keep the existing FBT record keeping methods, use existing business records where those records meet the requirements set out by a relevant legislative instrument, or a combination of both methods:

Travel diaries – see LI 2024/11
Living-away-from-home-allowance – FIFO/DIDO declarations – see LI 2024/4
Living-away-from-home – maintaining an Australian home declaration – See LI 2024/5
Otherwise deductible rule – expense payment, property or residual benefit declaration – See LI 2024/6
Otherwise deductible rule – private use of a vehicle other than a car declaration – See LI 2024/7
Car travel to an employment interview or selection test declaration – See LI 2024/14
Remote area holiday transport declaration – See LI 2024/10
Overseas employment holiday transport declaration – See LI 2024/13
Car travel to certain work-related activities declaration – See LI 2024/9
Relocation transport declaration – See LI 2024/12
Temporary accommodation relating to relocation declaration – See LI 2024/8

FBT housekeeping

It can be difficult to ensure the required records are maintained in relation to fringe benefits – especially as this may depend on employees producing records at a certain time. If your business has cars and you need to record odometer readings at the first and last days of the FBT year (31 March and 1 April), remember to have your team take a photo on their phone and email it through to a central contact person – it will save running around to every car, or missing records where employees forget.

The top FBT risk areas

Mismatched claims for entertainment – claimed as a deduction but no FBT

One of the easiest ways for the ATO to pick up on problem areas is where there are mismatches.

When it comes to entertainment, employers are often keen to claim a deduction but this can be a problem if it is not recognised as a fringe benefit provided to employees. Expenses relating to entertainment such as a meal in a restaurant are generally not deductible and no GST credits can be claimed unless the expenses are subject to FBT.

Let’s say you taken a client out to lunch and the amount per head is less than $300. If your business uses the ‘actual’ method for FBT purposes, then there often won’t be any FBT implications. This is because benefits provided to clients are not subject to FBT and minor benefits (i.e., value of less than $300) provided to employees on an infrequent and irregular basis are generally exempt from FBT. However, no deductions should be claimed for the entertainment and no GST credits would normally be available either.

If the business uses the 50/50 method, then 50% of the meal entertainment expenses would be subject to FBT (the minor benefits exemption would not apply). As a result, 50% of the expenses would be deductible and the business would be able to claim 50% of the GST credits.

Employee contributions by journal entry in the accounts

Many businesses use after-tax employee contributions to reduce the value of fringe benefits. It is also reasonably common for these contributions to be made by journal entry through the accounting system only (rather than being paid in cash).

While this can be acceptable if managed correctly, the ATO has flagged numerous concerns including whether journal entries made after the end of the FBT year are valid employee contributions.

For an employee contribution made by way of journal entry to be effective in reducing the taxable value of a benefit, all of the following conditions must be met:

The employee must have an obligation to make a contribution to the employer towards a fringe benefit (i.e., under the employee’s remuneration agreement);
The employer has an obligation to make a payment to the employee. For example, the parties may agree that the employer will lend an amount to the employee or the employee might be entitled to a bonus that hasn’t been paid yet. If a loan is made by the employer then this could trigger further tax issues that need to be managed;
The employee and employer agree to set-off the employee’s obligation to the employer against the employer’s obligation to the employee; and
The journal entries are made no later than the time the financial accounts are prepared for the current year (i.e., for income tax purposes).

Failing to ensure that arrangements involving fringe benefits and employee contributions are clearly documented can lead to problems. For example, the ATO may ask to see evidence of the fact that the employer is actually under an obligation to make contributions towards a fringe benefit. If there is no evidence, then significant FBT liabilities could arise.

Also remember that if the arrangement involves the business providing a loan to an employee this can trigger a separate loan fringe benefit issue that needs to be managed.

Not lodging FBT returns

The ATO is concerned that some employers are not lodging FBT returns when required to.

If your business employs staff (even closely held staff such as family members), and is not registered for FBT, it’s essential to ensure that the position is reviewed to check whether the business could potentially have an FBT liability.

If the business provides cars, car spaces, reimburses private (not business) expenses, provides entertainment (food and drink), employee discounts etc., then you are likely to be providing at least some fringe benefits.

There is a list of benefits that are considered exempt from FBT, such as portable electronic devices like laptops, protective clothing, tools of trade etc. If your business only provides these exempt items, or items that are infrequent and valued under $300, then you are unlikely to have to worry about FBT.

If you’re unsure whether your business is exposed—or just want peace of mind—we can run a quick FBT review with you before year-end. Just reply to this email or call the office and we’ll organise a time. Better to get this right now than fix it later.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Are You Designing Your Environment… or Letting It Design You?

Fri, 20 Mar 2026 02:09:34 GMT

Your environment is quietly driving your decisions, your confidence, and your results—whether you realise it or not.

There’s something most business owners overlook…And it’s quietly influencing every decision you make. Your environment. Not the big stuff. The small, constant things your eyes land on every single day. A photo. A note. A quote. A screen. They don’t shout at you… but they guide you.

Why this matters more than you think

Your eyes are feeding your mind all day long. And over time:

What you see shapes what you think
What you think shapes what you believe
What you believe shapes how you act

And your actions? That’s your business. That’s your results.

The hidden power of “anchors”

Think of certain visuals as anchors. They don’t speak—but they steady you.

A photo of your family → reminds you why you’re doing this
A goal written clearly → keeps you focused when things get messy
A quote that resonates → pulls you back when doubt creeps in

These aren’t decorations. They’re direction.

Identity drives everything

Here’s the truth most people miss: Your identity drives your behaviour. So if your workspace reflects:

chaos → you operate in reaction
old goals → you stay stuck
nothing intentional → you drift

But if your environment reflects:

clarity
purpose
growth

You start showing up differently… without forcing it.

A simple reset (do this this week)

Take 10 minutes and look around your workspace. Ask yourself one honest question: “Does this space reflect the person I’m becoming… or the person I’m leaving behind?”

Then make one change:

Add one visual that represents your next level
Remove one thing that no longer serves you
Put one reminder where you’ll see it daily

That’s it. Small shift. Big impact.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

If You Don’t Choose Your Focus, Someone Else Will

Fri, 13 Mar 2026 07:00:05 GMT

Why controlling your attention is essential for business growth

Every day your attention is being scheduled by someone else. The question is whether you realise it.

Business owners often begin the day with good intentions. You plan to work on improving systems, developing strategy, or growing the business. But then reality takes over. Emails arrive. Clients call. Staff need guidance. Unexpected issues appear.

Before long, the entire day has been spent reacting. By the evening you may feel exhausted, yet unsure whether anything meaningful moved forward. This is not unusual.

In fact, many business owners spend the majority of their working hours responding to immediate demands rather than building the future of their business. The challenge is that the world will always present more demands than you have time to handle.

Without clear priorities, your schedule will naturally fill with other people’s requests. Successful business owners recognise this and take deliberate steps to protect time for strategic work. They do not simply manage their calendar. They manage their attention .

If you want to grow your business, improve profitability, or create long-term freedom, you must decide what deserves your focus. Because if you don’t make that decision…someone else will make it for you.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

A Quick Reminder About Your Tax Responsibilities (and How We Help)

Fri, 13 Mar 2026 00:17:43 GMT

Staying on Top of Your Tax and Compliance Obligations

Every year, both individual taxpayers and business owners must meet a range of tax and compliance obligations.

For many of our clients this includes:

Individual income tax returns
Company, trust, partnership or Self Managed Superannuation Fund (SMSF) tax returns
Business Activity Statements (BAS)
Instalment Activity Statements (IAS)
Single Touch Payroll reporting
Quarterly superannuation guarantee
ASIC annual company statements

Depending on your situation, there may also be additional obligations such as PAYG withholding reporting, FBT returns, Taxable Payments Annual Reports (TPAR), state revenue office payroll tax, QBCC reporting for construction businesses , and company updates with ASIC.

Each year, our team works hard behind the scenes to send thousands of reminders and requests for information . We then prepare these lodgements once we receive your information. These reminders are provided as a complimentary service to help you stay organised and compliant.

We also provide complimentary blogs and newsletters to keep you informed about ongoing changes to tax laws and compliance requirements , so you don’t need to keep track of these constant updates yourself.

However, it is important to understand one key point. Under Australian tax law, the responsibility for lodging tax returns on time and paying tax when due rests with the taxpayer.

In recent years the ATO has tightened its approach to late lodgements and late payments. Requests for lodgement deferrals and to remit GIC are increasingly difficult to have approved and are usually only granted where you can demonstrate exceptional circumstances (for example, serious illness, bereavement, natural disasters or other significant events outside your control). In addition, since 1 July 2025 GIC is no longer tax deductible.

The best way to avoid interest and penalties is simple:

Send your information early
Respond promptly to requests for information
Plan ahead for tax payments

Working together early helps us keep everything compliant, accurate and stress-free. If you have questions about an upcoming deadline, please contact our team. We’re always here to help.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Sneaky Disguises of Distraction

Thu, 12 Mar 2026 07:00:01 GMT

Why the most dangerous interruptions often look like responsibility

Most distractions do not look like distractions. They look like responsibilities.

When we imagine distractions, we often think of social media, television, or procrastination. But in business, the most common distractions appear far more legitimate. An email that needs a response. A team member asking for help.

A client requesting information. A message marked “urgent”.

Each request seems reasonable. After all, helping people and responding quickly are important parts of running a business. However, every interruption carries a hidden cost.

When your attention is broken, it takes time to regain the same level of concentration. Research suggests it can take 10 to 20 minutes to fully return to deep focus after an interruption. Multiply that by dozens of interruptions per day, and the impact becomes significant.

Over time, these small interruptions quietly consume hours of productive time each week. This doesn’t mean ignoring responsibilities. It means learning to manage when and how you respond to them.

One of the most valuable habits a business owner can develop is this: Not everything that feels urgent deserves your immediate attention. Sometimes the most productive thing you can do is simply protect your focus.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Director Penalty Notices Surge: A Wake-Up Call for Company Directors

Wed, 11 Mar 2026 21:30:02 GMT

With DPNs rising sharply, directors need to understand the personal risks of unpaid company tax debts.

Many business owners believe that if their company runs into tax trouble, the liability stays with the company. But when certain tax debts go unpaid, the ATO can hold company directors personally responsible .

The ATO has significantly increased its use of Director Penalty Notices (DPNs) — a legal tool that can make directors personally liable for unpaid company tax debts. In 2024–25, DPNs increased by 136% , with more than 84,000 notices issued affecting directors of approximately 64,000 companies .

A Director Penalty Notice allows the ATO to pursue directors personally for certain company liabilities, including:

PAYG withholding
GST
Superannuation Guarantee Charge (SGC)

There are two types of DPNs directors should understand.

Non-Lockdown DPNs
These occur where the company has lodged its activity statements or SGC statements but has not paid the debt. Directors generally have 21 days to take action , which may include paying the debt, appointing an administrator or placing the company into liquidation.

Lockdown DPNs
These arise when the company fails to lodge required statements on time . In this case, directors cannot avoid personal liability by placing the company into administration or liquidation.

Given the surge in DPNs and complaints from business owners, the Tax Ombudsman has announced a review of how the ATO issues and manages these notices . The review will examine:

Whether DPN enforcement is being applied fairly
How the ATO communicates with directors
How vulnerable directors are treated
How effective DPNs are in recovering outstanding tax debts

While the review may improve transparency, the underlying message remains clear: tax compliance is a key business risk that directors must actively manage.

For company directors, the most important protection is staying on top of lodgements and tax obligations . Even if the business is struggling to pay, lodging activity statements and communicating early with advisers can significantly reduce personal risk.

If you’re concerned about your company’s tax position — or want to ensure you’re protected as a director — it’s worth reviewing your situation sooner rather than later. A proactive approach can protect both your business and your personal assets.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Why You Can Work All Day and Still Feel Unproductive

Wed, 11 Mar 2026 07:00:07 GMT

The hidden cost of divided attention

Have you ever had a day where you worked from morning until evening… …and still felt like you achieved very little? If so, you are not alone.

This frustrating feeling often comes from something called divided attention . Modern work environments encourage constant multitasking. Emails arrive while you are working on a report. Messages appear while you are on a call. Notifications interrupt strategic thinking.

Each time you switch between tasks, your brain has to reset. This process is known as context switching , and it is far more costly than most people realise. Even short interruptions can break your concentration and make it harder to return to the work you were doing.

As a result, you may spend the entire day busy — answering messages, attending meetings, solving problems — without making real progress on the tasks that truly matter.

The real cost of distraction is not the time it takes to respond to an email or message. The real cost is the loss of deep thinking . Deep thinking is where strategy develops, improvements are designed, and businesses grow. Without it, business owners become trapped in constant activity rather than meaningful progress.

Productivity is not about doing more things. It is about focusing on the right things long enough to make real progress . And that requires protecting your attention.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Work-Related Expense Claims Disallowed by Tribunal

Tue, 10 Mar 2026 20:18:05 GMT

Poor record-keeping and unsupported estimates led to over $61,000 of deductions being rejected.

Claiming work-related expenses can reduce your tax bill — but only if you can prove the claim. A recent case shows how quickly deductions can disappear when the evidence isn’t there.

The Administrative Review Tribunal (ART) recently upheld an ATO decision to disallow a taxpayer’s work-related deductions totalling more than $61,000 . The taxpayer was a full-time engineer who worked from home two days per week. In his 2023 tax return he claimed substantial deductions for a range of expenses including:

Car expenses
Travel expenses (including taxi and Uber fares)
Clothing
Home office costs

The ATO reviewed the claims and rejected most of them. The taxpayer challenged the decision, but the ART ultimately supported the ATO’s position . The main issue wasn’t necessarily the type of expenses claimed — it was the lack of proper records to substantiate them .

For example:

Car expenses
The taxpayer produced logbooks, but they were not contemporaneous and did not match independent records such as vehicle service records.

Travel expenses
Ride-share and taxi claims could not be verified because the documentation did not show key details such as dates, times or destinations . In addition, it was unclear which expenses had already been reimbursed by the employer .

Home office expenses
The taxpayer provided estimates of business use but no supporting evidence of the actual utility expenses . The tribunal also found the proposed business-use percentage was not reasonable.

Because the claims could not be properly substantiated, the tribunal agreed the deductions should be disallowed. The lesson is simple: if you claim a deduction, you must be able to prove it. Keeping clear records — including invoices, receipts, logbooks and supporting calculations — is essential to supporting work-related expense claims.

If you’re unsure what records you should be keeping for deductions such as car expenses, travel or home office costs , it’s worth reviewing your approach before lodging your next tax return. A little preparation now can prevent costly disputes later.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Focus Isn’t Something You Have — It’s Something You Protect

Tue, 10 Mar 2026 07:00:03 GMT

Why successful business owners treat focus like a valuable asset

Many people believe focus is something you either have or you don’t. But the truth is much simpler. Focus isn’t something you have. It’s something you protect .

Think about the typical business owner’s day. You begin the morning with a clear plan. Perhaps you want to work on strategy, improve your marketing, or review your financial performance.

Then the interruptions begin. A team member needs help. A client sends an urgent email. A message arrives that seems important. A notification pops up that demands attention.

Each interruption seems reasonable in isolation. But together, they slowly dismantle your ability to think clearly and work deeply. By the afternoon, you are no longer working on the priorities you started with. You are reacting. Responding. Solving problems.

This pattern repeats day after day for many business owners. The result is that while you may be working incredibly hard, you rarely get the opportunity to think strategically about the future of your business.

Focus is not a personality trait reserved for a few highly disciplined people. It is a skill that comes from deliberately protecting your attention from unnecessary interruptions.

In the modern business environment, protecting your focus is not a luxury. It is a leadership skill. And the leaders who master it will have a significant advantage over those who don’t.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Check Your GST Credits Before Lodging Your BAS

Mon, 09 Mar 2026 21:30:03 GMT

Incorrect GST credit claims are a common BAS mistake — a quick review can prevent problems later.

When preparing your BAS, it can be tempting to simply claim the GST on every business purchase. But not every purchase is fully claimable — and getting it wrong can lead to corrections later.

Businesses that are registered for GST can generally claim GST credits (input tax credits) for the GST included in goods and services they purchase for their business.

However, there are some important rules to remember. If an item is used for both business and private purposes , you must only claim the business portion of the GST credit.

For example, if you purchase a car and use it for ride-sourcing work such as Uber , but also use it privately, you should calculate the percentage of business use and only claim GST credits on that portion.

The ATO is also reminding taxpayers to check a few key points before lodging their BAS. GST credits cannot be claimed for purchases:

Where no valid tax invoice is held
Where the purchase was cancelled or refunded
Where no GST was included in the price (for example, many bank fees)

Another important reminder: even if you have nothing to report for the period, you must still lodge a ‘nil’ BAS by the due date.

Some businesses also benefit from using annual private apportionment , which allows the private portion of certain expenses to be adjusted once a year rather than every BAS period.

Getting GST claims right from the start helps avoid adjustments, ATO queries and unnecessary stress. If you’re unsure whether your GST credits have been claimed correctly — or whether a different apportionment method might suit your business — it’s worth reviewing your BAS before lodging.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Biggest Threat to Your Business Right Now

Mon, 09 Mar 2026 07:00:19 GMT

Why distraction – not competition – is the real challenge for modern business owners

Most business owners think the biggest threat to their business is competition. But today, the real threat is something far more subtle. It’s distraction.

Think about how your day begins. Before you even start work, your phone might show news alerts, social media notifications, emails, calendar reminders, and messages from clients or team members.

Then the workday begins. Emails arrive. Staff have questions. Clients call. Messages appear. Software notifications pop up.

By lunchtime, your attention has already been pulled in dozens of different directions. This is not a personal failing. It’s the environment we now work in. Never in history have business owners had to process this volume of information every day.

The problem is not simply the noise — it’s what that noise does to your attention. When attention becomes scattered, decision-making becomes harder. Strategic thinking disappears. And meaningful progress slows down.

Many owners end the day exhausted yet wondering why they didn’t move their business forward. The businesses that thrive in this environment will not necessarily be the ones with the newest tools or the most technology. They will be the ones that learn how to protect their attention. Because attention is now one of the most valuable resources a business owner has.

Over the coming decade, the most successful leaders will not be the busiest. They will be the ones who learn to protect their focus and use it deliberately. And it starts with one simple question: Where is your attention going today?

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO Increasing Checks on Government Program Payments

Sun, 08 Mar 2026 21:30:00 GMT

Income received under programs such as NDIS, aged care and childcare must be reported correctly in your tax return.

If your business receives payments from government programs like NDIS, aged care or childcare subsidies , the ATO may already have visibility of those payments. The ATO has recently reminded taxpayers that income received through Commonwealth government programs must be properly recorded and reported in their tax returns.

These payments often arise where businesses or contractors deliver services funded by government programs, including areas such as:

Healthcare services
Disability support under the National Disability Insurance Scheme (NDIS)
Aged care services
Childcare and early learning programs

If you receive these types of payments, you have an obligation to:

Keep accurate records of all payments received; and
Report this income in your tax return .

The ATO has also strengthened its Government Payments Program data-matching system , which allows it to compare information received from government agencies with what is reported in tax returns.

As part of this program, the ATO recently advised it would be contacting taxpayers and tax agents by email to confirm that income received from government agencies — such as Aged Care Subsidies or NDIS payments — has been correctly declared.

Where discrepancies are detected, the ATO may request clarification or further information. For businesses receiving government-funded payments, accurate reporting is essential to avoid unnecessary reviews or compliance issues. If you receive income through government programs and are unsure how it should be reported, it’s worth reviewing your records now to ensure everything is correctly captured in your tax return.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

$20,000 Instant Asset Write-Off Extended to 30 June 2026

Sat, 07 Mar 2026 23:38:03 GMT

Small businesses may be able to immediately deduct eligible assets under $20,000 if purchased and installed before 30 June 2026.

Thinking of buying new equipment for your business this year? Here’s something worth knowing before 30 June 2026.

The Government has extended the $20,000 instant asset write-off for another year. For many small business owners, that means an opportunity to invest in equipment, tools, or technology and receive an immediate tax deduction rather than depreciating the asset over several years.

If your business has aggregated turnover under $10 million, you may be able to immediately deduct the business portion of eligible assets that cost less than $20,000. There are a few important points to keep in mind:
- The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.
- The $20,000 limit applies per asset, so multiple assets may qualify.
- Both new and second-hand assets may be eligible.
- Some exclusions and rules still apply, particularly for improvements to existing assets.

For many business owners, this can make a real difference. Instead of delaying upgrades or operating with outdated equipment, you can invest in tools that help your business run better — while also receiving an immediate tax benefit.

If you’re planning equipment purchases or considering upgrades in the coming months, it’s worth checking whether the instant asset write-off can apply to you. A quick conversation before you purchase could ensure you structure it the right way and maximise the deduction.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO Increasing Scrutiny on Contractor Income

Sat, 07 Mar 2026 21:36:53 GMT

Data matching is making it easier for the ATO to detect undeclared contractor payments.

If you work as a contractor, the ATO may already know how much you’ve been paid — even before you lodge your tax return. The ATO is increasingly using data matching technology to identify contractors who may be incorrectly reporting or omitting income.

Under the Taxable Payments Reporting System (TPRS) , many businesses are required to lodge a Taxable Payments Annual Report (TPAR) each year. This report details payments they have made to contractors.

These reporting rules apply to businesses that pay contractors in industries such as:

Building and construction
Courier services
Cleaning services
Information technology
Road freight
Security, investigation or surveillance services

Because these payments are reported directly to the ATO, it has a clear record of contractor income in many cases. This means if a contractor fails to report that income in their tax return, the discrepancy may be quickly identified through ATO data matching.

If the ATO believes income has been omitted, they may contact the contractor requesting that the tax return be amended . If the issue is not addressed, the ATO may proceed with a review or audit , and penalties and interest can apply.

The key point is simple: all contractor income must be declared , even if payments were irregular or from multiple businesses.

For contractors, accurate reporting isn’t just about compliance — it helps avoid unnecessary stress, reviews, and penalties. If you’re unsure whether all contractor income has been correctly reported, it’s worth reviewing your records before lodging your return. A quick check now can save significant issues later.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The Hidden Risks of Cash-in-Hand Payments

Fri, 06 Mar 2026 23:31:21 GMT

Why “cash-in-hand” arrangements can create serious tax, legal and employment risks for both businesses and workers.

A cheaper “cash price” might sound attractive. But for businesses and workers, the risks can be far bigger than the savings. The ATO has recently stepped up its focus on businesses using cash to avoid tax and employment obligations .

While most business owners do the right thing, a small number are still operating partly “off the books.” This can include practices such as:

Not reporting all sales or failing to issue receipts
Avoiding GST, income tax, PAYG withholding or super obligations
Keeping turnover under the $75,000 GST registration threshold by under-reporting income
Paying workers cash while ignoring award conditions and workplace protections
Undercutting compliant businesses by offering lower “cash-only” prices

The consequences can be serious. For businesses, penalties and audits can quickly follow if the ATO detects undeclared income.

For workers, the impact can be even worse. Employees paid cash-in-hand may miss out on superannuation, leave entitlements and proper wages. And if they’re injured at work, they may discover they have no insurance protection or workers’ compensation coverage .

In other words, what looks like a simple cash arrangement can leave both sides exposed.Running a clean, transparent business isn’t just about compliance — it protects you, your staff and the long-term value of your business.

If you’re unsure whether your systems, payroll or reporting processes are set up correctly, it’s worth reviewing them now before the ATO comes knocking. If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

March 2026 Tax Newsletter

Fri, 06 Mar 2026 03:14:34 GMT

March 2026 Tax Newsletter

Welcome to our March 2026 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

$20,000 instant asset write-off extended

The Government recently passed legislation to extend the $20,000 instant asset write-off for small businesses by 12 months to 30 June 2026.

Taxpayers should note that if their business has an aggregated annual turnover of less than $10 million, they may be able to use the instant asset write-off ('IAWO') to immediately deduct the business portion of the cost of eligible assets which cost less than $20,000.

Eligible assets must basically have been first used (or installed ready for use) between 1 July 2025 and 30 June 2026. The $20,000 limit applies on a per asset basis, so taxpayers can instantly write-off multiple assets.

The IAWO can be used for both new and second-hand assets (but some exclusions and limits apply).

Please contact our office if you require assistance regarding the above, including in relation to also claiming deductions for improvement costs for certain assets.

Businesses using cash to dodge obligations

The ATO is 'cracking down' on businesses that use cash to avoid meeting their tax, employer and business obligations. Businesses that do this may:

fail to report all sales transactions and fail to issue receipts;
avoid paying GST, income tax, PAYG withholding, super guarantee, insurance and work cover protection;
report their income below the $75,000 threshold to avoid registering for GST;
exploit workers by not meeting award conditions and work cover protections; or
undercut honest businesses by offering cheaper prices for cash.

The ATO warns that workers who are paid cash-in-hand or working 'off the books' are often disadvantaged. Apart from not receiving the entitlements they should be, if they are injured at work, they may not be protected.

Contractors omitting income

Through data matching, the ATO is seeing some contractors incorrectly reporting or omitting contractor income. Contractors need to report all their income in their tax return, including payments made by businesses for their contracting work.

Note that, as part of the taxable payments reporting system ('TPRS'), certain businesses must lodge a 'Taxable payments annual report' ('TPAR') to report payments made to contractors for providing the following services:

building and construction;
courier;
cleaning;
information technology;
road freight; and
security, investigation or surveillance.

For taxpayers who work as a contractor and provide any of these services, the business they contract to should be reporting those payments to the ATO on their TPAR. Contractors obviously then need to include this income on their tax return.

If the ATO suspects a contractor may have omitted TPRS income on their tax return, it may contact them to request they amend their tax return. If the contractor does not take action, the ATO may conduct a review and audit of their business, and penalties and interest may apply.

Government payments programs

The ATO is reminding taxpayers that receive government payments for delivering services under a Commonwealth program, such as healthcare, disability support or child care, that they have an obligation to:

keep accurate records; and
report any such income they receive in their tax return.

The ATO recently advised that it would be contacting taxpayers and tax agents in February by email to ensure that income received from government agencies (such as the Aged Care Subsidy or under the National Disability Insurance Scheme) is reported correctly in their tax returns.

The ATO has updated its Government Payments Program data-matching program protocol to better detect non-compliance, and work more effectively with other government entities.

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.

Please contact our office if you require assistance with any of this, including potentially using 'annual private apportionment' to account for the private portion of your business purchases.

When completing their next BAS, the ATO is asking taxpayers to remember that they cannot claim GST credits for purchases:

where they do not have a tax invoice;
that were cancelled or reversed; or
that do not have GST in the price (such as bank fees).

Taxpayers that have nothing to report still need to lodge a 'nil' BAS by the due date.

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 log 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 was fair and reasonable.

Director Penalty Notice (DPN)Review: A Wake-Up Call for Business Owners on Personal Tax Risks

Running a successful business is hard work—and sometimes, despite best intentions, tax obligations slip. If the business is being operated through a company structure, then the ATO can potentially issue a Director Penalty Notice (DPN), holding company directors personally liable for unpaid taxes.

In 2024–25, DPNs skyrocketed by 136%, reaching over 84,000 notices, affecting directors of around 64,000 companies. The stakes are high, and now the Tax Ombudsman is reviewing how the ATO issues and manages these notices—a development all directors should take seriously.

So, what exactly is a DPN? Put simply, if your company fails to pay certain taxes—like PAYG withholding, GST, or Superannuation Guarantee Charge (SGC)—the ATO can target directors personally. There are two types:

Non-lockdown DPNs: These apply if the company has lodged its activity statements or SGC statements but hasn’t made the relevant payments. In this case directors have 21 days to take appropriate action, such as arranging for payment of the debt, appointing an administrator, or entering liquidation. Acting promptly may allow the penalty to be remitted.
Lockdown DPNs: These apply if reporting deadlines are missed as well. In this scenario directors can’t avoid personal liability by putting the company into administration or liquidation.
The intent is to protect government revenue and employee entitlements—but for directors, the impact can be severe.

Why the Ombudsman is Involved

The review, announced in December 2025 by Tax Ombudsman Ruth Owen, responds to a surge in complaints, with DPNs topping the list. It will examine:

How effectively the ATO uses DPNs to recover debts ($54.2 billion in collectable amounts by mid-2025)
The fairness of selecting cases for enforcement
How directors are notified and communicated with
Treatment of vulnerable directors, including those coerced into roles or facing financial abuse

The review also aligns with broader government initiatives, including support for gender-based violence survivors and more empathetic engagement with business owners. While timelines are flexible due to resources, the review is part of the 2025–26 work plan, alongside assessments of ATO services for agents, First Nations engagement, and interest charge remissions.

Commercial Takeaways for Directors

DPNs are more than a compliance issue—they’re a real commercial risk. Ignoring a notice can disrupt personal finances, damage credit ratings, and even trigger bankruptcy. At the same time, the Ombudsman review could improve transparency and fairness, giving directors a clearer understanding of options if financial stress arises.

Practical steps to protect yourself now

Stay on top of obligations: make sure the company lodges returns and pays liabilities on time.
Lodge statements even if payment isn’t possible: Failing to lodge activity statements just makes things worse.
Consider using ATO payment plans if cash flow is tight but remember that this won’t necessarily enable directors to escape personal liability if a DPN has been issued already.
Monitor company cash flow and tax health closely, especially during economic dips.
Act fast if you receive a DPN: Consult immediately your accountant or lawyer to explore options because strict deadlines might apply.
Consider director insurance or business structuring to limit personal exposure—but compliance always comes first.

The Ombudsman’s review is a timely reminder: tax is a key business risk, not just paperwork. Being informed, proactive, and prepared can protect both your business and your personal assets. If you’re concerned about DPN exposure, reach out for a tailored review—we can help you stay ahead of risk, so your business thrives rather than just survives.

Navigating CGT on Your Home: New ATO Clarity for Home-Based Businesses

Running a business from home—whether as a sole trader, freelancer, or small operator—has many perks. But when it comes to selling your home and potentially saving on tax, recent guidance from the ATO serves as a reality check.

The ATO has provided its views on how home-based businesses interact with the small business capital gains tax (CGT) concessions, providing a warning on how the ATO approaches a long-standing area of confusion.

See: Home-based business and CGT implications | Australian Taxation Office

The Key Issue: Active Asset Test

When an individual sells their main residence, they will often enjoy a full CGT exemption. However, if part of the home is used for business purposes, this can potentially impact on the scope of the exemption.

If a full exemption isn’t available under the main residence rules then we typically look to other CGT concessions, including the CGT discount for assets that have been held for more than 12 months or the small business CGT concessions.

The small business CGT concessions can potentially reduce or eliminate a capital gain made on sale of a property, but only if certain conditions are passed. One of the key conditions is that the property must pass an active asset test.

In very broad terms, to pass the active asset test you need to show that the property has been actively used in a business activity for at least 7.5 years across the ownership period or for at least half of the ownership period.

The ATO is clear: the active asset test applies to the entire property, not just the business portion. When you are applying the active asset test, an asset either passes this test or fails it. It is not really possible for an asset to partially pass the active asset test. The entire property is either an active asset or it is not.

Simply having a home office, workshop, or even being able to claim home occupancy expenses as a deduction does not necessarily make your home an active asset. Where business use is incidental to the home’s primary residential purpose, the ATO’s view is that the small business CGT concessions generally do not apply.

Rus v FCT

The view that the entire property must qualify as an active asset—and that incidental or minor business use (such as a home office or storage in a largely residential setting) is insufficient—draws support from case law, particularly the Administrative Appeals Tribunal (AAT) decision in Rus and Commissioner of Taxation [2018] AATA 1854 (Rus v FCT).

In that case, a taxpayer sought access to the small business CGT concessions on the sale of a 16-hectare largely vacant rural property, where only a small portion (less than 10% by area) was used for business purposes: a home office, shed for storing tools/equipment/vehicles, and related supplies tied to a plastering and construction business operated through a controlled company. The balance of the land remained vacant or used residentially. The AAT upheld the ATO's ruling that the property as a whole did not satisfy the active asset test, reasoning that the business activities were not sufficiently integral to the asset overall.

Minor or incidental use did not make the entire property an active asset, especially where the business was primarily conducted off-site. This precedent reinforces the ATO's strict approach in home-based business scenarios: the property is assessed holistically. This means that limited business use typically fails to tip the scales toward qualifying for the concessions.

Practical Examples - Let’s take a look at how the ATO approaches some common scenarios.

Minor home-based business : Harriet runs a hairdressing salon in a spare room, using 7% of the total floor space of the property and seeing clients eight hours a week. She claims deductions for occupancy expenses and gets a 93% main residence exemption. However, because her business use is minor, she cannot access small business CGT concessions. The 50% CGT discount can still apply.

Significant business use : Sue and Rob own a two-storey building, with the ground floor operating as a takeaway store (50% of the total floor area of the property) and the top floor as their private residence. The business has been running for decades with employees. Here, the property qualifies as an active asset, potentially giving them access to the small business CGT concessions for the portion of the capital gain that isn’t covered by the main residence exemption.

What This Means for You

A partial main residence exemption doesn’t necessarily mean you have access to the small business CGT concessions. Many homeowners mistakenly assume that business deductions or a home office automatically open the door. The ATO clearly doesn’t share this view.
Seek advice before changing the way your home will be used. Starting to operate a business from home can impact on deductions, CGT calculations and access to CGT concessions. We are here to help you make fully informed decisions.
Keep thorough records. Floor plans, hours of business use, and detailed deductions can help strengthen your position and may help in any future planning or audits.
Consult your accountant. If selling your home is on the horizon, professional advice is critical to assess any potential CGT exposure and explore concessions that might be available.

The Bottom Line

The ATO’s updated guidance suggests that many home-based business owners won’t have access to the small business CGT concessions on sale of their home, but this always depends on the facts. Business owners need to plan proactively, rather than assume that tax relief will be available. By understanding how your home’s business use is treated, you can make smarter decisions. For example, will the profits generated from a small business operated at home end up being wiped out by a higher CGT liability on sale of the property down the track? After all, when it comes to CGT, every dollar you keep counts toward your next venture or your retirement nest egg.

ATO Update on Inherited Homes: What it Means for Your Family’s Wealth

The ATO has issued a Draft Taxation Determination TD 2026/D1 which looks at how inherited family homes are treated for CGT purposes. Some industry commentators have dubbed it a “death tax by stealth”, but it is a bit more complex than this. The draft guidance focuses on a specific aspect of the rules around applying the main residence exemption to inherited properties, potentially exposing deceased estates and beneficiaries to significant tax if not planned correctly.

Here’s what you need to know in practical terms.

Why TD 2026/D1 Matters

Under current law, deceased estates or beneficiaries can potentially sell a deceased individual’s former family home without paying CGT if certain conditions can be met. This exemption is particularly valuable for properties owned long-term, where unrealised gains could be substantial.

In order to access a full exemption you normally need to ensure that the property is sold within 2 years of the date of death (but the ATO can potentially extend this deadline) or that the property has been the main residence of certain qualifying individuals from the date of death until the property is sold.

These qualifying individuals can include the surviving spouse of the deceased individual, the beneficiary selling an interest in the property or someone who has a right to occupy the dwelling under the deceased’s will.

The draft ATO guidance focuses on this last point. That is, what does it mean for someone to have “a right to occupy the dwelling under the deceased’s will.” In summary, the ATO’s view is that:

The right to live in the home must be explicitly granted in the will to a named individual.
Broad discretionary powers given to trustees, separate agreements, or even testamentary trusts (TTs) are not sufficient in the ATO’s view.

For example:

A will giving an executor discretion to allow a family member to occupy the home does not meet this requirement.
A trustee of a TT who allows a beneficiary to live in the house is seen as separate from the will and may trigger CGT on sale.

Some legal and real estate experts warn this could force families to sell homes within two years of death to avoid CGT, especially in high-value areas.

Consider this: inheriting a $2 million home with a capital gain of $1.5 million could expose the beneficiaries to $300,000–$600,000 in tax, depending on discounts and tax brackets.

However, it is important to remember that there are still other ways for the sale of the property to qualify for a full exemption.

Practical Steps to Protect Your Estate

While we are waiting for the ATO to finalise its guidance in this area, there are steps you can take to protect your family’s assets:

Review and update your will, especially if you are planning to provide certain individuals with the right to occupy a property. Does the will currently provide this right to specifically named beneficiaries?
Plan the timing of sales – The two-year exemption window remains, but if you inherit a property and intend to hold it longer than this, weigh any potential CGT exposure against future rental income or family needs. Partial CGT exemptions might still apply, but the rules and calculations can be complex.
Seek professional advice, especially if your estate plan uses TTs. You will normally need to work closely with tax and legal advisors to structure the plan appropriately.
Be market aware – Estate planning can intersect with market timing. Quick sales may preserve CGT exemptions, but this needs to be weighed up against non-tax factors.

The key takeaway is clear: estate planning is a complex area and needs to be navigated carefully to preserve family wealth and avoid unintended tax implications.

Keeping Your Self-Managed Super Fund Compliant

Self managed superannuation funds (SMSFs) can offer significant flexibility, allowing the members to make investments and enter arrangements that may not be available through retail or industry superannuation funds. However, being an SMSF trustee does come with important responsibilities to ensure that all dealings comply with superannuation law.

Two critical areas to keep front of mind are:

The sole purpose test, and
The arm’s length requirements in both superannuation and taxation law.

The Sole Purpose Test

The sole purpose test requires that superannuation funds should be managed for the sole purpose of providing retirement benefits to fund members. While some SMSFs may have dealings with or/investments in related entities, these are subject to strict limits and when arrangements are entered into it is important that first and foremost SMSF trustees are considering the retirement benefits of the fund members rather than the needs of any external parties.

The example below illustrates how SMSF trustees should apply the sole purpose test when looking at making a related party investment.

Example: Investing in a Related Business?

Sachin and Deepthi have an SMSF which has a total balance of $1.2m. Their son Hardik commenced a business 3 years ago using a company structure. Hardik has approached his parents to invest $50,000 into his company via their SMSF.

Although Hardik is passionate about the business it has not grown as he would like, and Sachin and Deepthi are aware that the business has had cashflow issues and profits are not at a point where the business is growing or generating a profit.

Although the proposed investment amount is within the 5% in-house asset limit would Sachin and Deepthi invest member funds in an unrelated business knowing the business was in this same situation? That is, would they be placing their son’s interests ahead of the interests of the fund members?

Based on Sachin and Deepthi’s knowledge of the business, if the SMSF was to go ahead and make this investment they as trustees may have contravened the sole purpose test.

Arm’s Length Requirements

In addition to the sole purpose test there are superannuation and taxation law requirements that SMSF trustees always deal on arm’s length commercial terms. This is again particularly important when arrangements are with fund members and/or related parties.

Where arrangements are not at arm’s length, SMSF trustees can be liable for superannuation law penalties and in some cases fund income may be taxed at a higher rate.

Some common examples and key issues are discussed below.

Example: An SMSF Owns a Commercial Property Which is Leased to a Related Party Business

The rent should be on commercial terms and this needs to be evidenced by a rental appraisal from a professional such as a real estate agent when a lease is entered into.

The lease agreement should:

Be in writing;
Clearly cover who is responsible for particular outgoings and maintenance; and
Be prepared by a legal professional.

Example: A Member of the SMSF or a Related Party Completes Work on an SMSF Property

SMSF trustees should seek professional advice before commencing any work on SMSF properties where the work may be performed by a member or a related party.

All arrangements with related entities should be commercial, including:

If a related building company is used, the SMSF must pay market rates (same as the general public) and this should be supported by documentation to satisfy the fund auditor.
If members (who are also trustees) perform work personally, strict rules apply to whether they can be paid for their services.
All materials should be purchased directly by the SMSF, not by individual members.

Please contact us to discuss these rules further if you are considering entering into any transactions or projects involving SMSF-owned property and related parties.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Your Business Will Only Grow as Fast as You Do

Fri, 06 Mar 2026 00:30:46 GMT

Your Business Will Only Grow as Fast as You Do

Most business owners believe growth comes from doing more. More hours.More hustle. More reacting to emails and problems. But the real driver of growth is much simpler. Your business will only grow as fast as you do.

The most successful owners understand something powerful: They don’t just work in the business — they deliberately work on the business. And they protect time to do it.

A simple discipline can change everything: Spend one focused hour every day working on the business. No emails. No phone calls. No distractions. Just one clear objective: do one thing that moves the business forward.

That might be improving a system, strengthening a client relationship, refining your pricing, developing your team, or creating a new opportunity for growth. Small strategic actions, repeated consistently, create extraordinary results.

There’s an old principle that explains why: Sow a thought, reap an action. Sow an action, reap a habit. Sow a habit, reap a character. Sow a character, reap a destiny.

When you develop the habit of stepping back and thinking strategically, your leadership improves. And when your leadership improves, your business improves with it.

A few simple questions can help guide that hour:

• What is the single most important thing that would move the business forward today?
• Where is the biggest opportunity for improvement right now?
• What system, decision or conversation would make everything easier?

Growth rarely comes from doing more of the same. It comes from clear thinking and deliberate action . So here’s a challenge for this week: Block out one hour each day to work on your business . No interruptions. No distractions. Just one meaningful action that moves the needle forward. Because when the leader grows — the business grows with them.

�� Book a Business Health Check and start turning today’s effort into tomorrow’s freedom.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

This Weekend, Decide Who You’re Becoming

Fri, 27 Feb 2026 02:42:34 GMT

This Weekend, Decide Who You’re Becoming

Most small business owners don’t fail because they lack skill. They drift. They get caught in the noise — payroll, BAS, quotes, staff issues, job delays, cash flow pressure. Weeks roll into months. Months roll into years. And one day they wake up wondering how they ended up running a business they never consciously designed.

That’s not going to be you. This weekend, I want you to do something different. Not work in the business. Work on the direction of your life.

The Hard Truth

If you don’t write your goals, you will live someone else’s. Your suppliers’ expectations. Your clients’ urgency. The ATO’s deadlines. Your staff’s problems.

But when you write clear goals, something shifts. You move from reacting… to deciding. And that’s where power comes from.

Why Goals Matter for Family Businesses

As a family-owned business, this isn’t just about turnover.

It’s about:

The lifestyle you’re building
The example you’re setting for your kids
The stress levels at the dinner table
Whether you feel proud — or exhausted

You didn’t start your business to feel trapped. You started it for freedom. For impact. For security. For something better. Goals reconnect you to that original reason.

A Simple Framework for This Weekend

Don’t over complicate it. Use four categories:

1. Business

Revenue target?
Profit target?
Team structure?
Systems you must fix?
Clients you want more of — and less of?

2. Money

Personal income goal?
Debt reduction?
Super contributions?
Investment targets?

3. Family & Lifestyle

Holidays?
Time off?
Health commitments?
Date nights?
Sport with the kids?

4. Personal Growth

Courses?
Fitness?
Leadership?
Public speaking?
Faith or mindset work?

Write them down. Not in your head. On paper.

Make It Real

Before committing to any big goal, ask:

What is the purpose?
What does the completed result look like?
What must be true for this to be a success?
What’s possible if I take action?
What’s at risk if I don’t?

That last question matters. What happens if you stay where you are? Because doing nothing is still a decision.

Here’s the Shift

Goals are not about pressure. They’re about clarity. When you’re clear: Decisions get easier. Pricing becomes firmer. Boundaries become stronger. You stop tolerating low-profit work. You start building a business that funds your life — not consumes it.

And when your business is profitable and structured properly, everything changes at home too. Calmer conversations. More options. More generosity. More joy.

Your 60-Minute Challenge

Block out one hour this weekend. No phone. No emails. No distractions.

Write:

Your 12-month revenue goal.
Your profit goal.
One system you will fix.
One personal commitment you will honour.
One lifestyle outcome you refuse to compromise on.

Then tell your spouse or partner. Make it real.

Design your business

The businesses that grow aren’t run by the smartest people. They’re run by the clearest people. Clarity creates momentum. Momentum creates confidence. Confidence creates growth.

This weekend, don’t just run your business. Design it. Because the future version of you — calmer, wealthier, healthier — is waiting for the decision you make in the next 60 minutes. Now go write it

�� Book a Business Health Check and start turning today’s effort into tomorrow’s freedom.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Are You the Best on the Tools… or the Bottleneck?

Fri, 20 Feb 2026 00:17:00 GMT

Are You the Best on the Tools… or the Bottleneck?

Do you want to know how to step back from the tools… from the floor… from the chair… and still be one of the most valuable contributors in your business? It’s a fair question.

In trades, hospitality, and allied health, value feels tangible. It’s the deck built. The table turned. The patient treated. Hours worked equals dollars earned. That’s how it’s always been measured. And on the surface… it makes sense.

The Hidden Ceiling

Here’s the uncomfortable truth. If you are always the one doing the work, you don’t own a business. You own a job with overheads. The moment you step away, production slows. Revenue dips. Pressure builds. And suddenly, you realise everything depends on you.

The most skilled tradesperson. The most talented chef. The most experienced clinician. None of it matters if the business cannot function without you. Technical excellence earns you the right to start. It does not build something that scales.

The Shift That Changes Everything

The best operators eventually ask a different question. Instead of: “How many jobs can I fit in this week?” They ask: “How do I build a team that delivers this standard without me on every job?”

They stop measuring their value by hours. They start measuring it by systems. They build:

Clear processes
Defined standards
Training frameworks
Consistent quality controls

They focus on repeatability. Because the best performers don’t just execute well under ideal conditions. They execute consistently, under pressure, at pace. And then they build teams that can do the same. That’s the difference between being fully booked… and being scalable.

Your Hours Have a Ceiling. Your Leverage Doesn’t.

Track your hours. Cost your jobs. Know your margins. Discipline around numbers matters — especially in industries where cash flow and job costing can make or break you. But don’t let the timesheet become the only measure of your worth.

Your real value as an owner is:

The standard you set
The culture you build
The systems that protect quality
The team that delivers without you

When the business can run at pace, at standard, without your constant presence… You stop being the business. You start owning one.

If you’re feeling stuck on the tools and wondering how to step into true ownership without losing quality or control, let’s talk. Because the goal isn’t to work harder. It’s to build something that works — even when you’re not there.

�� Book a Business Health Check and start turning today’s effort into tomorrow’s freedom.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Make Expectations Visible. Watch Performance Rise

Fri, 13 Feb 2026 01:12:31 GMT

Make Expectations Visible. Watch Performance Rise

Imagine a football team turning up on game day…No scoreboard. No positions defined.

No agreed game plan. No stats tracked. Just “try your best.” How long before frustration sets in? That’s exactly how many businesses are operating. And then we wonder why performance feels inconsistent.

Let’s use a sporting analogy. A high-performing rugby league or AFL team doesn’t motivate players by yelling, “Work harder.” They define the game.

Every player knows:

Their position.
Their role.
The metrics that matter.
What winning looks like.

For a forward, it might be:

Tackles completed
Metres gained
Missed tackles

For a halfback:

Line breaks created
Kicking accuracy
Try assists

For the whole team:

Completion rate
Turnover errors
Possession percentage
Scoreboard result

Now here’s the key: Those stats are not there to shame players. They are there to create clarity. If a player misses tackles, the coach doesn’t say: “Why aren’t you good enough?” The coach asks: “What’s happening? Fitness? Positioning? Communication?” The numbers remove emotion. They allow improvement.

Now contrast that with a team where “good” is vague.

Players run hard. They sweat. They try. But no one knows what winning requires. Performance becomes subjective. Feedback becomes personal. Accountability feels unfair. That fog kills morale.

Business is no different. Most firms don’t have a productivity problem. They have a clarity problem. Everyone is busy. Everyone feels stretched. But ask: “What does good look like in this role?” If the answer is unclear, frustration follows.

Clear KPIs are your scoreboard. They define productivity in practical terms:

Jobs completed
Turnaround time
Gross profit per job
Labour recovery rate
Defect rate

Now something powerful happens. People can see:

What is expected.
Where they stand.
What needs improvement.

Accountability stops feeling like pressure. It becomes fairness. And here’s the real leverage: KPIs aren’t there to ask, “Why aren’t you performing?” They’re there to ask,
“What’s in the way?” Great coaches don’t demand more effort. They remove obstacles.

They adjust tactics. They improve systems. That’s how performance lifts — without politics.

And just like sport, the scoreboard must be reviewed regularly. Imagine only checking the score at the end of the season. Too late. Weekly check-ins matter.

That’s when you:

Recognise wins.
Spot issues early.
Have neutral, fact-based conversations.
Correct course before damage compounds.

And one more crucial shift: In sport, effort doesn’t win games. Points do.

In business, hours worked don’t equal value delivered. Output-based KPIs shift the mindset: From busy… to productive. From effort… to impact. From reactive… to scalable.

KPIs work when they create clarity — not fear. When expectations are visible and obstacles are removed: Performance rises naturally. Morale improves. Conversations improve. Leadership improves.

If you want a high-performing firm without pressure or politics… Start with the scoreboard. Because when everyone knows what “winning” looks like — Performance stops being emotional and starts being measurable. And measurable is fixable.

If you'd like, I can send you a simple KPI scoreboard template you can implement with your team immediately.

�� Book a Business Health Check and start turning today’s effort into tomorrow’s freedom.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Today’s Cash Flow Tip: Turn Unpaid Invoices into Momentum

Thu, 05 Feb 2026 23:00:00 GMT

Today’s Cash Flow Tip: Turn Unpaid Invoices into Momentum

Ever feel like you’re working harder than ever… yet the cash just isn’t flowing the way it should? If unpaid invoices are stacking up, you’re not alone — and more importantly, you’re not stuck.

Right now, many business owners are doing the work, delivering the value… and then waiting. Waiting for invoices to be paid. Waiting for cash flow to catch up. Waiting for breathing room.

Here’s the truth: cash flow doesn’t improve by chance — it improves by intention. One simple but powerful move is to run a waste audit on your accounts receivable process (the money owed to you by your customers). Start by listing your overdue invoices and grouping them by age. Then ask yourself:

Do we have a clear, consistent follow-up system?
Are reminders automated — or personal where they need to be?
Are our payment terms actually helping us… or hurting us?

Often, tightening terms just slightly and being more proactive with follow-ups frees up cash faster than finding a single new customer.

And here’s the kicker: when you involve your team in spotting inefficiencies, you uncover hidden leaks — wasted time, delayed actions, and missed opportunities — that quietly drain cash every month.

Cash flow is the lifeblood of your business. When it flows, everything feels lighter. When it doesn’t, everything feels harder.

The businesses that thrive don’t wait for problems to become emergencies — they take simple, proactive steps early. If you’d like tailored strategies to get on top of unpaid invoices and strengthen your cash flow, let’s talk.

�� Book a Business Health Check and start turning today’s effort into tomorrow’s freedom.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The Simple Framework Smart Businesses Use to Stay Ahead (Even in Chaos)

Thu, 05 Feb 2026 01:02:33 GMT

The World Is Changing Fast—Is Your Plan Built to Handle It?

Let me ask you something important. When the next curveball hits your business—new regulations, rising costs, tech disruption—will your plan bend… or break? Most business owners plan for today. Very few plan for what’s coming next. And that’s where resilience is either built—or lost.

There’s a simple framework that helps you stop guessing and start seeing around corners. It’s called PESTEL —and when used properly, it becomes a powerful resilience tool. PESTEL looks at the forces shaping your future: Political. Economic. Social. Technological. Environmental. Legal.

When you step back and scan these trends, something powerful happens. You start spotting risks before they hurt you—and opportunities before your competitors do. Here’s the real magic though: you don’t need to track everything. Using the Pareto Principle, you focus on the 20% of trends that will drive 80% of your results.

One business we worked with identified two big shifts early—rapid tech change and tighter environmental rules. Instead of reacting later, they adjusted their strategy now: investing in digital systems and greener processes.

The outcome? Less stress. More confidence. And a plan that could handle multiple futures—not just one.

Resilience isn’t about predicting the future perfectly. It’s about being prepared for any version of it. If your current plan hasn’t been stress-tested against real-world change, now is the time. Because the businesses that win aren’t the biggest or the fastest— They’re the ones who planned smarter.

�� Learn how to strengthen your strategy with the Business Health Check using PESTEL.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

February 2026 Tax Newsletter

Mon, 02 Feb 2026 06:14:55 GMT

February 2026 Tax Newsletter

Welcome to our February 2026 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

Holiday Homes Under the Microscope: What the ATO’s New Guidance Means for You

For many Australians, a holiday home does double duty. It’s a place to escape with family and friends, and during the rest of the year it’s listed on Airbnb or Stayz to help cover the costs.

Until recently, many owners assumed they could claim most of the usual deductions for the property without much trouble, as long as appropriate apportionments were made. However, that position is now under more scrutiny than ever following the release of some new draft guidance documents by the Australian Taxation Office (ATO) - TR 2025/D1, PCG 2025/D6 and PCG 2025/D7.

The ATO is looking to significantly tighten the rules around holiday homes that are used to derive some rental income. While the documents are still in draft form, they clearly signal the ATO’s compliance focus going forward.

What is the ATO Concerned About?

In simple terms, the ATO wants to distinguish between properties that are genuinely held to maximise rental income and those that are primarily lifestyle assets with some incidental rental use.

The ATO confirms that all rental income must be declared, even if it is occasional or earned through informal arrangements. However, if the property is really a holiday home and isn’t used mainly to produce rental income during the year then the owner can’t claim any deductions for expenses such as interest, rates, land tax, repairs and maintenance.

That is, the ATO might not allow any of these expenses to be claimed as a deduction, even if the property is used to generate taxable rental income for some of the year at market rates. If the property is classified as a holiday home by the ATO then owners can only claim deductions for limited direct expenses such as cleaning or advertising.

The ATO is particularly focused on properties that:

Are blocked out for private use during peak periods (for example, school holidays or ski season),
Are advertised inconsistently or at above-market rates,
Generate ongoing tax losses year after year.

How Expenses Must be Claimed

Even if the property isn’t classified as a holiday home, it will often still be necessary to apportion expenses if the property is only used partly for income producing purposes. PCG 2025/D6 outlines how expenses should be apportioned. The key principle is that claims must be “fair and reasonable”. Common methods include:

Time-based apportionment (for example, based on days rented or genuinely available for rent), and
Area-based apportionment (where only part of a property is rented).

Getting this wrong, or failing to keep evidence, increases audit risk. The ATO has access to booking platform data and can easily compare listings, calendars and reported income.

The Financial Impact can be Significant

Consider a holiday unit that earns $30,000 a year in off-peak rent but is kept for private use during peak holiday periods. Under the new approach, the ATO may conclude the property is really a holiday home and could reduce deductible expenses from tens of thousands of dollars to only a small fraction, resulting in a materially higher tax bill.

Co-ownership also needs care. Income and deductions are generally split according to ownership interests, regardless of who uses the property more. Renting to relatives at discounted rates can further limit deductions.

Practical Steps you Should Take Now

Although the guidance is proposed to apply from 1 July 2026 (with transitional relief for arrangements in place before 12 November 2025), now is the time to review your position:

Are you holding and using the property to genuinely maximise rental income? Is the property advertised broadly and consistently, including during peak periods?
Use market pricing: Set rent in line with comparable properties in the same area.
Keep strong records: Retain booking calendars, advertisements, enquiries, and a diary showing private versus rental use.
Review ownership and strategy: In some cases, changing how a property is operated can improve its commercial profile and tax outcome, but beware of CGT liabilities, duty and legal fees.
Document existing arrangements: If you may qualify for transitional relief, evidence is critical.

The Bottom Line

The ATO is not banning deductions for holiday homes, but it is drawing a firmer line between genuine investment properties and lifestyle assets. With the right structure, pricing and record-keeping, many owners can still claim appropriate deductions and improve cash flow.

If you own a holiday property, a proactive review could save you from an unpleasant surprise later. Please contact us if you would like us to assess your current arrangements and help you plan ahead.

Electric Car Discounts Under Review: What It Means for Your Business (and What You Should Do Now)

Electric vehicles (EVs) are no longer a niche choice. By late 2025, they account for more than 8% of new car sales in Australia, driven in no small part by generous tax incentives. One of the most significant is the Federal Government’s Electric Car Discount, introduced in mid-2022. For many businesses and employees, it has materially reduced the cost of owning or leasing an EV.

That said, the rules are now under review. While no immediate changes are proposed, this is an important moment to understand the benefits, assess whether they suit your circumstances, and consider timing.

How the Electric Car Discount Works (in Plain English)

The discount is not a cash rebate. Instead, it operates through tax concessions that can significantly reduce the real cost of an EV:

1. Fringe Benefits Tax (FBT) exemption

Where an eligible EV is provided to an employee as a fringe benefit, private use is exempt from FBT. This is often the biggest saving. Without the exemption, FBT is effectively charged at up to 47%. For many employees, the exemption can reduce the annual after-tax cost of a vehicle by thousands of dollars.

Important points:

The exemption applies to battery electric vehicles and hydrogen fuel cell vehicles.
Plug-in hybrid vehicles lost eligibility for new arrangements from 1 April 2025.
The car must be first held and used after 1 July 2022 and be below the luxury car tax threshold at first purchase.

2. Higher luxury car tax (LCT) threshold

Fuel-efficient vehicles, including EVs, benefit from a higher LCT threshold ($91,387 for 2025–26, compared to $76,950 for other cars). This can prevent the 33% luxury car tax applying to part of the purchase price.

3. Reduced import costs

Certain EVs are also exempt from the 5% customs duty, reducing upfront acquisition costs.

Why the Government Is Reviewing the Rules

A statutory review of the Electric Car Discount has now commenced. The key reason is cost. Uptake has exceeded expectations, and the projected cost to the budget has increased significantly over the forward estimates.

The review will examine:

Whether the concession is still required to encourage EV adoption.
Whether eligibility settings should be tightened (for example, limiting benefits to certain vehicle types or price points).
How the discount interacts with other policies, such as the National Vehicle Emissions Standard commencing in 2025.

Public consultation is underway, with a final report not due until mid-2027. Importantly, there is no suggestion of immediate changes, and any reforms are more likely to be prospective.

Practical Takeaways for Business Owners and Employees

While uncertainty always creates hesitation, the current rules are clear and legislated. From a practical perspective:

Now is a good time to review fleet or salary packaging arrangements, particularly if you are considering replacing a vehicle in the next 12–24 months.
Existing arrangements are expected to be grandfathered, reducing the risk of retrospective changes (although we can’t guarantee this).
Ensure vehicles are clearly under the LCT threshold at first purchase and meet all eligibility criteria if you want to access the FBT exemption.
Check the tax treatment of charging infrastructure provided in connection with an eligible EV, this won’t necessarily qualify for an FBT exemption.

Final Thought

Please contact our team if you would like tailored advice on whether an electric vehicle strategy makes sense for you under the current rules.

AI Tax Tips: Helpful Shortcut or Costly Trap?

As a business owner or investor, time is always tight. So it’s no surprise many people now turn to AI tools like ChatGPT for quick answers on tax deductions, super contributions or structuring ideas. The responses sound confident, arrive instantly and cost nothing. What could go wrong? Plenty.

The Australian tax and super system is complex, highly fact-specific and constantly changing. While AI can be a useful starting point, relying on it for decisions can expose you to audits, penalties and poor financial outcomes. We’re increasingly seeing the clean-up work when AI advice goes wrong.

Where AI Can Help (and Where it Can’t)

AI is quite good at explaining basic concepts in plain English. It can help you understand what “negative gearing” means, outline the difference between concessional and non-concessional super contributions, or prompt you to think about record-keeping. Used this way, it can save time and help you ask better questions. The problem starts when AI moves from explaining concepts to giving “advice”.

Tax and super outcomes depend on your specific facts: your income levels, business structure, age, residency status, assets, timing and future plans. AI does not know these details unless you provide them—and you generally shouldn’t. Even then, it cannot exercise judgement or balance competing risks the way an experienced adviser can.

The Accuracy Risk: Confident, but Wrong

AI tools are known to “hallucinate” – that is, provide answers that sound authoritative but are incorrect or incomplete. In practice, this can mean:

Claiming deductions that don’t apply to your circumstances
Miscalculating capital gains tax or ignoring integrity rules
Suggesting super strategies that breach contribution caps or eligibility rules
Quoting legislation, cases and rulings or concessions that don’t exist or are out of date.

These errors are rarely obvious to a non-expert, but they are normally obvious to the ATO, courts and experienced advisers.

A recent decision handed down by the Administrative Review Tribunal highlights some of the key problems. In Smith and Commissioner of Taxation [2026] ARTA 25 the taxpayer appeared to rely on AI tools to identify cases which supported their argument, but this approach was shot down by the Tribunal. Some of the cases didn’t exist and others were simply not relevant to the matter being considered.

If the person using the AI tool doesn’t verify the existence of the cases provided by the tool and read them to ensure their relevance then “the Tribunal’s resources are being wasted, as the Tribunal must look for cases that don’t exist and read cases that have no relevance at all”.

ATO Scrutiny is Increasing, not Decreasing

The ATO isn't anti-AI—they use it internally for fraud detection and analytics. But for you? The ATO’s misinformation guide makes it clear that AI tools can provide false, inaccurate, incomplete or outdated information. The ATO’s message is to verify everything, or face the music. Surveys reveal 64% of businesses seek AI accounting help first, only for pros to unscramble the mess—wasting time and money.

ATO AI transparency statement | Australian Taxation Office

Protect yourself from misinformation and disinformation | Australian Taxation Office

When something is wrong, the ATO will generally amend the return, charge interest and may apply penalties—even if the mistake came from AI advice rather than intent.

We are seeing this play out most clearly with work-from-home claims, property deductions and SMSF compliance.

Superannuation: High Stakes, Little Margin for Error

Super is an area where AI advice can be particularly dangerous. Self-managed super funds, in particular, operate under strict rules. AI often overlooks key issues such as eligibility, timing, purpose tests and investment restrictions. The result can be non-compliance, forced unwinding of transactions and penalties that run into thousands of dollars.

Super mistakes can also permanently damage your retirement savings.

Data Security and Privacy

There is also a practical risk many people overlook: entering personal or financial information into AI platforms. Once data is entered, you lose control over how it is stored or used. This creates privacy and fraud risks that are simply not worth taking.

A Smarter Approach: AI Plus Professional Advice

AI is best used as a support tool, not a decision-maker. It can help you understand the landscape, but important tax and super decisions should always be reviewed in light of your full circumstances.

At our firm, we encourage clients to bring questions early, test ideas and have conversations before acting. That approach almost always costs less than fixing problems after the fact. The bottom line: AI can be a helpful assistant, but it is not your accountant. When it comes to protecting your wealth and staying compliant, tailored professional advice remains essential.

Downsizer Contributions and the Main Residence Exemption

When clients sell a long-held family home, they may be able to channel part of the proceeds into superannuation by using the downsizer contribution rules.

Basic Eligibility Conditions

To qualify, the seller must meet a number of conditions:

They must have reached the eligible age of 55 years (at the time of making the contribution).
The eligible dwelling must be located in Australia and have been owned for at least 10 years.
The disposal of the dwelling must be exempt from CGT under the main residence exemption to some extent (full exemption not required).
The contribution must be made within 90 days of settlement, and an election form must be lodged with the fund no later than when the contribution is received.

The downsizer contribution can only be used once per individual and is limited to the lesser of the gross sale proceeds or $300,000 per person.

Does the Sale Need to be Fully CGT-exempt?

A common question is whether the sale must be fully exempt as the main residence. Importantly, a full exemption is not required. Even if only part of the capital gain is exempt under main residence rules, the property may still qualify — provided all other conditions are met.

Is the Property Required to be the Main Residence at Sale?

Equally important: the property does not need to be the seller’s principal residence at the time of sale. Living in the property for some years and renting it out later does not disqualify it, as long as the ownership and residence history supports at least a partial main residence exemption.

Special Rules for Pre-CGT Properties

Where a property was acquired before CGT began, the rules look at whether part of the gain would have been disregarded had CGT applied. A key requirement is that there is a dwelling that qualifies as the main residence. Disposal of vacant land will generally not satisfy the test and therefore will not meet downsizer requirements.

Eligibility of a Non-Owning Spouse

It is common for only one spouse to be listed on the property title. A non-owning spouse may still qualify for a downsizer contribution if all other requirements are met, apart from ownership. However, a spouse who never lived in the property and could not reasonably have treated it as their main residence is unlikely to be eligible.

Preservation and Access to Funds

A downsizer contribution is subject to the standard preservation rules. Once contributed, the amount cannot be accessed until:

You reach preservation age (60) and retire, or
You reach age 65, regardless of retirement status.

Consider future cash-flow needs before making the contribution.

Before you Contribute

Although seemingly straightforward, downsizer contributions involve several nuances. Please contact us if you have any questions.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

From Chaos to Clarity: How One Simple Plan Turned a Café Around

Thu, 29 Jan 2026 23:00:00 GMT

From Chaos to Clarity: How One Simple Plan Turned a Café Around

Have you ever looked at your business and thought, “I’m working harder than ever… so why does it still feel messy, stressful, and stuck?” Long days. Little reward. A constant sense that you’re busy—but not moving forward. That’s exactly where one café owner found herself.

Emma owned a cafe—a beautiful little spot with loyal customers and great coffee. From the outside, it looked like a success. Behind the scenes? Total overwhelm. She was working 12-hour days, barely paying herself, juggling staff who weren’t clear on priorities, and guessing when it came to marketing. Costs were high. Margins were thin. And every week felt reactive instead of intentional.

Then Emma did one simple thing. She was introduced to the Mindshop One Page Plan . At first, she thought, “There’s no way something this simple can fix something this messy.” But she leaned in.

First, she got brutally honest about her NOW :

Supplier costs were too high
High-margin items weren’t being promoted
Marketing was inconsistent and unfocused

Then she defined her WHERE :

Increase profits by 30%
Focus on high-margin specialty drinks
Build a stronger local presence

Finally, she mapped the HOW :

Renegotiated supplier contracts
Trained staff to upsell profit drivers
Launched a simple, consistent social media strategy

Nothing fancy. Just clear priorities, ownership, and deadlines. And here’s the magic part…

Within three months:

Costs dropped by 15%
Sales of high-margin items jumped
Foot traffic increased by 20%
And for the first time, Emma paid herself properly

The chaos didn’t disappear overnight—but it was replaced with clarity, focus, and momentum.

Emma’s story isn’t about cafés. It’s about what happens when you stop trying to hold everything in your head—and put a clear plan on one page. If your business feels busy but not profitable… If your team is working hard but pulling in different directions… If you know there’s more potential but you can’t quite unlock it… You don’t need more hours. You need clarity. And sometimes, one page really can change everything. If this story sounds a little too familiar, maybe it’s time to ask: What would clarity look like for your business? Take 5 minutes to complete our free Mindshop Business Owner End of Year diagnostic to receive your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Overcoming Profitability Challenges: Lessons from Businesses That Turned It Around

Thu, 29 Jan 2026 03:15:02 GMT

Overcoming Profitability Challenges: Lessons from Businesses That Turned It Around

Have you ever looked at your numbers and thought, “We’re busy… revenue is coming in… so why does profit still feel so hard?” You’re not alone. Profitability isn’t about working harder. It’s about fixing the leaks most business owners don’t even realise are there. And here’s the truth: the businesses that win aren’t luckier—they’re clearer.

Profit is the lifeblood of every business. Without it, growth stalls, stress rises, and options disappear. Yet we see the same challenges show up again and again in otherwise great businesses.

First—inefficiency and wastes

Many businesses lose up to 30% of their costs without noticing. Clunky processes, duplicated work, excess stock, or people doing tasks that don’t move the needle. It adds up fast.

Then—low-margin customers or productss

Revenue looks healthy, but profit tells a different story. Some customers take more time, effort, and discounting than they’re worth—yet they’re rarely reviewed.

Next—lack of strategic focus

When everything is a priority, nothing is. Teams get busy instead of effective, spreading energy thin instead of doubling down on what really drives profit.

And finally—poor credit control

Slow-paying customers and loose credit terms quietly choke cash flow. Profit might exist on paper, but it’s not in the bank.

Now here’s where things shift

The businesses that break through don’t guess—they get intentional.

• They identify waste and cut costs without cutting quality.

• They review customer profitability, upgrading or letting go of customers that drain energy and margin.

• They use the One Page Plan to turn chaos into clarity—aligning the team around a small number of high-impact profit drivers.

• And they tighten credit control and stock management, freeing up cash and restoring confidence.

Here’s the takeaway

Profit improvement isn’t about complex theory. It’s about focusing on what matters most—and taking action consistently.

If you want stronger profits:

• Find the leaks (don’t assume you know where they are)

• Simplify the strategy so your team knows exactly what to focus on

• Execute and review, because insight without action changes nothing

If profitability feels harder than it should right now, that’s not a failure—it’s a signal. And with the right tools, clarity, and support, profit doesn’t have to be a mystery. It can be a system. Take 5 minutes to complete our free Mindshop Tough Times Business Health Diagnostic to receive your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The Reason Most Business Goals Stall by Mid-January

Thu, 22 Jan 2026 23:00:04 GMT

The Reason Most Business Goals Stall by Mid-January

If you’ve set goals for your business this year but haven’t quite moved on them yet, you’re not alone. There’s a reason for that. Research shows most people give up on their New Year goals by mid-January . Not because the goals were wrong — but because action feels uncomfortable , and avoidance quietly sneaks in. And avoidance doesn’t look like quitting. It looks like:

“I’ll deal with that after this busy period”
“I just need a bit more information first”
“Now’s probably not the right time”

Sound familiar? Here’s the problem we see with many business owners: Hard work stays high, but forward momentum stalls. Not because you’re lazy. Not because you don’t care. But because the most valuable actions are usually the ones that feel the most uncomfortable.

Why action beats planning every time.

Setting goals is easy. Talking about change is easy. What actually changes results is doing the thing you’ve been avoiding.

In business, that’s often:

Reviewing job margins properly
Increasing prices where you know they’re too low
Having the tough conversation with staff or suppliers
Looking closely at cash flow instead of “hoping it works out”

Most business owners wait until they feel confident before acting. The truth? Confidence comes after action — not before it.

The quiet cost of avoidance

Avoidance doesn’t cause dramatic failure. It causes slow drift . Another year passes. The same issues linger. Cash flow stress stays familiar. And suddenly you’re working just as hard… for the same result.

One simple question to ask this week

Instead of asking: “What should I do this year?” Ask: “What am I avoiding that would make the biggest difference if I addressed it?” Then take one specific step :

Not a perfect plan
Not a full overhaul
Just one clear action, with a date attached

For example:

Review pricing on your top 3 jobs by Friday
Review your cash flow before the end of the month
Separate GST and tax money into the right accounts this week

Small, uncomfortable action creates momentum. Momentum creates clarity. Clarity creates confidence.

Final thought

You already get things done — or you wouldn’t be running a business. The difference this year isn’t working harder. It’s choosing action over avoidance , even when it feels uncomfortable. If you’d like help identifying the one issue that will move the needle most in your business, that’s exactly what we do. Take our 5 minute Business Owner End-of-Year Diagnostic to get your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Busy Isn’t the Same as Profitable (and You Know It)

Wed, 21 Jan 2026 22:03:28 GMT

Busy Isn’t the Same as Profitable (and You Know It)

You’re flat out. Phones ringing. Jobs booked. Staff busy. Yet somehow the bank balance doesn’t reflect the effort. Here’s the hard truth most business owners don’t want to hear:

Being busy does not equal being profitable.

We see this all the time—good businesses, good people, working hard… but leaking cash quietly through:

Jobs priced too tight
Labour overruns not tracked
Tax surprises landing when cash is already stretched

What actually changes results?

Not working harder.
Not longer hours.
Not “pushing through”.

It’s clarity:

Which jobs make money (and which don’t)
Where cash really goes each week
What decisions move the needle vs. keep you stuck

One simple action this week:

Ask yourself (and your numbers): “If I doubled sales tomorrow, would I actually be better off?” If the answer isn’t a confident yes—it’s time to look deeper.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Always Catching Up? Let’s Fix That.

Tue, 20 Jan 2026 23:08:12 GMT

Always Catching Up? Let’s Fix That.

“Every time I think we’re ahead, something wipes it out.” If that sentence hit a nerve, you’re not alone. I hear this exact phrase from business owners all the time — especially hardworking, family-run businesses doing everything right… or so it feels.

Here’s the truth most people miss: Being busy and being ahead are not the same thing. What’s usually happening isn’t bad luck. It’s not the ATO picking on you. And it’s not that you’re bad with money. It’s this one thing:

There’s no buffer built into the system. So every time something pops up —
• a tax bill
• super or leave payouts
• BAS due earlier than expected
• equipment repairs
• a quiet month

…it feels like starting from zero again.

Here’s the shift that changes everything

You don’t get ahead by working harder. You get ahead by creating certainty before you need it .

That means:

Separating operating cash from future obligations
Treating tax, super and leave like weekly expenses — not surprises
Having one clear number that tells you: “This is safe to spend. This isn’t.”

When you do this, something powerful happens. Instead of reacting… You’re anticipating. Instead of stress… You feel calm. Instead of “something wiped it out again”… You finally stay ahead.

This week’s simple action

Ask yourself one question: If nothing unexpected happened for the next 90 days, would I still feel tight? If the answer is yes — that’s not a failure. It’s a signal. And signals are useful when you act on them.

That’s exactly what we help clients do:turn chaos into clarity, and stress into control.

If you want help building a cash flow buffer that actually sticks — not theory, not spreadsheets you never look at — just reply BUFFER and we’ll take it from there.

You don’t need to earn more to feel ahead. You need a better system. And once you have it, everything changes. Take 5 minutes to complete our free Tough Times Business Health Diagnostic to get your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Behind on Cash? Here’s Your Calm, Practical Reset

Mon, 19 Jan 2026 21:00:01 GMT

Behind on Cash? Here’s Your Calm, Practical Reset

If you read yesterday's newsletter and you’re thinking, “We should have planned better” — pause. You’re not failing. You’re just dealing with timing. What matters now is what you do next . Here’s a simple, practical plan to get back in control if cash is tight and bills are due.

Step 1: Get Clear on the Numbers (No Guessing)

First, list what’s due and when:

Superannuation
BAS / IAS
PAYG or income tax
Any staff leave payouts

Clarity reduces anxiety. Guessing makes it worse.

Step 2: Protect Super First

Super is not optional, and the penalties for missing it are harsh.

If cash is limited:

Prioritise super payments
Make partial payments if needed
Do not ignore it

This one decision can save you thousands.

Step 3: Don’t Panic — Talk Early

If you can’t pay everything on time:

Contact us early
Engage the ATO before deadlines pass
Put realistic payment plans in place

The ATO is far more flexible when you’re proactive.

Step 4: Stabilise Cash Flow Short-Term

Look for quick wins:

Chase overdue debtors
Pause non-essential spending
Delay discretionary purchases

This is about creating breathing room, not perfection.

Step 5: Lock In a System So This Doesn’t Happen Again

Once the immediate pressure is handled, set up:

A separate “tax and obligations” account
Weekly or monthly automatic transfers
A simple cash flow forecast that includes known pressure points

This is how stress stops repeating.

The Bigger Picture

Getting caught once doesn’t define your business. Not fixing the system does. The strongest business owners aren’t the ones who never get squeezed — they’re the ones who respond early, calmly, and decisively . If you’re unsure where to start, or want help working through this step-by-step, reach out. This is exactly the kind of situation we help clients navigate every day. You don’t need to do this alone — and you don’t need to stay stuck.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Avoid the February Cash Flow Shock

Mon, 19 Jan 2026 07:57:06 GMT

Avoid the February Cash Flow Shock

Does this sound familiar? “Christmas and New Year caught us off guard.” Bills were bigger than expected. Annual leave payouts landed all at once. Super had to be paid. And now BAS and IAS are due in February. If that sounds familiar, you’re not alone—but here’s the good news: this is 100% avoidable.

Today’s Tip: Plan for Predictable Pressure Points

These costs aren’t surprises. They happen every single year. The problem isn’t the bills. The problem is not ring-fencing cash ahead of time . Smart business owners do one simple thing differently: They treat known obligations like non-negotiables—not afterthoughts.

What to Do (Simple and Effective)

Set up a separate “tax and obligations” buffer account and drip-feed it weekly or monthly for:

Superannuation
PAYG and GST
Annual leave and long-service leave
Income tax

That way, when February (or June) arrives, the money is already there—no stress, no scrambling, no sleepless nights.

The Real Win

This isn’t about being good at numbers. It’s about buying yourself peace of mind . When your obligations are funded in advance:

Cash flow feels calmer
Decisions get clearer
You stop reacting and start leading your business

And that’s where real confidence comes from.

If you’re not sure what your regular set-aside amount should be, or you’d like help building a simple cash flow plan that works around your business (not against it), that’s exactly what we help clients with every day. Plan early. Stay calm. Run your business on your terms. Watch out for tomorrow’s tip: what to do if you haven’t planned ahead.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Start the Year with Clarity and Purpose

Fri, 16 Jan 2026 02:46:28 GMT

S tart the Year with Clarity and Purpose

The start of a new year brings something powerful with it: a clean slate. Not just new dates in the calendar—but a genuine opportunity to be intentional about how this year unfolds, both in business and in life. Too often, years don’t fail because of lack of effort. They fail because there was never a clear plan in the first place.

Here’s today's tip: Plan first. Act second.

Before the year fills up with client work, deadlines, and distractions, take a moment to pause and ask yourself three simple questions:

What do I want this year to stand for?
What must I focus on to make meaningful progress—rather than just staying busy?
What systems, habits, or support do I need in place to stay on track?

Clarity creates momentum. Momentum creates results. When you plan ahead with intention, decisions become easier. You stop reacting and start leading—your business, your time, and your energy.

This week, block out just 30 minutes. Write it down. Be honest. Be specific. And most importantly, commit to acting on what matters most. Small, deliberate steps taken early in the year compound faster than almost anything else. Let’s make this year count—on purpose. Take 5 minutes to complete our free Strategic Planning Diagnostic to get your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Are You Paying for Tools You’re Not Using? Here’s How to Stop the Bleed.

Thu, 15 Jan 2026 03:07:54 GMT

Are You Paying for Tools You’re Not Using? Here’s How to Stop the Bleed.

This came up again and again in conversations this week. Smart, capable business owners. Paying for software they meant to use. Tools they planned to roll out. Systems they were told would “save time and money.” But right now? They’re just quietly draining cash in the background.

And here’s the truth most people miss: The problem isn’t the tools. It’s the lack of intention behind them. When everything feels urgent, tools get bought reactively. A new app for reporting. Another platform for workflows. Yet another subscription “just in case.”

Before you know it, you’ve built a tech stack that looks impressive — but doesn’t actually serve you.

Today’s tip is simple, but powerful: do a tool reset.

Set aside 30 minutes and ask three questions for every tool or subscription you’re paying for:

What specific outcome was this meant to deliver?
(Not “be better organised” — be concrete.)
Is it actively being used to achieve that outcome today?
(Not “we’ll get to it soon.” Today.)
If we cancelled it tomorrow, what would actually break?
(And who would even notice?)

You’ll be surprised how many tools fail this test. Here’s the reframe to consider: Every tool in your business should either save time, reduce risk, or make money . If it does none of those — it’s not an asset. It’s noise. Clarity doesn’t come from adding more. It comes from removing what no longer serves you. And when you reduce waste — financial and mental — progress gets a lot easier.

If you’d like help reviewing your systems and aligning them to what actually matters in your business, that’s exactly what we do inside our Profit Improvement Workshop.

Sometimes the fastest way forward… Is clearing what’s in the way. Take 5 minutes to complete our free Profit/Efficiency Diagnostic to get your free report.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Always Chasing the BAS? Here’s How to Finally Get Ahead

Tue, 13 Jan 2026 00:46:15 GMT

Always Chasing the BAS? Here’s How to Finally Get Ahead

I’ve had a few conversations recently with business owners who said the same thing, in slightly different ways: “It feels like I’m constantly chasing the BAS.” If that sounds familiar, you’re not alone. And more importantly, it’s not a sign you’re bad at business or disorganised. It’s usually a sign that the system around your numbers isn’t supporting you.

Here’s what’s really happening.

When BAS always feels urgent, it’s usually because the work is being done reactively. Receipts are gathered late. Transactions are coded in a rush. Questions only come up when a deadline is looming. That pressure builds quarter after quarter until BAS becomes something you dread rather than a simple reporting exercise.

The shift happens when you stop treating BAS as a once-a-quarter event and start treating it as a by-product of good habits. One small change makes the biggest difference: keeping your numbers “BAS-ready” all the time . That doesn’t mean more work. It means less catch-up.

When your bookkeeping is up to date monthly, when payroll and super are reconciled as you go, and when GST is checked regularly, BAS stops being a scramble. It becomes a confirmation exercise, not a rescue mission. The businesses that feel most in control don’t think about BAS very often. They already know roughly what’s coming. Cash flow surprises reduce. Decisions improve. Stress drops.

Here’s your simple action for this week:

Ask yourself: If BAS was due tomorrow, how much work would it really take?
If the answer is “a lot,” that’s your signal—not a failure, just a focus point.

Getting ahead of BAS isn’t about working harder.

It’s about putting the right rhythm in place so deadlines stop running your business. If you’d like help setting that rhythm, that’s exactly what we do. And once it’s in place, you’ll wonder why BAS ever felt so heavy in the first place. Calm, control, and clarity always start with the numbers—when they’re working for you, not against you.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Wize Mentoring, a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Why gut instinct isn’t enough to scale your business

Fri, 09 Jan 2026 00:31:31 GMT

Why gut instinct isn’t enough to scale your business

Ever noticed how some weeks you feel on top of your business… and other weeks it feels like everything is slightly out of control? The difference usually isn’t effort or intent. It’s visibility.

Here’s the uncomfortable truth most business owners avoid: You cannot scale a business on gut feeling alone.

Think about driving to an unfamiliar destination without GPS. You might feel confident at the start. You recognise a few turns. You trust your instinct. But eventually, doubt creeps in. One wrong turn. Then another. Suddenly you’re reacting instead of driving.

Running a business works the same way. Without clear, objective signals, decisions get hijacked by noise:

the loudest email
the most recent problem
the issue that feels urgent in the moment

That’s when judgement gets distorted. Energy gets misdirected. And good leaders start questioning themselves.

This is where KPIs quietly do their best work. Sales, cash flow, productivity, customer feedback, and team sentiment. These aren’t opinions. They’re signals.

They don’t tell you how to run your business. They simply show you:

where you are
where you’re heading
and whether you’ve drifted off course

And when you do drift? Just like a GPS, the data doesn’t judge you. It recalculates.

The real power kicks in when those numbers are visible, reviewed, and talked about regularly. When people know the score, they naturally self-correct. They stop guessing. They stop reacting. They start adjusting.

KPIs are your north star — not your feelings, not your inbox, not the crisis of the week. Even when things go off track, clarity beats certainty. Because knowing exactly where you are is what gives you the confidence to decide where to go next.

If your business feels busy but unclear right now, that’s not a motivation problem. It’s a visibility problem. And the moment you fix that, everything gets lighter. Ready to plan for a stronger year ahead? Book a short planning conversation or a Business Health Check to kick start your year with clarity, confidence, and a practical plan you can actually follow.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Wize Mentoring, a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Solving the Talent Retention Challenge

Thu, 08 Jan 2026 07:11:19 GMT

Solving the Talent Retention Challenge

One of the most consistent themes we’re hearing from clients at the moment is the challenge of finding and keeping good people. It’s rarely about a lack of effort — most business owners are doing their best — but the market has changed, and retention now requires a more deliberate approach.

In our experience, retention starts with engagement. When people feel genuinely connected to the purpose of the business and understand how their role contributes to its success, they’re far more likely to stay. Regular, meaningful conversations — not just performance reviews — help reinforce that connection and build trust over time.

Culture also plays a significant role. Strong teams don’t happen by accident; they’re shaped by the behaviours that are tolerated and the standards that are consistently reinforced. Addressing misalignment early and fostering a culture of respect and accountability creates an environment where good people want to remain — and where new talent is naturally attracted.

Work–life balance has become another key factor in retention. Businesses that acknowledge the realities of personal commitments and mental wellbeing tend to see stronger loyalty and productivity. Flexibility, where possible, is no longer viewed as a “perk” but as part of a sustainable workplace.

We also see retention improve when employees can clearly see a future with the business. When growth opportunities are visible and development is discussed openly, people are more inclined to invest their energy and skills for the long term.

Finally, remuneration still matters. While pay alone won’t solve retention issues, falling behind market expectations can quietly undermine even the strongest culture. Thoughtful compensation structures, recognition, and small but meaningful benefits often make a bigger difference than many businesses expect.

A final thought: Retention isn’t just about keeping people on the payroll. It’s about building an environment where people feel valued, supported, and aligned with the direction of the business. If you’d like to assess how your current approach stacks up, our free Team Attraction and Retention Diagnostic is a simple way to gain clarity and identify practical next steps.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Dec Quarter Super Deadline

Wed, 07 Jan 2026 01:51:24 GMT

Dec Quarter Super Deadline

January always seems to fly by. One minute you’re easing back into work after the holidays, and the next — key compliance deadlines are right in front of you. This is your reminder that if you are an employer, superannuation contributions for the December quarter (1 Oct–31 Dec) are due by 28 January .

A really important point that often gets missed: If you pay super through a clearing house other than the ATO Small Business Super Clearing House , it’s best to make payments around two weeks earlier to allow for processing and allocation to employees’ funds.

Waiting until the 28th doesn’t always mean it’s “paid on time” — what matters is when the super actually reaches your employees’ funds .

If super isn’t paid on time:

It becomes non-deductible
You may be liable for the Superannuation Guarantee Charge
Interest and penalties can apply
And it causes unnecessary stress that’s completely avoidable

The good news? This is one of those things that’s easy to get right with a little planning. If you’re an employer, now’s the perfect moment to:

Review your payroll reports
Check which clearing house you’re using
Make payments early to allow for processing time

It’s also worth keeping an eye on what’s coming next: from 1 July 2026, “payday super” will apply , meaning super will need to be paid at the same time as wages — not quarterly. Getting your processes right now will make that transition far smoother.

In addition, from 1 July 2026 , the ATO Small Business Superannuation Clearing House will be decommissioned , which means employers will no longer be able to use it to process superannuation payments. If you currently rely on the ATO clearing house, this is an important change to plan for now. You will need to move to an alternative solution, such as a payroll-integrated clearing house or accounting software like Xero , to ensure super continues to be paid correctly and on time. Making the switch early will help you avoid last-minute disruption and ensure you remain compliant as the new rules take effect.

Strong businesses stay ahead of compliance — they don’t scramble at the deadline. A small action now protects your cash flow, keeps you compliant, and gives you peace of mind. If you’re unsure whether everything is in order, or you’d like help reviewing your super process, reach out sooner rather than later. 28 January is the deadline — but for many businesses, the real action date is earlier.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Plan Your Next 12 Months with Purpose

Tue, 06 Jan 2026 00:59:16 GMT

Plan Your Next 12 Months with Purpose

Stop Reacting. Start Strategising.

The difference between business owners who feel in control of their year and those who feel constantly reactive often comes down to one thing: a clear, actionable plan.

As we enter a new year, ask yourself:

Do you have a clear plan for the next 12 months, or are you hoping things will just work out?
Are your priorities clear, focused, and realistic?
Do you know what actually needs your attention this year?

Without a plan, businesses tend to drift—wasting time, energy, and opportunities. With the right focus, however, you can set a clear path forward and make better decisions with confidence.

Here’s how to get started:

Define success – What does success look like for your business by 31 December?
Identify the gaps – Be clear on where you are now, where you want to be, and the steps required to get there.
Focus your effort – Choose just 2–3 key priorities and capture them in a simple One Page Plan so you stay on track.

Ready to plan for a stronger year ahead? Book a short planning conversation or a Business Health Check to kick start your year with clarity, confidence, and a practical plan you can actually follow.

Lead with purpose. Plan with clarity. Achieve with confidence.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Three Numbers That Will Shape Your 2026

Mon, 05 Jan 2026 01:43:19 GMT

Three Numbers That Will Shape Your 2026

Simplify Your Planning: Less Guesswork, More Control

Planning for the year ahead doesn’t require a 20-page business plan or hours buried in spreadsheets. It starts with clarity on just three critical numbers.
If you focus on these three this year, you’ll already be ahead of most business owners.

The three numbers that matter most:

1. Three Numbers That Will Shape Your 2026

What’s your revenue goal—and more importantly, what does it need to fund? Think beyond sales and consider growth investments, team expansion, or new technology.

2. Profit Margin

Sales mean very little without profitability. What margin do you need to sustain the business, pay yourself properly, and grow with confidence?

3. Cash Buffer / Break-Even Point

How much cash do you need to manage quieter periods or unexpected challenges? Knowing your break-even point helps you stay in control, even when conditions change.

These numbers give you a clear foundation for smarter decisions, better focus, and fewer surprises throughout the year.

Ready to simplify your planning and get clear on what really matters?

Book a short planning conversation or a Business Health Check and walk away with clarity on your numbers and priorities.

Focus on what matters. Achieve more. Make 2026 your most focused year yet.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

2026: Reset, Refocus, and Build Momentum

Sat, 03 Jan 2026 20:13:44 GMT

2026: Reset, Refocus, and Build Momentum

As we step into 2026, many business owners are asking the same question: How do I make this year genuinely different from the last? A recent leadership session we reviewed highlighted a simple but powerful framework that applies directly to business owners — especially those juggling growth, time pressure, and responsibility.

Here are the key takeaways we believe matter most:

1. Learn From What Didn’t Work — Then Let It Go

Progress doesn’t start with pretending everything went perfectly. It starts with recognising what stalled momentum last year — procrastination, lack of focus, being stretched too thin — and consciously choosing not to carry those habits forward. Lessons stay. Regret doesn’t.

2. Double Down on What Did Work

Momentum is built by compounding the right actions. Whether it was better reporting, clearer systems, improved cash flow awareness, or simply making time for strategic thinking — the goal for 2026 is to strengthen what already works.

3. Time Is Your Greatest Asset

The fastest-growing businesses actively:

Delegate tasks that don’t require owner input
Automate admin, reporting, and repetitive processes
Eliminate distractions and low-value activities

Even reclaiming 5–10 hours per week can fundamentally change business outcomes.

4. Solve Bigger Problems, Not More Small Ones

The businesses that grow fastest are those that focus on solving the right problems — profitability, cash flow visibility, pricing, systems, and decision-making — rather than staying stuck in day-to-day firefighting.

5. Consistency Beats Motivation

Sustainable success doesn’t come from bursts of effort. It comes from steady, repeatable actions: regular financial reviews, proactive planning, and ongoing accountability.

6. Set Clear, Specific Goals (With Real Timelines)

Vague goals don’t drive action. Clear targets do. Whether it’s improving margins, strengthening cash flow, or preparing for growth — clarity creates momentum.

How This Relates to You

At RGA, our role is to help you:

Gain clarity around your numbers
Identify what to stop, start, and scale
Build systems that give you time back
Make confident, profit-focused decisions

If 2026 is the year you want less stress and more control , we’re here to help you map the path forward. If you’d like to discuss where your biggest opportunities lie this year, simply reach out to the RGA team.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Liability Limited by a scheme approved under Professional Standards Legislation.

Recharge This Christmas: A Gift of Balance

Thu, 18 Dec 2025 23:00:00 GMT

Recharge This Christmas: A Gift of Balance

As the holiday season approaches, many business owners have shared they’re exhausted from always being “on.” If you’re feeling the same, take this opportunity to recharge and regain balance before the new year.

Set Holiday Boundaries

Define your holiday work hours and stick to them. Turn off notifications and fully enjoy time with family and friends when the day ends.

Prioritise Rest and Joy

Make time for activities that bring you joy—whether it’s festive traditions, hobbies, or simply relaxing. Ensure you’re getting enough sleep and taking breaks to avoid holiday burnout.

Delegate and Simplify

Offload tasks that don’t need your direct involvement. Focus on what truly matters and let your team or systems handle the rest, so you can enjoy the season stress-free.

Reflect and Plan for the New Year

Use a simple reflection process like “Friday ROAR” (Review, Organise, Anticipate, Re-align) to assess your year, celebrate wins, and set intentions for 2026.

Action Step:

Take 10 minutes today to identify one task you can delegate or eliminate, giving yourself more time to enjoy the holidays.

Closing:

This Christmas, remember that you can’t pour from an empty cup. Prioritise your well-being to recharge, lead effectively, and start the new year strong.

We wish you a Merry Christmas and Happy New Year.

Christmas Closure

RGA Business and Tax Accountants will be closed from 5:00 pm on Friday, 19 December 2025 and will reopen at 8:30 am on Monday, 5 January 2026.

During this period, emails and messages will be monitored periodically; however, responses may be delayed. If you have an urgent matter, please email reception@rgaaccounting.com.au or contact our message service on (07) 3289 1700 .

We take this opportunity to extend our best wishes for the festive season and wish you a happy and prosperous New Year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Stop Drowning in Manual Tasks

Thu, 11 Dec 2025 23:40:59 GMT

Stop Drowning in Manual Tasks

Many clients this week shared they’re drowning in manual tasks. Today’s tip will help you simplify.

1. Leverage AI & Technology

Start small by experimenting with tools like ChatGPT or Microsoft Copilot for tasks such as summarizing, content creation, or data entry. Use AI to handle 80% of the work and refine the remaining 20% to ensure it aligns with your voice and goals.

2. Delegate Effectively

Identify tasks that can be handled by others. Delegating not only frees up your time but also builds your team’s skill set.

3. Adopt Time Blocking

Schedule focused time blocks for strategic work and use time boxing to maintain discipline and avoid distractions.

4. Create a Stop Doing List

Annually review tasks that don’t contribute to your goals. Stop, delegate, or re-engineer these activities to prioritize high-value work.

Action Step:

Take 15 minutes today to identify one manual task you can delegate, automate, or eliminate.

Closing:

Simplifying your workload isn’t just about efficiency—it’s about creating capacity for meaningful, high-impact work.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Paying Yourself Properly as a Business Owner

Fri, 05 Dec 2025 00:08:38 GMT

Paying Yourself Properly as a Business Owner

I’ve met with several business owners who haven’t paid themselves properly in months. If that’s you, this week’s tip is a must-read.

Paying Yourself Properly as a Business Owner

Many business owners are facing tough financial decisions, and one common trend is neglecting to pay themselves properly. If this resonates with you, it’s time to rethink your approach. Running a business is challenging, but ensuring your financial well-being is critical for long-term success.

Why It Matters

Failing to pay yourself adequately can lead to burnout, financial stress, and a lack of motivation. It also sets a poor precedent for how you value your time and effort. Remember, you are the driving force behind your business, and your compensation should reflect that.

This Week’s Tip: Steps to Pay Yourself Properly

1.Review Your Financials

Conduct a thorough review of your profit and loss statement. Identify unprofitable customers, products, or services that may be draining resources.
Look for opportunities to cut costs strategically without compromising efficiency, customer satisfaction, or employee engagement.

2. Increase Profitability

Consider increasing prices where justified. Most customers understand the rising costs of doing business, and a well-communicated price adjustment can improve your margins.
Explore ways to make unprofitable customers or services profitable. If that’s not possible, consider letting them go or significantly adjusting pricing.

3. Set a Fair Salary

Determine a baseline salary for yourself that reflects your role and contributions. This should be a non-negotiable part of your business budget.
If cash flow is tight, consider a combination of a smaller fixed salary and performance-based bonuses tied to business milestones.

4. Plan for Sustainability

Implement waste audits in every aspect of your business to identify areas for improvement and involve your team in finding solutions.
Avoid slipping into bad habits by regularly reviewing your financial strategy.

Final Thought

Paying yourself properly isn’t just about financial stability—it’s about valuing your hard work and ensuring you can continue to lead your business effectively. If you’re finding it difficult to achieve this, reach out to us for tailored strategies to improve your financial health, including tools such as a waste audit and a profit improvement workshop.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

December 2025 Tax Newsletter

Tue, 02 Dec 2025 04:46:36 GMT

December 2025 Tax Newsletter

Welcome to our December 2025 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

Alternative providers to the Small Business Superannuation Clearing House ('SBSCH')

Employers should start preparing for the permanent closure of the Small Business Superannuation Clearing House ('SBSCH') on 1 July 2026.

By acting now to find an alternative service, employers will:

have an established process in place to pay super guarantee ('SG') for the March and June quarters (if they currently pay quarterly);
reduce the risk of late payment of SG for the June 2026 quarter due date (28 July), as the SBSCH will be already closed;
have more time to set up their business cash flow to enable frequent payments of SG; and
have finalised payments and downloaded any reports from the SBSCH before it closes permanently.

Employers that are still using the SBSCH should be aware of the following key dates.

10 December 2025 — Super payments, along with instructions, must be received by 5.30 pm AEDT on this date. The ATO says payments received after this time will be processed from 2 January 2026.
28 January 2026 — December 2025 SG quarterly payments due date.
February to March 2026 — Employers should move to an alternative option to the SBSCH.
28 April 2026 — March 2026 SG quarterly payments due date.
30 June 2026 — Final day for employers to use the service, make any final payments and download reports.
1 July 2026 — SBSCH is no longer available.

Employers may already have other options readily available so they can exit from using the SBSCH ahead of time.

They should check their existing software and payroll packages, as they may already include super functions they can use to pay SG.

Otherwise, employers can look for options from super funds or digital service providers offering payroll services, software or commercial clearing houses.

Reminder of December 2025 Quarter Superannuation Guarantee ('SG')

As noted in the above article, employee super contributions for the quarter ending 31 December 2025 must be received by the relevant super funds by 28 January 2026.

If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.

The SG rate is 12% for the 2026 income year (increased from 11.5% for the 2025 income year).

Dental expenses are private expenses

The ATO has been seeing a number of deduction claims for dental expenses this tax time. Dental expenses, including preventative and necessary dental treatment, medical expenses and other costs relating to client's personal appearance (such as teeth whitening, makeup, skin care, shaving products and haircuts) are not deductible.

These expenses are generally private expenses, even if an employer expects an employee to maintain a certain appearance, or pays them an allowance to cover grooming expenses.

Taxpayers should remember that they can only claim an expense that directly relates to earning their income. Private expenses cannot be claimed as a deduction.

Taxpayers should have written evidence of all their expenses, and be able to show a direct connection with those expenses to their employment income.

Australians call out tax dodgers in record numbers

The ATO has hit a major milestone of over 300,000 tip-offs from the community about tax avoidance and other dishonest behaviours since 1 July 2019. In the 2024/25 financial year alone, almost 50,000 red flags were raised by members of the community who spotted something suspicious.

Most of the tip-offs received related to shadow economy activity, coming from customers, employees, other businesses, and even family and friends.

This year, Australians reported businesses and individuals who:

did not declare their income;
demanded or paid for work in cash to avoid tax;
lived lifestyles that did not match their known income; and
failed to report all sales.

The top three industries seeing a surge in 'red flags' this financial year are:

building and construction;
cafes and restaurants; and
hairdressing and beauty services.

ATO's new approach to holiday home expenses

The ATO has announced that it will take a somewhat different approach in relation to expenses that are claimed in relation to holiday homes.

Broadly, the ATO now takes the view that, if a taxpayer's rental property is also their holiday home, certain deductions relating to holding it will be completely denied (rather than being apportioned).

Expenses relating to ownership and use of the holiday home (e.g., interest, rates and maintenance) will not be deductible, unless the holiday home is 'mainly' used to produce assessable income .

Whether a holiday home is used 'mainly' to produce assessable income will be determined based on a consideration of a number of factors.

However, this will generally not apply to expenses incurred in relation to holiday homes that are rental properties before 1 July 2026, if those expenses are incurred under an arrangement entered into prior to 12 November 2025.

Please contact our office if you want more information regarding this new development.

ATO warns about barter credit tax scheme

The ATO is warning the community to steer clear of an emerging tax scheme involving barter credits — a type of alternative currency used in some business networks.

A tax scheme that involves artificially inflating deductions for donations of barter credits to deductible gift recipients ('DGRs') is on the rise. While it may seem enticing, promoters and taxpayers could face potentially significant consequences if they are involved.

The ATO is concerned that such schemes are being enabled by several barter exchanges that are allowing participants to access barter credits with a nominal face value that is much more than any payments actually made to the exchange. Participants then donate these barter credits to a DGR and claim a larger tax deduction than they are entitled to.

Those involved may have to repay the tax, plus face heavy penalties, interest and legal action.

Super on Payday: Fundamental Changes for Employers

If you run a business, you already know the juggling act that comes with managing the payroll process — paying staff on time, managing cash flow, and staying compliant. From 1 July 2026, there’s a major change coming that will reshape how you handle superannuation contributions for staff.

It’s called Payday Super, and it became law on 4 November 2025. The new rules are designed to close Australia’s $6.25 billion unpaid super gap and make sure employees — especially casual and part-time workers — get their retirement savings when they get paid.

What’s Changing?

From 1 July 2026, you’ll need to pay superannuation guarantee (SG) contributions at the same time as wages, rather than weeks or months later. Employers will have seven business days from payday to ensure contributions hit employees’ super funds.

If payments are late, the Superannuation Guarantee Charge (SGC) will apply — that means paying the missed super plus an interest and administration penalty. Once SGC has been assessed, additional interest and penalties may apply if the SGC liability isn’t paid in full.

Unlike the existing system, SGC amounts will normally be deductible to employers, although penalties for late payment of SGC won’t be deductible.

On top of this, the ATO will retire the Small Business Superannuation Clearing House (SBSCH) platform from 1 July 2026 for all users and alternative options should be sought.

The change isn’t just about compliance — it’s about impact. The Government estimates the earlier payments could boost an average worker’s retirement balance by around $7,700.

Why It’s Good for Business

This reform might sound like extra admin, and it might take a bit of getting used to, but it can actually simplify your payroll process and strengthen your reputation as an employer.

Less admin – Paying super when you run payroll means no more quarterly payment crunches.
Fewer compliance risks – ATO data-matching will pick up issues faster, helping you avoid penalties before they snowball.
Stronger employee trust – Staff can see their super growing in real time, which might help with engagement and retention.
Smoother cash flow management – Paying smaller, regular amounts of super is often easier to manage than large quarterly sums.

The ATO will take a “risk-based” approach for the first year, focusing on education and helping businesses transition smoothly. If you pay on time, you’ll likely be flagged as low risk, meaning fewer compliance checks.

How to Get Ready — Practical Steps to Take Now

You’ve got time before the rules kick in, but the smart move is to prepare early. Here’s how:

1. Check your payroll software.
Most modern systems (like Xero, MYOB, or QuickBooks) already support payday-aligned super. Confirm your setup and check if any updates or integrations are needed.

2. Map your pay cycles.
Note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each.

3. Brief your team.
Make sure whoever manages payroll understands the changes. The ATO has free online resources and webinars to help.

4. Plan your cash flow.
Consider shifting from quarterly to more regular payments now to get used to the timing. Smaller, frequent super payments can reduce cash flow shocks.

5. Monitor and review.
Set up a monthly check to ensure super contributions have cleared correctly. Keep an eye on ATO updates as final guidance is released.

If you outsource payroll, contact your provider soon — many are already updating systems for Payday Super and can help you make a seamless switch.

The Bottom Line

Payday Super isn’t just a compliance change — it’s an opportunity to make your payroll more efficient, your staff happier, and your business more compliant with less effort. With the laws now passed and just over 6 months to prepare, it’s time to get ahead of the curve.

If you’d like help reviewing your payroll setup or planning the transition, get in touch with our team — we can help you make sure your business is ready to go when Payday Super commences.

Unlocking Tax Savings: Can Your MBA (or Other Studies) Pay Off at Tax Time?

If you’ve invested in further study — an MBA, a leadership course, or a postgraduate qualification — you might be wondering: can this help at tax time?

For many professionals, the answer is yes — but only if the right boxes are ticked. The ATO’s rules on self-education expenses are strict, and the line between “deductible” and “non-deductible” can be thin. Getting it right could mean thousands back in your pocket; getting it wrong could mean an ATO adjustment, plus interest and penalties.

Let’s unpack how it works with a real-world example and some practical takeaways.

The Scenario: Sarah’s MBA

Sarah works in the Department of Defence and recently completed an MBA through a private provider. Her employer supported her studies with a $40,000 study allowance, and the course fees totalled $18,000. She deferred payment using the FEE-HELP loan system and declared the allowance as taxable income in her return.

Now she’s asking:

Can I claim a deduction for my MBA fees?

Does it matter that I used FEE-HELP?

Does the employer allowance change things?

The Type of Loan Matters

First, not all funding for education courses is treated equally.

HECS-HELP - no deduction:
If your course is a Commonwealth supported place (most undergraduate and some postgraduate university programs), you can’t claim a deduction. There is specific legislation in the tax system which denies deductions for fees covered by HECS-HELP — even if you pay them upfront and even if the course is closely related to your work.

FEE-HELP - potential deduction:
If you’re in a full-fee course, your tuition fees might be deductible if the study directly relates to your current employment or business activities. The ATO doesn’t allow a deduction for loan repayments later on — just the course fees themselves.

Practical tip:
Check your course statement or loan confirmation to see if you’re under HECS-HELP or FEE-HELP. Only FEE-HELP (or private payment) gives you potential deductibility.

The “Nexus” Test — Linking Study to Your Current Work

Even if the funding passes the first test, the purpose of the study is key. The ATO will only allow deductions if the course maintains or improves the skills you already use in your job, or is likely to increase your income in that same role.

It won’t apply if you’re studying to move into a new field or start a different career.

The ATO issued a detailed ruling on this topic in 2024 which provides some clear examples:

Allowed: A store manager doing an MBA to strengthen leadership and business operations skills.

Denied: A sales rep doing an MBA to change careers into consulting — the link to the current role was too weak.

For Sarah, the deduction depends on whether her MBA subjects (like strategy, policy or management) build directly on her current Defence role. The fact that her employer funded the course helps demonstrate relevance, but it’s not proof on its own.

In some cases you might find that specific subjects or modules are sufficiently linked with current income earning activities, while other subjects are too general in nature for the fees to be deductible.

Employer Allowances and HELP Repayments

The $40,000 allowance Sarah received is assessable income — it’s taxed just like salary. But that doesn’t stop her from claiming eligible self-education deductions for the course fees.

HELP loan repayments later on are not deductible — they’re simply a repayment of debt. The timing of the deduction is based on when the course expense was incurred (not when the loan is repaid).

Making It Practical

If you’re planning further study or reviewing a recent course, here’s how to make sure you get it right:

Check your loan type – FEE-HELP or private fees can be deductible; HECS-HELP cannot.

Gather evidence – Keep course outlines, job descriptions, and any correspondence showing the study supports your current work.

Claim what’s relevant – You can only claim expenses directly connected to your current job (fees, books, and possibly travel).

Be ready for review – Large claims often attract ATO attention. A private ruling can provide peace of mind if the amount is significant.

Key Takeaways

For many professionals, postgraduate studies like an MBA can deliver both career and tax benefits — but only if they relate directly to your current role.

Handled correctly, self-education deductions can return thousands in tax savings. For Sarah, that could mean a refund of over $5,000 on an $18,000 course.

If you’re considering further study, talk to us before you enrol or claim. A quick chat could ensure your next qualification delivers the best return — professionally and financially.

Know the Rules Before You Break Them: Why SMSF Education Matters More Than Ever

Running, or deciding to set up a self-managed super fund (SMSF) gives you control, but it also brings legal responsibilities. The Superannuation Industry (Supervision) Act 1993 (SISA) contains detailed rules on trustee duties, investments, borrowing, payments and recordkeeping. Simply put, you cannot identify or avoid breaches you don’t know exist. For trustees, this should mean education is not optional but rather, is essential for risk management.

Why understanding SISA matters

You can’t comply with what you don’t know: Many common breaches arise from misunderstanding basic SISA duties (for example, sole purpose, arm’s length dealings, or in-house asset limits). Awareness of the rules is the first step to spotting a problem early.
Early identification reduces harm: Knowing what to look for, incorrect benefit payments, related party transactions that aren’t on commercial terms, or records that are incomplete, lets you seek advice before small errors become reportable contraventions.
Education protects members: The consequences of a breach can include loss of tax concessions, penalties and remediation costs that reduce retirement savings for members.

The ATO’s Focus on Education — What Trustees Need to Know

The ATO has recently published a draft Practice Statement (PS LA 2025/D2) explaining when it might issue an education direction under section 160 of SISA. These directions give the ATO power to require trustees (or directors of corporate trustees) to complete specified education, where trustees’ knowledge or behaviour poses a risk to compliance. The draft statement sets out the ATO’s approach and the kinds of circumstances that may lead to an education direction.

However, trustees should not wait for an ATO directive before getting educated – such a directive means the trustees have already breached the rules. The draft Practice Statement is intended to support compliance and public confidence, but it is not a substitute for proactive trustee learning. Acting early and voluntarily is both safer for trustees and viewed more favourably by regulators.

Practical Steps Trustees Can Consider: Use ATO’s official SMSF guidance

Start with the ATO’s SMSF courses on the lifecycle of an SMSF, setting up, running and winding up. These courses are written for trustees and prospective trustees:

Setting up an SMSF: https://smallbusiness.taxsuperandyou.gov.au/setting-up-a-self-managed-super-fund-smsf
Running an SMSF: https://smallbusiness.taxsuperandyou.gov.au/running-a-self-managed-super-fund-smsf
Winding up an SMSF: https://smallbusiness.taxsuperandyou.gov.au/winding-self-managed-super-fund-smsf

Complete the ATO’s ‘knowledge check’

The ATO provides an online “knowledge check” for each course designed to test trustee understanding. It’s a useful starting point, but note a pass mark of 50% should not be taken as a guarantee of safety. Trustees should consider whether aiming for a much higher standard, even 100% comprehension of core duties, is a more appropriate target to reduce risk.

Seek timely professional advice

If a knowledge check or your reading flags uncertainty, contact us early to discuss your concerns. Timely, qualified advice often transforms a potential contravention into a routine fix and may mitigate potential penalties or ATO enforcement action.

Document your learning and decisions

Keep records of training completed, who provided advice, and why investment or payment decisions were made. Good records are persuasive evidence of a trustee’s intent to comply.

Final Word

SMSF trustees hold both opportunity and responsibility. Learning the SISA rules and the ATO’s expectations is the most practical way to prevent costly mistakes. The ATO’s draft Practice Statement shows the regulator is prepared to use education directions where trustees’ knowledge gaps pose risks, but you shouldn’t wait to be told. Build your knowledge, use the ATO’s resources, complete the knowledge check, document what you learn, and seek professional help confidently and early. That approach better protects your fund and retirement outcomes.

Cash is Making a Comeback – Is Your Business Ready to Take It?

For years, businesses have been moving away from cash – and for good reason. Digital payments are quick, traceable, and cut down on the risk of theft or counting errors. But that tap-and-go world might soon have to make room again for notes and coins.

The Government has released draft regulations that would require certain retailers to accept cash payments, ensuring Australians can still buy essential goods like groceries and fuel – even when technology fails. The change aims to stop people from being excluded when power, internet, or card systems go down, or when they simply prefer to pay in cash.

Who Will Need to Accept Cash – and Who Won’t

The new rules are targeted and, importantly, practical. They’ll apply to fuel stations and grocery retailers, including both major supermarket chains and independent operators, but only for in-person transactions under $500. That means you won’t have to accept someone paying for a $700 tyre replacement or bulk farm supplies in cash – it’s about the everyday essentials.

If your business (or franchise group) has an annual turnover of less than $10 million, you’ll be exempt. That’s good news for most small businesses such as family-run grocers, local cafés, and corner stores already managing tight margins and staffing challenges.

The regulations are expected to take effect from 1 January 2026, with a review after three years to see how the system is working in practice.

Why It’s Happening

The move comes as part of a broader push to maintain access and fairness in Australia’s payment system. The Government and industry groups have recognised that while most Australians are happy to tap their card or phone, around 10–15% still prefer to use cash – particularly older Australians and those in regional or remote areas.

There’s also a resilience angle: during bushfires, floods, or power outages, card networks can go offline. In those moments, cash becomes essential.

What This Means for Your Business

For larger retailers, this change will mean dusting off cash-handling policies and reintroducing processes that many have phased out. That may include:

Re-establishing cash floats and tills
Staff training to handle and verify cash
More frequent bank deposits and reconciliation procedures

For small businesses that fall under the $10 million exemption, the key step will be to document your turnover clearly so you can demonstrate that the exemption applies. We can help ensure your records and structures support that.

There may also be commercial upside. Accepting cash could attract a segment of customers who’ve drifted away as stores went digital – especially in regional areas where cash use remains strong. A small business that promotes “cash welcome” could even gain new loyal customers who value convenience and personal service.

Preparing for the Change

With final regulations expected soon, it’s worth starting to plan now. Review your payment policies, assess whether you’re likely to be caught by the new rules, and budget for any setup or compliance costs.

If you’re exempt, ensure your records are watertight. If not, look for ways to streamline cash handling – for example, by using digital cash counters or smart safes to reduce errors and time spent on reconciliations.

Looking Ahead

Cash isn’t going away just yet. This reform is about maintaining choice, resilience, and fairness in how Australians pay – and ensuring businesses are ready when customers want to use it.

If you’d like help assessing how these rules could affect your operations or what the exemption means for your business, get in touch with our team.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Why Strong Sales Don’t Always Mean Strong Cash Flow

Fri, 28 Nov 2025 01:51:57 GMT

Why Strong Sales Don’t Always Mean Strong Cash Flow

A lot of clients told me this week that sales are strong but cash still feels tight. If that sounds familiar, today’s tip will help you spot why that happens.

Why Strong Sales Don’t Always Mean Strong Cash Flow

Many business leaders are celebrating strong sales figures but still find themselves grappling with tight cash flow. If this sounds familiar, you’re not alone. It’s a common challenge, and understanding the reasons behind it is critical to ensuring your business remains financially healthy. Today, we’ll explore why this happens and provide actionable steps to address it.

The Disconnect Between Sales and Cash Flow

Strong sales are undoubtedly a positive indicator of business performance, but they don’t always translate into immediate cash availability. Here are some common reasons why:

Accounts Receivable Delays
When customers take longer to pay, it creates a gap between when sales are made and when cash is received. This delay can strain your working capital, especially if your business has significant upfront costs or tight payment obligations. For instance, if your accounts receivable balance is growing, it’s a red flag that cash is tied up and not flowing back into the business.
Inventory Management Issues
An increase in inventory levels can indicate that cash is being tied up in stock that isn’t moving quickly enough. This is particularly problematic if the inventory is purchased with cash, as it reduces available funds for other operational needs. Additionally, excess or obsolete inventory can further exacerbate cash flow issues.
Rising Costs
Even with strong sales, rising costs can erode margins and put pressure on cash flow. For example, higher supplier costs, increased wages, or unexpected expenses can quickly eat into your profits, leaving less cash available for reinvestment or operational needs.
Debt and Financing Challenges
Businesses often rely on debt to fund growth or manage cash flow. However, rising interest rates or high levels of unserviceable debt can lead to financial strain. It’s crucial to assess whether your debt levels are sustainable and whether you have access to additional financing if needed.
Negative Cash Flow Cycles
A business can be profitable on paper but still experience negative cash flow. This is particularly common in early-stage businesses or those undergoing rapid growth. Tracking your cash conversion cycle—how long it takes to convert investments in inventory and other resources into cash from sales—can help identify bottlenecks.

How to Diagnose and Address Cash Flow Challenges

If you’re experiencing tight cash flow despite strong sales, here are some steps to help you identify and address the root causes:

Analyse Accounts Receivable
Review your accounts receivable to identify overdue payments. Consider adjusting payment terms to encourage faster collections, such as offering discounts for early payments. Strengthen your credit policies to ensure you’re working with customers who are likely to pay on time.
Optimise Inventory Management
Evaluate your inventory levels to ensure you’re not overstocking or holding onto obsolete items. Implement a purchasing schedule to avoid buying too late or too early, and consider strategies to improve inventory turnover.
Review Pricing and Costs
Analyse your pricing strategy and cost structure. Are your prices aligned with market conditions and your cost base? If costs are rising, consider whether a price adjustment is necessary to maintain margins. Communicate any changes clearly to your customers, emphasizing the value you provide.
Strengthen Cash Flow Management
Develop a robust cash flow strategy that includes pre-billing customers, renegotiating payment terms with suppliers, and maintaining a cash reserve for unexpected expenses. We have have tools available to provide valuable insights into your cash conversion cycle, debtor and creditor days, and overall cash position.
Engage Your Team and Advisors
Regularly review your financial performance with your team and advisors. Establish accountability loops to monitor progress and adjust strategies as needed. A one-page plan for key stakeholders can help align efforts and improve engagement.

The Bottom Line

Strong sales are a great foundation, but they’re only part of the equation. To ensure long-term success, businesses must focus on effective cash flow management, strategic planning, and continuous improvement. By identifying the root causes of cash flow challenges and taking proactive steps to address them, you can turn tight cash flow into a strong, sustainable financial position.

If you’re unsure where to start, contact us. We can leverage Mindshop tools to provide the insights and guidance you need to navigate cash flow challenges and build a resilient business.

Insight to Consider:
Remember, cash is the lifeblood of your business. Even with strong sales, a lack of cash can stifle growth and create unnecessary stress. By taking a proactive approach to cash flow management, you can free up resources to focus on what truly matters—serving your customers, supporting your team, and achieving your long-term vision.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

How to Dramatically Lift Your Organisation’s Success Rate

Fri, 21 Nov 2025 00:03:26 GMT

Change Success Spotlight: How to Dramatically Lift Your Organisation’s Success Rate

Change is a constant in business, but successful change is not. Research shows that while the average organisation achieves just a 30% success rate with change initiatives, top-performing businesses consistently reach up to 80%. The difference? A strategic, structured approach using the Mindshop Change Success Model, which is backed by global research from Dr Chris Mason and delivers a practical framework for boosting your probability of success in any project.

The Three Drivers of Change Success

This model focuses on three critical elements that leaders can directly influence and measure:

Readiness: Are the right processes, leadership support, and clarity in place?
Capability: Does your team have the skills, confidence, and support to navigate change?
Beliefs: Do team members truly believe the change will succeed?

Each element is supported by specific factors that can be measured, strengthened, and developed—providing a clear roadmap to improved results.

What the Research Shows

A comprehensive study of 240 leaders across three continents found:

Readiness drives 30% of the probability of success
Capability drives 40%
Beliefs drive 30%

Top organisations excel by intentionally building readiness, investing in capability, and shaping positive team beliefs.

How to Diagnose Your Probability of Success

Mindshop provides a concise diagnostic tool that enables teams to:

Identify top strengths (lowest gap scores)
Pinpoint areas of highest risk (largest gaps)
Develop targeted actions to address those gaps

A simple gap analysis across ten key factors helps leaders quickly prioritise improvements and assign project teams to address weaknesses.

Key Factors That Drive Change Success

What do you assess with this model? Key elements include:

Strong leadership support
A clear and shared reason for change
Personal benefit and motivation
Using the right change process
Individual and organisational confidence
People and organisational capability
Positive attitudes and cultural support
Alignment from key influencers

These components work together to strengthen your organisation’s ability to deliver successful, sustainable change.

Next Steps for Your Organisation

To progress from average to exceptional:

Complete a Change Success Diagnostic on your current projects
Review gap scores and prioritise your biggest risks
Assign project teams to drive actions and monitor progress
Celebrate improvements and continually build change capability

With the right focus and proven framework, you can cultivate a culture of adaptability, resilience, and confident execution across your entire organisation.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Using Force Field Analysis to Make Strategy Happen

Thu, 13 Nov 2025 23:22:03 GMT

Using Force Field Analysis to Make Strategy Happen

Force Field Analysis is a practical tool that helps transform ideas into measurable progress. By mapping out the factors that support your strategy alongside those holding it back, it becomes easier to strengthen your advantages and reduce barriers—setting the stage for meaningful and lasting change.

Why Embrace Force Field Analysis?

After brainstorming solutions or running a Pareto analysis, Force Field Analysis offers a structured way to weigh which factors will truly move your goals forward. It brings clarity and direction to strategic planning.

The Simple Process

Start by defining your objective as clearly as possible (for example: “Increase sales by 20% in two years” rather than “Grow sales”).
List your positive forces—these are your existing strengths, opportunities, and helpful processes.
List your negative forces—these include obstacles, resource gaps, or any challenges slowing progress.
Ask yourself: What actions could double the impact of the positives? What would halve the impact of the negatives?
Remember, the best ideas aren’t just the “opposite” of your challenges; look for unique, high-impact solutions.

Turning Insights Into Action

It’s common for teams to generate 20–30 potential actions during this process.
Focus on the three or four initiatives with the greatest potential impact.
Keep your Force Field Analysis visible for team members to review and update.
Use it as a dynamic reference for coaching, performance reviews, and ongoing planning to sustain momentum.

Recent Success Story: Improving Leadership

In a recent workshop, Force Field Analysis was used to target leadership capability. Key positives included strong recruitment, performance management, coaching, supportive reward systems, and effective communication. Action steps focused on diagnostics in hiring, 360-degree feedback, personalised coaching, and regular recognition. Negative factors—like low motivation, integrity issues, time management gaps, discipline lapses, and lack of vision—were addressed with targeted training, improved coaching, clearer processes, and accountability initiatives. The approach: select three high-impact actions first; as progress is made, move on to the next set, and continue iterating for ongoing results.

Pro Tips

You’ll build confidence after using this method about 10 times, and you’ll gain real expertise with regular, ongoing practice.
It’s excellent for group problem-solving and surfacing a diversity of ideas.
Make Force Field Analysis a staple in your team workshops and strategy sessions to foster continuous, targeted improvement.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

November 2025 Tax Newsletter

Tue, 04 Nov 2025 05:36:14 GMT

November 2025 Tax Newsletter

Welcome to our November 2025 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

Dual cab utes and FBT

The ATO wishes to dispel the 'common myth' that dual cab utes are automatically exempt from fringe benefits tax ('FBT'). If an employer provides dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT.

By understanding how their employees use their dual cab utes, employers can work out if FBT applies and meet their FBT obligations.

To qualify for an exemption, the dual cab ute must be an 'eligible vehicle'. That is, it must be designed to carry a load of one tonne or more, or more than eight passengers (including the driver), or a load under one tonne and not primarily designed for carrying passengers.

The dual cab ute must also only be used for limited private use (i.e., minor, infrequent and irregular), such as the occasional trip to the tip or helping a mate move house.

If an employee's personal use of the dual cab ute does not meet both of the above exemption conditions, then the employer will be liable for FBT.

ATO reminder: Business expenses that can (and cannot) be claimed

Taxpayers can claim a tax deduction for most business expenses, provided they meet the ATO's three 'golden rules':

The expense must be for business use, not for private use.
If the expense is for a mix of business and private use, they can only claim the portion that is used for business.
They must have records to prove their claim.

The ATO also wants business taxpayers to remember that there are some expenses that they cannot claim, including entertainment expenses, traffic fines, and expenses that relate to earning non-assessable income.

ATO's focus on small business

The ATO is 'detecting and addressing' recurring errors in specific industries when businesses have a turnover between $1 million and $10 million.

These industries include property and construction (including builders, contractors and tradies), and professional, scientific and technical services (including engineering, design, IT and consulting professionals).

In these industries, the ATO continues to see recurring issues, including:

omitted sales and income in BAS and tax returns, including income from related entities;
overclaimed expenses and GST credits;
private expenses incorrectly reported as business-related, or not properly apportioned between business and personal use;
failure to register for GST when required;
incorrect claims for the research and development (R&D) tax incentive offset, especially for activities that do not meet the eligibility criteria; and
not seeking independent advice from a registered tax agent, particularly in head contractor/subcontractor arrangements.

By sharing the issues that it is seeing, the ATO hopes to help taxpayers running a small business in one of these (or other) industries to avoid common errors and get it right from the start.

New ATO Data-Matching Programs

The ATO acquires and uses data for pre-filling, detecting dishonest or fraudulent behaviour, and identifying areas where it can educate taxpayers to help them understand their tax obligations.

When data does not match, the ATO may contact tax agents and their clients to find out why.

Rental Income Data-Matching

Over the coming months, the ATO will be sending letters where its data indicates:

tax returns including rental income may need to be lodged for specific years; or
rental income should be included in previously lodged tax returns.

Please contact us if you receive such a letter.

Offshore Merchant Data-Matching Program

The ATO will acquire merchant data from the big four Australian banks (ANZ, Commonwealth Bank, National Australia Bank and Westpac) for the 2025 to 2027 income years.

The ATO estimates that records relating to approximately 9,000 offshore merchants will be obtained each financial year.

SMSF non-compliance with release authorities

Release authorities are documents issued by the ATO to super funds, authorising the release of money from a member's super account to pay specific liabilities, including in relation to excess concessional contributions, excess non-concessional contributions, and Division 293 tax assessments.

The ATO is seeing a rise in SMSFs that receive a release authority and are either:

not responding within 10 business days as required; or
responding incorrectly (i.e., either not releasing the requested amount, or failing to submit a release authority statement back to the ATO, or both).

Failure to meet these obligations may result in significant penalties for the fund. SMSF trustees should make sure they have effective processes in place to respond to release authorities promptly and accurately.

GST held to apply to sales of subdivided lots

The Administrative Review Tribunal ('ART') recently held that some sales of subdivided farmland were subject to GST as they were made by the taxpayer in the course of carrying on an enterprise.

The taxpayer owned farmland near Adelaide. He entered into an agreement with a developer, under which the developer sought rezoning and development approvals, carried out development works, and marketed the subdivided lots.

The taxpayer progressively gave the developer access to the property as required and signed documents where necessary, including contracts for the sale of the subdivided lots. The taxpayer received 20% of the proceeds of sale progressively as sales of the subdivided lots were completed, with the developer receiving the remaining 80%.

The taxpayer argued that his role was passive, and that such rights as he had, and actions he took under the agreement with the developer, were of an administrative nature not amounting to a series of activities in the form of a business.

The ART disagreed, finding that the sales of the subdivided land were subject to GST as they were made in the course of carrying on an enterprise.

The ART noted that the taxpayer's activities "exhibited some of the well-known indicia of a business."

Amongst other factors, the taxpayer's activities in facilitating the implementation of the development agreement "had a degree of regularity and repetition", including allowing access to the land progressively as required, an ongoing obligation not to encumber or sell the land during the project, and the continuous signing of sales contracts and monitoring of sales returns.

Super Tax Shake-Up: Big Balances Beware

If your super balance is comfortably below $3 million, you can probably relax — the proposed changes to the super rules shouldn’t adversely affect you (yet). But if your super is nudging that level, or if you’re clearly over, the Treasurer’s latest announcement could change how you think about super’s generous tax breaks.

For some time now the Government has been planning to introduce targeted measures to reduce tax concessions for those with superannuation balances over $3 million. This has commonly been referred to as the Division 296 tax.

However, the Government has reworked the proposed new tax — part of the Better Targeted Superannuation Concessions (BTSC) policy. After a wave of industry criticism, the revised version keeps the broad policy intent (reducing tax concessions for very large balances) but removes some of the more problematic features. Let’s break down what’s changed and what it means for you.

What’s Changing

The original 2023 proposal aimed to apply an extra 15% tax on “earnings” from super balances above $3 million. The big flaw? “Earnings” included unrealised gains — paper profits on assets like property or shares that hadn’t been sold. This meant some people could have owed tax on increases in value they hadn’t actually received in cash.

The reworked model drops unrealised gains from the equation entirely, taxing only realised earnings — actual income and capital gains when assets are sold. This makes the system far more practical and aligned with everyday tax rules. No more worrying about funding a tax bill on assets you haven’t sold.

Two Tier system for high balances

The new rules introduce a two-tier system for high balances:

Tier 1 ($3m–$10m): Extra 15% tax on earnings from this portion (making a total rate of 30%).
Tier 2 (over $10m): Extra 25% tax on earnings above $10m (for a total rate of 40%).

Both thresholds will be indexed annually to inflation ($150,000 steps for the $3m tier and $500,000 for the $10m tier), which should prevent “bracket creep” over time.

Importantly, the start date has been pushed back to 1 July 2026, with the first assessments expected in 2027–28. The Government estimates less than 0.5% of Australians will be affected at the $3m level, and fewer than 0.1% at the $10m mark.

What This Means in Practice

Here are a couple of examples from Treasury to help you get your head around this.

Consider Megan, who has a $4.5 million super balance split between an SMSF and an APRA fund. She earns $300,000 in realised income for the year within the super system. The super balance above $3m represents is one-third of the total balance, so she’ll pay $15,000 in additional Division 296 tax (15% × 33.33% × $300,000).

Emma, on the other hand, has $12.9 million in her SMSF and $840,000 in earnings. She pays 15% on the Tier 1 portion and an extra 10% on the Tier 2 portion—a total of around $115,000 in extra tax.

These examples show how the tax scales up progressively. The ATO will calculate each individual’s total super balance across all funds (SMSFs and APRA funds) and determine the proportionate amount of earnings to be taxed.

Why It’s Still Good News (for Most)

For many SMSF members, this update is a relief. By removing unrealised gains, it eliminates valuation headaches and liquidity pressures — particularly for those holding property or unlisted assets.

That said, individuals with super balances above $10m will face a higher overall rate (up to 40%), which may prompt a rethink of long-term strategies. However, remember that updated legislation relating to this measure hasn’t been introduced to Parliament and things could change before the proposed rules become reality.

Low Income Superannuation Tax Offset

In addition to introducing the revamped Division 296 tax, the Government has announced that it will increase the Low Income Superannuation Tax Offset (LISTO) from $37,000 to $45,000 from 1 July 2027.

The maximum payment will also increase to $810. Treasury estimates that the average increase in the LISTO payment will be $410 for affected workers.

What to Do Now

1. Check your total super balance (TSB) now and project where it may be by 2026.

2. Seek advice early — strategies like managing liquidity, reviewing asset allocations, and timing asset sales could make a real difference.

3. Stay informed — draft legislation is expected in 2026. We’ll keep you updated through our newsletters.

Overall, the Government’s revised approach strikes a more balanced tone: fewer administrative headaches for most, but less generosity for the ultra-wealthy. If your balance is near or above $3 million, now’s the time to plan ahead — not panic.

When Medical Bills Meet Tax Rules – Lessons from a Heartbreaking Case

Imagine this: after years of hardship and illness, you’re forced to retire early on a Total and Permanent Disability (TPD) pension from your super fund. It’s your only income stream. Then come the medical bills – tens of thousands of dollars in treatments to manage the very conditions that ended your career. You might assume those costs are tax deductible as the TPD pension was payable because of this disability.

Unfortunately, a recent tribunal case shows it’s not that simple. In Wannberg v Commissioner of Taxation [2025] ARTA 1561, the Administrative Review Tribunal (ART) upheld the ATO’s decision to deny nearly $100,000 in medical deductions. The case is a stark reminder that the tax system draws a sharp line between earning income and dealing with your health.

The Story Behind the Case

The taxpayer, Mr Wannberg, had left the workforce due to severe mental and physical health issues caused by years of abuse. His TPD pension from his super fund was his only income. In 2024, he applied to the ATO for a private ruling, asking whether about $98,000 in medical expenses – including psychotherapy, residential treatment, and dental work – could be claimed as deductions.

His argument was heartfelt and logical: these treatments were essential to manage his disabilities and sustain his eligibility for the pension. He compared his situation to a 2010 High Court case (Anstis), where a student was allowed to deduct self-education costs linked to her Youth Allowance.

But the ATO said no – and the tribunal agreed.

Why the Deductions Failed

The key issue came down to a single piece of tax legislation: section 8-1 of the Income Tax Assessment Act 1997. To be deductible, an expense must be incurred “in gaining or producing your assessable income” and must not be of a private or domestic nature.

The tribunal found no direct link – or “nexus” – between the medical treatments and the pension income. The TPD pension was payable because of his disability, not because of any ongoing effort to maintain it. As the tribunal put it, the medical costs helped him live with his condition, but didn’t produce the pension.

In other words, while staying healthy might be personally essential, it doesn’t make those expenses tax-deductible. The costs were considered private in nature – similar to most therapy, medical, or dental bills.

What This Means for You

This decision offers a few key takeaways for anyone receiving disability pensions, super income streams, or other support payments:

Understand the “nexus” test: An expense must directly help you earn your income. Medical costs for managing a condition usually don’t meet that test.
Recognise the private line: Even if a treatment relates to your ability to work, it’s likely still “private” unless it directly relates to producing income.
Treatment vs assessment: Some taxpayers are required to obtain certificates from medical practitioners to maintain a licence so that they can continue with their current income producing activities. These costs are often deductible, unless the individual receives medical treatment.
Plan for non-deductible costs: If you rely on disability or super pensions, factor medical expenses into your financial plan. Consider insurance options, offsets, or rebates (like private health or Medicare levy exemptions) to ease the load.
Seek advice early: Before spending large sums, get an ATO private ruling or professional advice.

The Wannberg case is a tough reminder that the tax law cares more about how income is produced than how life is lived. The system draws a firm line between personal wellbeing and income generation – and unfortunately, even genuine medical needs often fall on the wrong side of that line.

If you’re unsure whether an expense might be deductible, don’t guess. Talk to us first. We can help you plan ahead, stay compliant, and make the most of the rules that do work in your favour.

Proposed Extension of the Instant Asset Write-Off and Other Tax Measures

A new Bill before Parliament – the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 – proposes several key changes that could affect small businesses, listed companies, and the not-for-profit sector. The headline measure is the proposed extension of the $20,000 instant asset write-off for another year, to 30 June 2026.

Small Business Boost: $20,000 Instant Asset Write-Off Extended

If the Bill passes, small businesses with an aggregated annual turnover of less than $10 million will continue to be able to immediately deduct the full cost of eligible assets costing under $20,000 (excluding GST) through to 30 June 2026.

The threshold applies per asset, meaning multiple purchases can qualify if each individual item is under the limit. To claim the deduction, the asset must be first used or installed ready for use by the new deadline.

This measure remains one of the simplest and most practical tax incentives available to small businesses. It provides a direct cash-flow benefit by allowing the full deduction in the year of purchase instead of spreading depreciation over several years, as long as the taxpayer would actually have a tax bill for that year. For example, a tradesperson upgrading tools, or a café purchasing a new fridge or coffee machine, can immediately claim the full deduction – freeing up cash for reinvestment elsewhere in the business.

While the proposal still needs to pass Parliament, now is the time to plan. If you are considering new equipment or technology upgrades, budgeting early ensures assets can be delivered and installed before the cut-off date once the law is enacted.

Strengthened Corporate Disclosure

The Bill also proposes tighter disclosure rules for listed companies. Changes to the Corporations Act 2001 would require the disclosure of equity derivative interests – such as options, swaps, and short positions – under the substantial holding regime. These reforms are designed to improve market transparency and make it harder for significant shareholdings or control interests to remain hidden.

For listed entities, this will increase compliance obligations and may require updates to internal monitoring and reporting systems. Investors with substantial positions in listed companies should also review their current arrangements to ensure future compliance.

Greater Transparency for Charities

For the not-for-profit sector, the ACNC Commissioner would gain the power to publicly disclose “protected information” such as details of investigations, provided it meets a public harm test. This aims to strengthen public confidence in the charity sector by showing that the regulator is taking action where misconduct occurs.

For well-run charities, stronger transparency can enhance community trust – but it also highlights the need for robust governance, record-keeping, and compliance processes.

Financial Regulator Reviews Simplified

Finally, the Bill would reduce the frequency of reviews of ASIC and APRA by the Financial Regulator Assessment Authority from every two years to every five. While largely administrative, this signals a shift toward streamlined oversight to allow regulators to focus on core functions.

What You Should Do Now

Although these measures are still before Parliament, it’s wise to start planning. For small businesses, consider your 2025–26 capital expenditure needs and make sure any planned purchases can be installed and ready for use by 30 June 2026 if you are hoping to rely on the upfront deduction. For charities and listed entities, review governance and reporting frameworks to prepare for greater transparency requirements.

We’ll keep you updated as the Bill progresses. In the meantime, contact us if you’d like to discuss how these proposed changes might fit into your business or investment strategy.

Cyber In Accounting: Safeguarding Financial Data in a Digital Age

Cybersecurity is fast becoming a critical business strategy – and if it’s not, it should be. Many businesses hold critical data that poses significant risk to both businesses and their customers if the data they hold is not safeguarded from cybersecurity threats.

The largest threats to businesses come from external entry points exposed by staff, through phishing links, malware being downloaded and payment fraud. The valuable information held by some businesses (such as professional firms) make them prime for cyber attacks, which can have devastating impacts on businesses and their customers.

Outside of Government organisations, the financial services sector was the most targeted industry in Australia in FY 2024/25, with the cost of these cybercrimes increasing up to 55% for small and medium businesses.

People: The Biggest Cyber Risk

But where does your cyber strategy start, and how do you know what the risks are? The biggest risk to Australian businesses is its people. More than 85% of all cybersecurity incidents are caused by human error. The top three incident types all rely on staff and business decisions to gain access into systems, meaning it is more important than ever to conduct regular staff training.

Staff training should focus on identifying phishing attempts, understanding what to look for in malicious emails and content and how to maintain healthy password practices.

Technology and Updates: Don’t Let Legacy Systems Create Weaknesses

Another considerable business risk is legacy hardware and software being used in your environment. It might seem like a small frustration, turning your computer off for updates regularly, and using the latest versions of software, replacing hardware to align with required standards, but it works to close the gaps of security vulnerabilities.

Recommendations aligned with the Australian Signals Directorate’s Essential 8 Framework are that all critical vendor patches are applied within 48 hours of release, and any non-critical patches are applied within two weeks. This method applies to networking equipment, third party vendor software and device operating systems.

Recently, Microsoft have made the Windows 10 Operating System End of Life (EOL) which means that devices still running on this operating system can no longer receive security updates, a vulnerability that malicious actors will no doubt use to their advantage.

Visibility and Monitoring: Detecting Threats Early

Realistically, you cannot defend what you cannot see. An important safeguard is event logging, reporting and alerting being setup in your environment.

Just by way of example, the average breach for financial services businesses in Australia takes 288 days to detect. 288 days of unmitigated breaches, access to customer and staff data, contact lists, patterns of behaviour and possibly already setting up rules and routing inside the environment that the business is entirely unaware of.

Setting up appropriate logging and alerts to ensure that you are notified when something risky, like logging in from Australia at 10am and Japan at 11am, is happening inside your environment. Understanding when unauthorised access to systems has occurred is critical in being able to then assess the potential scope of an incident, so it can then be managed.

The Importance of a Cyber Incident Response Plan

A Cyber Incident Response Plan (CIRP) might seem like another piece of paper, but it is critical in defining the steps that your organisation needs to take to act, mitigate and respond to a cyber event. An adequate CIRP will include several critical components, but the incident management team, detection methods, incident categorisation, evidence process and resolution plans form the baseline of what will help an organisation act swiftly, and appropriately for the event type.

A CIRP that has been tested regularly ensures that in the event of a cybersecurity incident, your organisation has a prioritised and effective response that deals with the technical concerns, the potential data breaches and any ongoing communications required either internally or externally with customers and stakeholders.

Protecting Your Business, Clients, and Reputation

In today’s digital world, it is never more important for businesses to ensure their data, systems, staff and clients are protected from threats. Cybersecurity and risk strategies are critical in this landscape and should consider different components, including staff training, technology strategies, data and information handling policies, and incident response plans.

Considering cybersecurity as a business strategy is how organisations will survive, and thrive, and ensure that their reputation, financial security and customers are protected.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Life in Focus: Maximizing Business Impact & Personal Fulfillment

Mon, 27 Oct 2025 07:10:26 GMT

Life in Focus: Maximizing Business Impact & Personal Fulfillment

We all know the feeling: days packed with effort, only to realise we’ve spun our wheels more than moved the needle. The key to shifting from busyness to genuine productivity? Simple habits, done with purpose—something business coach Russell Cummings swears by.

The Power of Time Blocking

Ever find yourself interrupted just as you’re getting into the flow? Time blocking can make all the difference. By scheduling protected periods in your calendar for key work, you can focus deeply, finish important tasks more efficiently, and still leave space for life’s curveballs. Treat these slots as immovable and watch your output soar.

Why the Pomodoro Method Works

If you tend to lose focus or get bogged down in long tasks, try the Pomodoro Method. Work in 25-minute bursts, followed by 5-minute breaks. It’s as simple as setting a timer and giving full attention to one thing at a time. This approach can make even the toughest projects feel manageable and keep your brain fresh throughout the day.

Start Your Day on Purpose

Before diving into emails, pause and plan your day. Take a few moments in the morning to look over your priorities and kick off with a high-impact task. This proactive start gives you a sense of momentum and ensures you don’t let other people’s agendas hijack your time before you’ve made progress on what matters most.

Evenings for Reflection and Reset

Wind down your day by reflecting on what went well, noting lessons learned, and listing the top three tasks for tomorrow. Practice a bit of gratitude and try to avoid screens before bed—this supports better sleep and a calmer mind. A simple evening routine helps you unwind and prepares you for a productive tomorrow.

Final Take

Productivity doesn’t have to mean more stress or longer hours. With the right habits—time blocking, the Pomodoro Method, intentional routines—you can achieve more in less time and feel better doing it. Whether you’re aiming to grow your business or simply enjoy your workdays more, give these strategies a try and see what a difference they make

�� Business Networking Breakfast with Russell Cummings

How to Go from 70 to 30 Hours a Week and Double Your Income
(Without Raising Prices or Using AI)

Join us for an inspiring morning of insights, connections, and practical takeaways with one of Australia’s most experienced business strategists and advisors. With over 40 years of experience, Russell Cummings has guided family-owned and growing businesses to sustainable success. You’ll learn his proven approach to achieving more by doing less—without sacrificing profit or purpose.

What You’ll Gain:

Work fewer hours while boosting your bottom line
Replace busyness with genuine productivity
Build the focus, discipline, and systems needed for lasting growth
Reclaim your time and create a business that truly works for you

Event Details:
Date: Wednesday 12 November 2025
Time: 6:45am – 8:15am
Venue: Samford Community Hub, 2204 Mount Samson Rd, Samford QLD 4520
Tickets: $25

Spaces are limited—secure your spot today!
�� Book at www.samfordchamber.com

Don’t miss this opportunity to network, learn, and discover how you can build a business that delivers both profit and freedom. Book now and take the first step towards a more productive, rewarding business future.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Planning and Priorities – Getting More Out of Your Business (and Life)

Fri, 24 Oct 2025 23:27:44 GMT

Planning and Priorities – Getting More Out of Your Business (and Life)

If you’re anything like the rest of us, you probably start each week with the best of intentions, only for your to-do list to mushroom out of control by Wednesday. Planning and feeling overwhelmed can, unfortunately, go hand in hand. Russell Cummings is a highly acclaimed business management consultant and coach and author of over 27 business books, bringing nearly four decades of unmatched expertise to the field. He shares practical strategies that make it easier to work smarter—not harder—so you get more done, achieve better results, and can even enjoy the process along the way.

Break your Annual Goals down for 90-Day Focus

Why wait a whole year to review progress (or fall behind)? Russell’s advice is a breath of fresh air: break your annual plans for nimble 90-day business and leadership projects. He’s found, and research supports, that clients with a 90-day plan regularly outperform those sticking to annual schedules. It’s about creating momentum and staying flexible – giving yourself a genuine shot at acting on your strategy before circumstances change and enthusiasm fades away.

Break It Down – Cascade Your Actions

It’s all well and good having a bold 90-day plan – but the magic happens when you cascade this strategy down into monthly, weekly, and daily actions. Russell explains the difference between being busy and being productive: too many people focus on activity, not outcomes. That’s how we end up at the end of a busy day feeling like we’ve achieved nothing at all.

Try this approach:

Each day, identify just 3 or 4 must-do tasks. Yes, that’s it!
The rest – the “should-do” and “could-do” tasks – can wait, be delegated, or dropped. Ruthlessly prioritise what will move your business and life forward.

This must-do model is the single biggest productivity breakthrough for most clients.

Reflect and Reset – Consistently

Russell also believes in routine reflection – daily, weekly, and quarterly. Ask yourself:

What worked?
What didn’t?
What needs to change?

He swears by journalling, whether that’s on paper, in his special 90-day planner , or on a digital tablet. This habit gets ideas, plans, and worries out of your head and frees up mental space for what matters. The process of writing things down also boosts your chances of actually doing them – and there’s something incredibly satisfying about ticking off those must-do items.

Practical Tools and Tips

Time blocking: Set aside dedicated slots in your calendar for your top priorities. Treat these blocks as sacred – no interruptions.
The Pomodoro Technique: Work in focused 25-minute bursts, with short breaks in between, to maintain concentration and motivation.
Guard your communication: Don’t let emails and meetings dictate your day. Start with your priorities, not your inbox.
Leverage tech: Use tools like Asana or Trello to keep your planning system smooth and your team on track – but remember, the system only works if you stick to it.

Final Thoughts

You don’t need more hours in the day, just more focus and better systems. Adopting 90-day planning, ruthlessly prioritising your day, and reflecting regularly won’t just make you more productive – it’ll free up time for the fun stuff too, whether that’s motorbike riding, creative hobbies, or just spending time at the beach.

�� Business Networking Breakfast with Russell Cummings

How to Go from 70 to 30 Hours a Week and Double Your Income
(Without Raising Prices or Using AI)

What You’ll Gain:

Work fewer hours while boosting your bottom line
Replace busyness with genuine productivity
Build the focus, discipline, and systems needed for lasting growth
Reclaim your time and create a business that truly works for you

Event Details:

Date: Wednesday 12 November 2025
Time: 6:45am – 8:15am
Venue: Samford Community Hub, 2204 Mount Samson Rd, Samford QLD 4520
Tickets: $25

Spaces are limited—secure your spot today!
�� Book at www.samfordchamber.com

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Revenue Growth Through Efficiency: Don’t Miss Your Chance with Russell Cummings

Thu, 23 Oct 2025 23:23:21 GMT

Unlocking Revenue Growth Through Efficiency: Don’t Miss Your Chance with Russell Cummings

Is your calendar bursting at the seams, yet your profits aren’t keeping pace? It’s a common dilemma. Thankfully, as business coach Russell Cummings will tell you, true growth happens when you sharpen your focus and optimise your processes—working smarter, not harder.

1. Put Pre-Work to Work

Introducing client pre-work (think short videos or Google Docs) allows everyone to come prepared. This small change can halve meeting times, freeing up hours for more valuable activities.

2. Keep Up Momentum

Russell’s favourite tip: slot in weekly 15-minute momentum calls. These quick check-ins keep teams accountable, quash potential setbacks early, and reduce the drain of endless follow-ups.

3. Systematise for Scale

Systematise those repeatable tasks. By codifying your processes, you’ll reduce manual labour and enable your team to focus on higher-value work. More output, less wasted effort, and a more scalable business.

4. Focus, Discipline, Control

Russell’s three pillars for efficiency: Focus on essentials, bring discipline with time blocking and short bursts of work, and control your environment by eliminating distractions. The result? More impact in less time.

�� Business Networking Breakfast with Russell Cummings

How to Go from 70 to 30 Hours a Week and Double Your Income
(Without Raising Prices or Using AI)

What You’ll Gain:

Work fewer hours while boosting your bottom line
Replace busyness with genuine productivity
Build the focus, discipline, and systems needed for lasting growth
Reclaim your time and create a business that truly works for you

Event Details:
Date: Wednesday 12 November 2025
Time: 6:45am – 8:15am
Venue: Samford Community Hub, 2204 Mount Samson Rd, Samford QLD 4520
Tickets: $25

Spaces are limited—secure your spot today!
�� Book at www.samfordchamber.com

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Clarity in Your Business with the Income Matrix

Thu, 16 Oct 2025 19:54:56 GMT

Unlocking Clarity in Your Business with the Income Matrix

Ever wondered how to bring real focus to your revenue goals? The Income Matrix is an eye-opening business tool designed to give you clarity, structure, and smart direction for achieving your sales targets. It’s not just another spreadsheet — it’s a visual guide to understanding where your income is coming from now and where it could come from in the future.

Why Use an Income Matrix?

Many business owners simply set ambitious goals like “we’ll increase sales by a million this year” without truly unpacking where that money is expected to come from. The Income Matrix helps you dig deeper. It encourages you to break down your revenue by product or service and then cross-reference that against your customer or client segments — for example, education, construction, or retail sectors.

This approach gives you something far more powerful than a top-line figure. It shows you which products are performing, which customer groups are driving your income, and where your energy is best spent to achieve future growth.

How It Works

It’s quite straightforward once you start. Here’s the process – start with a blank spreadsheet or page (or contact us for a worksheet):

List your main products or services down the left-hand side.
Note the average annual price or unit cost for each (for instance, $1,000 per month or $12,000 per year).
Identify your key customer segments across the top — aim for three to five.
Fill in your current revenue mix — how many customers in each segment are buying each product.
Then do it all again for your desired 12-month future — what you want those numbers to look like.
The difference between your Now and Where gives you a clear roadmap of what’s required to close the gap.

This visual mapping supports better strategic thinking. It’s a brilliant conversation starter for your team too — instead of abstract targets, you can discuss specific products, customer groups, and the actions needed to lift results.

Real Gains for Strategic Thinking

By building two matrices — one for your current position and another for your desired future — you can literally see where growth opportunities lie. Maybe the answer is to focus on a high-performing service and amplify its reach, or perhaps your pricing needs adjusting. The exercise naturally leads to those “aha!” moments that make planning so much easier.

It’s also a terrific tool for improving cross-department alignment. Marketing can see where to focus its efforts, sales know which clients to prioritise, and leadership can track realistic progress towards financial goals.

Ready to Try It?

Click here to begin your free Sales diagnostic. Next, set aside time to review the results and prepare your Income Matrix spreadsheet with your team and have some open discussions about where the next 12 months’ growth will come from.

It’s a simple process, but the clarity it delivers can be game-changing. The Income Matrix helps you move from vague goals to pinpoint precision about what needs to happen, when, and where to make your business thrive.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Your Potential: The Power of Self-Reflection and Awareness

Thu, 09 Oct 2025 19:59:57 GMT

Unlocking Your Potential: The Power of Self-Reflection and Awareness

How often do you press pause in your busy life and genuinely reflect on who you are, what you’re good at, and where you might be holding yourself back? For many of us, self-reflection remains a ‘one-day’ pursuit, put off until time mysteriously appears. Yet, taking time for self-reflection and building self-awareness isn’t just a good idea – it’s absolutely essential for anyone looking to direct their own growth.

Why Self-Reflection Matters

Self-reflection provides that rare opportunity to look inward. By honestly considering our strengths and weaknesses, we come to recognise the patterns that shape our thoughts, reactions, and behaviours. This ongoing awareness not only helps us spot and challenge negative self-beliefs, but also enables us to celebrate what we’re great at and learn lessons from life’s inevitable slip-ups. The result? A far more resilient and grounded sense of self.

The Strategic Personal SWOT

If you’re familiar with the business world, you’ll know about the SWOT tool – strengths, weaknesses, opportunities, threats. What you may not have tried, though, is applying it to yourself. This is where the Personal Strategic SWOT comes into play. By being brutally honest (and specific!) about where your strengths and weaknesses lie, and what external opportunities or threats you face, you’re equipped to make far more informed decisions about your personal and professional development.

The Personal SWOT isn’t just a list-making exercise — it’s a strategic process. The real magic happens once you start asking the four key questions:

· How can I use my strengths to help commercialise my opportunities?

How might I use my strengths to help me overcome threats?
How can I stop my weaknesses impacting opportunities?
If my weaknesses and threats combine, what corrective action must I take?

You don’t need perfect answers – in fact, aiming for a solid ‘seven out of ten’ when you’re new to this is perfectly fine. The magic comes from giving it a go and revisiting your answers as you grow and change.

Turning Reflection into Action

Where the real power lies is in converting all these reflections into action. Look over the ideas you’ve come up with, and select the three that would make the greatest difference for you. What impact will those strategies have on your growth if executed well? These become your action priorities – the levers that will help push your success to the next level. And remember, this isn’t a “do it once and forget it” exercise. Set yourself up for regular check-ins, just as you would for business strategy reviews. By building in time to set realistic goals and acknowledge your progress, you’ll develop a positive self-image that endures, even when times get tough.

Final Thoughts

Ultimately, spending a little time and energy on self-reflection is one of the most valuable investments you’ll ever make in yourself. It’s how you ensure your actions are aligned with your true aspirations and create the resilience needed to navigate life’s challenges with a sense of purpose.

Ready to try?

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The Secret to Continuous Progress

Thu, 02 Oct 2025 23:31:00 GMT

The Secret to Continuous Progress

Change is inevitable, but improvement is intentional. As Winston Churchill wisely remarked, “To improve is to change; to be perfect is to change often.” This principle sits at the heart of the PDCA (Plan-Do-Check-Act) cycle—a tool that transforms not just profits but the very fabric of how we do business.

Why ‘Continuous Improvement’ Matters

Breaking Down PDCA

The PDCA cycle sounds simple—and therein lies its magic. Here’s a quick look:

Plan: Spot a problem or chance for improvement. Define it, set goals, and craft an action plan. As the documents highlight, choose areas with the biggest returns for the effort invested.
Do: Roll up your sleeves and put that plan into action. Engage your team, use technology, and go after quick wins to build momentum.
Check: Now, don’t just charge ahead—step back and ask if it’s working. Are the KPIs being met? What hasn’t worked, and why? This honest evaluation sets you up for real improvement.
Act: Time to lock in what’s going well, adjust processes, or pivot if needed. Make the changes part of your daily routine via QA systems so success isn’t fleeting—it becomes the norm.

Real-Life Application

For example, a manufacturer facing frequent downtime due to inefficient machine setups could use the PDCA cycle to address the issue:

Plan: Gather data on setup times and identify which processes are causing delays.
Do: Introduce new standardised setup procedures and hold team strategy meetings before a shift starts.
Check: Test the new procedure on a couple of machines and monitor whether setup times decrease.
Act: If the test works, roll out the updated process across all machines, and continue to refine and audit the approach regularly to sustain efficiency.

By following this method, the company not only reduced setup times by 25 percent, but also saw marked improvements in productivity with limited upfront investment.

Key Takeaway: Progress Over Perfection

Ready to Try?

Click here to begin your free Manufacturing Excellence diagnostic.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

October 2025 Tax Newsletter

Thu, 02 Oct 2025 01:33:31 GMT

October 2025 Tax Newsletter

Welcome to our October 2025 newsletter—packed with key tax deadlines, updates, and tips to help you stay compliant and informed.

Employees incorrectly treated as independent contractors

The ATO is warning businesses that if they incorrectly treat an employee as an independent contractor, then they risk receiving penalties and charges, including:

PAYG withholding penalty for failing to deduct tax from worker payments and send it to the ATO;
Super guarantee charge ('SGC'), which is more than the super that would have been paid if the worker was classified correctly. SGC consists of a super guarantee shortfall amount, nominal interest, and an administration fee; and
Additional SG penalties , including a penalty amount of up to 200% of the SGC.

'Sham contracting' may also contravene the Fair Work Act 2009. Courts can impose penalties against a business or person that incorrectly informs an employee that they are an independent contractor.

Reminder of September Quarter Superannuation Guarantee ('SG')

Employers are reminded that employee super contributions for the quarter ending 30 September 2025 must be received by the relevant super funds by Tuesday, 28 October 2025. If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which (as noted above) includes a penalty and interest component.

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.

Tips to help sole trader clients

The ATO is seeing sole traders make mistakes in the following areas:

not reporting all income — this includes income earned outside their business (like a 'side hustle'), cash jobs, or payments in-kind/barter deals;
overclaiming expenses — this includes claiming the portion of an expense related to personal use, or overstating the cost of goods sold and other business expenses;
calculating business losses;
incorrectly claiming and offsetting losses from non-commercial business activities against other income sources;
misreporting personal services income ('PSI') to gain tax benefits;
not registering for GST if they are in the taxi or ride-sourcing industry, or when they reach the GST threshold; and
not keeping accurate and complete records.

If you need assistance with any of the above, please contact our office.

ATO warning regarding private use of work vehicles and FBT

Employers that supply work vehicles to their employees need to check how the work vehicles are used and whether any exemptions apply to determine if they attract fringe benefits tax ('FBT').

FBT generally applies when a work vehicle is made available for private use, even if it is not actually used. Private use includes any travel not directly related to the employee's job.

Exemptions may apply depending on the vehicle's specifications and the nature of the private use.

The most common issues the ATO sees include the following:

incorrectly treating private use as business use;
assuming dual cab utes are exempt from FBT — exemptions only apply if the vehicle is eligible for the specific FBT exemption and private use is limited;
incorrectly classifying vehicles;
poor record keeping that does not support the claims or the FBT calculations made; and
not reporting or paying on time.

ART dismisses argument that medical expenses were deductible

In a recent decision, the Administrative Review Tribunal ('ART') held that a taxpayer could not claim a tax deduction for medical expenses incurred by him in relation to his total and permanent disability pension.

The taxpayer had been terminated from his employment due to total and permanent disablement ('TPD'). For the 2024 income year, his only income was a TPD pension.

The taxpayer wanted to claim a deduction for medical expenses to be incurred, estimated to be approximately $100,000 in the 2024 income year.

The ART agreed with the ATO that the medical expenses were not deductible. The ART noted in this regard that the medical expenses were "incurred by (the taxpayer) to better live with his medical condition, not incurred 'in' gaining or producing the TPD pension." That is, "the occasion of the Medical Expenses is to assist (the taxpayer) with his medical condition, not to gain or maintain his eligibility to the TPD pension."

The ART also did not accept the taxpayer's argument that the medical expenses were not private or domestic in nature, as they were essentially personal in character.

Trust Resolutions – Why Timing and Evidence Matter

A recent decision of the Administrative Review Tribunal (Goldenville Family Trust v Commissioner of Taxation [2025]) highlights the importance of documentation and evidence when it comes to tax planning and the consequences of not getting this right.

The case involved a family trust which generated significant amounts of income. For the 2015, 2016 and 2017 income years, the trustee attempted to distribute most of the income to a non-resident beneficiary. As the trustee believed the income was classified as interest (this was challenged successfully by the ATO), the trustee assumed that the income would be subject to a final Australian tax at 10%, under the non-resident withholding rules. This was clearly more favourable than having the income taxed in the hands of Australian resident beneficiaries at higher marginal rates.

However, the ATO argued that the distribution resolutions were invalid and the Tribunal agreed. Why? The main reason was a lack of evidence to prove that the distribution decisions were made before the end of the relevant financial years.

While there were some documents that were purportedly dated and signed “30 June”, the Tribunal wasn’t convinced that the decisions were actually made before year-end and it was more likely that these documents were prepared on a retrospective basis. The evidence suggested the decisions were probably made many months after year-end, once the accountant had finalised the financial statements.

The outcome was that default beneficiaries (all Australian residents) were taxed on the income at higher rates.

Timing of trust resolution decisions is critical

For a trust distribution to be effective for tax purposes, trustees must reach a decision on how income will be allocated by 30 June each year (or sometimes earlier, depending on the trust deed). It might be OK to prepare the formal paperwork later, but those documents must reflect a genuine decision made before year-end.

For example, let’s say a trust has a corporate trustee with multiple directors. The directors meet at a particular location on 29 June and make formal decisions about how the income of the trust will be appointed to beneficiaries for that year. Someone keeps handwritten notes of the meeting and the decisions that are made. On 5 July the minutes are typed up and signed. The ATO indicates that this will normally be acceptable, but subject to any specific requirements in the trust deed.

If the ATO believes the decision was made after 30 June (or documents were backdated), the resolution can be declared invalid. In that case, you might find that one or more default beneficiaries are taxed on the taxable income of the trust or the trustee is taxed at penalty rates. This could be an unexpected and costly tax outcome and could also lead to other problems in terms of who is really entitled to the cash.

Broader lessons – it’s not just about trust distributions

The timing issue is not confined just to trust distribution situations. Other areas of the tax system also turn on when a decision or agreement is actually made, not just when it is eventually recorded.

For example, if a private company makes a loan to a shareholder in a given year, that loan must be repaid in full or placed under a complying Division 7A loan agreement by the earlier of the due date or lodgement date of the company’s tax return for the year of the loan. If not, a deemed unfranked dividend can be triggered for tax purposes.

If a complying loan agreement is put in place then minimum annual repayments normally need to be made to avoid deemed dividends being recognised for tax purposes

A common way to deal with loan repayments is by using a set-off arrangement involving dividends that have been declared by the company. However, in order for the set-off arrangement to be valid there are a number of steps that need to be followed before the relevant deadline. The ATO will typically want to see evidence which proves:

When the dividend was declared; and
When the parties agreed to set-off the dividend against the loan balance.

If there isn’t sufficient evidence to prove that these steps were taken by the relevant deadline then you might find that there is a taxable unfranked deemed dividend that needs to be recognised by the borrower in their tax return.

Documenting decisions before year-end

The key lesson from cases like Goldenville is that documentation shouldn’t be an afterthought — lack of contemporaneous documentation can fundamentally change the tax outcome. What normally matters most is when the relevant decision is actually made, not when the paperwork is drafted.

In practice, this often means:

Check relevant deadlines and what needs to occur before that deadline.
If a decision needs to be made before the deadline, ensure that a formal process is followed to do this. For example, determine whether certain individuals need to hold a meeting or whether a circular resolution could be used.
Produce contemporaneous evidence of the fact that the decision has been made. You might consider sending a brief email to your accountant or lawyer explaining the decision that has been made before the relevant deadline , basically providing a time-stamped record of the decision.
Finalise paperwork: formal minutes of meetings can sometimes be prepared after year-end, but they must accurately reflect the earlier decision.

Thinking carefully about timing — and building a habit of producing clear evidence of decisions as they are made — is often the difference between a tax planning strategy working as intended and an expensive dispute with the ATO.

ATO Interest Charges Are No Longer Deductible – What You Can Do

Leaving debts outstanding with the ATO is now more expensive for many taxpayers.

As we explained in the July edition of our newsletter, general interest charge (GIC) and shortfall interest charge (SIC) imposed by the ATO is no longer tax-deductible from 1 July 2025. This applies regardless of whether the underlying tax debt relates to past or future income years.

With GIC currently at 11.17%, this is now one of the most expensive forms of finance in the market — and unlike in the past, you won’t get a deduction to offset the cost. For many taxpayers, this makes relying on an ATO payment plan a costly strategy.

Refinancing ATO debt

Businesses can sometimes refinance tax debts with a bank or other lender. Unlike GIC and SIC amounts, interest on these loans might be deductible for tax purposes, provided the borrowing is connected to business activities.

While tax debts will sometimes relate to income tax or CGT liabilities, remember that interest could also be deductible where money is borrowed to pay other tax debts relating to a business, such as:

GST
PAYG instalments
PAYG withholding for employees
FBT

However, before taking any action to refinance ATO debt it is important to carefully consider whether you will be able to deduct the interest expenses or not.

Individuals

If you are an individual with a tax debt, the treatment of interest expenses incurred on a loan used to pay that tax debt really depends on the extent to which the tax debt arose from a business activity:

Sole traders: If you are genuinely carrying on a business, interest on borrowings used to pay tax debts from that business is generally deductible.
Employees or investors: If your tax debt relates to salary, wages, rental income, dividends, or other investment income, the interest is not deductible. Refinancing may still reduce overall interest costs depending on the interest rate on the new loan, but it won’t generate a tax deduction.

Example: Sam is a sole trader who runs a café. He borrows $30,000 to pay his tax debt, which arose entirely from his café profits. The interest should be fully deductible.

However, if Sam also earns salary or wages from a part-time job and some of his tax debt relates to the employment income, only a portion of the interest on the loan used to pay the tax debt would be deductible. If $20,000 of the tax debt relates to his business and $10,000 relates to employment activities, then only 2/3rds of the interest expenses would be deductible.

Companies and trusts

If a company or trust borrows to pay its own tax debts (income tax, GST, PAYG withholding, FBT), the interest will usually be deductible if it can be traced back to a debt that arose from carrying on a business.

However, if a director or beneficiary borrows money personally to cover those debts, the interest would not normally be deductible to them.

Partnerships

The position is more complex when it comes to partnership arrangements. If the borrowing is at the partnership level and it relates to a tax debt that arose from a business carried on by the partnership then the interest should normally be deductible. For example, this could include interest on money borrowed to pay business tax obligations such as GST or PAYG withholding amounts.

However, the ATO takes the view that if an individual who is a partner in a partnership borrows money personally to pay a tax debt relating to their share of the profits of the partnership, the interest isn’t deductible. The ATO treats this as a personal expense, even if the partnership is carrying on a business activity.

Practical takeaway

Leaving debts outstanding with the ATO is now more expensive than ever because GIC and SIC are no longer deductible.

Refinancing the tax debt with an external lender might provide you with a tax deduction and might also enable you to access lower interest rates.

The key is to distinguish between tax debts that relate to a business activity and other tax debts. For mixed situations, you may need to apportion the deduction.

If you’re unsure how this applies to you, talk to us before arranging finance. With the right strategy, you can manage tax debts more effectively and avoid costly surprises.

Government Review of Supermarket Unit Pricing: What It Could Mean for Your Business

The Federal Government recently wrapped up a consultation process on supermarket unit pricing. While the topic might sound like a purely consumer issue, it could have very real commercial impacts for businesses supplying into the grocery sector.

On 1 September 2025, Treasury opened consultation on strengthening the Retail Grocery Industry (Unit Pricing) Code of Conduct. Submissions closed just a few weeks later on 19 September 2025, marking the end of a very short opportunity for stakeholders to have their say.

A Quick Recap

Unit pricing is what allows shoppers to compare costs per standard measure (e.g. $/100g or $/litre) across different pack sizes and brands. Since 2009, large supermarkets have been required to display this information to help customers spot value. While compliance has been relatively low-cost and penalties limited, the Government’s review signals that much tighter rules could be on the way.

Why Now?

The ACCC’s recent supermarket inquiry highlighted that while unit pricing helps, there are still gaps. The big concern is shrinkflation—when pack sizes quietly reduce while prices remain the same or higher. With cost-of-living pressures dominating headlines, the Government is looking at clearer, fairer pricing to rebuild consumer trust.

What Might Change?

Proposals considered in the consultation paper include:

Shrinkflation alerts – supermarkets may need to flag when a product becomes smaller without a matching price cut.
Clearer displays – larger, more prominent unit prices both in-store and online.
Wider coverage – expanding the rules beyond major supermarkets to smaller retailers and online sellers.
Standardised measures – eliminating confusing “per roll” vs “per sheet” comparisons.
Civil penalties – introducing fines for non-compliance.

The Commercial Impact

For suppliers, packaging decisions could come under closer scrutiny. For retailers, costs might arise from updating shelf labels, software, or e-commerce systems. But there are also opportunities: businesses that embrace transparency could build loyalty and stand out in a competitive market.

What You Should Do

Now that the consultation period has closed, Treasury will consider submissions and the Government is expected to announce its response later this year.

Businesses in food, grocery, and household goods should stay alert—the final shape of the rules could affect pricing, packaging, and compliance obligations across the sector.

We can help you model potential compliance costs, assess financial impacts, and prepare for upcoming regulatory change. Reach out to discuss how this review might affect your business.

Accessing superannuation funds for medical treatment or financial hardship

Superannuation is one of the largest assets for many Australians and offers significant tax advantages, however, strict rules apply to when it can be accessed. While super is most commonly accessed at retirement, death or disability, there are limited situations where earlier access may be possible.

Early access is generally available in two situations:

Financial hardship – where you are receiving a qualifying Centrelink/DVA payment for a minimum period and cannot meet immediate living expenses.
Compassionate grounds – Funding for certain specific scenarios which include preventing a mortgage foreclosure or meeting medical expenses for a life-threatening injury or illness or to alleviate severe chronic pain.

Compassionate grounds access requires an application to be made to the ATO which needs to be accompanied by relevant medical certificates or mortgage information. If approved the ATO will provide instructions to the individual’s superannuation fund to release an amount to cover the expense. We have included some ATO links with more detailed information on compassionate grounds and financial hardship below.

When accessing superannuation under compassionate grounds you would usually collect the relevant supporting documentation and personally make the application for approval using your MyGov account. It has come to the ATO’s attention that there may be medical and dental providers exploiting this access and assisting super fund members to access amounts for cosmetic reasons (you may have even seen advertisements pop up on your social media showing people with a new sparkling smile – and a lower super balance).

The ATO’s concerns are discussed in Separating fact from fiction on accessing your super early .

Superannuation fund members and SMSF trustees should be aware that there can be substantial penalties applied when super is accessed outside of the legislated conditions of release. You should never provide another party with access to your MyGov login or allow a third party to make applications on your behalf. Penalties may also apply for making false declarations.

Accessing superannuation due to financial hardship

Should you have any questions or concerns relating to proposed access to your superannuation please reach out to us.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Finding Balance: The Bike of Life

Thu, 25 Sep 2025 23:08:35 GMT

Finding Balance: The Bike of Life

Let’s face it—striking a balance between work and personal life isn’t easy, especially when it feels like you’re pedalling uphill on both fronts. But what if there was a simple way to picture and improve this balance? Enter the “Bike of Life”—a practical metaphor from our latest module that’s already sparking plenty of lively discussion across our teams.

Two Wheels, One Journey

Imagine your life as a bike ride. One wheel represents your professional life—the projects, meetings, targets and the day-to-day whirlwind of business. The other wheel is your personal life—your health, family, finances, mental well-being, and philosophical outlook. Now, consider what happens if either wheel has a flat spot or (worse!) a puncture. The ride gets bumpy, progress slows, and it takes effort just to stay upright.

To enjoy a smooth ride, both wheels need regular checks and the occasional tune-up. It’s tempting to pour all energy into work or home, but true balance means showing each side the attention it deserves.

How Balanced Is Your Bike?

Checking your “Bike of Life” is a hands-on process—one that invites real reflection:

Score yourself from 0 (not great) to 10 (brilliant) on each segment of your work wheel (think marketing, HR, finance, strategy, operations, innovation) and personal wheel (such as health, social life, family, money, philosophy, mental health).
Plot and shade these scores on the provided “wheel” templates. Step back. Does each wheel look round, or are there obvious dips?
The goal isn’t perfection—nobody gets straight 10s! It’s about spotting gaps, understanding the real shape of your journey, and seeing where a little extra focus could make all the difference.

Planning for a Smoother Ride

Once you’ve mapped things out, ask yourself: Where could you make small improvements? Is one area flat and in need of reinflation? Try brainstorming a few practical steps to bring those segments up a notch. It helps to check in on your progress regularly—little tweaks over time really do add up.

Remember, many people focus solely on one wheel and wonder why the ride feels lopsided. The most successful journeys are powered by well-maintained wheels spinning in harmony.

Ready to try?

Click here to begin your free Life Balance Diagnostic.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Refocus for Success: The 9-Factor Advantage

Thu, 18 Sep 2025 20:23:22 GMT

Refocus for Success: The 9-Factor Advantage

Let’s be honest—change is hard. Whether it’s hitting a fitness goal, chasing a career milestone, or sticking to a resolution, it’s all too easy to lose momentum. But research by Dr Chris Mason shows there’s a proven way to tip the odds in your favour: apply the nine factors of successful change. With the right focus, your chances of success can leap from around 30% to as high as 80%.

Why Good Intentions Aren’t Enough
Most people start strong but struggle when the road gets bumpy. The breakthrough comes from focusing on three key areas: Readiness, Capability, and Beliefs . Together, they create a roadmap to keep you moving when motivation dips.

1. Readiness: Are You Really Prepared?
Change sticks when there’s a genuine need, a vivid vision of success, enough energy to commit, and a realistic plan. Without these, follow-through is unlikely. Ask yourself:

Do I genuinely want this change?
Can I clearly see what success looks like?
Do I have the energy and focus to commit?
Is there a step-by-step plan I can stick to?

2. Capability: Building Momentum Through Habits
Success rewards those who act consistently. High-performance habits—like time management, reliability, and perseverance—help you stay on track even when obstacles arise. Failures may sting, but they’re also the lessons that shape long-term success.

3. Beliefs: The Mindset Multiplier
Beliefs are the hidden driver. When you see the benefits clearly, trust your own ability, and adopt a growth mindset, change becomes much more achievable. If confidence is lacking, support from a coach or mentor can make all the difference.

How to Refocus
The key isn’t fixing everything at once—it’s pinpointing your biggest gap and starting there. Use the nine factors as a self-check: where are you strong, and where do you need to refocus? That’s where your next step lies.

Three Quick Wins:

Zero in on your biggest gap.
Lock in strong, repeatable habits.
Build belief and confidence with support when needed.

By refocusing regularly on these nine factors, change becomes less of a gamble—and more of a strategy for lasting success.

Ready to Try?

Click here to begin your free Change Success Personal diagnostic.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Strategy with Mindmapping and Pareto

Thu, 11 Sep 2025 21:30:47 GMT

Unlocking Strategy with Mindmapping and Pareto

If you've ever felt swamped by a jumble of ideas, unsure where to begin with tackling a big problem or shaping your plan, two tried-and-tested tools can make all the difference: mindmapping and the Pareto principle. These approaches will help any business leader boost clarity, engagement, and results when navigating complex issues.

Why Mindmapping Works

Mindmapping isn't just for creative types—it's a practical method for capturing group wisdom or sorting through personal challenges. Tony Buzan first introduced it in the 1970s, and it’s now found everywhere from classrooms to boardrooms. Starting with a central theme (say, "How to grow sales"), you jot down related ideas, branching outward in all directions. Perhaps you’re discussing sales: someone suggests “website,” and soon, sub-branches pop up—moment of truth, proof of capability, product listings, and so on.

In meetings, mindmapping helps everyone get involved—whether they’re thinkers, talkers, or somewhere in between. The visual format makes sure no good idea goes unnoticed. By the end, you might have a sprawling map of twenty or more ideas—those big strategic brain dumps don’t leave anything behind.

Prioritising with the Pareto Principle

But what happens next? You can’t tackle everything at once, and that’s where Pareto comes in. The Pareto principle, or the 80/20 rule, was inspired by Vilfredo Pareto’s observation that 20% of Italians owned 80% of the land. The lesson for businesses: a small handful of actions usually drive most results.

After brainstorming, step back and ask “Which three or four ideas will make the biggest difference?” Whether it's boosting income metrics, refining your sales process, or sprucing up your website, honing in on the vital few helps you avoid the trap of endless to-do lists and keeps your team focused where it matters most.

If you’re working with a group, make it interactive—let people “vote” for their top priorities. This not only pinpoints the most impactful actions but gets buy-in for the next steps. Remember: it’s about sorting the root causes from the symptoms and focusing effort where it counts.

Ready to Try?

Map out where you are now, decide where you want to be in a year, and apply the mindmapping and Pareto process to bridge the gap. Next time you find yourself stuck in a brainstorming maze, these simple tools can provide the structure and clarity to move your plans forward. Whether you’re tackling sales, planning strategy, or identifying bottlenecks, mindmapping and the Pareto principle will help turn a mountain of ideas into a clear action plan.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Office Closed Friday 5 September

Fri, 05 Sep 2025 22:12:43 GMT

Office Closed Friday 5 September

Our office is closed Friday 5 September due to external appointments. The rest of the RGA team is working from home and can attend to your queries by phone where possible.

Please contact our message service on 07 3289 1700.

Have a great day!

Liz and The RGA Team.

Customer Onboarding: Laying the Foundation for Lasting Relationships

Thu, 04 Sep 2025 08:21:39 GMT

Customer Onboarding: Laying the Foundation for Lasting Relationships

Most businesses invest heavily in acquiring new customers—but what happens once the deal is done? As Joey Coleman highlights in Never Lose a Customer Again, the first few months after purchase are critical. This is when customers decide whether to stay, refer others, or quietly disappear. A thoughtful onboarding process doesn’t just welcome new clients—it sets the tone for the entire relationship and strongly influences lifetime value.

Why Onboarding Matters

Onboarding is often mistaken for a simple post-sale formality. In reality, it’s one of your most powerful sales tools. The first 100 days are decisive: handled well, they lead to better retention, more referrals, and deeper loyalty. Handled poorly, they can cost you the customer before you’ve had a chance to deliver real value.

What Does Great Onboarding Look Like?

Case Study: FitLife Gym’s 100-Day Onboarding Program

Background
FitLife Gym, a mid-sized city fitness centre, faced a challenge: strong sign-ups but poor retention after the three-month mark. New members often felt disconnected and unsure of how to get started, leading to early cancellations and limited referrals. Drawing from Joey Coleman’s framework and industry best practices, FitLife designed a new onboarding journey to create consistent support and connection.

The 100-Day Path

Day 1 – Warm Welcome: New members receive a personalised email from the gym manager with a welcome video, plus a digital starter kit (class timetables, facility map, and inspiring member stories).
Day 2 – Personal Connection: A dedicated “fitness coach” reaches out to learn about the member’s goals and schedule a tailored one-on-one consultation.
Day 14 – Community Invitation: Members get an email about popular classes and receive an invite to a group orientation or “buddy workout” session.
Day 30 – Goal Check-In: The coach follows up to review progress, answer questions, and suggest relevant classes or training sessions.
Day 60 – Motivation Boost: A story-driven email showcases real member achievements and trainer insights to keep morale high.
Day 75 – Tailored Suggestion: Each member receives a customised workout or class recommendation based on their actual attendance and preferences.
Day 90 – Second Progress Review: Another personal check-in to celebrate wins, address challenges, and collect feedback.
Day 100 – Celebration & Referral: Members are congratulated with a reward (e.g., “bring a friend” voucher), encouraging both loyalty and word-of-mouth growth.

Results

Higher Retention: Early engagement helped members feel supported and reduced cancellations.
Stronger Participation: Check-ins and personalised recommendations boosted commitment.
Increased Referrals: The 100-day celebration created natural opportunities for sharing.
Revenue Growth: Staff introduced higher-value services like personal training and nutrition coaching at the right times.

Key Lessons

A structured onboarding journey creates a sense of belonging and motivation.
Personal touchpoints and milestone celebrations build trust and loyalty.
Referrals naturally flow when customers feel recognised and valued.

FitLife’s story shows that investing in the early stages of a customer’s journey delivers long-term payoffs in satisfaction, retention, and growth.

Designing Your Own Onboarding Process

If you don’t have one yet, start simple. A few well-timed, thoughtful interactions can have an outsized impact. Get your team together, brainstorm ideas, and map out touchpoints that help new customers feel welcome, informed, and valued.

Questions to Spark Ideas:

When were you last a customer—what made you feel cared for (or overlooked)?
What three steps could you add today to make newcomers feel important?
How might your onboarding process encourage referrals and loyalty?

A strong onboarding experience doesn’t just reduce churn—it builds customers for life.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

September 2025 Tax Newsletter

Mon, 01 Sep 2025 21:09:58 GMT

September 2025 Tax Newsletter

ATO to include tax 'debts on hold' in taxpayer account balances

From August 2025, the ATO is progressively including 'debts on hold' in relevant taxpayer ATO account balances.

A 'debt on hold' is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold where the ATO decides it is not cost effective to collect the debt at the time.

The ATO is currently required by law to offset such 'debts on hold' against any refunds or credits the taxpayer is entitled to. The difficulty with these debts is that the ATO has not traditionally recorded them on taxpayer's ATO account balances.

Taxpayers with 'debts on hold' of $100 or more will receive (or their tax agent will receive) a letter before it is added to their ATO account balance (which can be viewed in the ATO's online services or the statement of account).

Taxpayers with a 'debt on hold' of less than $100 will not receive a letter, but the debt will be included in their ATO account balance

The ATO has advised it will remit the general interest charge ('GIC') that is applied to 'debts on hold' for periods where they have not been included in account balances. This means that taxpayers have not been charged GIC for this period.

The ATO will stop remitting GIC six months from the day the taxpayer's 'debt on hold' is included in their account balance. After this, GIC will start to apply.

Student Debt Reduction Bill Passed into Law

The Federal Government has now legislated its 2025/26 Budget promise to ease student debt.

Key changes include:

One-off 20% reduction : All HELP and other student loan balances incurred on or before 1 June 2025 will be reduced by 20%.
Higher repayment threshold : From the 2025/26 income year, the minimum repayment threshold rises from $54,435 to $67,000 , with future increases linked to wage growth.
Marginal repayment system : Compulsory repayments will now apply only to income earned above the $67,000 threshold, rather than being calculated as a flat percentage of total repayment income.

Getting the main residence exemption right

The ATO has the following tips for taxpayers in relation to the CGT main residence exemption.

They should consider if they have bought or disposed of property in the past income year. If they have sold property, were they using it solely as their primary place of residence, earning income from it (rental or business), or was it vacant land?
They should understand the applicable record keeping requirements in relation to property.
If they have disposed of vacant land, they are not eligible for the main residence exemption, even if they had intended to build their main residence on the land.
They are only eligible for the '6-year absence rule' if the property was their main residence before they rented it out.
Broadly, they can only have one property as their main residence at a time - the only exception is the 6-month period when they move from one home to another.

If you need assistance with the above or with completing your tax return, please contact our office.

Small Business Superannuation Clearing House is closing

The Small Business Superannuation Clearing House ('SBSCH') will close on 1 July 2026 . The SBSCH is a free online service provided by the Australian Government through the ATO.

The SBSCH can be used by employers to pay superannuation for all their employees through a single payment. The SBSCH will then distribute the money to each employee's superannuation fund according to the employer's instructions.

To support small businesses to transition to alternative services prior to this time, new users will be unable to register to use the service from 1 October 2025.

Existing users are encouraged to take steps now to transition to alternative options. These include reviewing their existing software and payroll packages (which may already include super functions), or looking at options offered by super funds, commercial dealing houses, or other payroll software or providers.

ATO AFCX data-matching program

The ATO will acquire relevant account and transaction data from the Australian Financial Crimes Exchange ('AFCX') for the 2025 to 2027 income years, including the following:

Client identification details (names, addresses, phone numbers, dates of birth, identity verification document details, IP addresses, etc); and
Bank account transaction details (bank account details, transaction date and amount, IP addresses, etc).

The ATO estimates that records relating to approximately 70,000 individuals will be obtained each financial year.

The data collected under this program will be used to (among other things) safeguard taxpayer accounts from identity crime by implementing protective controls to enable pre-lodgment detection and application of treatments to victims of fraud.

PAYGW reminders for activity statement lodgments

The ATO will be sending certain employers a reminder to lodge their activity statements. The reminder will include the amounts the ATO has on record for them, such as:

PAYG withheld amounts reported through Single Touch Payroll; and
any other pre-filled amounts, including GST instalments and PAYG instalments (instalment amount option).

The ATO's reminders are intended to provide a timeframe for employers to review (and if necessary correct) the amounts the ATO has on record for them and lodge their activity statements.

If these selected employers do not lodge by the specified date, the ATO will consider the amounts it has on record are correct and complete, and it will add these amounts to the employer's account, meaning they will be due and payable.

The ATO may also finalise the employer's activity statement and consider it lodged unless the employer has any other obligations such as GST to report.

If employers do not make any changes to correct the data or lodge by the due date and the activity statement has been finalised in ATO systems, they will need to adjust these amounts by lodging a revised activity statement.

If the information is correct, they will not need to take any further action.

Tax Time 2025: What You Need to Know – ATO Updates That Could Affect You

We’re now two months into the 2025 tax season, and the ATO is turning its attention to a few key areas for individual taxpayers. Whether you're earning a salary, running a side hustle, or managing an investment property, staying informed on what the ATO is looking at can help you claim the right deductions, avoid slip-ups, and lodge your return with confidence. Below, we’ve pulled together the latest insights from ATO Assistant Commissioner and Tax Time spokesperson Rob Thompson—plus some practical tips to help you stay on track this year.

1. Work-Related Deductions: The Main Area Under the Microscope

Work-related deductions remain the number one focus. The ATO is keen to stamp out exaggerated and ineligible claims, particularly after seeing some “wild” examples, such as mechanics claiming air fryers and truck drivers attempting to claim swimwear. The golden rule is simple: For a deduction to be eligible, it must directly relate to earning your income.

Key Tip: Ask yourself: Was the expense necessary for my job? Did I pay for it myself (and not get reimbursed)? Can I prove it with a receipt?
Work from home claims continue to be significant. To claim, you must have genuinely worked from home to fulfill your role—not just taken a call or checked email sporadically.
The fixed rate method is now $0.70 per hour.
Alternatively, use the actual cost method, but maintain detailed records and receipts.

2. Reporting All Income – Especially Side Hustles

Another major focus area is omitted income. The ATO expects taxpayers to declare all sources, including money earned from side gigs, the sharing economy, and platforms (like ride-sourcing and freelance work).

Key Tip: If you’ve earned money outside your normal job—from driving for a rideshare company, renting out a room, or selling items online—that income must be included in your tax return.

3. Common Mistakes: How to Avoid Them

A recurring problem is poor record keeping and misunderstanding what can and can’t be claimed. Remember, the "three golden rules" for work-related expense claims:

You paid for it yourself and weren't reimbursed
The expense directly relates to earning your income
You have a record (usually a receipt) as proof

Be wary of common errors, such as:

Claiming the cost of travel between home and work (generally not deductible)
Everyday clothing or generic meals, even if consumed at work (private, not deductible)
Donations to charities that are not deductible gift recipients (DGR)

A bank statement alone is generally insufficient evidence; receipts should specify the supplier, amount, date, and item purchased. Records should be kept for at least five years.

4. Investment Properties: Interest and Repairs in the Spotlight

If you own an investment property, be especially diligent this year. The ATO is closely reviewing claims related to interest expenses and repairs.

Interest Expenses: Only the portion of your loan used to produce rental income is deductible. Drawing on your investment loan for personal use—such as buying a new car or paying school fees—means you should apportion the interest and only claim the rental-related share.
Repairs vs. Capital Improvements: Costs incurred to fix problems existing at purchase (for example, painting before a new tenant moves in) are generally capital improvements, not immediate deductions. These expenses are claimed over time through depreciation, not claimed upfront.

Keep thorough records, as you’ll need these both for your annual return and when you eventually sell the property.

5. Substantiation and Getting Help

Not having the right paperwork is still one of the most common (and expensive) tax-time mistakes. In most cases, you’ll need written proof—like receipts, vehicle logbooks, or detailed records if you're working from home—to back up your claims.

If you’re not sure what you can claim for your job, the ATO has occupation- and industry-specific guides that can help—or feel free to reach out to us for advice.

With the ATO stepping up compliance checks and using smarter data-matching technology, it’s more important than ever to make sure your deductions are legit and all your income is reported. Staying on top of these rules can help you avoid any audit stress—and make tax time a lot smoother.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Measuring What Matters for Your Business

Thu, 28 Aug 2025 05:25:23 GMT

Measuring What Matters for Your Business

In today’s fast-paced business world, making sure you’re measuring the right things can make all the difference. As Peter Drucker famously said, “what gets measured gets done”—but the real question is, what should we measure? For businesses looking to stay competitive, two tools stand out: KPIs and OKRs.

What’s the Difference?

KPIs (Key Performance Indicators) help businesses keep track of essential metrics—concrete figures that show how you’re really performing. For example, you might measure:

The number of new customers acquired this month
The average sales per client
How quickly customer complaints are resolved
Staff turnover rates

Tracking these KPIs show where your business is excelling—and where you might need improvement. The trick is to choose those KPIs that are truly linked to your most important goals, rather than drowning in data.

OKRs (Objectives and Key Results) take measurement a step further by connecting your big business objectives to specific, measurable results. For instance:

Objective: Become the preferred supplier in your sector within two years
Key Result: Increase revenue to $10 million
Key Result: Improve customer retention to 95%
Key Result: Raise monthly supplier referrals from 7 to 10

This approach doesn’t just track performance—it aligns your entire team to your strategy, ensuring everyone is working toward the same vision.

How Can My Business Use KPIs and OKRs?

Sales Team: Set KPIs such as number of calls made, meetings booked, and deals closed. Use OKRs to unite the team behind targets like launching a new product and achieving 15% revenue growth in a specific market.
Customer Service: Monitor KPIs like average resolution time and customer satisfaction scores. An OKR could focus on reducing average complaint resolution time by 20%.
Operations: Track KPIs around cost savings, delivery times, or supply chain efficiency. Link these to an objective such as “achieve best-in-class delivery times in the region” with key results, for example, “deliver 90% of orders within 48 hours”.
Personal Development: Business owners and managers can track KPIs such as hours spent on professional learning, the number of new qualifications gained, or feedback scores from mentoring sessions. Useful OKRs might be “attend a leadership conference and apply two new techniques to team management by December” or “improve public speaking skills by delivering five presentations before the end of the year.” These measures help you focus on tangible actions and steady progress in developing your skills and confidence.

Making It Work

To get the best results, keep your KPIs and OKRs SMART—Specific, Measurable, Achievable, Relevant, and Time-bound. Review them regularly with your team and make adjustments as you go.

By setting clear KPIs and OKRs, your business can stay laser-focused on what really drives success. Whether you’re growing sales, improving customer satisfaction or streamlining operations, these tools will help you track progress and achieve your goals more effectively.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Why the Strategic Planning Model is Still a Game-Changer for Organisations

Thu, 21 Aug 2025 21:03:50 GMT

Why the Strategic Planning Model is Still a Game-Changer for Organisations

If you’ve spent any time working on strategy, you’ll know it’s all too easy to get bogged down in detail or default to “how do we deliver?” before considering “why should we win?”. That’s where the strategic planning model proves invaluable—a well-established framework developed by the Australian Government in the late 1980s and embraced by Mindshop for more than 30 years, continuing to deliver impressive results for those committed to achieving high performance.

Let’s break it down in plain English. The heart of the model is your Sustainable Competitive Advantage (SCA) . This isn’t just a nice-to-have—it’s the unique edge that sets you apart in your market. The trick is to know it, live it, and let it drive every big strategic decision you make. If you try to be great at everything, you’ll end up being average. Make your winning position crystal clear. Here are some examples:

From Advantage to Action

Once you’ve nailed down your SCA, you can craft a marketing strategy that actually promises something meaningful to your customers. Think of it as your public commitment—not just fluffy words, but a focus that shapes every campaign, customer promise, and product pitch.

But a promise is only as good as your ability to deliver on it. That’s where your operations strategy steps up—how you provide your products or services in line with your competitive advantage. If your unique edge is low-cost air travel, for instance, your operations will be all about efficiency and keeping expenses rock-bottom. If you’re all about luxury, you’ll deliver comfort and service every step of the way. The point is: the operations must match the promise made in your marketing.

Don’t Forget the Enablers

Here’s where many organisations go off track—by making decisions from the bottom up or trying to let finance take the lead. The strategic planning model flips the sequence, making sure innovation, HR (people), and finance strategies enable your operational delivery rather than drive it. You’ll need creative thinking to overcome obstacles, great staff to build relationships and deliver services, and solid finance to keep the wheels turning.

Innovation: Whether it’s R&D, energy management, or creative new offerings, innovation is what keeps you ahead.
HR/People: It’s not just recruitment—it’s performance, development, and retention.
Finance: The nuts and bolts—cashflow, costs, financial arrangements—but always in service of the big picture.

Some examples

Here are just a few examples of how a sustainable competitive advantage impacts the marketing and operational strategies and how your financial, HR and Innovations strategies enable your operational delivery:

Exceptional Customer Service: If your edge is outstanding service, your marketing will champion reliability and care, and your operations will focus on fast response times, personal attention, and empowered staff who can solve issues on the spot.
Speed and Convenience:
For businesses promising speedy delivery (think express couriers or fast-food chains), marketing hypes “delivery in under an hour,” while operations streamline logistics, optimise supply chains, and leverage technology for efficiency.
Customisation and Personalisation:
If bespoke solutions are your edge, your marketing offers “tailored to you,” and operations gear towards flexibility, modularity, and strong customer consultation processes.
Geographical Reach or Accessibility:
If you’re everywhere the customer needs you, your marketing emphasises “always local” or “open 24/7,” and operations invest in widespread locations, extended hours, and seamless online platforms.

Why It Works

All too often, the temptation is to start with what you can build and hope to find customers for it. The strategic planning model demands you work the other way round—identify what makes you unique, then build the strategies to deliver that promise to customers.

So, next time you’re thinking strategy, ask yourself:

What’s our sustainable competitive advantage?
How does our marketing strategy promise this edge to customers?
Are our operations lined up to deliver on that promise?
How are innovation, HR, and finance enabling the core strategy?

By following this logic, you’ll avoid drifting like a rudderless boat—and instead, steer a clear course towards success that’s sustainable, focused, and truly competitive. Ready to take your team’s planning to the next level? Take a guess at the competitive advantage of one of your suppliers or a rival in your market. What should their marketing and operations strategies really look like if they want to win? It’s a great exercise—and may just reveal your own next moves.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Charting Your Course: Now – Where – How

Thu, 14 Aug 2025 04:55:26 GMT

Charting Your Course: Now – Where – How

One of the biggest challenges for any business owner is knowing exactly where you stand, where you want to go, and the right steps to get there. It sounds simple — but without a clear framework, it’s easy to get stuck in the day-to-day.

That’s where the Now–Where–How method comes in — a practical, no-nonsense approach to planning and making change happen.

Step 1 – Now

Take an honest snapshot of your business today.

Is your technology driving efficiency?
Are sales and marketing delivering results?
Is innovation alive or on pause?
Are your people engaged and aligned?
Are profits healthy and sustainable?

Jot down one or two key points for each of these areas: Technology, Sales, Marketing, Innovation, Leadership, Profit, Strategy, Implementation, Systems, People.

Step 2 – Where

Picture your business one, three, or five years from now.
Do you see more clients? A stronger brand? Smoother systems? New services?
The clearer the vision, the easier it is to decide what matters most.

Step 3 – How

Break the journey into manageable steps.

What quick wins will create momentum?
What bigger projects will keep you on track?

Consistent small actions often deliver more lasting change than one big push.

Why It Works

Many business leaders dive into “solutions mode” before truly understanding their starting point and future goals — wasting energy, time, and money. By pausing to focus on the Now , then the Where, then the How, you create a solid base for smarter, more targeted decisions.

Your Self-Check Challenge

This month, take 30 minutes to:

1. Write one or two honest points for each of the 10 key business areas - Technology, Sales, Marketing, Innovation, Leadership, Profit, Strategy, Implementation, Systems, People.

2. Identify your top three future priorities (your “Where”).

3. Choose one action you can take this week to start the “How.”

Small, deliberate steps today can shape a very different tomorrow.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

August 2025 Tax Newsletter

Thu, 07 Aug 2025 23:10:36 GMT

August 2025 Tax Newsletter

As we move into the 2025/2026 financial year there are some key changes in tax, superannuation and compliance that are set to impact on a range of individuals and business owners. This edition of our newsletter brings together the most relevant updates to help you stay compliant, minimise your tax exposure and make informed financial decisions.

In this issue:

Interest expense deductions: we break down what counts and what doesn’t
Luxury car tax and depreciation traps: the tax rules are more complex than they seem
Superannuation guarantee increases to 12%: ensure your payroll systems and employment contracts are updated to reflect the new rate and avoid costly penalties
Updated superannuation and tax thresholds: key updates to contribution caps, CGT contribution limits, and safe harbour interest rates
Super contributions: get the timing and paperwork right.
RBA holds interest rates steady: we unpack what the Reserve Bank’s July decision
Paid parental leave changes have now commenced
ASIC warning about pushy sales tactics urging quick super switches
ATO warns of common Division 7A errors
Taxpayers who need to lodge a TPAR
Hidden Trap: Why Some Families Face Surprise Tax Bills in 2025
Tax Time 2025: What You Need to Know – ATO Updates That Could Affect You

Interest deductions: risks and opportunities

This tax season, we’ve seen a surge in questions about whether interest on a loan can be claimed as a tax deduction. It’s a great question as the way interest expenses are treated can significantly affect your overall tax position. However, the rules aren’t always straightforward. Here’s what you need to know.

The purpose of the loan

The most important thing when looking at the tax treatment of interest expenses is to identify what the borrowed money has been used for. That is, why did you borrow the money?

For interest expenses to be deductible you generally need to show that the borrowed funds have been used for business or other income producing purposes. The security used for the loan isn’t relevant in determining the tax treatment.

Let’s take a very simple scenario where Harry borrows money to buy a new private residence. The loan is secured against an existing rental property. As the borrowed money is used to acquire a private asset the interest won’t be deductible, even though the loan is secured against an income producing asset.

Redraw v offset accounts

While the economic impact of these arrangements might seem somewhat similar, they are treated very differently under the tax system. This is an area to be especially careful with.

If you have an existing loan account arrangement, you’ve paid off some of the loan balance and you then use a redraw facility to access those funds again, this is treated as a new borrowing. We then follow the golden rule to determine the tax treatment. That is, what have the redrawn funds been used for?

An offset account is different because money sitting in an offset account is basically treated much like your personal savings. If you withdraw money from an offset account you aren’t borrowing money, even if this leads to a higher interest charge on a linked loan account. As a result, you need to look back at what the original loan was used for.

Let’s compare two scenarios that might seem similar from an economic perspective:

Example 1: Lara’s redraw facility

Lara borrowed some money five years ago to acquire her main residence. She has made some additional repayments against the loan balance. Lara redraws some of the funds and uses them to acquire some listed shares. Lara now has a mixed purpose loan. Part of the loan balance relates to the main residence and the interest accruing on this portion of the loan isn’t deductible. However, interest accruing on the redrawn amount should typically be deductible where the funds have been used to acquire income producing investments.

Example 2: Peter’s offset account

Peter also borrowed money to acquire a main residence. Rather than making additional repayments against the loan balance, Peter has deposited the funds into an offset account, which reduces the interest accruing on the home loan. Peter subsequently withdraws some of the money from the offset account to acquire listed shares. This increases the amount of interest accruing on the home loan. However, Peter can’t claim any of the interest as a deduction because the loan was used solely to acquire a private residence. Peter simply used his own savings to acquire the shares.

Parking borrowed money in an offset account

We have seen an increase in clients establishing a loan facility with the intention of using the funds for business or investment purposes in the near future. Sometimes clients will withdraw funds from the facility and then leave them sitting in an existing offset account while waiting to acquire an income producing asset. This can cause problems when it comes to claiming interest deductions.

First, even if the offset account is linked to a loan account that has been used for income producing purposes, this won’t normally be sufficient to enable interest expenses incurred on the new loan from being deductible while the funds are sitting in the offset account.

For example, let’s say Duncan has an existing rental property loan which has an offset account attached to it. Duncan takes out a new loan, expecting to use the funds to acquire some shares. While waiting to purchase the shares, he deposits the funds into the offset account, which reduces the interest accruing on the rental property loan. It is unlikely that Duncan will be able to claim a deduction for interest accruing on the new loan because the borrowed funds are not being used to produce income, they are simply being applied to reduce some interest expenses on a different loan.

To make things worse, there is also a risk that parking the funds in an offset account for a period of time might taint the interest on the new loan account into the future, even if money is subsequently withdrawn from the offset account and used to acquire an income producing asset.

For example, even if Duncan subsequently withdraws the funds from the offset account to acquire some listed shares, there is a risk that the ATO won’t allow interest accruing on the second loan from being deductible. The risk would be higher if there were already funds in the offset account when the borrowed funds were deposited into that account or if Duncan had deposited any other funds into the account before the withdrawal was made. This is because we now can’t really trace through and determine the ultimate source of the funds that have been used to acquire the shares.

To do

It’s worth reaching out to us before entering into any new loan arrangements. In this area, mistakes are often difficult to fix after the fact, which can lead to poor tax outcomes. That’s why getting advice from a tax professional before committing to a loan is essential. We can work alongside you and your financial adviser to ensure your loan is structured in a way that makes financial sense and protects your tax position.

Luxury cars: the impact of the modified tax rules

With the purchasing of luxury vehicles on the rise it’s important to be aware of some specific features of the tax system that can impact on the real cost of purchase. Often the tax rules provide taxpayers with a worse tax outcome if the car will be used for business or other income producing purposes compared with a non-luxury car, but this depends on the situation.

Let’s take a look at the key features of the tax system dealing with luxury cars and the practical impact they can have on your tax position.

Depreciation deductions and GST credits

Normally when someone purchases a motor vehicle which will be used in their business or other income producing activities there will be an opportunity to claim depreciation deductions over the effective life of the vehicle. Rather than claiming an immediate deduction for the cost of the vehicle, you will typically be claiming a deduction for the cost of the vehicle gradually over a number of years.

Likewise, a taxpayer who is registered for GST might be able to claim back GST credits on the cost of purchasing a motor vehicle that will be used in their business activities.

However, when you are dealing with a luxury car the tax rules will sometimes limit your ability to claim depreciation deductions and GST credits, impacting on the after-tax cost of acquiring the car.

How does it work?

Each year the ATO publishes a luxury car limit which is $69,674 for the 2025-26 income year. If the total cost of the car exceeds this limit, then this can impact the GST credits or depreciation deductions that can be claimed.

Let’s assume that Alice buys a new car for $88,000 (including GST) in July 2025. To keep things simple, let’s say Alice uses the car solely in her business activities and is registered for GST.

The first issue for Alice is that rather than claiming GST credits of $8,000, her GST credit claim will be limited to $6,334 (ie, 11th x $69,674). We then subtract the GST credits that can be claimed from the total cost, leaving $81,666. As this still exceeds the luxury car limit, Alice’s depreciation deductions will be capped as well. While she actually spent $89,000 on the car, she can only claim depreciation deductions based on a deemed cost of $69,674. The end result is that Alice has missed out on some GST credits and depreciation deductions because she bought a luxury car.

Exceptions to the rules

There are some important exceptions to these rules.

The rules only apply to vehicles which are classified as ‘cars’ under the tax system. That is, the car limit doesn’t apply if the vehicle is designed to carry a load of at least one tonne or it is designed to carry at least 9 passengers.

The rules only apply if the vehicle was designed mainly for carrying passengers. The way we determine this depends on the nature of the vehicle and whether we are dealing with a dual cab ute or not.

For example, let’s assume Steve buys a ute which is designed to carry a load of at least one tonne. This isn’t classified as a car for tax purposes so Steve won’t miss out on GST credits or depreciation deductions.

However, let’s assume Jenny has bought a dual cab ute which is designed to carry a load of less than one tonne and fewer than 9 passengers. This is classified as a car and the luxury car limit will apply unless we can show that it wasn’t designed mainly to carry passengers. As we are dealing with a dual cab ute, we multiply the vehicle’s designed seating capacity (including the driver's) by 68kg. If the total passenger weight determined using this formula doesn’t exceed the remaining 'load' capacity, we should be able to argue that the ute wasn’t designed mainly for the principal purpose of carrying passengers, which means that Jenny should be able to claim depreciation deductions based on the full cost of the vehicle.

The approach would be different if we were dealing with something other than a dual cab ute, such as a four-wheel drive vehicle.

Luxury car lease arrangements

Normally when someone enters into a lease arrangement for a car and they use the car in their business or employment duties there’s an opportunity to claim deductions for the lease payments, adjusted for any private usage.

However, if the value of the car exceeds the luxury car limit then the tax rules apply differently. Basically, what happens is that the taxpayer is deemed to have purchased the car using borrowed money. Rather than claiming a deduction for the actual lease payments, instead we will be claiming deductions for notional interest charges and depreciation, subject to the luxury car limit referred to above.

Luxury car tax

Cars with a luxury car tax (LCT) value which is over the LCT threshold for that year are subject to LCT, which is calculated as 33% of the amount above the LCT threshold.

The LCT thresholds for the 2025-26 income year are:

$91,387 for fuel-efficient vehicles
$80,567 for all other vehicles that fall within the scope of the LCT rules

From 1 July 2025 the definition of a fuel-efficient vehicle has changed, meaning that a car will only qualify for the higher LCT threshold if it has a fuel consumption that does not exceed 3.5 litres per 100km (this was 7 litres per 100km before 1 July 2025).

Buying a car or other motor vehicle can be a complex process and there will be a range of factors to consider. If you need assistance with the tax side of things please let us know before you jump in and sign any agreements.

Superannuation rates and thresholds updates

Super guarantee rate now 12%: what it means for employers

From 1 July 2025, the superannuation guarantee (SG) rate officially rose to 12% of ordinary time earnings (OTE). This is the final step in the gradual increase legislated under previous reforms.

What’s changed?

Old rate: 11.5% (up to 30 June 2025)

New rate: 12% (from 1 July 2025)

This increase affects cash flow, payroll accruals and employment contracts, especially where total remuneration includes superannuation.

Employer checklist

Update payroll software: ensure systems are calculating 12% SG correctly from 1 July 2025 pay runs
Review employment agreements: if contracts are set to inclusive of super, the take-home pay of employees may reduce unless renegotiated or the employer decides to bear the cost of the increased SG rate
Budget for higher super contributions: consider possible cash flow impacts
Remember that significant penalties can be imposed for late or incorrect SG payments, including loss of deductions, interest and other administration charges.

Personal superannuation contributions

Non Concessional Contributions (not tax deductible)

The annual non-concessional contribution (NCC) cap is set at four times the concessional contribution cap meaning it will also remain at $120,000.

Although the annual NCC cap is unchanged, you can now make NCCs if your total super balance is less than $2 million on 30 June 2025 (as long as you haven’t passed the age 75 deadline and any previous bring-forward rules are taken into account). This higher limit is because the general transfer balance cap has increased to $2 million.

From 30 June 2025, the amount you can contribute to your superannuation without exceeding the non-concessional contributions (NCC) cap depends on your total super balance:

If your total super is less than $1.76 million:
You can contribute up to $360,000 over three years by using the bring-forward rule.
Between $1.76 million and $1.88 million:
Your cap is $240,000, with a two-year bring-forward period.
Between $1.88 million and $2 million:
The cap is reduced to $120,000, with no bring-forward option available.
$2 million and above:
No further non-concessional contributions are permitted.

These thresholds help guide members on maximising contributions while remaining compliant with superannuation rules.

Personal deductible contributions

The annual concessional contribution cap will remain at $30,000 for the 2025/2026 financial year.

A superannuation fund member may be able to claim a deduction for personal contributions made to their super fund with personal after-tax funds. A member will normally be eligible to claim a deduction if:

The member makes an after-tax contribution to their superannuation fund in the relevant financial year
They are aged under 67 or 67 to 74 and meet a work test or work test exemption
They have provided the superannuation fund with a valid notice of intent to claim
The super fund has provided the member with acknowledgement of the notice of intent to claim

If your total superannuation balance is below $500,000 at the previous 30 June, you may be eligible to make “catch-up” concessional contributions. This means you can carry forward any unused portion of your concessional contributions cap from the past five financial years, allowing you to boost your super if you haven’t maximised contributions in previous years. This is a valuable opportunity for those looking to grow their retirement savings.

Notice of intent to claim

If the member is eligible and would like to claim a deduction, then they must notify their super fund that they intend to claim a deduction. The notice must be valid and in the approved form – Notice of Intent to Claim or vary a deduction for personal super contributions (NAT 71121).

The tax legislation provides a notice of intent to claim will be valid if:

• The individual is still a member of the fund

• The fund still holds the contribution

• It does not include all or part of an amount covered by a previous notice

• The fund has not started paying a super income stream using any of the contribution

• The contributions in the notice of intent have not been released from the fund that the individual has given notice to under the First Home Super Saver Scheme (FHSSS)

• The contributions in the notice of intent don't include FHSSS amounts that have been recontributed to the fund.

What you need to consider

The member must provide the notice of intent to claim to the fund by the earlier of:

• The day the individual lodges their income tax return for the relevant financial year; or

• 30 June of the following financial year in which the individual made the contribution.

However, if a super fund member provides a notice of intent after they have rolled over their entire super interest to another fund, withdrawn the entire super interest (paid it out of super as a lump sum), or commenced a pension with any part of the contribution, the notice will not be valid.

This means the individual will not be able to claim a deduction for the personal contributions made before the rollover or withdrawal.

Key Superannuation & Tax Thresholds: What’s Changing in 2025/2026

The Australian Government has announced updates to several superannuation and tax thresholds for the 2025/2026 financial year:

General transfer balance cap will increase from $1.9 million to $2 million.
Defined benefit income cap will rise from $118,750 to $125,000.
CGT Lifetime Cap goes up to $1,865,000 from $1,780,000.
Untaxed plan cap (Lifetime) also increases to $1,865,000 from $1,780,000.
Superannuation Guarantee Maximum Contributions Base adjusts to $62,500 per quarter (down from $65,070).
Safe Harbour rates for related party LRBA's decrease to 8.95% (from 9.35%).

Thresholds Remaining Unchanged

The following contribution and income caps remain the same for 2025/2026:

Concessional contribution cap: $30,000
Non-concessional contribution cap: $120,000
Maximum bring forward non-concessional cap (over 3 years): $360,000
Division 293 annual income threshold: $250,000

What this means for you:

These changes impact how much you can contribute to superannuation, tax planning, and retirement strategies. Be sure to review your arrangements to make the most of these new limits from July 2025. We can refer you to an independent financial advisor for assistance with your planning needs.

RBA Holds Rates at 3.85%: what this means for your business strategy

In a move that surprised many commentators, the Reserve Bank of Australia (RBA) held the cash rate steady at 3.85% in July. A show of caution over action, amid mixed economic signals. Despite headline inflation easing within the RBA’s target band, concerns over economic fragility and employment softness prompted the central bank to delay a widely expected cut.

Why the RBA waited

• The Board is awaiting June quarter CPI data to assess whether inflation stability is sustainable

• Australia’s labour market is showing early signs of softening, and business confidence has dropped slightly

• Consumer spending remains muted, especially among mortgage holding households, which has led some economists to call for a rate reduction to spur activity.

Potential impacts

The interest rate hold means ongoing pressure on loan repayments and cash flow, particularly for those with variable debt or finance leases. Businesses relying on consumer discretionary spending may continue to feel the squeeze. The hold does however give business owners time to prepare. Analysts expect a possible cut in late Q3 or early Q4 if data trends continue potentially providing breathing room ahead of the holiday period. Given where things are at it’s a good time to review your debt exposure, optimise cash flow and consider refinancing options.

Paid parental leave changes have now commenced

As from 1 July 2025, the amount of Paid Parental Leave available to families increased to 24 weeks, and the amount of Paid Parental Leave that parents can take off at the same time has also increased from two weeks to four weeks.

Superannuation will now also be paid on Government Paid Parental Leave from 1 July 2025, at the new super guarantee rate of 12%, paid as a contribution to their nominated superannuation fund.

Parents will also benefit from an increase in the weekly payment rate of Paid Parental Leave, increasing from $915.80 to $948.10 (in line with the increase to the National Minimum wage). This means a total increase of $775.20 over the 24-week entitlement.

ASIC warning about pushy sales tactics urging quick super switches

ASIC is warning Australians to be on 'red alert' for high-pressure sales tactics, click bait advertising and promises of unrealistic returns which encourage people to switch superannuation into risky investments.

The warning comes amid increasing concerns from ASIC that people are being enticed to invest their retirement savings in complex and risky schemes.

ASIC Deputy Chair Sarah Court said the start of a new financial year was often the trigger for people to check their super fund's performance, and urged consumers to be extra cautious.

"When it comes to sales calls about super switching, there are some big red flags people should be alert to — being asked to make a quick decision is one of the most obvious. Remember, a good deal won't vanish overnight."

She said that these calls "don't have the hallmarks of a typical scam. The caller will seemingly have your best interests at heart, and they say they want to help you find a better super product or locate lost super for free."

Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement.

"If you are unsure or are feeling pressured, just hang up."

ATO warns of common Division 7A errors

The ATO reminds shareholders of private companies that understanding how Division 7A of the tax legislation applies is crucial to avoiding costly tax consequences when accessing the company's money or other benefits.

When Division 7A applies, the recipient of a payment, loan or other benefit can be deemed to have been paid an unfranked dividend that will be included in their assessable income.

While Division 7A can be complex, most errors the ATO sees that result in its application are simple in nature, including:

· shareholders not recognising that a company's money is not their money, and they cannot access it for personal use without tax consequences;

· loans being made without complying loan agreements; and

· applying the wrong benchmark interest rate when calculating Division 7A loan repayments.

These errors are often the result of common myths about Division 7A and how it works.

To support taxpayers' understanding of their tax obligations when managing private company money, the ATO has launched new content: 'Division 7A Myths debunked' on its website.

This page debunks common myths about Division 7A, breaking them into topics such as 'business structure', 'record keeping', and 'payments to other entities'.

Taxpayers who need to submit a TPAR (Taxable Payments Annual Report)

If you’ve hired contractors to do certain types of work for your business, you might need to lodge a Taxable Payments Annual Report (TPAR) by 28 August. This applies if you’ve paid contractors for services like:

· building and construction

· cleaning

· courier or road freight

· IT services

· security, investigation, or surveillance

Since TPARs must be lodged online, it’s a good idea to check now whether you’re required to submit one—especially if you’ve used any of the relevant contractor services this year.

If the ATO is expecting a TPAR from you but you’re not required to lodge, you can submit a TPAR Non-Lodgment Advice form by 28 August instead. This form is also handy if you no longer pay contractors and want to let the ATO know you won’t need to lodge TPARs in the future (just keep in mind you’ll need to start lodging again if your situation changes).

Important: The ATO will no longer accept paper TPARs after 28 August 2025 , so everything must be done online.Need help lodging or figuring out whether you need to lodge? Get in touch with our office—we’re here to help. Please reach out to us at reception@rgaaccounting.com.au .

Hidden Trap: Why Some Families Face Surprise Tax Bills in 2025

Some people might be hit with surprise tax bills this year thanks to the Medicare Levy Surcharge (MLS), as the ATO ramps up its use of advanced data-matching technology. It’s catching out individuals and families who thought their private health cover was up to scratch—only to find out it didn’t quite meet all the fine print.

What Is the Medicare Levy Surcharge?

The MLS is designed to encourage higher-income earners to take out private hospital cover. For the 2025–26 year, the surcharge applies if your income is over:

· $101,001 for singles

· $202,001 for families (plus $1,500 for each dependent child after the first)

The penalty can be up to 1.5% of your income , potentially costing thousands in additional tax.

What’s Catching People Out?

Families are being caught when even one member — often a dependent child — isn’t covered under a compliant private health policy. For example, if each adult has singles cover but the children are only on Medicare, the whole family may be hit with the surcharge.

Common triggers include:

· Getting married or entering a de facto relationship

· Having children

· Failing to upgrade from singles to family cover

· Health fund reporting errors or delays

In some cases, the ATO is issuing amended assessments for previous years , leaving taxpayers with unexpected backdated debts of $2,000 or more.

What You Should Do

To avoid getting caught out:

· Check your health insurance : Was every family member covered for the full financial year?

· Review any changes in relationship or family status during the year.

· Contact your insurer to confirm your policy details are correct.

· Seek advice if you’ve received a notice from the ATO or your circumstances have changed.

The ATO now has the tools to identify mismatches quickly, so staying informed and proactive can help avoid costly surprises.

Tax Time 2025: What You Need to Know – ATO Updates That Could Affect You

We’re now a month into the 2025 tax season, and the ATO is turning its attention to a few key areas for individual taxpayers. Whether you're earning a salary, running a side hustle, or managing an investment property, staying informed on what the ATO is looking at can help you claim the right deductions, avoid slip-ups, and lodge your return with confidence. Below, we’ve pulled together the latest insights from ATO Assistant Commissioner and Tax Time spokesperson Rob Thompson—plus some practical tips to help you stay on track this year.

1. Work-Related Deductions: The Main Area Under the Microscope

Key Tip: Ask yourself: Was the expense necessary for my job? Did I pay for it myself (and not get reimbursed)? Can I prove it with a receipt?
Work from home claims continue to be significant. To claim, you must have genuinely worked from home to fulfill your role—not just taken a call or checked email sporadically.
The fixed rate method is now $0.70 per hour.
Alternatively, use the actual cost method, but maintain detailed records and receipts.

2. Reporting All Income – Especially Side Hustles

Key Tip: If you’ve earned money outside your normal job—from driving for a rideshare company, renting out a room, or selling items online—that income must be included in your tax return.

3. Common Mistakes: How to Avoid Them

A recurring problem is poor record keeping and misunderstanding what can and can’t be claimed. Remember, the "three golden rules" for work-related expense claims:

You paid for it yourself and weren't reimbursed
The expense directly relates to earning your income
You have a record (usually a receipt) as proof

Be wary of common errors, such as:

Claiming the cost of travel between home and work (generally not deductible)
Everyday clothing or generic meals, even if consumed at work (private, not deductible)
Donations to charities that are not deductible gift recipients (DGR)

A bank statement alone is generally insufficient evidence; receipts should specify the supplier, amount, date, and item purchased. Records should be kept for at least five years.

4. Investment Properties: Interest and Repairs in the Spotlight

If you own an investment property, be especially diligent this year. The ATO is closely reviewing claims related to interest expenses and repairs.

Interest Expenses: Only the portion of your loan used to produce rental income is deductible. Drawing on your investment loan for personal use—such as buying a new car or paying school fees—means you should apportion the interest and only claim the rental-related share.
Repairs vs. Capital Improvements: Costs incurred to fix problems existing at purchase (for example, painting before a new tenant moves in) are generally capital improvements, not immediate deductions. These expenses are claimed over time through depreciation, not claimed upfront.

Keep thorough records, as you’ll need these both for your annual return and when you eventually sell the property.

5. Substantiation and Getting Help

If you’re not sure what you can claim for your job, the ATO has occupation- and industry-specific guides that can help—or feel free to reach out to us for advice.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Growth Potential with the Business Improvement Process

Thu, 07 Aug 2025 06:59:44 GMT

Unlocking Growth Potential with the Business Improvement Process

Improving profitability and efficiency in your business requires a clear framework to address the visible and hidden challenges within your organization. The Business Improvement Stages model offers a powerful approach to achieving long-term success by focusing on three key phases: Structure , Waste , and Beliefs .

1. Structure – The Foundation of Success
The first stage is all about building the right structure, which includes the visible elements of your business: people, customers, pricing, processes, products/services, and profit. These foundational aspects must be optimized to ensure your business can handle growth effectively. As the saying goes, "Don’t try to put more business through an incapable system." By refining your structure, you can achieve quick wins that set the stage for sustainable growth.

2. Waste – Eliminating Hidden Inefficiencies
Once the structure is in place, focus shifts to identifying and eliminating waste and inefficiencies that drain profitability. These hidden issues often go unnoticed but can have a significant impact on your bottom line. Implementing robust systems and processes will help uncover and address these inefficiencies, paving the way for smoother operations and improved financial performance.

3. Beliefs – Engaging Hearts and Minds
The final stage involves cultivating a strong belief system within your organization by aligning the hearts and minds of your people with shared goals and values. This phase requires time and commitment but delivers substantial benefits by fostering a positive culture that drives collaboration, innovation, and long-term success.

A Long-Term Vision for Growth
The Business Improvement Stages model emphasizes that meaningful change takes time—often 5–10 years—and requires tenacity from leadership. While short-term wins are achievable through structural improvements, true transformation comes from consistently revisiting these stages as part of your strategic planning process.

Take Action Today
Start by evaluating your business’s structure: Are the right people in place? Are processes efficient? Is pricing competitive? By addressing these questions, you can lay the groundwork for eliminating waste and fostering a culture of shared beliefs that will propel your business forward.

Remember, great leadership combined with persistence is key to navigating this journey successfully!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Feeling Swamped? Try the RAFT Approach to Managing Priorities

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 31 Jul 2025 05:25:44 GMT

Feeling Swamped? Try the RAFT Approach to Managing Priorities

Let’s be honest—most of us start our day with the best intentions, only to be buried under a mountain of emails, meetings, and never-ending to-do lists. It’s easy to feel overwhelmed and lose sight of what really matters. But what if there was a simple way to cut through the chaos and take back control of your day?

Enter the RAFT framework: Refer, Act, File, Toss. Think of it as your personal filter for everything that lands in your inbox or on your desk.

Refer: If something is better handled by someone else, pass it on straight away. Don’t let it linger and clutter up your day.
Act: If a task will take less than five minutes, do it immediately. If it’ll take longer, book time in your diary to tackle it properly—don’t just set a reminder, actually block out the time.
File: If it’s important but not urgent, file it somewhere safe for future reference. This keeps your workspace and your mind clear.
Toss: If it’s junk or no longer relevant, delete it. Don’t waste precious time on things that don’t add value.

By using RAFT, you can process emails and tasks efficiently, reduce clutter, and end each day with a clearer inbox and a clearer mind. It’s not just for emails—this approach works for meetings, phone calls, and any other demands on your time.

Why not give it a try? Next time you’re feeling swamped, run your tasks through the RAFT filter and see how much lighter your workload feels. You might be surprised at how much more productive—and less stressed—you become!

Want to see how RAFT could work for you?
Take a look at your last busy day and sort your activities into Refer, Act, File, and Toss. You’ll quickly spot where you can save time and focus on what really matters.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Eliminating Waste to Boost Profitability: The Seven Wastes Framework

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 24 Jul 2025 20:59:02 GMT

Eliminating Waste to Boost Profitability: The Seven Wastes Framework

One of the most effective ways to improve profitability is through the elimination of waste. But before you can eliminate it, you must first understand what it looks like and where it exists. Toyota, after years of refinement, identified the Seven Wastes —a foundational tool in lean thinking designed to help businesses identify, quantify, and begin removing waste from their operations.

The Seven Wastes Explained

As Taiichi Ohno, architect of the Toyota Production System, famously stated:
“Costs do not exist to be calculated. Costs exist to be reduced.”

Here’s a breakdown of the Seven Wastes:

Overproduction – Producing more than is needed, too early, or “just in case” instead of “just in time.” This ties up resources and increases inventory risk.
Waiting – Idle time that results from delays in processes, information flow, or approvals. In many businesses, a significant portion of lead time is lost to waiting.
Transport – Unnecessary movement of materials or products between processes, which adds no value and increases the risk of damage or loss.
Inappropriate Processing – Using overly complex or expensive tools and processes where simpler, more appropriate ones would do. Think “sledgehammer to crack a nut.”
Excess Inventory – Unneeded inventory or work-in-progress that hides inefficiencies and ties up capital. Reducing inventory exposes underlying issues.
Unnecessary Motion – Movements that do not add value, such as reaching, bending, or walking to distant equipment (e.g., a printer on the other side of the office).
Defects – Errors or faults that require rework, cause delays, or lead to warranty claims and lost customers. Defects are among the most costly types of waste.

Conducting a Waste Audit

To apply this tool in your own business, conduct a Waste Audit:

Step-by-step:

Brainstorm examples of waste in each of the seven categories.
Estimate the annual cost of each waste. This doesn’t need to be exact—use high, medium, or low if needed.
Assess ease of removal , ranking each item on a scale from -5 (very difficult) to +5 (very easy).
Prioritize : Focus on the top three waste areas that have both high cost and are relatively easy to eliminate.

Reflection Prompt:
After completing the audit, identify the three waste areas you will tackle first. Use this insight to guide your next improvement steps.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Take Back Control of Your Diary with Timeboxing

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 17 Jul 2025 23:24:08 GMT

Take Back Control of Your Diary with Timeboxing

Do you ever feel like your calendar is running your life, rather than the other way around? If you’re constantly playing the “too busy” card or letting others fill up your diary with meetings, it might be time to try a new approach: timeboxing.

What is timeboxing?
Timeboxing is a simple but powerful way to manage your schedule. Instead of letting tasks and meetings pile up, you allocate specific blocks of time in your electronic calendar (like Outlook) for each activity. This means you know exactly when you’ll tackle each task, rather than just hoping you’ll find the time.

How does it work?
Here’s a quick rundown of the eight steps to successful timeboxing:

Use an electronic calendar to plan your week.
Break big projects into smaller, manageable tasks.
Estimate how much time each task will take—always allow a little extra!
Slot each task into your calendar, so everything has its place.
Start each task on time and hold yourself accountable.
Stay focused—turn off distractions like emails and social media during your timeboxed sessions.
When the time’s up, move on to the next task (even if you’re tempted to keep going).
Set up recurring blocks for regular activities, like checking emails or reviewing your week.

A handy tip: colour-code your calendar so you can see at a glance what’s coming up—work, personal time, emails, and so on. And don’t forget to build in some buffer time each week for those unexpected jobs that always pop up.

Why bother?
Timeboxing puts you back in control—not just of your diary, but of your whole working life. You’ll find it easier to deliver on your commitments, reduce stress, and make space for what really matters.

So, why not give timeboxing a go this week? You might be surprised at how much more productive (and less frazzled) you feel!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Are You Chasing Zebras or Pigs?

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 11 Jul 2025 07:52:01 GMT

Are You Chasing Zebras or Pigs?

Ever wondered how to pinpoint the perfect customers for your business? It’s a question that stumps organisations big and small. But what if we told you that the answer lies in the animal kingdom? Enter the lion pride—a model that teaches us how to focus on high-value customers, or “zebras,” while avoiding low-value ones, like “pigs” or “warthogs.”

What’s Zebra Planning All About?

Picture a lion pride on the African savanna. Every member has a role: the senior male ensures security, the lionesses plan and execute hunts, and the cubs represent succession planning. But here’s the key: lions don’t waste time chasing warthogs with low conversion rates. Instead, they focus on zebras—large, valuable prey that offers high returns with minimal risk.

In business, your zebras are high-value customers who align perfectly with your organisation’s goals. To identify them, you’ll need to consider factors like turnover, scale, fit, change readiness, and mindset. A growth mindset (based on Carol Dweck’s model) is particularly crucial—it signals openness to new ideas and collaboration.

Why Does It Matter?

Just like lions can’t afford to waste energy on low-value prey, businesses can’t afford to invest resources in customers who aren’t a good fit. Zebra planning helps you segment your audience and focus on those who truly matter—ensuring your marketing and sales efforts hit the mark.

So, ask yourself: are you chasing zebras or pigs? It might be time to refine your criteria and double down on those stripes!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Boosting Your Business Insight: Fast-Track Your Leadership Skills

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 11 Jul 2025 07:45:58 GMT

Boosting Your Business Insight: Fast-Track Your Leadership Skills

If you’re looking to sharpen your leadership edge, building strong business insight is essential. But here’s the good news: you don’t have to wait a decade to get there. With a bit of curiosity and some practical steps, you can accelerate your growth and start making better decisions right away.

Business insight is all about understanding the bigger picture—how markets shift, what competitors are up to, and where opportunities lie. It’s not just about knowing your own business, but also being aware of global economic trends, technology shifts, and best practices from other industries. Don’t just focus on your own patch; often, the best ideas come from outside your comfort zone.

So, how do you get started? Here are three areas to focus on:

External Factors

Get involved with business communities or industry groups—there’s no better way to keep your finger on the pulse of what’s working (and what isn’t) among your peers.
Make a habit of reading business blogs and industry publications to stay up to date with the latest trends and insights.
Attend conferences, even those outside your local market, to broaden your perspective and network globally.
Follow influential voices in your sector on social media for timely commentary and fresh ideas.
Aim to read a handful of thought-provoking books each year to expand your thinking.
Organise focus groups with key customers or suppliers—real feedback is gold when it comes to guiding improvements .

Mindset

Seek out a coach, mentor, or advisor who can help you challenge your thinking and support your development.
Try a behavioural profiling exercise for yourself and your team to better understand strengths, weaknesses, and working styles.
Gather feedback through team surveys or a 360-degree review to uncover blind spots and opportunities for growth.
Hold regular team reviews with honest, open feedback to foster trust and continuous improvement.
Make cultivating a growth mindset a priority for yourself and your team—embrace learning and see challenges as opportunities1.

Capabilities

Commit to ongoing training and professional development—there’s always something new to learn.
Take advantage of online courses and webinars to build new skills at your own pace.
Put yourself forward to train others or speak at events; teaching is often the best way to master a subject.
Stay active in business groups and networks to keep learning from others’ experiences.
Keep working with coaches or mentors to stay accountable and push your capabilities further

Remember, business insight isn’t a one-off achievement—it’s an ongoing journey. Identify where your gaps are, make a plan, and keep moving forward. The more you invest in understanding your environment, developing your mindset, and building your capabilities, the more effective and influential you’ll become as a leader.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Change Readiness- Five Key Factors for Organisational Success

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 04 Jul 2025 01:57:23 GMT

Change Readiness - Five Key Factors for Organisational Success

Change is often seen as a leap into the unknown, but have you ever stopped to consider if your organisation is truly ready for it? According to recent discussions and research, there are five essential factors that determine an organisation’s change readiness—and most of us tend to overlook them in our rush to get started.

The Five Essentials of Change Readiness

Leadership Support: It’s not enough for leaders to simply say they’re on board—they need to be seen actively supporting the change. This could mean joining project teams or regularly checking in with those leading the charge. Visible commitment from the top makes all the difference.
Belief in the Need for Change: If people don’t genuinely believe change is necessary, their commitment will be lukewarm at best. It helps if everyone understands the problem being solved and the benefits—both financial and otherwise—are clearly linked to the future direction of the business.
WIIFM (“What’s In It For Me?”): People need to see a personal upside. Whether it’s learning new skills, meeting new colleagues, or even financial incentives, making the benefits personal can boost engagement.
The Change Process: Confidence in the chosen change process is vital. If the approach is tried and tested, cost-effective, or offers valuable learning, explain why it’s the best fit. Lack of clarity here can quickly undermine confidence.
Confidence in Capability and Commitment: Participants must feel capable and believe the organisation will stick with the change, even when things get tough. Previous failures can dent this confidence, so strong leadership and support are crucial.

What Sets Top Performers Apart?

Interestingly, top-performing organisations score higher across all these areas—especially when it comes to “walking the talk” and making change stick for the long haul. They’re also more likely to be motivated by tangible rewards, like financial incentives, though this isn’t everyone’s main driver. When your organisation is ready for change across all five areas, you can unlock up to 30% of your change potential in one go.

A Quick Self-Check

If you’re wondering where your team stands, try reflecting on these five factors. Where are your biggest gaps? What practical steps could you take to boost your scores? Sometimes, a few tweaks—like more visible leadership or clearer communication of benefits—can make all the difference.

Remember, being truly ready for change isn’t just about enthusiasm; it’s about laying the right groundwork. Good luck with your next change initiative!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Boost your organisation’s chances of successful change by taking our quick survey here —research shows most change initiatives only have a 30% success rate, but with the Change Success Model developed by Dr Chris Mason, you’ll instantly discover your unique change potential score and the key areas where you can improve. Complete the survey now in just 5 minutes to receive immediate, personalised insights and practical strategies, all delivered straight to your inbox, so you can take confident steps towards achieving meaningful, lasting results. Complete the free survey here , it only takes 5 minutes.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

July 2025 Tax Newsletter

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 02 Jul 2025 03:48:47 GMT

July 2025 Tax Newsletter

Reminder of June 2025 Quarter Superannuation Guarantee ('SG')

A reminder to all employers: Superannuation Guarantee (SG) contributions for the quarter ending 30 June 2025 must be received by employees’ super funds no later than Monday, 28 July 2025.

If you're using the ATO Small Business Superannuation Clearing House, you can make the payment on or before 28 July and it will be considered on time. However, if you're using a commercial clearing house—such as the one integrated with Xero Payroll—you’ll need to allow up to two weeks for the payment to reach employees' funds. In this case, we recommend submitting payments well before 28 July to avoid missing the deadline.

Late payments may result in the Superannuation Guarantee Charge (SGC), which includes interest and penalties and is not tax deductible. If you’re unsure about your clearing house processing times or need help reviewing your payroll setup, our team is here to help.

Reminder of increase in Superannuation Guarantee ('SG') rate from 1 July 2025

Please note: The Superannuation Guarantee (SG) rate increases to 12% from 1 July 2025. This new rate applies only to pays made on or after 1 July, and does not affect the June 2025 quarter super contributions, which are due by 28 July 2025 at the current rate.

If you’re using Xero Payroll, make sure each employee’s Pay Template is set to ‘Statutory Rate’ to ensure the updated SG rate is applied correctly from 1 July. Need help reviewing your payroll settings? We're here to assist.

PAYG Instalments Due

Quarterly PAYG instalments for the June 2025 quarter are due by 28 July 2025 . Check your notice and ensure payments are made on time to avoid interest charges.

Key Employer Reminders for the New Financial Year

Now that the financial year has ended, the ATO is encouraging employers to review their obligations and be aware of several important deadlines.

Single Touch Payroll (STP) Finalisation

Employers must lodge an STP finalisation declaration for all employees paid during the year, including those who have since left the business. This ensures employees have the correct information to complete their tax returns. Employers must lodge an STP finalisation declaration for all employees by 14 July 2025 (or 30 September for closely held payees).

If you’re switching payroll software, it’s essential to finalise your STP records before making the change to maintain accurate reporting for both you and your employees.

Superannuation Guarantee (SG) – June Quarter Payment Due 28 July 2025
Don't forget to pay all SG contributions for the June 2025 quarter by 28 July 2025 to avoid penalties.

PAYG Withholding – Updates from 1 July 2025
Some tax tables and withholding schedules will be updated from 1 July 2025. Employers should:

Use the ATO’s Tax Withheld Calculator or updated tax tables to ensure accuracy
Update payroll software accordingly
Withhold, report, and pay the correct amount of tax on employee payments

If you need help reviewing your payroll processes or software settings, our team is here to assist.

Changes to car thresholds from 1 July 2025

The car depreciation limit for the 2026 income year is $69,674. This is the maximum value that can be used to calculate depreciation for a car that is used for work or business purposes and first used or leased in the 2026 income year.

If you're purchasing a vehicle that exceeds this limit, the maximum GST credit you can generally claim is capped at $6,334 (which is one-eleventh of the car limit), unless an exception applies.

For those purchasing higher-end vehicles, the Luxury Car Tax (LCT) thresholds for 2026 are:

$91,387 for fuel-efficient vehicles
$80,567 for all other vehicles

Please note:

GST input tax credits must be claimed within four years.
You cannot claim a GST credit for any Luxury Car Tax (LCT) paid, even if the car is used solely for business.

If you’re considering a vehicle purchase, feel free to contact us to ensure you’re making the most tax-effective decision.

Reminder for SMSFs: Transfer Balance Account Reporting Due

All self-managed super funds (SMSFs) are required to report relevant Transfer Balance Account (TBA) events through Transfer Balance Account Reporting (TBAR)—regardless of a member’s total superannuation balance.TBA events include actions such as starting or commuting a retirement phase pension.

TBARs for the June 2025 quarter are due by 28 July 2025. If no TBA events occurred during the quarter, no report is required.

Late or missed lodgements can result in ATO compliance action, penalties, and may negatively affect a member’s transfer balance account. If you're unsure whether you have a reportable event, please get in touch—we’re here to help ensure everything is lodged on time.

Beware of tax advice from 'finfluencers'

The Tax Practitioners Board ('TPB') warns that the number of 'finfluencers' is on the rise. These are influencers who offer financial advice, including tax advice, on various social media platforms such as Instagram and TikTok.

Unfortunately, they do not always have the necessary qualifications to give out this advice or provide all the information taxpayers need to make a fully informed decision. This can result in taxpayers suffering serious financial harm.

The main way 'finfluencers' make their money is by getting paid by companies that want to promote their financial products through the 'finfluencers' social media platform.

Therefore, taxpayers who are going to use someone to help them manage their tax affairs should make sure they are registered with the TPB by checking the TPB Register.

Taxpayer's claim for home office and car expenses successful

The Administrative Review Tribunal ('ART') recently held that a taxpayer was entitled to claim deductions for home office and car expenses incurred during the COVID-19 pandemic.

The taxpayer was employed full time by the ABC producing the ABC Sport Digital Radio station ('Digital Role') and producing ABC live sports broadcasts, mainly NRL football ('Live Role').

During the 2021 income year, because of restrictions imposed in response to the COVID-19 pandemic, the taxpayer undertook all of his Digital Role from a second bedroom in his apartment (his home office) which he was renting with his wife, and he undertook most of his Live Role from the ABC's Southbank Studios in Melbourne.

The taxpayer claimed deductions for occupation expenses (being the proportion of rent for his apartment referable to the use of his home office in performing his Digital Role), and for car expenses incurred in driving between his home and the ABC studios at Southbank on days when he performed both roles.

The ART allowed the taxpayer's claims for occupation expenses in full, as the COVID-19 restrictions required him to earn most of his income at his home, and so a proportion of rent was incurred in gaining his assessable income.

The ART also allowed the car expenses in full on the basis that on the days when the taxpayer "closed his laptop at home, picked up his car keys and drove to the Southbank Studios . . . he was at work the entire time and his travel was therefore 'on work' . . ."

TPARs Due by 31 August 2025 – Is Your Business Ready?

If your business pays contractors or subcontractors in certain industries, you may need to lodge a Taxable Payments Annual Report (TPAR) with the ATO by 31 August 2025.

Who Needs to Lodge?

You must report if your business operates in one or more of the following industries and paid contractors during the 2025 financial year:

Building and Construction
Cleaning Services
Courier and Road Freight Services
Information Technology (IT) Services
Security, Investigation, or Surveillance Services

Even if you’re in one of these industries but didn’t make any contractor payments, you may still need to lodge a “nil” TPAR.

What Information is Required?

You’ll need to report:

The contractor’s ABN
Name and address
Total payments made (including GST)
Any tax withheld where no ABN was provided

Don’t Leave It Too Late!

The TPAR deadline is 31 August 2025. Late lodgment can result in penalties, so now is the time to:

Check whether your business is required to report
Review your records
Ensure your bookkeeping system tracks contractor payments accurately

Need Help?

If you’re unsure whether you need to lodge or what needs to be included, contact our team. We’re here to make the process smooth and compliant.

June 2025 quarter BAS Due by 25 August 2025 – Time to Prepare!

A quick reminder for all quarterly reporters: your June 2025 Business Activity Statement (BAS) is due for lodgement and payment by Monday, 25 August 2025 if lodging through a tax agent or BAS agent.

What’s Included in the June BAS?

Your BAS will generally cover:

GST collected and paid
PAYG withholding for employees
PAYG instalments, if applicable
Fuel tax credits, where relevant

This is the final BAS for the 2024–25 financial year, so it’s also a great opportunity to:

Finalise your EOFY reconciliations
Ensure your payroll is STP-compliant
Review your GST coding and claims

Tips to Stay on Track

Reconcile all bank accounts and business expenses early
Check contractor payments in case a TPAR is also due
Review any major purchases or asset write-offs

Let’s Make It Easy

Reach out early to avoid last-minute stress and penalties. If you need assistance preparing or reviewing your June BAS, we are ready to help. Contact us to ensure everything is lodged on time and with confidence.

Notice of data exchange for skilled visa program compliance

The Department of Home Affairs will obtain data from the ATO to identify whether business sponsors are complying with their sponsorship obligations (e.g., paying visa holders correctly) and whether temporary skilled visa holders are complying with their visa conditions (e.g., to work only for an approved employer).

The Department will provide to the ATO biographical details (including name, address and date of birth) of clients who are, or were in the three most recent financial years, holders of Skills in Demand or Temporary Skills Shortage (subclasses 457 and 482) primary visas.

These details will be electronically matched against ATO data holdings. Where there is an identity match, the ATO will return Single Touch Payroll employment data for the relevant individual(s) to the Department.

It is estimated that records will be shared relating to around 58,000 individuals.

Important tax update: deductions for ATO interest charges scrapped

If you're currently carrying a debt with the Australian Taxation Office (ATO), there’s an important change taking effect from 1 July 2025 that could increase your overall tax bill.

What’s Changing?

From 1 July 2025, interest charges imposed by the ATO will no longer be tax-deductible. Until now, many taxpayers have been able to reduce the after-tax impact of these charges by claiming them as deductions. This is no longer the case for interest incurred on or after 1 July 2025—even if the underlying tax debt arose before that date.

What Are the ATO’s Interest Charges?

There are two key types of interest charges you might see on your ATO account:

General Interest Charge (GIC): Applied to overdue tax debts, GIC accrues daily and compounds. It’s intended to encourage timely payment.
GIC rate for July–September 2025: 10.78% p.a.
Shortfall Interest Charge (SIC): Applied when a tax shortfall arises (e.g. due to an amended assessment).
SIC rate for July–September 2025: 6.78% p.a.

What’s the Financial Impact?

With GIC and SIC no longer deductible, the true cost of these interest charges will now be higher, especially for those on higher tax rates.

For example:

Sally, on a 45% marginal tax rate, previously paid a net GIC cost of $550 on a $1,000 charge (after claiming the deduction). Under the new rules, she will wear the full $1,000.
Adam, taxed at 30%, would previously reduce his tax bill by $300 on a $1,000 GIC charge. Going forward, no deduction means he’ll also pay the full amount.

How to Minimise the Impact

Pay off your ATO debt quickly: GIC compounds daily and adds up fast.
Consider cheaper finance options: In some business cases, interest on a loan used to repay ATO debt may be deductible.
Plan ahead: Set aside funds regularly for tax obligations like GST, PAYG withholding, and income tax.
Avoid future charges: Staying on top of your lodgements and payments can prevent interest from accruing in the first place.

If you're currently carrying tax debt or need help staying ahead of your obligations, contact the ATO to make a payment plan or contact us, we're here to help. Let’s work together on a strategy that keeps you compliant and protects your bottom line.

Get Ready for Tax Time 2025

Tax season is here, and we're ready to help make lodging your return as easy and stress-free as possible.

T he ATO begins releasing pre-fill data from 1 July 2025, but key information such as employer income statements and bank interest is often not available until late July .

While you wait, it’s a great time to start gathering your paperwork. Use our Tax Time Checklist (download here ) to collect the relevant documents — including income details, deductions, rental property expenses, and investment records.

Once your pre-fill data becomes available, you can send your completed documents to us via:

Email: reception@rgaaccounting.com.au
Post: PO Box 35, Samford Village QLD 4520

We’ll send you an acknowledgment letter and guide you through the next steps to finalise your return.

To book an appointment, use our online booking system , give us a call on 07 3289 1700 , or email us at reception@rgaaccounting.com.au .We look forward to assisting you this tax season!

Get Ready for Tax Time 2025

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 02 Jul 2025 03:37:05 GMT

Get Ready for Tax Time 2025

Tax season is here, and we're ready to help make lodging your return as easy and stress-free as possible.

The ATO begins releasing pre-fill data from 1 July 2025 , but key information such as employer income statements and bank interest is often not available until late July .

While you wait, it’s a great time to start gathering your paperwork. Use our Tax Time Checklist (download here ) to collect the relevant documents — including income details, deductions, rental property expenses, and investment records.

Once your pre-fill data becomes available, you can send your completed documents to us via:

Email: reception@rgaaccounting.com.au
Post: PO Box 35, Samford Village QLD 4520

We’ll send you an acknowledgment letter and guide you through the next steps to finalise your return.

To book an appointment, use our online booking system or email us at reception@rgaaccounting.com.au .We look forward to assisting you this tax season!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Change Capability: The Key to Successful Transformation

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 27 Jun 2025 01:20:12 GMT

Unlocking Change Capability: The Key to Successful Transformation

Let’s talk about change capability—a bit of a secret weapon when it comes to making change stick in any organisation. If you’ve ever wondered why some teams seem to breeze through big shifts while others get bogged down, the answer often comes down to capability, both at the individual and organisational level.

What Is Change Capability?

Change capability is all about having the right mix of skills, experience, and determination to make change work. It’s not just something you’re born with—it’s built through learning, hands-on experience, and good old-fashioned tenacity. Interestingly, research shows that middle managers often drive this capability, thanks to their blend of specialist knowledge and industry know-how.

Two Sides to the Story: People and Organisation

There are two main parts to consider:

People Capability: This is about the individuals in your change project team. Do they have the right skills, experience, and attitude? It’s not just technical know-how—qualities like enthusiasm, communication, and leadership matter just as much. Picking the right team members (and leaders) is crucial. Sometimes, it’s worth bringing in expertise from outside the organisation, or even involving suppliers and customers if it fits the project.
Organisational Capability: This goes beyond the sum of individual talents. It’s about your systems, procedures, culture, resources, and those positive traits your organisation is known for—maybe it’s top-notch customer service or outstanding product quality. The question to ask: do you have the right foundations in place to support the change you want to see?

How Can You Boost Capability?

Even if you think your team and organisation are already capable, there’s always room for improvement:

For people, consider creating a skills and capability matrix to spot any gaps, then offer targeted training or coaching. Don’t be afraid to look outside your usual circles for fresh expertise.
For the organisation, review your systems and resources. Are they fit for purpose? Could you learn from best practices in other industries? Sometimes the biggest breakthroughs come from looking beyond your own backyard.

Why Does It Matter?

Top change exemplars—those who consistently deliver successful change—get about 80% of their initiatives to work, largely because they focus on building capability. When you combine strong people capability and organisational capability, you can unlock up to 40% of your change potential in one go. Most teams are already close to this, but there’s always room to bridge the gap and push performance even further.

The Takeaway

So, next time you’re planning a change, ask yourself: how can we boost our capability, both in our people and across the organisation? A little extra focus here could be the difference between just getting by and truly excelling.

Ready to find your own capability gaps and close them? It might just be the smartest move you make this year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Starting a Business? Here’s What You Need to Know

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 26 Jun 2025 03:19:58 GMT

Starting a Business? Here’s What You Need to Know

Thinking of starting your own business? The ATO reminds new business owners that getting it right from the beginning is key to long-term success. Here are the top seven things to keep in mind:

Go Digital and Stay Organised
Using digital tools and keeping accurate records can help you manage your daily operations and cash flow more effectively.
Register the Right Way
Make sure you've completed the necessary registrations—this may include applying for an ABN, registering your business name, and more depending on your setup.
Claim the Right Deductions
You can generally claim a deduction for most business-related expenses. Just remember to keep good records and only claim the business portion of any mixed-use costs.
Choose the Right Structure
Whether you're setting up as a sole trader, company, partnership, or trust, your business structure will impact your tax and reporting obligations—so it’s important to choose wisely.
Understand Employer Obligations
If you’re hiring staff, you’ll have additional responsibilities such as paying superannuation and reporting through Single Touch Payroll (STP).
Stay on Top of Lodgements
Lodging and paying your taxes on time is essential. You might also need to pay tax instalments in advance through the PAYG system.
Good Habits Build Resilience
Businesses that maintain good records, meet their deadlines, and avoid costly errors are more likely to thrive—even in tough times.

Starting off on the right foot makes all the difference. If you need support with registrations, recordkeeping, or choosing the right business structure, feel free to reach out to our office—we’re here to help!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Unlocking Peak Performance: The Power of Flow

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 19 Jun 2025 20:20:59 GMT

Unlocking Peak Performance: The Power of Flow

Have you ever been so absorbed in a task that time seemed to disappear and everything just clicked? That’s the magic of “flow”—a concept developed by Professor Mihaly Csikszentmihalyi, who found that the world’s top performers regularly tap into this state to achieve their best work.

What is Flow?
Flow is that sweet spot between anxiety and boredom. If a task is too challenging for your current skills, you’ll feel anxious and frustrated. If it’s too easy, you’ll quickly get bored. The aim is to find a balance—where your skills and the challenge at hand are perfectly matched, keeping you engaged and energised.

The Eight Dimensions of Flow
Csikszentmihalyi identified eight key characteristics that signal you’re in a flow state:

Deep concentration: You’re fully absorbed, with no room for distractions.
Clear goals and immediate feedback: You know what you’re aiming for and can see progress as you go.
Altered sense of time: Hours can feel like minutes.
Intrinsic motivation: You’re driven by enjoyment, not just external rewards.
Sense of control: You feel confident and in command, without forcing it.
Challenge-skill balance: The task is just difficult enough to keep you interested.
Effortless action: Everything feels smooth and automatic.
Merging of action and awareness: You lose self-consciousness and become one with the activity.

How Can You Find Your Flow?

If you’re feeling anxious, break tasks into smaller steps or seek extra support and guidance.
If you’re bored, add new challenges or set more ambitious goals.
If you’re already in flow, take note of what got you there so you can repeat it.

The goal isn’t just to experience flow occasionally, but to design your work and life so you can spend more time in this optimal state—boosting your performance, creativity, and satisfaction.

Reflect on your recent experiences with flow and jot down your thoughts below.

Questions to Consider:

When was the last time you felt “in the flow”? What were you doing and how did it feel?
Think about a recent project—where would you plot yourself on the flow graph (anxious, bored, or in flow)?
What are two ways you could move closer to flow next time? (For example, if you felt anxious, could you get clearer goals or more support? If you felt bored, how might you increase the challenge?)

Take a moment to reflect—your next flow state could be just around the corner!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. Is your business as profitable and efficient as it could be? Take 5 minutes to complete this free survey and uncover your top 3 strengths and top 3 improvement opportunities across 10 key business drivers. You’ll also see how your performance stacks up against global benchmarks. Start now to pinpoint where to focus for better results here .

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Drawing Your Vision: Making Your Future Visible

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 13 Jun 2025 00:21:18 GMT

Drawing Your Vision: Making Your Future Visible

Have you ever wondered how to turn your dreams into reality? According to Peter Drucker, “The best way to predict your future is to create it.” This week, we’re exploring a simple but powerful technique that helps you do just that: drawing your vision.

It’s not about being an artist-it’s about making your goals visible. If you can’t draw your vision, you probably can’t see it clearly in your mind. And if you can’t see it, you’re unlikely to achieve it. The act of drawing helps you clarify what you truly want, both personally and professionally, and highlights what makes you unique.

So, how do you get started? Grab a blank sheet of paper and imagine yourself five years from now. Think about three key areas:

• Your personal goals-what matters most to you and your loved ones?

• Your business or career ambitions-where do you want to be?

• Your sustainable competitive advantage-what sets you apart that others can’t easily copy?

As you sketch, ask yourself:

• Who’s with you in your vision?

• What are you doing (and not doing)?

• What sort of environment surrounds you?

• What have you achieved?

• Most importantly, how do you feel in this future scenario?

Once you’ve finished your drawing, write a short narrative describing what you see. This becomes your “North Star”-a clear, concise summary you can refer to whenever you need direction or motivation.

Why not give it a go? Take a few minutes to draw or imagine your vision, then jot down a short paragraph that brings it to life. You might be surprised at how much clarity-and excitement-it brings to your journey.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder: $20,000 Instant Asset Write-Off for 2025 Income Year

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 09 Jun 2025 20:44:21 GMT

Reminder: $20,000 Instant Asset Write-Off for 2025 Income Year

If you've purchased or are planning to purchase business assets this financial year, keep in mind that the instant asset write-off threshold is $20,000 for the 2025 income year.

Businesses with an aggregated annual turnover of less than $10 million that use the simplified depreciation rules may be eligible to claim an immediate deduction for eligible assets. Key points to note:

Eligibility Window : The asset must be first used or installed ready for use for a taxable purpose between 1 July 2024 and 30 June 2025 .
Cost Threshold : The full cost of each eligible depreciating asset must be under $20,000 (excluding GST if registered).
Asset Type : Both new and second-hand assets may qualify, though some exclusions apply.
Improvements Included : If you've previously claimed an immediate deduction for an asset, you can also claim a deduction for improvements made between 1 July 2024 and 30 June 2025, provided each improvement costs less than $20,000.
Per-Asset Basis : The $20,000 cap applies to each asset individually , meaning multiple eligible assets can be written off instantly.

Remember, general deduction rules still apply: you can only claim the business-use portion of the cost, and you must keep appropriate records to support your claim.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Smarter Problem Solving Starts Here: Try CEDAC with Your Team

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 05 Jun 2025 20:56:43 GMT

Smarter Problem Solving Starts Here: Try CEDAC with Your Team

Struggling with a tough business problem? You’re not alone—and the good news is, there’s a simple, team-friendly tool that can help you crack it. Meet CEDAC : the Cause and Effect Diagram with the Addition of Cards —a powerful yet practical upgrade to the traditional fishbone diagram.

What is CEDAC, and Why Does It Matter?

CEDAC builds on the classic Ishikawa (or fishbone) diagram by adding interactive elements—cards or sticky notes—that allow your team to map not just causes of problems, but ideas and potential solutions too. It’s a hands-on, visual way to make problem-solving more inclusive, collaborative, and productive.

How It Works

Here’s how you can apply CEDAC in your next team meeting:

Draw a fishbone diagram with your core issue at the "head."
Label six “bones” with categories such as:

Materials
Equipment
People
Method
Environment
Process
(Use the acronym MEPMEP to remember them!)

3 . Get your team involved. Everyone adds cards or sticky notes with possible causes, ideas, or fixes to the relevant bones.

4. Vote to prioritise. Each team member selects their top issues, helping the group focus on what matters most.

5. Take action. Use the insights to develop targeted improvement plans—and revisit the board as new ideas arise.

Why Teams Love CEDAC

CEDAC’s strength is in its simplicity and inclusiveness. It:

Encourages full team participation
Brings structure to brainstorming
Keeps problem-solving visible, flexible, and actionable
Works brilliantly across a range of challenges—from process issues and waste to quality control and team performance

Real-World Success

Organisations around the world use CEDAC to achieve measurable improvements—reducing errors, streamlining workflows, boosting customer satisfaction, and more. It’s especially effective when you need to harness the knowledge and creativity of your frontline team.

A Final Thought

If you’re looking for a smarter, more engaging way to drive continuous improvement, give CEDAC a try. It’s quick to learn, energises your team, and delivers practical results—one card at a time. Contact us for a template to use.

Why not introduce it at your next team session? You might be surprised by the breakthrough ideas that emerge.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Are You Ready to Boost Your Business Profitability?

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 29 May 2025 21:29:25 GMT

Are You Ready to Boost Your Business Profitability?

Improving your business’s profitability doesn’t have to be overwhelming. The Profit Formula is a simple yet powerful tool designed to help you identify and implement strategies that can make a real difference. It focuses on three key areas: increasing sales , reducing overheads , and decreasing variable expenses .

How Does It Work?

Start by writing down your current figures for profit, sales, overheads, and variable expenses.
Brainstorm at least four ideas for each category:

How can you increase sales?
Where can you reduce overheads?
What steps can you take to decrease variable expenses?

3. Estimate the potential value of each idea. For example:

Increasing sales through a new product line could add $100,000.
Reducing IT costs might save $10,000.

Once you’ve brainstormed, total the potential profit improvement if all ideas were implemented successfully.

Focus on What Matters Most
While you’ll generate many ideas, focus on the top three strategies that are both impactful and easy to implement. These are your quick wins—actions that will provide the highest return on effort and investment.

Why Use the Profit Formula?
This tool doesn’t just look at cost-cutting; it also highlights opportunities to grow revenue—a critical area often overlooked in profit improvement exercises. By balancing growth initiatives with efficiency measures, you can achieve sustainable profitability improvements.

Start brainstorming today and unlock your business’s profit potential!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Vision Mapping: Charting a Clear Path to Business Growth

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 22 May 2025 23:15:15 GMT

Vision Mapping: Charting a Clear Path to Business Growth

Today we explore vision mapping —a powerful framework to define and drive your business’s long-term success.

Why Vision Mapping Is Essential

Too often, business goals focus on small, incremental improvements—like beating last year’s performance by 10%. While well-intentioned, this limited perspective can stall growth and lead to missed opportunities. Vision mapping shifts your focus from short-term gains to long-term impact, helping you envision where your business should be in one, three, or five years—and how to get there.

What Is Vision Mapping?

Think of vision mapping as programming your destination into GPS. You need to know exactly where you're headed before you can choose the best route. This strategic process invites you to look ahead and ask critical questions:

Do you want to double your business’s size?
Expand into new markets?
Build innovative products?

There’s no one-size-fits-all answer—but clarity is key. The clearer your vision, the better your strategy.

The Five Pillars of Vision Mapping

Our vision mapping tool covers five key focus areas , each with three critical questions to consider—15 in total—to help shape a complete and actionable vision:

1. Finance

What are your growth targets?
What level of profitability will you aim for?
How will you finance your expansion?

2. Market

Which sectors will you focus on?
Who is your ideal customer, and how will you reach them?
What market gaps can you fill?

3. Products & Services

What will you offer to meet future needs?
What offerings should you retire?
What will set you apart sustainably?

4. People

Who will lead the business forward?
What skills and capabilities will your team need?
What will your team structure and location look like?

5. Passion

What is your core purpose?
Does your vision energize your team?
How will your business contribute to the wider community?

These questions guide you toward a vision that extends beyond numbers—into purpose, innovation, and people.

How to Get Started

Start by defining your timeframe: Is your vision focused on the next year, the next three, or even five? Share the vision mapping questions with your leadership team ahead of time to prompt meaningful discussion and align your goals.

Remember, your vision should evolve. It’s not static. Review and refine it regularly to reflect changes in your business, market conditions, and emerging opportunities.

In Closing

Vision mapping empowers you to lead with clarity and intent. By addressing all five pillars— finance, market, products & services, people, and passion —you’ll build a future-focused vision that motivates your team and shapes strategic success.

Need help getting started? We’re here to support you—whether that’s answering your questions or facilitating a vision mapping workshop tailored to your goals.

Here’s to a bold and inspiring vision for your business!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. Unlock the strengths and opportunities in your strategic planning—take our quick 6-minute survey to discover which 3 factors are driving your success, and pinpoint the top 3 areas where you can focus to achieve even better results here .

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Cut Waste, Boost Profits: A Simple 5-Step Process

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 15 May 2025 20:23:29 GMT

Cut Waste, Boost Profits: A Simple 5-Step Process

Did you know that waste can eat up as much as 30% of your operating costs? That’s a huge chunk of your budget! And yet, many businesses just accept it as part of doing business—focusing on increasing sales instead of fixing inefficiencies. But here’s the thing: why push more sales through a system that’s not running smoothly?

That’s where the Five-Step Waste Reduction Process comes in. It’s a straightforward way to spot waste, eliminate it, and make your business more profitable and efficient.

Here’s how it works:

1. Audit : First, take a close look at where waste is happening in your operations. A simple waste audit can reveal surprising opportunities to cut costs and run more smoothly.

2. Prioritise : Once you’ve identified the issues, don’t try to fix everything at once. Use a tool like a Project Ranking Matrix to narrow your focus. Pick the top 2–3 issues that are easy to fix and will make the biggest impact.

3. Build a Team : Get the right people involved. Form a team with a mix of skills, give them the training they need, and choose a strong leader to keep things moving forward.

4. Track Progress : Set clear, measurable goals—Key Performance Indicators (KPIs)—so you can see what’s working. For example, aim to cancel unused software licenses or cut IT costs by a specific date. It’s all about being transparent and staying on track.

5. Make It a Habit : Don’t treat this as a one-time fix. Make waste reduction part of your company culture. Do a new audit each year to find fresh opportunities to improve.

Why This Matters

Cutting waste isn’t just about saving money—it’s about building a smarter, more capable business. You’ll free up resources, serve your customers better, and deliver more value to your stakeholders. Plus, it creates a culture where continuous improvement becomes second nature.

Ready to Get Started?

Kick things off with a waste audit. Ask yourself: where are we losing time or money? Then use this five-step approach to take action, involve your team, and measure your progress. Remember, this is about more than just trimming the fat—it’s about setting your business up for long-term success.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your Waste Audit, please get in touch with us for assistance. Take our free 5 minute profit/efficiency health check to pinpoint the top areas for improvement here .

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

GIC Tax Deduction Is Ending – Time to Rethink Your ATO Debt Strategy

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 14 May 2025 07:35:03 GMT

GIC Tax Deduction Is Ending – Time to Rethink Your ATO Debt Strategy

From 1 July 2025, the General Interest Charge (GIC) on unpaid ATO debts will no longer be tax-deductible. That means holding onto tax debt could cost you more than you think, especially if you’re counting on the deduction to ease the burden.

So what can you do? Here’s a breakdown of smart moves depending on your situation:

If You’re a Business

Carrying tax debt past 1 July 2025? It’s time to review your options. Instead of letting GIC pile up, consider business loan solutions to pay out your ATO debt now.

Why?

• Interest on business loans is generally still tax-deductible

• You’ll likely pay a lower interest rate than GIC

• Consolidating debt can simplify your cash flow and budgeting

Speak with your advisor or lender to explore low-rate financing options before the deductibility window closes.

If You’re an Individual

Got a personal ATO debt? You’re not off the hook either. From July next year, the interest on that debt won’t help at tax time.

What to consider:

• Refinancing the debt into a personal loan with a lower interest rate

• Setting up a repayment plan now to avoid GIC from growing

• Reviewing your budget and seeking financial advice early

The sooner you act, the better the outcome.

Don’t Wait Until It’s Too Late

With the GIC deduction ending, it’s crucial to take action before 30 June 2025. Talk to your financial advisor or lender to explore your options, reduce your tax impact, and keep your finances on track.

Need help assessing your situation? We’re here to help.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Truck driver entitled to claim meal expenses

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 13 May 2025 20:49:35 GMT

Truck driver entitled to claim meal expenses

In a recent decision, the Administrative Review Tribunal ('ART') upheld a truck driver's claim for meal expenses, notwithstanding that those expenses had not been fully substantiated.

The taxpayer was employed as a long-haul truck driver in Western Australia. He was away from home for considerable periods each year.

The taxpayer sought a deduction for meal expenses of $32,782 in the 2021 income year, apparently calculated by multiplying the number of days he was away from home (310) by the maximum reasonable daily allowance under Taxation Determination TD 2020/5 .

The ATO only allowed the taxpayer a deduction for meal expenses of $5,890 based on a review of his logbook, fatigue diary and bank statements. This was an average of $19 per day multiplied by 310.

The ART found on the balance of probabilities that the taxpayer incurred the claimed expenditure, and it found that the taxpayer had met his burden of proof.

In this regard, the ART determined that the taxpayer incurred the disputed expenses in gaining or producing his assessable income, and it did not agree with the ATO that there was an insufficient linkage between the expenditure on bank statements and the taxpayer's work.

The ART held that the exception to the substantiation provisions applied to the taxpayer, as:

a travel allowance was paid by the taxpayer's employer which covered the expenses;
the taxpayer incurred the expenditure in gaining or producing his assessable income; and
the expenditure fell within the ATO's reasonable travel amounts set out in TD 2020/5.

The ART accordingly allowed the taxpayer's claim for travel expenses in full.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Increase to rate for working from home running expenses from 1 July 2024

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 12 May 2025 19:54:39 GMT

Increase to rate for working from home running expenses from 1 July 2024

The ATO has updated its guidelines for claiming work-from-home expenses, making things a bit simpler for many people. Under PCG 2023/1, there’s now a fixed-rate method you can use to claim additional running costs when you work from home. From 1 July 2024, the fixed rate has increased from 67 cents to 70 cents per hour.

Here’s how it works: for every hour you work from home, you can claim 70 cents. This rate covers a range of common expenses, including:

Electricity and gas for lighting, heating, and cooling
Internet costs
Mobile and home phone expenses
Stationery and computer consumables (like printer ink and paper)

It’s important to note that this fixed-rate method doesn’t cover occupancy costs such as rent, mortgage interest, property insurance, or land tax-those aren’t included in this calculation.

You don’t have to use the fixed-rate method if it doesn’t suit you. If you prefer, you can still claim the actual expenses you’ve incurred from working at home, as long as you keep detailed records to back up your claims.

So, in short: you now have the option to claim 70 cents for every hour you work from home to cover your running costs, or stick with the actual expenses method if that gives you a better result. Just remember to keep good records, whichever method you choose.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

How to Avoid Common CGT Mistakes

liz@rgaaccounting.com.au (Liz Gibbs) — Sun, 11 May 2025 19:09:57 GMT

How to Avoid Common CGT Mistakes

From 1 January 2025, all Australian residents (for tax purposes) selling or disposing of Australian real property (land and buildings) must have a clearance certificate and give it to the purchaser at, or before settlement. If a clearance certificate is not provided, 15% of the sales price (or market value if not at arm’s length) will need to be withheld (up from 12.5%). Previously, clearance certificates were only required where the value of the property is $750,000 or more.

For foreign resident vendors, the withholding is made available as a credit against any tax liability. The vendor only receives any refund due after their next income tax return is processed at tax time.

Just because you have a clearance certificate, it doesn’t mean you’re off the hook for other CGT (Capital Gains Tax) obligations. If you’ve sold a property, you still need to report any capital gains or losses in your tax return. Don’t forget to include any exemptions or rollover codes that might apply to your situation. For example, the main residence exemption only covers up to two hectares of land that’s next to your home. We often see clients selling properties that are bigger than that, so we need to work out the capital gain for any extra land beyond the two hectares, using its original cost as a basis. We also often have clients who are selling their investment properties. If you make a capital gain on the sale, you’ll need to pay capital gains tax on that gain.

If foreign resident capital gains withholding ("FRCGW") was withheld from your property sale, please let us know and provide the ‘FRCGW payment confirmation’ you received from the buyer. And if you lived in the property at any point while you owned it, be sure to give us all the details. This helps us work out if the main residence exemption applies to you, and how much of it you can claim.

If you have any questions or need help, just reach out!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Friendly Reminder: Minimum Pension Drawdown

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 09 May 2025 20:27:44 GMT

Friendly Reminder: Minimum Pension Drawdown

If you’re receiving an account-based pension from your SMSF, there’s a minimum amount you need to withdraw each year. This amount is worked out using a percentage based on your age and your pension account balance as at 1 July 2024-or on a pro-rata basis if you started your pension partway through the 2025 financial year.

It’s really important to make sure you take out at least the minimum by 30 June, otherwise there could be some unwanted tax consequences.

If we look after your SMSF, keep an eye out for your Minimum Pension Drawdown letter-we’ll be sending it to you in the next couple of weeks!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Tiny Habits, Big Wins: How Small Changes Can Make a Huge Difference

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 08 May 2025 21:15:12 GMT

Tiny Habits, Big Wins: How Small Changes Can Make a Huge Difference

Let’s chat about micro habits—those small, super-manageable actions that can actually lead to some pretty big improvements in how we manage our time and priorities. If you’ve ever left a workshop full of great ideas only to forget them a week later, you’re not alone. That’s where micro habits come in. They’re easy to stick with and surprisingly powerful.

Why Micro Habits Actually Work

The magic of micro habits is in their simplicity. When something is easy to do, you're more likely to keep doing it—and that consistency builds momentum. They also help cut down on decision fatigue (aka feeling overwhelmed by too many choices) and free up your brain for the bigger stuff. Over time, these small tweaks can really streamline your routines and boost your overall efficiency.

A Few Micro Habits to Try Today

Want to be more productive without overhauling your whole life? Here are some small habits you can start right now:

Schedule Email Time : Check email at set times and silence those notifications to stay focused.
Move Every Hour : A quick 5-minute stretch or walk can do wonders.
Shorter Meetings : Cap them at 30 minutes to keep things efficient.
Hydration Goals : Set a daily water target and keep track.
Theme Your Time : Block out parts of your day or week for specific tasks.
Action-Focused Meetings : Always wrap up with three clear takeaways.
Two-Minute Email Rule : If it takes less than two minutes, reply right away.
Go Virtual : Shift some in-person meetings to virtual to save time.
Standardize Tools : Use the same software for recurring tasks to avoid reinventing the wheel.
Try Dictation : Use voice-to-text tools to speed up notes or writing.
Daily To-Do List : Start your day with a clear, focused list.
Weekly Planning Session : Every Friday, look ahead and prep for next week.
Send Agendas in Advance : That way, everyone shows up ready.
Structure Your Meetings : Outline the situation, goals, and next steps to keep things productive.

Start with just one or two and build from there. You’ll be surprised at how these tiny habits can add up to major wins.

It All Comes Back to Mindset

Making micro habits work starts with having a growth mindset—being open to trying new things and tweaking the way you do them. Whether it’s experimenting with tech, adjusting how you manage money, or simply organizing your day a little differently, staying flexible and curious is key.

A Few Things to Think About:

What’s one micro habit you could start today?
How might it save you time or help you work smarter?
What’s getting in the way of making a small change?

Start small. Keep going. And watch those little shifts turn into big results.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Managing Your Day-to-Day Business Transactions

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 08 May 2025 20:53:13 GMT

Managing Your Day-to-Day Business Transactions

Running a small business can get hectic, but staying on top of your finances doesn’t have to be overwhelming. The ATO has a few helpful tips that can make managing your tax obligations a lot smoother:

Keep an eye on your upcoming expenses, make it a habit to update your books regularly, and reconcile your accounts often.
Set aside the GST you collect—consider moving it into a separate bank account so it doesn’t get mixed in with your everyday cash flow.
Do the same for PAYG withholding and super, so you’ve got the funds ready to go when it’s time to pay.
Block out time in your calendar to prepare, lodge, and pay your BAS—planning ahead can save you from last-minute stress.

Need a hand with any of this? Don’t hesitate to get in touch with our office—we’re here to help.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ART rejects taxpayer's claim for CGT small business relief

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 02 May 2025 20:30:48 GMT

ART rejects taxpayer's claim for CGT small business relief

In a recent decision, the Administrative Review Tribunal ('ART') held that a taxpayer was not entitled to the CGT small business concessions on the disposal of his interests in some farm land.

The taxpayer ran a beef cattle business (in partnership with his wife) on properties adjacent to the dairy farm that his parents owned. Following his father's death in 2007, the taxpayer acquired legal interests in the two properties on which that dairy farm was operated.

The ATO rejected the taxpayer's contention that he was entitled to concessional CGT small business relief on disposal of those interests in 2016, on the basis that the interests disposed of did not meet the 'active asset' test.

The ART upheld the ATO's decision, finding that the taxpayer did not use his interests in the properties, nor were they held 'ready for use', in carrying on his cattle business. His claim that he intended to use the properties, but that he could not due to his strained relationship with his brother, was not sufficient.

Consequently, the interest in the properties was not an active asset and the taxpayer was not entitled to concessional CGT treatment.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Taxable payments annual report lodgment reminder

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 02 May 2025 20:18:10 GMT

Taxable payments annual report lodgment reminder

Businesses that pay contractors for 'Taxable payments reporting system services' may need to lodge a 'Taxable payments annual report' ('TPAR') by 28 August each year.

This includes businesses paying contractors in the building and construction, cleaning and IT industries.

From 22 March, the ATO will apply penalties to businesses that have not lodged their TPAR from 2024 or previous years, and/or have been issued three reminder letters about their overdue TPAR.

Businesses that do not need to lodge a TPAR can submit a 'non-lodgment advice ('NLA') form'. Businesses that no longer pay contractors can also use this form to indicate that they will not need to lodge a TPAR in the future.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Threshold for tax-free retirement super increases

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 02 May 2025 19:49:36 GMT

Threshold for tax-free retirement super increases

The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.

Each year, advisers await the December inflation statistics to the be released. The reason is simple, the transfer balance cap – the amount that can be transferred to a tax-free retirement account – is indexed to the Consumer Price Index (CPI) released each December. If inflation goes up, the general transfer balance cap is indexed in increments of $100,000 at the start of the financial year.

In December 2024, the inflation rate triggered an increase in the cap from $1.9m to $2m.

The complexity with the transfer balance cap is that each person has an individual transfer balance cap. If you have started a retirement income stream, when indexation occurs, any increase only applies to your unused transfer balance cap.

Considering retiring in 2025?

If you are considering retiring, either fully or partially, indexation of the transfer balance cap provides a one-off opportunity to increase the amount of money you can transfer to your tax-free retirement account. That is, if you start taking a retirement income stream for the first time in June 2025, your transfer balance cap will be $1.9m but if you wait until July 2025 your transfer balance cap will be $2m, an extra tax-free $100,000.

Already taking a pension?

If you are already taking a retirement income stream, indexation applies to your unused transfer balance cap - so you might not benefit from the full $100,000 increase on 1 July 2025.

Where can I see what my cap is?

Your superannuation fund reports the value of your superannuation interests to the ATO. You can view your personal transfer balance cap, available cap space, and transfer balance account transactions online through the ATO link in myGov.

If you have a self-managed superannuation fund (SMSF), it is very important that your reporting obligations are up to date.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

2025 Federal Election: Key Tax Policies Snapshot

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 02 May 2025 03:43:43 GMT

2025 Federal Election: Key Tax Policies Snapshot

With the 2025 Federal Election approaching, tax policy is a central topic of debate. Here’s a concise comparison of some the major parties’ key tax proposals to help you stay informed when Australia goes to the polls on 3 May 2025:

ALP (Labor) Policies:

Personal Tax Cuts: Legislated cuts to individual tax rates, reducing the 16% rate to 15% from 1 July 2026, and to 14% from 1 July 2027.
Small Business Support: Extension of the $20,000 instant asset write-off for small businesses until 30 June 2026.
Simplified Deductions: Option for employees to claim a $1,000 instant tax deduction (with simplified substantiation) from 1 July 2026.
First Home Buyers: Access to 5% home loan deposits with government guarantees and a $10 billion investment to build up to 100,000 homes exclusively for first home buyers.

Coalition Policies:

Personal Tax Cuts: Plans to repeal Labor’s legislated tax cuts if elected.
Small Business Incentives: Permanent $30,000 instant asset write-off, a capped $20,000 deduction for business meals (excluding alcohol), a “Tech Boost” deduction, and an Entrepreneurship Accelerator offering a tapered tax offset for new businesses.
Cost of Living Relief: One-off tax offset giving up to $1,200 to eligible individuals earning up to $144,000.
First Home Buyers: Mortgage interest deductibility for new homes (on up to $650,000 for 5 years), access to $50,000 from superannuation for deposits (to be repaid upon sale), and expanded home guarantee eligibility.
Electric Vehicles: Proposal to scrap the current FBT exemption for EVs.

Australian Greens Highlights:

Tax Reform: Proposals include phasing out negative gearing and the 50% CGT discount, introducing a 40% tax on excess profits for large corporations, and a 10% net wealth tax on Australia’s 150 billionaires.

In Summary:
The major parties offer contrasting visions on personal tax, small business support, and housing affordability, with the Greens pushing for more radical tax reforms. These policies will shape the tax landscape depending on the election outcome.

Download the NTAA Snapshot here.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. (Source: NTAA Election Tax Policy Snapshot, May 2025). Liability Limited by a scheme approved under Professional Standards Legislation.

Make Meetings Work for You: 8 Simple Strategies for Better Results

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 01 May 2025 23:00:04 GMT

Make Meetings Work for You: 8 Simple Strategies for Better Results

We all know meetings can eat up a lot of our day-sometimes without much to show for it. But with a few smart tweaks, you can make your meetings more effective and free up time for what really matters. Here are eight practical tips to help you get the most out of every meeting:

1. Invite Only Who’s Needed

Keep your attendee list focused. Only bring in people who are directly involved with the agenda topics. This way, everyone’s time is respected-and you avoid unnecessary crowding.

2. Choose the Right Format

Think about whether your meeting needs to be face-to-face, virtual, or even just a quick chat. Match the format to your goals, the location of your team, and the type of discussion you’re having.

3. Ask: Is a Meeting Even Needed?

Before you send that invite, consider if you could get the same result with an email, a Teams message, or a quick conversation. Cutting down on unnecessary meetings gives everyone more time to focus on their real work.

4. Set Clear Objectives and Share an Agenda

Make sure every meeting has a clear purpose and a structured agenda. Share it ahead of time so people can come prepared-and stick to the topics to keep things moving.

5. Limit Distractions

Encourage everyone to silence their phones and close their emails during the meeting. When everyone’s focused, meetings are shorter, more productive, and less frustrating.

6. Provide Pre-Work When Needed

If there’s something people need to review or think about, send it out beforehand. This way, you can dive right into meaningful discussion and decision-making.

7. Start and Finish on Time

Respect everyone’s schedule by beginning and ending when you say you will. If the conversation drifts, park off-topic items for another time to keep things on track.

8. Wrap Up with Action Steps

End every meeting by summarizing key points, assigning action items, and setting deadlines. For more detailed sessions, consider using tools like Microsoft Teams to record a transcript-making it easy to share highlights afterward.

By putting these strategies into practice, you’ll find your meetings are more productive, less time-consuming, and a lot more enjoyable. Which tip will you try first?

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

The ATO’s updated small business benchmarking tool

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 01 May 2025 03:14:55 GMT

The ATO’s updated small business benchmarking tool

The ATO has updated its small business benchmarks with the latest data taken from the 2022–23 financial year. These benchmarks cover 100 industries and allow small businesses to compare their performance, including turnover and expenses, against others in their industry.

While the ATO doesn’t use the benchmarks in isolation, small businesses who fall outside the ATO’s benchmarks are more likely to trigger a closer examination from the ATO. The ATO uses information reported in business tax return with key performance benchmarks for the relevant industry to identify potential tax risks.

Aside from determining the risk of unwanted attention from the ATO, the benchmarks can also be used to compare your business performance against other businesses in the same industry. The benchmarks could help you spot areas where you might be able to reduce costs or improve efficiency.

The small business benchmarks can be accessed here.

Aside from the small business benchmarks, the ATO also has a business viability assessment tool which can help business owners identify whether there are any obvious financial risks. The ATO consider a business to be viable if it is generating sufficient profits to meet commitments to creditors and provide a return to the business owners. If a business isn’t generating profits, the ATO looks at whether the business has sufficient cash reserves to sustain itself.

The business viability assessment tool can be found here.

Please let us know if you would like us to review your business performance and make recommendations on ways that performance could be improved.

Checkout our free 7 minute Business Health Check Here.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Property subdivision projects: the tax implications

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 01 May 2025 03:11:32 GMT

Property subdivision projects: the tax implications

As the urban sprawl continues in most major Australian cities, we are often asked to advise on the tax treatment of subdivision projects. Before jumping in and committing to anything, it is important to understand the tax liabilities that might arise from these projects.

Unfortunately, many people make incorrect assumptions about the way that subdivision projects will be taxed, often believing that any tax exposure will be minimal. However, the reality is that there are a number of important issues that need to be considered and that could have a significant impact on the overall profitability of the project.

For example, when someone buys a property with the intention of subdividing it into smaller lots and selling them at a profit in the short term this will normally mean that any profit is taxed as ordinary income, rather than being taxed under the CGT rules. This means that the general CGT discount would not be available to reduce the tax liability, even if the property has been held for more than 12 months and it would not be possible to apply capital losses to reduce the taxable amount.

Also, in situations like this the sale of the subdivided lots will often trigger a GST liability, further reducing any after-tax profits generated from the project.

Many people fail to properly estimate the income tax and GST liabilities that will arise from property projects and can end up with a nasty shock when they realise the impact this has on the economic viability of the project.

The ATO has recently updated its guidance in this area, adding a number of new and practical examples to demonstrate how the tax rules will typically apply. The ATO’s examples cover the income tax and GST consequences of common property transactions such as property flipping, subdivision projects and property development activities.

For example, in one of the examples the ATO looks at a scenario where the taxpayer repeatedly buys, renovates, and sells properties. They engage in market research, seeking professional advice, taking out business loans, and then carrying out renovations in a business-like manner. The ATO takes the view that the taxpayer is running a business, since the taxpayer’s primary intention is to make a profit from the renovations and reselling of the property.

The profits are treated as ordinary income and taxed on revenue account. The CGT provisions don’t apply here since the property is held as trading stock. However, GST doesn’t apply on this particular situation as long as the properties have not undergone “substantial renovations”, which needs to be considered carefully.

On the other hand, in another example the ATO deals with a taxpayer who subdivides the vacant land from their main residence because of ill health and growing debt levels. Since they didn’t initially intend to profit from the subdivision and sale of the vacant land, the sale is viewed as the mere realisation of a capital asset rather than a business venture. The activities related to the subdivision are limited to necessary actions for council approval, reflecting a low level of complexity and small scale. The sale of the subdivided lot is taxed on capital account under the CGT rules, qualifying for the general CGT discount if the land has been held for more than 12 months. However, the main residence exemption cannot apply because the land is not being sold together with the dwelling that has been used as the taxpayer’s main residence.

You can find the ATO’s guide and examples here

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Instant asset write-off threshold finally confirmed

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 01 May 2025 03:08:09 GMT

Instant asset write-off threshold finally confirmed

It has been a long time coming, but the Government finally passed legislation increasing the instant asset write-off threshold for the year ending 30 June 2025 to $20,000. This was announced back in the 2024-25 Federal Budget but the Government faced a number of hurdles in terms of passing the legislation.

This basically means that individuals and entities who carry on a business with turnover of less than $10m can often claim an immediate deduction for the cost of depreciating assets (eg, plant and equipment) that are acquired during the 2025 financial year (purchased between 1 July 2024 to 30 June 2025) as long as the cost of the asset, ignoring GST credits that can be claimed, is less than $20,000.

Each asset much be first used or installed ready for use for taxable purposes on or before 30 June 2025.

If you are thinking about purchasing an asset before 30 June 2025 with the hope of claiming an immediate deduction, then please reach out to us to confirm the position. The rules contain a number of tricks and traps which we can help you to navigate.

The threshold is due to drop back to $1,000 from 1 July 2025 unless further legislation is passed to provide another temporary increase to the threshold or a permanent modification.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Year-end tax planning opportunities & risks

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 01 May 2025 02:58:23 GMT

Year-end tax planning opportunities & risks

With the end of the financial year fast approaching this is the first blog in our series where we outline some opportunities to maximise your deductions and give you the low down on areas at risk of increased ATO scrutiny.

Opportunities

Bolstering superannuation

If growing your superannuation is a strategy you are pursuing, and your total superannuation balance allows it, you could make a one-off deductible contribution to your superannuation if you have not used your $30,000 cap. This cap includes superannuation guarantee paid by your employer, amounts you have salary sacrificed into super and any amounts you have contributed personally that will be claimed as a tax deduction.

If your total superannuation balance on 30 June 2024 was below $500,000 you might be able to access any unused concessional cap amounts from the last five years in 2024-25 as a personal contribution. For example, if you were $8,000 under the cap in each of the last 5 years, you could contribute an additional $40,000 and take the tax deduction in this financial year at your personal tax rate.

To make a deductible contribution to your superannuation, you need to be aged under 75, lodge a notice of intent to claim a deduction in the approved form (check with your superannuation fund), and receive an acknowledgement from your fund before you lodge your tax return. For those aged between 67 and 74, you can only claim a deduction on a personal contribution to super if you meet the work test (i.e., work at least 40 hours during a consecutive 30-day period in the income year, although some special exemptions might apply).

If your spouse’s assessable income is less than $37,000 and you both meet the eligibility criteria, you could contribute to their superannuation and claim a $540 tax offset.

If you are likely to face a tax bill this year and you made a capital gain on shares or property you sold, then making a larger personal superannuation contribution might help to offset the tax you owe.

Charitable donations

When you donate money (or sometimes property) to a registered deductible gift recipient (DGR), you can claim amounts of $2 and above as a tax deduction. The more tax you pay, the more valuable the tax deductible donation is to you. For example, a $10,000 donation to a DGR can create a $3,250 deduction for someone earning up to $120,000 but $4,500 to someone earning $180,000 or more (excluding Medicare levy).

To be deductible, the donation must be a gift and not in exchange for something. Special rules apply for amounts relating to charity auctions and fundraising events run by a DGR.

Philanthropic giving can be undertaken in a number of different ways. Rather than providing gifts to a specific charity, it might be worth exploring the option of giving to a public ancillary fund or setting up a private ancillary fund. Donations made to these funds can often qualify for an immediate deduction, with the fund then investing and managing the money over time. The fund generally needs to distribute a certain portion of its net assets to DGRs each year.

Investment property owners

If you do not have one already, a depreciation schedule is a report that helps you calculate deductions for the natural wear and tear over time on your investment property. Depending on your property, it might help to maximise your deductions.

Risks

Work from home expenses

Working from home is a normal part of life for many workers, and while you can’t claim the cost of your morning coffee, biscuits or toilet paper (seriously, people have tried), you can claim certain additional expenses you incur. But, work from home expenses are an area of ATO scrutiny.

There are two methods of claiming your work from home expenses; the short-cut method, and the actual method.

The short-cut method allows you to claim a fixed rate of 70c for every hour you work from home for the year ending 30 June 2025. This covers your energy expenses (electricity and gas), internet expenses, mobile and home phone expenses, and stationery and computer consumables such as ink and paper. To use this method, it’s essential that you keep a record of the actual days and times you work from home because the ATO has stated that they will not accept estimates.

The alternative is to claim the actual expenses you have incurred on top of your normal running costs for working from home. You will need copies of your expenses, and your diary for at least 4 continuous weeks that represents your typical work pattern.

Landlords beware

If you own an investment property, a key concept to understand is that you can only claim a deduction for expenses you incurred in the course of earning income. That is, the property normally needs to be rented or genuinely available for rent to claim the expenses.

Sounds obvious but taxpayers claiming investment property expenses when the property was being used by family or friends, taken off the market for some reason or listed for an unreasonable rental rate, is a major focus for the ATO, particularly if your property is in a holiday hotspot.

There are a series of issues the ATO is actively pursuing this tax season. These include:

• Refinancing and redrawing loans – you can normally claim interest on the amount borrowed for the rental property as a deduction. However, where any part of the loan relates to personal expenses, or where part of the loan has been refinanced to free up cash for your personal needs (school fees, holidays etc.,), then the loan expenses need to be apportioned and only that portion that relates to the rental property can be claimed. The ATO matches data from financial institutions to identify taxpayers who are claiming more than they should for interest expenses.

• The difference between repairs and maintenance and capital improvements – while repairs and maintenance costs can often be claimed immediately, a deduction for capital works is generally spread over a number of years. Repairs and maintenance expenses must relate directly to the wear and tear resulting from the property being rented out and generally involve restoring the property back to its previous state, for example, replacing damaged palings of a fence. You cannot claim repairs required when you first purchased the property. Capital works however, such as structural improvements to the property, are normally deducted at 2.5% of the construction cost for 40 years from the date construction was completed. Where you replace an entire asset, like a hot water system, this is a depreciating asset and the deduction is claimed over time (different rates and time periods apply to different assets).

• Co-owned property – rental income and expenses must normally be claimed according to your legal interest in the property. Joint tenant owners must claim 50% of the expenses and income, and tenants in common according to their legal ownership percentage. It does not matter who actually paid for the expenses.

Gig economy income

It’s essential that any income (including money, appearance fees, and ‘gifts’) earned from platforms such as Airbnb, Stayz, Uber, YouTube, etc., is declared in your tax return.

The tax rules consider that you have earned the income “as soon as it is applied or dealt with in any way on your behalf or as you direct”. If you are a content creator for example, this is when your account is credited, not when you direct the money to be paid to your personal or business account. Squirrelling it away from the ATO in your platform account won’t protect you from paying tax on it.

Since 1 July 2023, the platforms delivering ride-sourcing, taxi travel, and short-term accommodation (under 90 days), have been required to report transactions made through their platform to the ATO under the sharing economy reporting regime so expect the ATO to utilise data matching activities to identify unreported income.

Other sharing economy platforms have been required to start reporting from 1 July 2024. If you have income you have not declared, do it now before the ATO discover it and apply penalties and interest.

For your business

Opportunities

Write-off bad debts

Your customer definitely not going to pay you? If all attempts have failed, the debt can be written off by 30 June to claim a deduction this year. Ensure you document the fact that you have written off the bad debt on your debtor’s ledger or with a minute.

Obsolete plant & equipment

If your business has obsolete plant and equipment sitting on your depreciation schedule, instead of depreciating a small amount each year, scrap it and write it off before 30 June if you don’t use it anymore.

For companies

If it makes sense to do so, bring forward tax deductions by committing to pay directors’ fees and employee bonuses (by resolution), and paying June quarter super contributions in June.

Risks

Tax debt and not meeting reporting obligations

Failing to lodge returns is a huge ‘red flag’ for the ATO that something is wrong in the business. Not lodging a tax return will not stop the debt escalating because the ATO has the power to simply issue an assessment of what they think your business owes. If your business is having trouble meeting its tax or reporting obligations, we can assist by working with the ATO on your behalf.

Professional firm profits

For professional services firms - architects, lawyers, accountants, etc., - the ATO is actively reviewing how profits flow through to the professionals involved, looking to see whether structures are in place to divert income to reduce the tax they would be expected to pay. Where professionals are not appropriately rewarded for the services they provide to the business, or they receive a reward which is substantially less than the value of those services, the ATO is likely to take action.

Need support or have questions? Talk to us today about maximising your outcomes and reducing your risk.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's new focus for small business

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 30 Apr 2025 20:01:52 GMT

ATO's new focus for small business

The ATO is currently focusing on the following 'specific risk areas', where it is concerned "small businesses are getting it wrong":

Contractors omitting income — with a focus on data matching to ensure all income is reported.
Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025.

The ATO will also continue its focus on

non-commercial business losses,
small business capital gains tax ('CGT') concessions,
business income that is not personal income,
incorrect claims for 'small business boosts',
GST registration and
income of taxi, limousine and ride-sourcing services

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The proposed ban on non-compete clauses

Wed, 30 Apr 2025 19:41:22 GMT

The proposed ban on non-compete clauses

In the 2025-26 Federal Budget the Government announced a ban on non-compete clauses and “no poach” agreements.

In the 2025-26 Federal Budget, the Government announced its intention to ban non-compete clauses for low and middle-income employees and consult on the use of non-compete clauses for those on high incomes (under the Fair Work Act the high income threshold is currently $175,000).

The reason? A recent Australian Bureau of Statistics (ABS) report found that 46.9% of businesses surveyed used some kind of restraint clause, including for workers in non-executive roles. The survey also found 20.8% of businesses use non-compete clauses for at least some of their staff and 68.2% for more than three-quarters of their employees.

From an economic perspective, declining job mobility impacts wage growth and innovation as restraints prevent access to skilled workers within the economy. Productivity is a key concern as Australia’s productivity has declined in the last 20 years.

Treasury’s consultation paper Non-compete clauses and other restraints states that, “the direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”

A Productivity Commission report estimates the effect of limiting the use of unreasonable restraint of trade clauses will be increased wages for workers - by up to up to 2.4% in industries with high use of non-compete clauses and up to 1.4% in others.

Non-competes:the state of play

Non-compete clauses in Australia are generally enforced under common law. For all regions except New South Wales, restraints are generally presumed to be against the public interest and therefore void and unenforceable except where they are deemed to be reasonably necessary to protect the legitimate interest of the employer .

In NSW, a restraint of trade is valid to the extent to which it is not against public policy.

When non-competes are contested, the courts consider the nature and extent of the business interest to be protected (e.g., confidential client information) and whether the scope of restriction the business wants imposed is reasonable including its geographic area, time period and activities which the restraint seeks to control.

Interests considered ‘legitimate’ by courts include the protection of trade secrets or other confidential information; protection against solicitation of clients with whom the former worker had a personal connection; and protection against key staff being recruited by a former colleague. An employer is not entitled to protect themselves against mere competition by a former worker.

What now

The ban on non-compete clauses was announced in the 2025-26 Federal Budget. The Government has stated that it intends to consult on policy details, including exemptions, penalties, and transition arrangements. Following consultation and the passage of legislation, the reforms are anticipated to take effect from 2027, operating prospectively.

There is a lot of uncertainty at this stage about this measure, despite the enthusiasm of the Treasury economists, not least of which is the impending election.

We’ll bring you more as further information is available.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your FBT, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Super guarantee rules catch up with venues and gyms

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 17 Apr 2025 02:13:12 GMT

Super guarantee rules catch up with venues and gyms

The superannuation guarantee rules are broad and, in some circumstances, extend beyond the definition of common law employees to some directors, contractors, entertainers, sports persons and other workers.

Employers need to pay compulsory superannuation guarantee (SG) to those considered employees under the definition in the SG rules. But, the SG definition of an employee is broad and just how far this definition extends has sparked debate of late about the rights of performers, gym instructors and others not typically considered employees.

For employers and business owners, it is crucially important that if there is any uncertainty about the rights of workers to SG, your position is confirmed. This might be an initial assessment of the position by us, confirmed by an employment lawyer, or clarified by applying for a ATO private ruling covering your specific workplace arrangements. One of the things that employers find most alarming is that there is no tangible time limit on the recovery of outstanding SG obligations. In theory, the ATO can go back as far as it determines necessary to recover unpaid superannuation contributions for workers who are classified as employees for SG purposes. One of the key features of the SG system is to ensure that appropriate contributions are being made for employees and deemed employees, to adequately support them in their retirement. The SG laws, and complimentary director penalty regime, ensure that every cent owing to an employee for SG is paid.

Who is not paid super guarantee?

Super guarantee does not need to be paid to:

• Under 18s who do not work more than 30 hours a week.

• Private and domestic workers who do not work more than 30 hours a week.

• Non-resident employees who perform work outside of Australia.

• Employees temporarily working in Australia covered by an agreement.

• Some foreign executives who hold certain visas or entry permits.

Generally, SG is not payable if you have entered into a contract with a company, trust or partnership.

If you have Australian employees temporarily working outside of Australia in a country with a bilateral social security agreement, for example, the United States, you should continue paying SG and apply for a certificate of coverage to avoid paying super (or the equivalent) in the country where the employee is temporarily located.

SG’s broader definition of an employee

There is a section of the SG rules, section 12, that specifies who is deemed to be an employee for SG purposes. This section extends the definition of an employee beyond common law to cover:

• Company directors who are remunerated for performing duties;

• Contractors working under a contract wholly or principally for their labour;

• Certain state and Commonwealth government contracted workers; and

• Those paid to perform or present any music, play, dance, entertainment, sport or other similar promotional activity. This includes people who provide services in connection with these activities or people paid in relation to film, tape, disc or television.

Are contractors entitled to SG?

If your contractor holds an Australian Business Number (ABN), this of itself will not prevent SG from applying. Where the arrangement looks like it is a contract for the provision of an individual’s labour and skills, it is likely they will meet the definition of an employee and SG will be payable.

The SG rules state if, “a person works under a contract that is wholly or principally for the labour of the person, the person is an employee of the other party to the contract.”

This definition is alarming to many employers as the rate paid to contractors, and often the terms of the agreement, factor in an uplift for super guarantee and other entitlements that would normally be paid if the person was an employee. But for SG purposes, it does not matter what the contract says, if the person is deemed to be an employee under the rules, they are entitled to SG and the employer is obligated to pay it.

The Australian Taxation Office (ATO) states that SG needs to be paid to contractors if you pay them:

• under a verbal or written contract that is mainly for their labour (more than half the dollar value of the contract is for their labour)

• for their personal labour and skills (payment isn't dependent on achieving a specified result)

• to perform the contract work (work cannot be delegated to someone else).

In a recent ruling, the ATO says that where the worker is required to use a substantial capital asset (such as a truck) this will help in arguing that the contract is not mainly for the labour of the worker, but this will always depend on the facts.

Are directors paid SG?

Yes. Directors (members of executive bodies of bodies corporate) should be paid SG if they are remunerated for performing duties for the company.

Entertainers, performers and sportspeople

Generally, if a performer operates through a company, trust, or partnership then there is not an employment relationship and SG is not payable.

However, individual artists, performers and sportspeople are captured as employees under the SG rules (section 12(8)) where they are paid to:

• perform or present, or to participate in the performance or presentation of, any music, play, dance, entertainment, sport, display or promotional activity or any similar activity involving the exercise of intellectual, artistic, musical, physical or other personal skills;

• provide services in connection with an activity referred to above;

• perform services in, or in connection with, the making of any film, tape or disc or of any television or radio broadcast.

Whoever is paying the individual for their labour, is generally responsible for the payment of that individual’s SG. For example, a music festival operator that contracts a sole trader to perform at a festival might be liable for SG for that performer. Likewise, if the sole trader contracts band members to perform with them at the festival, then the sole trader is responsible for the SG of the band members. If however, the music festival worked with an agency to supply the performers (the music festival pays the agency, the agency pays the performers), then the agency is likely to be responsible for the SG of the artists if there is a liability. If the agency only charges a booking fee and the festival pays the performers directly, then the festival is likely to be responsible for the performer’s SG.

You can see from this how important it is to determine who meets the definition of an employee for SG purposes, and if so, to understand the parties to the deemed employment relationship.

What’s a service “in connection to”

The definition of an employee for SG purposes captures workers who work with performers, for example individuals that are producers, videographers, editors, etc. If the person meets the definition of an employee under the SG rules, then it is likely SG is payable.

Is a gym instructor a sportsperson?

A gym instructor may be captured under the definition of a deemed employee under the SG rules. Whether the gym is liable to pay the instructor SG really depends on the facts of the individual arrangement.

Let’s look at the example of a gym instructor operating as a sole trader under an ABN.

• There is a contract between the instructor and the gym stating that the instructor is an independent contractor and is responsible for their own SG payments and other employment obligations.

• The instructor is paid per class, and per training session with clients, covering their time and labour.

• The instructor utilises the equipment of the gym and its scheduling system.

• The instructor wears the uniform of the gym.

• The instructor is trained by the gym in how to deliver the services of the gym.

Employee? Most likely because the ATO places a heavy significance on whether an individual is working to build their own business or someone else’s. If the instructor “..works under a contract that is wholly or principally for the labour of the person” then this also brings them into the SG net.

If the employer, the gym, had not been paying SG, is it exposed to SG payments for the instructor since the employment relationship began.

Concerned about your workplace SG liability? Please contact us for an initial review.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Feeling Overwhelmed? Try the “Must, Should, Could” Approach

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 15 Apr 2025 20:33:17 GMT

Feeling Overwhelmed? Try the “Must, Should, Could” Approach

If your to-do list is starting to look more like a novel than a plan for the day, you’re not alone. It’s all too easy to get bogged down by endless tasks, unsure where to start or what really deserves your attention. That’s where the “Must, Should, Could” method comes in—a brilliantly simple way to cut through the clutter and focus on what truly matters.

The idea is straightforward: imagine your tasks as a target. The bullseye is for your “musts”—the absolutely essential things that need your attention right now. These are the tasks that, if left undone, would have real consequences. Next, you’ve got your “shoulds”—important, but not urgent. They’re worth doing, but the world won’t end if you leave them until later in the week. Everything else falls into the “could” category—nice to do if you have time, but not a priority.

This approach is a game-changer for anyone juggling multiple responsibilities. By focusing on your “musts” first, you’ll make the biggest impact with your time and energy. And don’t forget the Pareto Principle: 20% of what you do creates 80% of the benefit. So, why not focus on the tasks that really move the needle?

Here’s a tip: once you’ve sorted your list, see if you can say “no” to any of the “should” or “could” tasks, or delegate them to someone else. You’ll be amazed at how much lighter your workload feels—and how much more you get done.

Ready to give it a go? Next time you’re staring down a mountain of tasks, try the “Must, Should, Could” filter. You might just find it’s the secret to a more productive (and less stressful) day!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Is Your Business Built on a Strong Foundation?

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 11 Apr 2025 00:09:14 GMT

Is Your Business Built on a Strong Foundation?

When it comes to improving your business, think of it like building a house. You wouldn’t add a second floor without ensuring the foundation is rock-solid, right? The same goes for your business.

Start by evaluating your structure—the visible elements like your team, processes, pricing, and products. Ask yourself:

• Do I have the right people in the right roles?

• Are my processes efficient and scalable?

• Is my pricing competitive yet profitable?

By addressing these foundational questions, you’ll not only set yourself up for quick wins but also create a system that can handle long-term growth.

Once the structure is solid, you can tackle hidden inefficiencies (waste) and align your team’s mindset (beliefs) to drive even greater success.

Remember, sustainable growth starts with getting the basics right!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop , a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.

Modest $268 Maximum personal tax cut for 2026-27 year

liz@rgaaccounting.com.au (Liz Gibbs) — Thu, 10 Apr 2025 01:59:30 GMT

Modest $268 Maximum personal tax cut for 2026-27 year

From 1 July 2026, personal income tax rates will change.

On the last sitting day of Parliament, the personal income tax rate reduction announced in the 2025-26 Federal Budget was confirmed. The modest reduction of 1% applies to the $18,201-$45,000 tax bracket, reducing from its current rate of 16% to 15% from 1 July 2026, then to 14% from 2027-28. The saving from the tax cut represents a maximum of $268 in the 2026-27 year and $536 from the 2027-28 year.

With a 1 July 2026 start date, the outcome of the Federal election on 3 May 2025 and subsequent budgets will determine whether this change comes to fruition.

Medicare levy threshold change for low-income earners

Low-income earners do not pay the compulsory 2% Medicare levy until their assessable income reaches the threshold. The threshold is different depending on whether you are a single taxpayer, pensioner, and the number of children you have that are dependent on you.

Parliament has confirmed the increase to the Medicare levy threshold announced in the Federal Budget. The threshold change is backdated to 1 July 2024, which means that taxpayers will benefit when they lodge their 2024-25 tax return.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your FBT, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Quarterly TBAR lodgment reminder

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 01 Apr 2025 20:23:12 GMT

Quarterly TBAR lodgment reminder

SMSFs must report certain events that affect a member's transfer balance account ('TBA') quarterly using transfer balance account reporting ('TBAR').

These events must be reported even if the member's total superannuation balance is less than $1 million.

TBA events include starting or commuting a retirement phase pension.

TBARs for the March quarter are due on 28 April 2025 and SMSFs that do not report on time may be subject to compliance action and penalties, and the member's TBA may be adversely affected.

Note that SMSFs are not required to lodge if there were no TBA events during the quarter.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT record keeping and plug-in hybrid exemption changes

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 01 Apr 2025 20:13:34 GMT

FBT record keeping and plug-in hybrid exemption changes

With the 2025 fringe benefits tax ('FBT') year having just ended (on 31 March), the ATO is reminding employers of some changes that might impact their FBT obligations.

Alternative record keeping changes

For the 2025 and succeeding FBT years, employers can use existing records instead of travel diaries and declarations for some fringe benefits. If using existing corporate records, employers need to meet the minimum required information at the time of lodging the FBT return. Keeping the right records ensures employers can correctly calculate the taxable value of the benefit and support their FBT position.

Plug-in hybrid electric vehicle changes

The FBT exemption for plug-in hybrid electric vehicles ('PHEVs') broadly ended on 31 March 2025, so the 2025 FBT year may be the last year that employers can claim the exemption.

However, an employer can continue to apply the exemption if that PHEV was used, or available for use, before 1 April 2025 (and that use was exempt), and they have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.

Please contact our office if your business provided fringe benefits to staff between 1 April 2024 and 31 March 2025 and you need any assistance (including in relation to keeping appropriate records).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your FBT, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder of March 2025 Quarter Superannuation Guarantee ('SG')

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 01 Apr 2025 20:08:18 GMT

Reminder of March 2025 Quarter Superannuation Guarantee ('SG')

Employers are reminded that employee super contributions for the quarter ending 31 March 2025 must be received by the relevant super funds by Monday, 28 April 2025.

If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.

The SG rate is 11.5% for the 2025 income year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

How fringe benefits tax works

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 31 Mar 2025 23:08:04 GMT

How fringe benefits tax works

What is fringe benefits tax?

Fringe benefits tax (FBT) is a tax paid by employers on certain benefits provided to their employees, or to their employees’ family or other associates.

FBT is separate to income tax. It's calculated on the taxable value of the fringe benefit.

As an employer, you must self-assess your FBT liability for the FBT year (1 April to 31 March). If you have an FBT liability, you must lodge an FBT return and pay the FBT you owe.

What is a fringe benefit?

A fringe benefit is like a payment to an employee, but in a different form to salary or wages.

There are different types of fringe benefits. Examples include:

allowing an employee to use a work car for private purposes
car parking
paying an employee's gym membership
providing entertainment by way of free tickets to concerts
reimbursing an expense incurred by an employee, such as school fees
giving an employee a discounted loan
giving benefits under a salary sacrifice arrangement with an employee.

The following are not fringe benefits:

salary and wages
employer contributions to complying super funds
shares or rights provided under approved employee share acquisition schemes
employment termination payments (including, for example, the gift or sale at a discount of a company car to an employee on termination)
payments deemed to be dividends under Division 7A
benefits provided to volunteers and contractors
exempt benefits, such as certain benefits provided by religious institutions to their religious practitioners.

Who receives fringe benefits?

FBT applies to fringe benefits provided to your employees, or to your employees' families or other associates.

For FBT purposes, an employee includes a:

current, future or past employee
director of a company
beneficiary of a trust who works in the business.

If you're a sole trader or a partner in a partnership, you are not an employee. Benefits you provide to yourself are not subject to FBT.

Your clients are not employees. Benefits you provide to clients, such as entertainment, are not subject to FBT.

Using employee contributions

You can reduce your FBT liability by having your employee contribute towards the cost of a fringe benefit. The contribution is usually a cash payment to you or the person who provided the benefit.

For most categories of fringe benefits, the taxable value of a fringe benefit can be reduced by the amount of the employee contribution. However, if the benefit is a tax-exempt body entertainment fringe benefit, you can't reduce the value of the benefit by any employee contributions paid directly to you.

You need to consider the income tax consequences of providing benefits . Just as the cost of providing a fringe benefit (including any part of the cost contributed by the employee) is generally deductible for you as the employer, you include any employee contributions paid directly to you in your assessable income.

Example: employer uses employee contributions

A company golf team has a golfing day once a month. The employer pays the green fees of $45 a month, with the employees reimbursing the employer 75% of the fees.

The employer will:

pay FBT only on the 25% of the green fees that aren't reimbursed
include the employee contribution in the company’s assessable income.

Who pays FBT?

The employer pays FBT.

This is the case even if the benefit is provided by a third party under an arrangement with the employer.

How much FBT do you pay?

To work out how much FBT to pay, you 'gross-up' the taxable value of the benefits you've provided. This is equivalent to the gross income your employees would have to earn, at the highest marginal tax rate (including the Medicare levy), to buy the benefits themselves.

The FBT you pay is 47% of this 'grossed-up' value of the fringe benefits.

Example: FBT on a gym membership

Jenni runs a small consulting firm. She provides her employee, Anton, with a gym membership that costs $1,100 (including $100 GST).

This is a fringe benefit. Jenni works out the FBT as follows:

Taxable value of the benefit ($1,100)

× the gross-up rate (for a GST-inclusive fringe benefit the rate is 2.0802)

× the FBT rate (47%)

= FBT of $1,075.46.

Jenni must prepare and lodge an annual FBT return, and pay her FBT liability.

She may also need to calculate and report Anton's reportable fringe benefits amount in his end-of-year payment information.

As the gym membership is subject to FBT, Jenni can claim:

an income tax deduction and GST credit for the cost of the gym membership
an income tax deduction for the FBT paid.

Can you claim deductions and GST credits?

As an employer, you can claim:

an income tax deduction and GST credits for the cost of providing fringe benefits
if you can claim GST credits, you claim the GST-exclusive amount as an income tax deduction
if you can't claim GST credits, you claim the full amount as an income tax deduction
an income tax deduction for the FBT you are required to pay.

What do you need to do?

As an employer, you need to:

Identify the types of fringe benefits you provide.
Check for FBT concessions and ways you can reduce FBT.

Some benefits are exempt from FBT , such as work-related items.
You can reduce your FBT liability by using alternatives to fringe benefits or providing benefits that are eligible for a concession.
If you're a not-for-profit employer, you may be eligible for an exemption or rebate for not-for-profit organisations .

FBT – a guide for employers

Fringe benefits tax – a guide for employers is an additional resource to help you meet your FBT obligations as an employer. It explains:

FBT and your responsibilities as an employer
how to identify and value each type of benefit, and what concessions are available
the meaning of terms used throughout the guide.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your FBT, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation. Source: ATO QC71122.

Keeping Odometer Readings for Fringe Benefits Tax (FBT) 31 March 2025

liz@rgaaccounting.com.au (Liz Gibbs) — Sun, 30 Mar 2025 22:56:15 GMT

Keeping Odometer Readings for Fringe Benefits Tax (FBT)– 31 March 2025

Why Odometer Readings Are Important for FBT

The Australian Fringe Benefits Tax (FBT) year runs from 1 April to 31 March, and one of the key compliance requirements for employers providing motor vehicles to employees is recording odometer readings on 31 March each year. These readings help determine the taxable value of car fringe benefits and ensure accurate FBT calculations.

How Odometer Readings Affect FBT

The Australian Taxation Office (ATO) uses odometer readings in various FBT calculation methods, including:

Operating Cost Method: Odometer readings help establish the proportion of private versus business use. More accurate records can lead to lower FBT liability if business use is high.
Statutory Formula Method: While this method applies a set percentage to the car’s base value, maintaining odometer readings ensures accurate reporting and compliance.
Logbook Records: If you use the operating cost method, odometer readings must match logbook entries to validate the business use percentage.

Steps to Record Odometer Readings on 31 March 2025

To stay compliant and avoid penalties, follow these steps:

Check Each Vehicle: Ensure all company and trust vehicles have their odometer readings recorded at the end of the FBT year.
Record the Reading Accurately: Use a logbook, spreadsheet, or digital system to document each vehicle’s mileage.
Note the Date and Vehicle Details: Include the date (31 March 2025), vehicle make and model, registration number, and the odometer reading.
Maintain Proper Records: Keep these records for at least five years in case of an ATO audit.
Report in FBT Calculations: Use the readings to determine FBT liability and ensure accurate declarations in your FBT return.

Consequences of Not Keeping Odometer Records

Failing to maintain odometer readings can lead to:

Higher FBT Liabilities: Without proper records, the ATO may default to higher taxable amounts.
Increased Scrutiny from the ATO: Poor record-keeping raises the risk of audits and penalties.
Difficulty Justifying Business Use Percentage: If using the operating cost method, missing odometer readings may invalidate logbook entries, reducing tax deductions.

Next Steps

Accurate odometer readings on 31 March 2025 are essential for businesses providing vehicles to employees. By maintaining proper records, employers can minimise FBT liabilities, ensure compliance with the ATO, and avoid unnecessary penalties. Take the time today to record all company vehicle odometer readings and store them securely for future reference.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO Introduces Monthly GST Reporting for Small Businesses

Tue, 25 Mar 2025 23:13:25 GMT

ATO Introduces Monthly GST Reporting for Small Businesses

Deputy Commission Will Day (pictured) of The Australian Taxation Office (ATO) has announced a significant change in GST reporting for small businesses. Starting April 1, 2025, approximately 3,500 small businesses with a history of non-payment, late lodgment, or incorrect reporting will be transitioned from quarterly to monthly GST reporting. This move is part of the ATO's 'Getting it right' campaign, aimed at improving compliance and fostering good business habits.

Benefits of Monthly Reporting

Switching to a monthly cycle can help small businesses manage their tax obligations more effectively. It allows them to address past unmet obligations in a structured way and prevents further accumulation of debt. Many businesses that have voluntarily adopted monthly reporting have found it easier to manage cash flow and meet obligations with smaller, more manageable payments.

Support and Compliance

The ATO will notify affected businesses and their tax professionals about the change. Small businesses struggling with tax obligations are encouraged to seek help early from tax professionals or the ATO. The ATO is committed to supporting compliant businesses while addressing deliberate non-compliance to ensure fair competition.

Additional Focus Areas

This quarter, the ATO is also focusing on compliance issues such as income omissions by contractors in specific industries and adherence to small business boost measures. A review process is available for businesses that believe they should not be subject to the change. The ATO will continue to update focus areas quarterly to ensure equal opportunities for all small businesses.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Budget 2025-26: Show Me The Money Part 3: Impact on Business

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 22:44:21 GMT

Budget 2025-26: Show Me The Money Part 3

Budget 2025-26 is one that the government clearly did not expect to have to deliver. The impending tax on super balances above $3m remains in place for 1 July 2025. As does the $20,000 instant asset write-off for small business that is supposed to apply to the current financial year. Neither initiative has passed Parliament and if not passed prior to the election being called, will lapse . In Part 3 of our analysis, we look at the impact on Business & employers, Government & regulators, and The Economy.

Business & employers

Non-compete clauses to be banned Date:From 2027

The Government has announced that it will ban non-compete clauses for low and middle-income employees (under the Fair Work Act high income threshold is currently $175,000). Non‑compete clauses are conditions in employment contracts that prevent or restrict an employee from moving to a competitor.

Back in April 2024, Treasury released an issues paper for consultation on Worker non-compete clauses and other restraints. The review stated that, “The direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”

The Government is also make changes to competition law to prevent businesses from:

• Fixing wages by making anti‑competitive arrangements that cap workers’ pay and conditions, without the knowledge and agreement of affected workers.

• Using ‘no‑poach’ agreements to block staff from being hired by competitors.

Announced Beer tax paused and benefits for wine and alcohol producers Date August 2025 (beer excise) 1 July 2026 (other measures)

Indexation on the draught beer excise and excise equivalent customs duty rates will be paused for two years from August 2025. This just means that the price of beer won’t go up because of tax.

Support is also provided under the Excise remission scheme for manufacturers of alcoholic beverages increasing caps for all eligible brewers, distillers and wine producers to $400,000 per financial year, from 1 July 2026 (up from $350,000).

Trade tariffs extended on Russia and Belarus

The Government has extended additional 35% trade tariffs imposed on goods that are the produce or manufacture of Russia or Belarus. The measure is symbolic support for Ukraine as it delivers a negligible increase in revenue over five years.

Government & regulators

Almost $1bn to the ATO for tax compliance Date: From 1 July 2025

The Government has set aside $999m over 4 years for the ATO to expand its compliance programs:

• Tax Avoidance Taskforce

• Shadow Economy Compliance Program

• Personal Income Tax Compliance Program

• Tax Integrity Program (medium and large businesses and wealthy groups)

The compliance programs are expected to deliver a threefold return of $3.2bn.

$700m external contractor cost cutting

The Government intends to further pair back its use of consultants, contractors and labour hire. The budget estimates that the Government will save $718m in 2028-29 by continuing cuts to external labour.

The economy

Growth

Australia’s economy is expected to grow, albeit slowly, at 2.25% in 2025-26 and 2.5% in 2026-27. The direct impact of Ex-Tropical Cyclone Alfred on economic activity is estimated to be up to 0.25% of GDP.

We’re back in a deficit

The underlying cash balance will be a deficit at -$42.1bn in 2025-26, before improving but remaining in the red for several years. Debt is also higher, rising from 18.4% of GDP in 2023-24 to an estimated 21.5% in 2025-26, rising to 23.1% by 2028-29.

Employment

The unemployment rate has stayed low, the participation rate remains elevated, and employment has grown by more than one million people since May 2022 with around 80% of jobs created in the private sector since the June quarter 2022. Unemployment is expected to peak at 4.25%.

Wages

Annual real wages have grown for five consecutive quarters and are forecast to grow by 0.5% in 2024-25. The Wage Price Index (WPI) grew by 3.2% through the year to the December quarter 2024 and is expected to grow by 3% through the year to the June quarter of 2025 and 3.25% to June 2026.

Inflation

Inflation is expected to be 2.5% through the year to the June quarter 2025. The moderation of inflation was helped by cost of living relief and a decline in petrol prices towards the end of 2024. Electricity rebates and indexation of rent assistance (Commonwealth and State) reduced headline inflation by 0.75% through the year to the December quarter of 2024.

Global tensions

Economically, trade tensions have magnified global uncertainty. Global growth is already subdued. The indirect effect of tariffs is estimated to be nearly four times as large as the direct effect on Australia, reflecting the relative importance of affected trade flows between Australia, China, and the United States. Retaliatory tariffs, if they occur, will only amplify losses in real GDP.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Budget 2025-26: Show Me The Money Part 2

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 22:31:56 GMT

Budget 2025-26: Show Me The Money Part 2

Budget 2025-26 is one that the government clearly did not expect to have to deliver. It features a modest personal income tax cut of up to $268 in 2026-27, with a tax saving of up to $536 from the 2027-28 year, and over $20bn in predominantly preannounced spending initiatives across energy, healthcare, education, families and housing.

The impending tax on super balances above $3m remains in place for 1 July 2025. As does the $20,000 instant asset write-off for small business that is supposed to apply to the current financial year. Neither initiative has passed Parliament and if not passed prior to the election being called, will lapse. In Part 2 of our analysis, we look at the impact on Individuals and families.

Individuals & families

“Modest” two stage personal income tax cut: From 1 July 2026

The Government will provide a “modest” tax cut to all taxpayers from 1 July 2026 and again from 1 July 2027. The tax rate for the $18,201-$45,000 tax bracket will reduce from its current rate of 16%, to 15% from 1 July 2026, then to 14% from 2027-28 at a cost of $648m over four years. The saving from the tax cut represents a maximum of $268 in the 2026-27 year and $536 from the 2027-28 year.

Medicare levy thresholds increased for low-income earners From 1 July 2024

The Medicare levy low-income threshold exempts low-income earners from having to pay the levy. From 1 July 2024, the threshold for the exemption will increase. The change will mean low-income earners will pay less when they lodge their income tax returns for 2024-25.

2024-25 2025-26

Singles $26,000 $27,222

Families $43,846 $45,907

Single seniors & pensioners $41,089 $43,020

Family seniors & pensioners $57,198 $59,886

Family additional child or student $4,216 $4,027

The threshold changes come at a cost of $648m over 5 years.

Announced $150 energy bill relief From 1 July 2025

Households and small business will receive an additional automatic credit of $150 on their energy bills in quarterly instalments between 1 July 2025 and 31 December 2025. The extension of energy bill rebates will cost $1.8 billion over two years.

Foreign resident CGT amendments delayed

From 1 July 2025, the way in which foreign residents interact with the tax system were scheduled to come into effect. These changes have now been delayed.

The start date for proposed amendments to the capital gains tax (CGT) rules for foreign residents has been delayed until 1 October 2025 at the earliest, and potentially later depending on the passage of the reforms through Parliament.

The changes would broaden the range of assets subject to CGT for foreign residents when they dispose of them, amend the rules which determine whether the sale of shares in a company or units in a trust are subject to CGT and require foreign residents to disclose transactions involving shares or trust interests with a value of at least $20 million to the ATO before they occur.

Announced 2 year ban on foreign ownership of established homes

From 1 April 2025, the Government has banned foreign and temporary residents, and foreign-owned companies, from purchasing established dwellings to prevent ‘land banking’. The ban applies for 2 years but is subject to some limited exceptions.

MIT amendments delayed

The extension of the cleaning building management investment trust (MIT) withholding tax concession was due to commence from 1 July 2025. This has now been delayed until the first 1 January, 1 April, 1 July or 1 October after the Act receives Royal Assent.

The Government will also amend the tax laws to clarify arrangements for MITs to ensure that legitimate investors can continue to access concessional withholding rates. The changes will apply to find payments from 13 March 2025 and will complement the ATO’s increased focus in this area to prevent misuse – see Taxpayer Alert 2025/1.

‘Help to buy’ program extended

The Government’s ‘Help to Buy’ program reduces the deposit required to buy a home by providing an equity contribution. Under the program, Housing Australia provides eligible participants with a Commonwealth equity contribution of up to 30% of the purchase price of an existing home and up to

40% of the purchase price of a new home. That is, they will give you the money and take a stake in your home.

Originally, to be eligible for the program, the income threshold for a single was $90,000 and, for joint participants, $120,000. The Budget increases this threshold to $100,000 and $160,000 respectively. Additional conditions apply. The program is not currently available to applicants.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Budget 2025-26: Show Me The Money Part 1

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 22:16:43 GMT

Budget 2025-26: Show Me The Money - Part 1

The Government’s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year, with a tax saving of up to $536 from the 2027-28 year.

At the same time, the Australian Taxation Office has been allocated almost $1bn in funding to extend and enhance its compliance programs.

Two previously announced measures of note that have not passed Parliament but remain in the Budget are:

• Tax on super accounts above $3m (a 30% tax on future earnings for superannuation balances above $3 million); and

• The $20,000 instant asset write-off for small business for 2024-25.

Both of these measures have stalled in Parliament and, assuming they are not approved in the final days of Parliament, will lapse when an election is called.

Budget 2025-26 is a budget for voter appeal with over $7bn in additional spending measures in 2025-26 and over $20bn across five years. Most measures extend previously announced and Budgeted items for another year. Key initiatives include:

Energy

• $180bn to deliver a $150 energy bill rebate extension until the end of 2025.

Healthcare

• $8.5bn on Medicare for increases to Medicare payments, 50 new urgent care clinics, and a bulk billed GP service.

• $1.8bn over 5 years for cheaper medicines on the Pharmaceutical Benefits Scheme.

• $240m for women’s health - reproductive health and menopause

Education

• $500m to provide a 20% cut to HECS-HELP debt for students, and a realignment of the repayment schedule to reduce the amount required to be paid (from 1 July 2025).

Housing

• $800m to expand the ‘Help to Buy’ scheme reducing the size of the deposit required to buy a home by co-buying with the Government.

Families

• Three days of subsidised childcare for families with young children (income tested) from 1 January 2026 replacing the Child Care Subsidy activity test.

Lifestyle

• From August, the excise on beer will be frozen for 2 years.

Economically, trade tensions have magnified global uncertainty. Global growth is already subdued. The indirect effect of tariffs is estimated to be nearly four times as large as the direct effect on Australia, reflecting the relative importance of affected trade flows between Australia, China, and the United States. Australia’s economy is expected to grow, albeit slowly at 2.25% in 2025-26 and 2.5% in 2026-27. The Budget will be in deficit at -$42.1bn in 2025-26, before improving marginally but remaining in the red.

The RGA team are available to assist you to capitalise on any of the Budget measures or minimise your risk. See Parts 2 and 3 of our blog for the full Budget analysis. As always, the detail is important so please let us know if we can assist.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2025: The top FBT risk areas

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 00:26:40 GMT

FBT 2025: The top FBT risk areas

The Fringe Benefits Tax (FBT) year ends on 31 March 2025. We’ve outlined the hot spots for employers and employees.

The top FBT risk areas

Mismatched claims for entertainment – claimed as a deduction but no FBT

One of the easiest ways for the ATO to pick up on problem areas is where there are mismatches.

When it comes to entertainment, employers are often keen to claim a deduction but this can be a problem if it is not recognised as a fringe benefit provided to employees. Expenses related to entertainment such as a meal in a restaurant are generally not deductible and no GST credits can be claimed unless the expenses are subject to FBT.

Let’s say you taken a client out to lunch and the amount per head is less than $300. If your business uses the ‘actual’ method for FBT purposes, then there should not be any FBT implications. This is because benefits provided to client are not subject to FBT and minor benefits (i.e., value of less than $300) provided to employees on an infrequent and irregular basis are generally exempt from FBT. However, no deductions should be claimed for the entertainment and no GST credits would normally be available either.

Employee contributions by journal entry in the accounts

While this can be acceptable if managed correctly, the ATO has flagged numerous concerns including whether journal entries made after the end of the FBT year are valid employee contributions.

For an employee contribution made by way of journal entry to be effective in reducing the taxable value of a benefit, all of the following conditions must be met:

• The employee must have an obligation to make a contribution to the employer towards a fringe benefit (i.e., under the employee’s remuneration agreement);

• The employer has an obligation to make a payment to the employee. For example, the parties may agree that the employer will lend an amount to the employee or the employee might be entitled to a bonus that hasn’t been paid yet. If a loan is made by the employer then this could trigger further tax issues that need to be managed;

• The employee and employer agree to set-off the employee’s obligation to the employer against the employer’s obligation to the employee; and

• The journal entries are made no later than the time the financial accounts are prepared for the current year (i.e., for income tax purposes).

Not lodging FBT returns

The ATO is concerned that some employers are not lodging FBT returns when required to. If your business employs staff (even closely held staff such as family members), and is not registered for FBT, it’s essential to ensure that the position is reviewed to check whether the business could potentially have an FBT liability.

Make sure you have reviewed the FBT client questionnaire we sent you!

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2025: Reducing the FBT record keeping burden

Tue, 25 Mar 2025 00:21:03 GMT

FBT 2025: Reducing the FBT record keeping burden

The Fringe Benefits Tax (FBT) year ends on 31 March 2025. We’ve outlined the hot spots for employers and employees.

Reducing the FBT record keeping burden

Record keeping for FBT purposes can be onerous. From 1 July 2024 however, your business will have a choice to keep using the existing FBT record keeping methods, use existing business records where those records meet the requirements set out by the legislative instrument, or a combination of both methods:

• Travel diaries – see LI 2024/11

• Living-away-from-home-allowance – FIFO/DIDO declarations – see LI 2024/4

• Living-away-from-home – maintaining an Australian home declaration – See LI 2024/5

• Otherwise deductible rule – expense payment, property or residual benefit declaration – See LI 2024/6

• Otherwise deductible rule – private use of a vehicle other than a car declaration – See LI 2024/7

• Car travel to an employment interview or selection test declaration – See LI 2024/14

• Remote area holiday transport declaration – See LI 2024/10

• Overseas employment holiday transport declaration – See LI 2024/13

• Car travel to certain work-related activities declaration – See LI 2024/9

• Relocation transport declaration – See LI 2024/12

• Temporary accommodation relating to relocation declaration – See LI 2024/8

FBT housekeeping

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2025: Does FBT apply to your contractors?

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 00:17:20 GMT

FBT 2025: Does FBT apply to your contractors?

The Fringe Benefits Tax (FBT) year ends on 31 March 2025. We’ve outlined the hot spots for employers and employees.

Does FBT apply to your contractors?

The FBT rules tend to apply when benefits are provided to employees and certain office holders, such as directors. FBT should not apply when benefits are provided to genuine independent contractors but, you need to be sure that your contractors are in fact contractors.

Are your contractors really contractors?

Following two landmark decisions handed down by the High Court, the ATO has now finalised a ruling TR 2023/4 that helps determine whether a worker is an employee or an independent contractor.

The ATO has also issued PCG 2023/2 that sets out four risk categories. Arrangements will tend to be viewed in a more favourable light where:

• There is evidence to show that you and the worker have agreed on the classification;

• There is a comprehensive written agreement that governs the relationship;

• There is evidence that you and the worker understand the consequences of the classification;

• The performance of the arrangement hasn’t deviated significantly from the terms of the contract;

• Specific advice has been sought confirming that the classification is correct; and

• Tax, superannuation, and reporting obligations have been met when the worker is classified as an employee or independent contractor (whichever relevant).

If your business employs contractors, you should have a process in place to ensure the correct classification of the arrangements and to determine the ATO’s risk rating. These arrangements should also be reviewed over time.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2025: Employers Providing equipment to work from home

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 00:09:47 GMT

FBT 2025: Employers Providing equipment to work from home

The Fringe Benefits Tax (FBT) year ends on 31 March. We’ve outlined the hot spots for employers and employees.

Providing equipment to work from home

Many businesses continue to offer flexible work from home arrangements. employees are often provided with work-related items to assist them to work from home. In general, where work related items are provided to employees and used primarily for work, FBT shouldn’t apply.

For example, portable electric devices such as laptops and mobile phones provided to employees shouldn’t trigger an FBT liability as long they are primarily used by your employees for work. Multiple similar items can also be provided during the FBT year where required – for example multiple laptops have been provided to the employee – but only if the business has an aggregated turnover of less than $50m (previously, this threshold was less than $10m).

If the employee is using equipment provided by the business for their own private use, normally FBT would apply to the private use. However, the FBT liability can be reduced based on the business use percentage.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT 2025: Exemption for electric cars

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Mar 2025 00:05:26 GMT

FBT 2025: Exemption for electric cars

The Fringe Benefits Tax (FBT) year ends on 31 March 2025 . We’ve outlined the hot spots for employers and employees.

Employers that provide employees with the use of eligible electric vehicles (EVs) can potentially qualify for an FBT exemption. This should normally be the case where:

• The car is a zero or low emission vehicle (battery electric, hydrogen fuel cell or plug-in hybrid electric);

• The car is both first held and used on or after 1 July 2022; and

• The value of the car is below the luxury car tax threshold for fuel efficient vehicles (which is $89,332 for 2024-25 financial year).

Plug-in hybrid vehicles no longer FBT exempt

From 1 April 2025, plug-in hybrid electric vehicles will no longer qualify for the FBT exemption unless:

• The use of the vehicle was exempt before 1 April 2025, and

• There is a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.

If there is a break or change to that commitment on or after 1 April 2025 then the exemption normally won’t be available any more.

Working with the exemption

Even if the FBT exemption applies, your business will still need to work out the taxable value of the benefit as if the FBT exemption didn’t apply. This is because the value of the exempt benefit is still taken into account when calculating the reportable fringe benefits amount of the employee. While income tax is not paid on this amount, it can impact the employee in a range of areas (such as the Medicare levy surcharge, private health insurance rebate, employee share scheme reduction, and social security payments).

This means the employee’s own home electricity costs incurred on charging the electric vehicle will often need to be worked out. This figure can generally be treated as an employee contribution to reduce the value of the benefit.

While this can be practically difficult to determine, the ATO has issued some guidelines that provide a 4.20 cent per km shortcut rate that can potentially help with the calculation. These guidelines do not apply to plug-in hybrid vehicles.

Many electric vehicles are also packaged together with electric charging stations. Just be aware that the FBT exemption for electric cars does not extend to charging stations provided at the employee’s home.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Non-Resident CGT: What Expats Need to Know

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 18:31:31 GMT

Non-Resident CGT: What Expats Need to Know

Australia's capital gains tax (CGT) rules for non-residents have undergone significant changes, particularly in 2012 and again in 2025. These reforms have removed the CGT main residence exemption for non-residents and increased withholding tax rates on property sales. The government’s aim? To curb tax leakage from foreign property investors. However, these changes have created substantial challenges, especially for Australian expatriates.

1. Expats Face Major CGT Challenges

Loss of Main Residence Exemption: Australian citizens who move overseas lose the ability to claim the CGT main residence exemption once they become non-residents. Even if they return to Australia later, they could face hefty CGT liabilities on properties they previously lived in.
No Deemed Disposal Adjustment: Upon leaving Australia, there is no deemed disposal or market value cost base adjustment. This means unrealized capital gains continue to accrue from the original purchase date.
Example Scenario: If you buy and live in a property as an Australian resident, then move overseas and later sell the property as a non-resident, you forfeit the main residence exemption and must pay tax on the entire gain from the purchase date.

2. Higher Tax Rates for Non-Residents

Increased Withholding Tax: From January 2025, non-residents are subject to a 15% withholding tax on all property sales, regardless of value (previously 12.5% only for properties over $750,000). This impacts cash flow before any formal tax assessment.
No CGT Discount: Non-residents cannot access the 50% CGT discount available to Australian residents who hold assets for more than a year.
No Tax-Free Threshold: Non-residents are taxed at higher rates without access to the tax-free threshold but are exempt from the Medicare levy.

These measures create a two-tiered system where non-residents pay significantly more tax than residents, even if they’ve owned and maintained Australian assets for years.

Tax Planning is Essential

To mitigate these challenges, expats should engage in strategic tax planning both before leaving Australia and before returning. Proper planning can help reduce unexpected CGT liabilities and ensure compliance with Australia’s complex tax rules.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Bendel Case: ATO's appeal against decision that UPEs are not "loans" fails

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 18:23:50 GMT

Bendel Case: ATO's appeal against decision that UPEs are not "loans" fails

The Full Federal Court recently dismissed the ATO's appeal against an AAT decision that unpaid present entitlements ('UPEs') owing by a trust to a corporate beneficiary were not "loans" for Division 7A purposes.

A corporate beneficiary had become entitled to a share of the income of a trust for the 2013 to 2017 income years. Parts of these entitlements remained outstanding, resulting in UPEs. The ATO treated these UPEs as loans from the corporate beneficiary back to the trust (and, in consequence, as "deemed dividends" made to the trust).

The AAT held at first instance that a loan had not been made in this case.

The Full Federal Court upheld the AAT's decision, noting that a loan for Division 7A purposes requires an obligation to repay an amount, not merely the creation of an obligation to pay an amount (such as when a trust distributes income to a beneficiary).

Important: Update 19 March 2025:

Australian Tax Office Seeks High Court Appeal in Bendel Case

on 19 March 2025 The Australian Tax Office (ATO) has applied for special leave to appeal to the High Court following the Full Federal Court's decision in the Bendel case (Commissioner of Taxation v Bendel[2025] FCAFC 15). This move comes alongside the issuance of a decision impact statement addressing the implications of the Full Federal Court's ruling.

Background on Unpaid Present Entitlements (UPEs)

Since late 2009, the ATO has maintained a contentious stance that unpaid present entitlements (UPEs) owed by a trust to a company can be treated as loans under Division 7A of the tax law. This interpretation, outlined in TD 2022/11, can lead to a deemed unfranked dividend for tax purposes if not properly addressed, even if no funds are transferred to shareholders or their associates.

However, both the Administrative Appeals Tribunal (AAT) and the Full Federal Court have rejected this view, ruling that UPE balances should not be considered loans for Division 7A purposes.

ATO's Decision Impact Statement 19 March 2025

The ATO's decision impact statement clarifies the following key points:

Continued Administration: The ATO will continue to apply the tax rules as per TD 2022/11 until the appeal outcome is determined, treating UPEs as loans for Division 7A purposes.
Processing of Amendments and Rulings: The ATO will delay processing amendments, private rulings, and objections related to this issue until the appeal process concludes. If forced to make a decision during this period, the ATO will adhere to the approach in TD 2022/11.
Reimbursement Agreement Rules: The ATO emphasizes that the reimbursement agreement rules under section 100A must also be considered. If UPEs do not meet commercial terms akin to a Division 7A loan agreement, they would fall outside the guidelines set in PCG 2022/2.

This stance suggests the ATO's determination to uphold its interpretation of the tax law. Further updates will be provided as developments occur.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Taxpayer's claim for input tax credits unsuccessful

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 18:11:39 GMT

Taxpayer's claim for input tax credits unsuccessful

In a recent decision, the Administrative Review Tribunal ('ART') rejected a taxpayer's claim for input tax credits on the basis that all the relevant GST returns (i.e., BASs) were lodged out of time.

For the GST periods from 1 October 2015 to 31 March 2017, the taxpayer filed each of her GST returns more than four years after they were due. The taxpayer still claimed input tax credits totalling over $10,000 for this period.

The ATO disallowed this claim, on the basis that none of the input tax credits were claimed within the four year period, as required by the GST Act.

The ART upheld the ATO's decision, noting that, as the taxpayer did not file the GST returns within the four year period "she did not have input tax credits taken into account . . . As a consequence, . . . (she) simply ceased to be entitled to those input tax credits."

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO "busts" NFP myths

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 18:08:00 GMT

ATO "busts" NFP myths

As the Not-for-profit ('NFP') self-review return is due in March, the ATO has recently published a document 'busting' various NFP 'myths'.

Myth 1: All NFPs are income tax exempt.

ATO response: This is not true. Some NFPs are income tax exempt and some are taxable.

Myth 2: There is only one way to lodge the NFP self-review return.

ATO response: There are three ways, as follows:

A 'principal authority' may be able to lodge using 'Online services for business';
It may be possible for the return to be lodged by phoning the ATO's automated self-help phone service on 13 72 26; and
A registered tax agent can lodge the return through Online services for agents.

Myth 3: Anyone can lodge the NFP self-review return online.

ATO response: If lodging via Online services for business, anyone authorised to access the return in Online Services can lodge. If a registered tax agent has been engaged, they can also prepare and lodge the return in Online services for agents.

Myth 4: If a person is unsure whether their NFP has charitable purposes, then they do not need to lodge.

ATO response: The self-review return still needs to be lodged, even if it is not certain whether the NFP is charitable.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Claiming fuel tax credits when rates change

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 18:01:21 GMT

Claiming fuel tax credits when rates change

Fuel tax credits changed on 3 February, and taxpayers could receive more savings for fuel they have acquired on and from this date. Different rates apply based on the type of fuel, when it was acquired and what activity it is used for.

The ATO has the following tips for taxpayers to ensure they are claiming correctly.

They can use the ATO's 'eligibility tool' on its website to find out if they can claim fuel tax credits for fuel they have acquired and used.
They can use the ATO's online fuel tax credit calculator (which should automatically apply the right rate) to work out their claim.
They can lodge their BAS via Online services or a registered tax or BAS agent (lodging via an agent can allow them extra time to lodge and pay).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's tips to help taxpayers stay on top of their BAS

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 17:57:26 GMT

ATO's tips to help taxpayers stay on top of their BAS

The ATO has the following tips to help taxpayers get their BAS right before they lodge:

They should make sure they enter the figures for their obligations at the correct label, and only complete applicable fields.
If lodging online, or through a registered tax or BAS agent, they may be able to get an extra 2 or 4 weeks to lodge and pay.
If they have nothing to report for the period, they can lodge a 'nil' BAS online by selecting 'Prepare' and then 'Prepare as nil', or they can call the ATO's automated service "any time of the day".
If they made a mistake on their last BAS, instead of lodging a revision, they may be able to use their current BAS to fix it. For example, they can use label 1A to adjust GST on sales, or label 1B to adjust GST on purchases.
They can also use their BAS to vary an instalment amount.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

How to master employer obligations in 2025

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 17 Mar 2025 17:45:10 GMT

How to master employer obligations in 2025

Taxpayers who employ staff should remember the following important dates and obligations:

Fringe benefits tax ('FBT')

31 March 2025 marks the end of the 2024/25 FBT year. Employers should remember the following regarding their FBT tax time obligations.

 They should identify if they have provided a fringe benefit. If they have, they should determine the taxable value to work out if they have an FBT liability.
 They should lodge an FBT return and pay any FBT owed by 21 May 2025. If their registered tax agent lodges electronically for them, they have until 25 June 2025.
 They should keep the right records to support their FBT position.

Pay as you go ('PAYG') withholding

Taxpayers need to withhold the right amount of tax from payments they make to their employees and other payees, and pay those amounts to the ATO.

Single touch payroll ('STP')

Employers should finalise their STP data by 14 July 2025 for the 2024/25 financial year (there may be a later due date for any closely held payees).

Super guarantee ('SG')

 28 January, 28 April, 28 July and 28 October are the quarterly due dates for making SG payments;

 The SG rate is currently 11.5% of an employee's ordinary time earnings. From 1 July 2025, it will increase to 12%.

 Taxpayers should ensure SG for their eligible employees is paid in full, on time and to the right super fund, otherwise they will be liable for the SG charge.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Our Samford office is open today 11 March 2025

Mon, 10 Mar 2025 23:38:02 GMT

Our Samford office is open today 11 March 2025

With thanks to all Energex and Emergency services Crew, our electricity has been reconnected and our office is open from today 11 March. We hope you and your loved ones are safe and well following cyclone Alfred. These past few days have been challenging for many, and our thoughts are with everyone affected. We understand that many of you in the area are waiting for you power to be reconnected. We hope that you are managing to navigate through this weather event and that you are receiving all the support you may require in this regard.

The Moreton Bay Regional Council has been in touch and I have some very helpful information and links that can assist in your recovery if you and your business have been impacted.

We understand food operators will have food losses due to the power outages. Council’s Environmental Health Officers (EHO) can be deployed upon request to inspect and certify food losses so that business owners can claim the loss on their insurance. Should a business require that service, they can directly contact council via the Content Centre Contact Council - City of Moreton Bay to request the support of an EHO.

Disaster support and recovery assistance - City of Moreton Bay is generally for community recovery support, however does direct business to this document: Disaster preparation and recovery for businesses

P lease note: official up to date information will be provided in the coming days, more details will be available soon. The above information is currently available on the council website and is the best place to direct you for now.

Please let us know if there is anything we can do to assist you at this time.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Our office is operating remotely today, 10 March.

Mon, 10 Mar 2025 02:52:20 GMT

Our office is operating remotely today, 10 March.

Due to a power outage affecting the entire Samford area, the RGA Practice will be operating remotely today, 10 March, until electricity is restored. Please be assured that our team remains available and can be reached at 07 3289 1700. We appreciate your understanding and support during this time. Stay safe, and we look forward to seeing you soon.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Tropical Cyclone Alfred

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 05 Mar 2025 04:30:39 GMT

Stay Safe and Stay Prepared

As Tropical Cyclone Alfred approaches, we want to remind everyone to take necessary precautions and ensure their safety. We have received some important information that we believe is crucial to share with you to help you prepare for the severe weather conditions ahead.

Here are some key points to consider:

Prepare an Emergency Kit : Include essentials like non-perishable food, water, first aid supplies, and a battery-powered radio.
Secure Your Property : Tie down outdoor items, clear gutters, and consider sandbagging entry points if you are in a flood-prone area.
Stay Informed : Monitor weather updates and follow local authorities' instructions.

Please take these precautions seriously to ensure your safety during this time.

Important and Helpful Links

Moreton Bay Regional Council - Disaster Dashboard

Get Ready Queensland

Tropical Cyclone Alfred updates and Emergency contacts -

MBRC Floodmap: https://storymaps.arcgis.com/stories/03329c6360d546909805d10b0f4bb8e2

We want to assure you that our team remains available to assist you.

While our physical Samford office may be temporarily closed Thursday and Friday, we are still fully operational and ready to support you remotely.

If you need any urgent assistance during this time, please don’t hesitate to get in touch with us for assistance, we're here to help.

Please stay safe, and let us know if we can assist you.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Queensland Businesses to Implement Sexual Harassment Prevention Plans by March 2025

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 26 Feb 2025 02:39:03 GMT

Queensland Businesses to Implement Sexual Harassment Prevention Plans by March 2025

In a significant move to combat workplace sexual harassment, Amendments to the Work Health and Safety Regulation 2011 (as per the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024) will soon commence on 1 March 2025. The amendments require Queensland businesses and employers to prepare a written prevention plan to manage the risk of sexual harassment and sex or gender-based harassment at work. These changes mark a crucial step in strengthening worker protection and fostering safer work environments across the state.

Key Requirements

This new requirement builds upon previous amendments that came into force on September 1, 2024, which obligated employers to proactively implement control measures to minimize such harassment.

Prevention Plan Components

The prevention plan must include several key elements:

Written Format : The plan must be documented in writing.
Risk Identification : Each identified risk must be clearly stated.
Control Measures : The plan should outline implemented or planned control measures for managing identified risks.
Consideration Factors : Businesses must identify the factors considered in determining control measures, such as age, gender, sexual orientation, and workplace diversity.
Consultation Process : A description of the consultation undertaken with workers regarding WHS matters.
Reporting Procedures : Clear procedures for dealing with reports of sexual harassment and sex or gender-based harassment.
Accessibility : The plan must be readily accessible and understandable to all workers.

Compliance Recommendations

To ensure compliance with these new regulations, businesses should:

Actively manage the risk of sexual harassment and sex or gender-based harassment in the workplace.
Prepare and implement a prevention plan well before the March 1, 2025, deadline.
Notify workers about the prevention plan and ensure they know how to access it once it's prepared and implemented.

It's important to note that failure to prepare and implement a prevention plan may result in penalties. These new regulations underscore Queensland's commitment to creating safer workplaces and preventing sexual harassment, positioning the state as a leader in addressing this critical issue through WHS legislation.

Businesses are advised to start preparing for these changes well in advance of the March 2025 deadline. Consulting with HR experts and legal professionals can help ensure full compliance and effective implementation of these new WHS requirements.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Threshold for tax-free retirement super increases

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 23:23:07 GMT

Threshold for tax-free retirement super increases

The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.

The transfer balance cap - the amount that can be transferred to a tax-free retirement account – is indexed to the Consumer Price Index (CPI) released each December. If inflation goes up, the general transfer balance cap (TBC) is indexed in increments of $100,000 at the start of the financial year.

In December 2024, the inflation rate triggered an increase in the cap from $1.9m to $2m.

Everyone has an individual transfer balance cap. If you have started a retirement income stream, when indexation occurs, any increase only applies to your unused transfer balance cap.

If you are already taking a retirement income stream, indexation applies to your unused TBC - so, you might not benefit from the full $100,000 increase on 1 July 2025.

Where can I see what my cap is?

Your superannuation fund reports the value of your superannuation interests to the Australian Taxation Office (ATO). You can view your personal transfer balance cap, available cap space, and transfer balance account transactions online through the ATO link in myGov.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Is there a problem paying your super when you die?

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 23:18:20 GMT

Is there a problem paying your super when you die?

The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?

The value of superannuation in Australia is now around $4.1 trillion. When you die, your super does not automatically form part of your estate but instead, is paid to your eligible beneficiaries by the fund trustee according to the fund rules, superannuation law, and any death benefit nomination you made.

Complaints to the Australian Financial Complaints Authority (AFCA) about the handling of death benefits surged sevenfold between 2021 and 2023. The critical issue was delays in payments. While most super death benefits are paid within 3 months, for others it can take well over a year. The super laws do not specify a time period only that super needs to be paid to beneficiaries “as soon as practicable” after the death of the member.

How to make sure your super goes to the right place

Death benefits are a complex area. The superannuation fund trustee has discretion over who gets your super benefits unless you have made a valid death nomination. If you don’t make a decision, or let your nomination lapse, then the fund has the discretion to pay your super to any of your dependants or your estate.

There are four types of death nominations:

1. Binding death benefit nomination

Directs your super to your nominated eligible beneficiary, the trustee is bound by law to pay your super to that person as soon as practicable after your death. Generally, death benefit nominations lapse after 3 years unless it is a non-lapsing binding death nomination.

2. Non-lapsing binding death benefit nomination

If permitted by your trust deed, a non-lapsing binding death benefit nomination will remain in place unless you cancel or replace it. When you die, your super is directed to the person you nominate.

3. Non-binding death nomination

A guide for trustees as to who should receive your super when you die but the trustee retains control over who the benefits are paid to. This might be the person you nominate but the trustees can use their discretion to pay your super to someone else or to your estate.

4. Reversionary beneficiary

If you are taking an income stream from your superannuation at the time of your death (pension), the payments can revert to your nominated beneficiary at the time of your death and the pension will be automatically paid to that person. Only certain dependants can receive reversionary pensions, generally a spouse or child under 18 years.

Who is eligible to receive your super?

Your super can be paid to a dependant, your legal representative (for example, the executor of your will), or someone who has an interdependency relationship with you. A dependant for superannuation purposes is “the spouse of the person, any child of the person and any person with whom the person has an interdependency relationship”. An interdependency relationship is where someone depends on you for financial support or care.

What happens if I don’t make a nomination?

If you have not made a death benefit nomination, the trustees will decide who to pay your superannuation to according to state or territory laws. This will be a superannuation dependant or the legal representative of your estate to then be distributed according to your Will.

Where it can go wrong

There have been a number of court cases over the years that have successfully contested the validity of death nominations. For a death nomination to be valid it must be in writing, signed and dated by you, and witnessed. The wording of your nomination also needs to be clear and legally binding. If you nominate a person, ensure you use their legal name. If your super is to be directed to your estate, ensure the wording uses the correct legal terminology.

One of the reasons for delays in paying death benefit nominations cited by the funds is where there is no nomination (or it is expired or invalid), there are multiple potential claimants, and the trustee needs to work through sometimes complex family scenarios.

The bottom line is, young or old, check your nominations with your superannuation fund and make sure you have the right type of nomination in place, and it is valid and correct. While there still might be a delay in getting your super where it needs to go if you die, the process will be a lot quicker and less onerous for your loved ones.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Will credit card surcharges be banned?

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 23:14:46 GMT

Will credit card surcharges be banned?

If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point.

In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?

The push for change

The Reserve Bank of Australia (RBA) launched a review in October 2024 of Merchant Card Payment Costs and Surcharging. The review explores whether existing regulatory frameworks are still fit for purpose given the rate of technological change and complexity, and if there is a need for greater transparency – surcharges, transaction fees, and the way in which payments are regulated, are all up for review. Ultimately, the review is about reducing costs to merchants and consumers.

In general, customers dislike surcharges and would be happy to see them go – they represent a personal loss of value in much the same way a discount is seen as a personal gain. And, they have support for a ban from the large credit card providers and financial institutions with the Australian Banking Association’s (ABA) submission to the RBA review saying, “The current surcharging framework is clearly not working and requires targeted reform. Consumers should never be surcharged for bundled costs like POS systems, business software products or other business incentives.” The reference to “business incentives” is where a higher fee is charged by the payment service provider to provide the merchant with reward points and other incentives.

The push for a ban accelerated when the government announced that it would ban debit card surcharges from 1 January 2026, subject to the outcome of the RBA review later this year.

If surcharges are banned for some or all payment methods, businesses currently charging surcharges will need to either absorb the cost of merchant fees or increase prices. The issue for many businesses is not whether to charge a fee, but the costs of accepting what is now the most common payment method – cash is free to transact, cards are a

facility to transact legal tender, not legal tender in and of themselves.

Small business pays 3 times more

While the average card payment fee in Australia is lower than the United States (which is close to double Australia’s rates), we pay a higher rate than in some other jurisdictions such as Europe. The RBA have flagged there might be room to improve this by capping interchange fees and/or introducing competition into how debit card payments are routed (allowing systems to default to the ‘least cost’ option available).

In Australia, it is not a level playing field when it comes to card transaction fees with a large disparity between fees paid by small and large merchants – small merchants pay around three times the average per transaction fee than larger merchants (large merchants are able to secure wholesale fees or utilise ‘strategic’ interchange rates). But even within the small business sector, fees vary dramatically with the cost of accepting card payments ranging from less than 1% to well over 2% of the transaction value.

How we use cards and digital transactions

The RBA are generally in favour of allowing surcharges, pointing out that they signal to consumers which payment methods offer better value and enable market forces to determine the dominant payment providers. And, this might be true for large purchases, but do we really notice when we’re tapping our phones or watches to grab that morning coffee?

Cards (including debit, prepaid, credit and charge cards) are the most frequently used payment method in Australia, accounting for three-quarters of all consumer payments in 2022.

According to the Australian Banking Association:

• Contactless payments now account for 95% of in-person card transactions, compared to less than 8% in 2010.

• Online payments, as a share of retail payments, have grown from 7% in 2010 to 18% in 2022.

• Mobile wallet (Apple Pay, Google Pay, etc.,) usage has grown from 1% of point-of-sale payments in 2016 to 44% in October 2024.

• Buy Now, Pay Later (BNPL) services, virtually unknown 8 years ago, are now used by nearly a third of Australians.

When are surcharges allowed

In the days before the RBA’s surcharge standard, it was not uncommon for businesses to apply a flat 3% surcharge.

The surcharge rules enable merchants to surcharge consumers for the “reasonable cost of accepting card payments”.

This means:

• A business can only charge a surcharge for paying by card/digital wallet, but the surcharge must not be more than what it costs the business to use that payment type. These costs, measured over a 12 month period, can include gateway costs, terminal costs paid to a provider, and fraud prevention etc., if they relate directly to the card type being surcharged.

• Payment suppliers must provide merchants with a statement at least every 12 months that includes the business’s average percentage cost of accepting each payment type.

• If a business charges a payment surcharge, it must be able to justify how the surcharge fee was calculated.

• If the surcharge applies to all payment types regardless of type, it must not be more than the lowest surcharge set for a single payment type.

• If there is no way for a customer to pay without incurring a surcharge, the business must include the surcharge in the displayed price. That is, if your customer cannot use cash or another payment method that does not incur a surcharge, then the price displayed must include the surcharge.

The RBA estimates that, on average, card fees cost:

Card type Fee

Eftpos less than 0.5%

Visa and Mastercard debit between 0.5% and 1%

Visa and Mastercard credit between 1% and 1.5%.

Source: RBA

Excessive surcharging is banned on eftpos, Debit Mastercard, Mastercard Credit, Visa Debit and Visa Credit. The Australian Competition and Consumer Commission (ACCC) reportedly stated that excessive surcharge complaints increased to close to 2,500 in the 18 months from the start of 2023.

Tax on surcharges

If your business charges goods and services tax (GST) on goods or services, then GST should also apply to any surcharge payments made.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Why the ATO is targeting babyboomer wealth

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 23:05:59 GMT

Why the ATO is targeting babyboomer wealth

“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke.

The Australian Taxation Office (ATO) thinks that wealthy babyboomer Australians, particularly those with successful family-controlled businesses, are planning and structuring to dispose of assets in a way in which the tax outcomes might not be in accord with the ATO’s expectations.

If you are within the ATO’s Top 500 (Australia's largest and wealthiest private groups) or Next 5,000 (Australian residents who, together with their associates, control a net wealth of over $50 million) programs, expect the ATO to be paying close attention to how money flows through the entities you control.

A critical issue for many business owners is how to effectively (and compliantly) benefit from a successful business. In many cases, the owners have spent years building the business and the business has become not only a substantial asset, but a lucrative source of income either through salary and wages, dividends, or through the sale of shares or assets. Generally, under tax law, you can legitimately structure assets if there is a good reason to do so - like for asset protection, but if you tip across the line and the only viable reason for a structure is to reduce tax, then you risk the ATO taking a very close look at your operations or worse, denying any tax benefits under the general anti-avoidance rules in Part IVA of the tax rules, designed to combat “blatant, artificial or contrived” tax avoidance activities.

“We’re seeing that succession planning behaviour is primarily done by group heads who are approaching retirement. They typically own groups that family members are a part of, and wealth is transferred to the next generation to keep it within the family (via trusts and other means),” ATO Private Wealth Deputy Commissioner Louise Clarke said in a recent update.

Key areas of concern include:

• Division 7A loans being settled. That is, a company has been paying money to a shareholder or an associate under a loan account. The ‘loan’ is quickly settled, often via a distribution, to remove it from the accounts.

• Assets moving around the group (often the true value of an asset is not recognised raising the question, why the change if not to avoid capital gains tax on disposal or for some other benefit).

• F amily member interests being restructured.

• Trust deeds being amended.

• A restructure is cited as a reason for late lodgment .

Use of trusts

Trusts are also a key area of concern in 2025. Where a trust which has made a family trust election (FTE) or interposed entity election (IEE) makes a distribution outside of the family group, a 47% Family Trust Distribution Tax applies (tax at the top marginal tax rate plus Medicare).

In addition, the ATO has recently tightened its approach to trust tax returns for closely held trusts to ensure that trustee beneficiary (TB) statements are being completed. These are required when a trust makes a distribution of income or assets to the trustee of another trust, unless an exclusion applies.

For example, a trust which has made an FTE or IEE doesn’t need to make a TB statement. The TB statement will then be used to cross reference against what the beneficiary has declared in its tax return. Where a valid TB statement is not made on time this can trigger a hefty 47% Trustee Beneficiary Non-Disclosure Tax.

Reducing risk

Where you or your family have control over multiple entities, particularly where the value of these entities is significant, it is important that the connections between these - be it in Australia or overseas - are looked at closely to avoid any nasty surprises or lost opportunities.

Transferring control of your business may involve restructuring your business operations – changes to share structures, changes to the trustee and appointor of a trust, changes to partnership structures – or transferring assets to family members via the creation of trusts or other entities. All these events have legal and tax implications that need to be carefully considered. End.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

$13.6m in penalties imposed for false R&D claims

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 23:00:58 GMT

$13.6m in penalties imposed for false R&D claims

A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development ('R&D') tax incentive claims.

The Federal Court recently handed down judgment against the business coach, his company co-director (and former tax agent), and their related companies, ordering that the business coach pay a penalty of $4.5 million, in addition to $9 million in penalties for the related companies.

The company co-director was also ordered to pay $100,000 for their role in promoting the schemes.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

When to lodge SMSF annual returns

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 22:57:17 GMT

When to lodge SMSF annual returns

All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return ('SAR') for the 2023/24 financial year.

The SAR is more than a tax return — it is required to report super regulatory information, member contributions, and pay the SMSF supervisory levy.

However, not all SMSFs have the same lodgment due date:

 Newly registered SMSFs and SMSFs with overdue SARs for prior financial years (excluding deferrals) should have lodged their SAR by 31 October 2024.

 All other self-preparing SMSFs need to lodge their SAR by 28 February 2025 (unless the ATO has asked them to lodge on a different date).

 For SMSFs that lodge through a tax agent, the due date for lodgment of their SAR is generally 15 May or 6 June 2025.

SMSFs that have engaged a new tax agent need to nominate them to confirm they are the authorised representative for the fund.

SMSF trustees must appoint an approved SMSF auditor no later than 45 days before they need to lodge their SAR. Before they lodge, they must ensure that their SMSF's audit has been finalised and the SAR contains the correct auditor details.

If you need assistance with these or any other SMSF issues, please contact our office.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Study/training loans — What's new

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 22:50:35 GMT

Study/training loans — What's new

The indexation rate for study and training loans is now based on the Consumer Price Index ('CPI') or Wage Price Index — whichever is lower.

This change has been backdated to indexation applied from 1 June 2023 for all HELP, VET Student Loan, Australian Apprenticeship Support Loan, and other study or training support loan accounts.

Consequently, indexation rates for 2023 and 2024 have changed to:

 3.2% for 1 June 2023 (reduced from 7.1%); and

 4% for 1 June 2024 (reduced from 4.7%).

Individuals who had a study loan that was indexed on 1 June 2023 or 1 June 2024 do not need to do anything.

Individuals whose study loan is in credit after the adjustment may receive a refund for the excess amount to their nominated bank account, if they have no outstanding tax or Commonwealth debts.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's notice of rental bond data-matching program

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 25 Feb 2025 22:47:36 GMT

ATO's notice of rental bond data-matching program

The ATO will acquire rental bond data from State and Territory rental bond regulators bi-annually for the 2024 to 2026 income years, including details of the landlord and tenant, managing agent identification details, and rental bond transaction details.

The objectives of this program are to (among other things) identify and educate individuals and businesses who may be failing to meet their registration or lodgment obligations.

The ATO expects to collect data on approximately 2.2 million individuals each financial year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO debunks Division 7A 'myths'

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 07 Feb 2025 06:15:31 GMT

ATO debunks Division 7A 'myths'

The ATO has recently published a document 'debunking' various Division 7A 'myths'.

Division 7A of the tax legislation is intended to prevent profits or assets being provided to shareholders or their associates tax free.

A payment or other benefit provided by a private company to a shareholder or their associate can be treated as a dividend for income tax purposes under Division 7A, even if the participants treat it as some other form of transaction (such as a loan, advance, gift or writing off a debt).

Division 7A can also apply if a trust has allocated income to a private company but has not actually paid it, and the trust has provided a payment or benefit to the company's shareholder or their associate (as well as in other circumstances).

Myth 1: If I own a company, I can use the company money any way I like.

ATO response: A company is a separate legal entity, and there will be consequences every time the taxpayer takes money or accesses other benefits from their private company.

Myth 2: Division 7A only applies to the shareholders of my private company.

ATO response: Division 7A applies to both shareholders and their 'associates'. The definition of an 'associate' is broad.

Myth 3: I don't need to keep records when my private company makes payments, loans or provides other benefits to other entities.

ATO response : Taxpayers are legally required to keep records of all transactions relating to their tax affairs when they are running a business.

Myth 4: I can avoid Division 7A by temporarily repaying my loan before the private company lodges its tax return, and using the company’s money to make my repayments.

ATO response: A repayment made on a loan may not be taken into account if similar or larger amounts are reborrowed from the same company after making the repayment.

Myth 5: There are no tax consequences if I use my private company's money to fund another business or income earning activity.

ATO response: Division 7A may apply to any loan a private company makes to its shareholders or their associates, regardless of what the loan recipient uses the amounts for.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

CGT withholding measures now law

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 05 Feb 2025 20:41:15 GMT

CGT withholding measures now law

The Government recently passed legislation making changes to the foreign resident capital gains withholding laws (among other changes). Foreign resident capital gains withholding is relevant for all vendors selling certain taxable real property (e.g., Australian land). These amendments take effect from 1 January 2025.

Even Australian residents can be caught by these laws because, if they do not have a valid 'clearance certificate' issued by the ATO at, or before settlement, tax must be withheld from the sale proceeds by the purchaser and paid to the ATO.

The new legislation increases the foreign resident capital gains withholding rate to 15% (from 12.5%), and completely removes the threshold (currently $750,000) before which withholding applies. This means that all disposals of taxable real property are potentially subject to foreign residents' capital gains withholding requirements regardless of the market value of the CGT asset.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Clearance certificates required for all Australian property sales from 1 January 2025

liz@rgaaccounting.com.au (Liz Gibbs) — Tue, 14 Jan 2025 04:24:48 GMT

Clearance certificates required for all Australian property sales from 1 January 2025

If a clearance certificate is not provided, 15% of the sales price (or market value if not at arm’s length) will need to be withheld (up from 12.5%).

Previously, clearance certificates were only required where the value of the property is $750,000 or more.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Tax and tinsel Q&As

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 11 Dec 2024 23:17:41 GMT

Tax and tinsel Q&As

Can you avoid giving the Australian Tax Office a gift this Christmas?

The top Christmas party questions

What can I do to make the staff Christmas party tax deductible or tax-free?

Not have one? Ok, seriously, it’s likely that you will pay tax one way or another; it’s just a question of how. If you structure your celebrations to avoid fringe benefits tax (FBT), then you normally can’t claim a tax deduction for the expense or goods and services tax (GST) credits.

No FBT

If you host your Christmas party in the office on a working day, then FBT is unlikely to apply to the food and drink. Taxi travel that starts or finishes at an employee’s place of work is also exempt from FBT - helpful if you have a few team members that need to be loaded into a taxi after overindulging in Christmas cheer.

If you host your Christmas party outside of the office and keep the cost per head under $300 (the FBT minor benefit limit) then FBT often won’t apply to the cost of entertaining your employees.

But, if you do not incur FBT, you cannot claim GST credits or a tax deduction for the Christmas party expense.

Tax deductible

If your business hosts slightly more extravagant parties away from the business premises and the cost goes above the $300 per person minor benefit limit, you will pay FBT but you can also claim a tax deduction and GST credits for the cost of the event.

Are the costs of client gifts deductible?

It depends on the gift and why you’re giving it. If you send a client a gift, the gift is tax deductible if you have an expectation that the business will benefit; it’s marketing. While this seems like a mercenary way to look at Christmas giving, it is the business giving the gift, not you personally. This assumes that the gift is not a gift of entertainment like golf, or restaurants, which would not be deductible.

What about gifts for staff? Are they tax deductible?

The key to Christmas presents for your team is to keep the gift spontaneous, ad hoc, and from a tax perspective, below the $300 FBT minor benefit limit. So, no ongoing gym memberships or giving the same person several of the same gift that adds up to $300 or more unless you want to give a gift to the ATO at the same time. But, you can give gifts at different times throughout the year without triggering FBT as these are counted separately for the minor benefit limit.

A cash bonus will be treated as income in much the same way as salary and wages.

I like to catch up with clients for lunch or a drink (or two) at Christmas. These expenses are deductible, right?

Regardless of whether it’s for Christmas or at any other time of the year, the cost of entertaining your clients – food, drink or other entertainment – is not deductible. The ATO is keen to ensure that taxpayers are not picking up part of the cost of your long lunches or special events while you’re bonding with clients.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO reminder about family trust elections

liz@rgaaccounting.com.au (Liz Gibbs) — Wed, 11 Dec 2024 03:35:04 GMT

ATO reminder about family trust elections

Taxpayers may be considering whether they should make a family trust election ('FTE') for a trust, or an interposed entity election ('IEE') for a trust or other entity.

Making an FTE provides access to certain tax concessions (assuming the relevant tests and conditions are satisfied), although there are important things to consider.

In particular, once the election is in effect, family trust distribution tax ('FTDT') is imposed when distributions are made outside the family group of the 'specified individual'. FTDT is a 47% tax, payable by a trustee, director, or partner, as the case may be (depending on the entity).

Taxpayers should review FTEs and IEEs annually to ensure they remain appropriate. Taxpayers can only revoke or vary FTEs and IEEs in limited circumstances and subject to certain conditions.

Before making a distribution or annual trust resolutions, trustees should identify the members of the specified individual's family group . This will help avoid FTDT liabilities.

Please contact our office if you require any assistance in this regard.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Taxpayer's claims for various 'home business' expenses rejected

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 09 Dec 2024 22:22:37 GMT

Taxpayer's claims for various 'home business' expenses rejected

In a recent decision, the AAT rejected in full a taxpayer's claims for "several classes or categories of deductions."

For the relevant period of 1 July 2021 to 30 June 2022, the taxpayer was (according to his employer) a 'technical architect'.

However, the taxpayer also claimed he worked from home 6am to 11pm seven days a week, 365 days of the year (as he was ‘always on call’), and his income tax return for the 2022 financial year claimed a wide range of deductions, totalling approximately $40,000.

The AAT separately considered each category of deductions claimed, and rejected each in turn.

In relation to his home office 'occupancy expenses' (e.g., for home insurance, council rates, waste disposal, water rates, and repairs), the AAT noted that the 'home office' rooms (comprising floorspace occupying 31% of the dwelling’s total floor area) were not physically separate from the remainder of the dwelling, which the taxpayer shared with four other members of his family.

Home office running expenses (e.g., gas, power and internet) were disallowed on the grounds that the taxpayer had "not properly established an entitlement to such deductions or otherwise appropriately apportioned them between private or work-related activities." The AAT found his 100% claim for the internet, on the basis that the other members of the household did not use the internet connection, "very difficult to accept".

In relation to plant and equipment expenses, the evidence was "largely non-existent."

In relation to consumable expenses, the AAT noted that they appeared to be for goods or services of a private or domestic nature (including medications, toilet paper, milk, tea, sugar and insect spray).

The AAT also rejected the taxpayer's claim for "payments made to his spouse for tax management, office cleaning and document management/storage", noting that the services provided were generally of a private or domestic nature, and that the rendering of invoices by the spouse "has a degree of artificiality to it".

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

SMSFs cannot be used for Christmas presents!

liz@rgaaccounting.com.au (Liz Gibbs) — Sun, 08 Dec 2024 20:29:41 GMT

SMSFs cannot be used for Christmas presents!

There are very limited circumstances where taxpayers can legally access their super early, and the ATO is reminding taxpayers that "paying bills and buying Christmas presents doesn't make the list."

Generally, taxayers can only access their super when they:

reach preservation age and 'retire'; or
turn 65 (even if they are still working).

To access their super legally before then, taxpayers must satisfy a 'condition of release'. SMSF members who illegally access their benefits may be liable for additional income tax and administrative penalties, and they could be disqualified as a trustee.

For taxpayers who have illegally accessed their super, returning it to the fund may be considered a new contribution. Depending on their contribution caps, this may result in additional tax on excess contributions.

Taxpayers should beware of people promoting 'early access schemes' to withdraw their super early (other than by legal means). They can protect themselves from promoters of such schemes by:

stopping any involvement with the scheme, organisation or person who approached them;
not signing any documents, and not providing any of their personal details such as their tax file number; and
making a 'tip-off' to the ATO online or by phoning the ATO on 13 10 20 .

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's tips for small businesses to 'get it right'

liz@rgaaccounting.com.au (Liz Gibbs) — Sat, 07 Dec 2024 20:21:02 GMT

ATO's tips for small businesses to 'get it right'

While the ATO knows most small businesses try to report correctly, it understands that mistakes can happen. The ATO advises taxpayers that it is important to get the following 'basics' right:

using digital tools and business software to help track and streamline processes to increase the efficiency of their business;
keeping accurate and complete records, which will help taxpayers meet their tax and super obligations and make lodging easier; and
getting the right advice from trusted resources such as their registered tax professional or the ATO's website , which can help taxpayers navigate change and uncertainty at any stage of the business life cycle.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder of December 2024 Quarter Superannuation Guarantee ('SG')

liz@rgaaccounting.com.au (Liz Gibbs) — Fri, 06 Dec 2024 01:06:45 GMT

Reminder of December 2024 Quarter Superannuation Guarantee ('SG')

Employers are reminded that employee superannuation contributions for the quarter ending 31 December 2024 must be received by the relevant super funds by 28 January 2025. If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.

The SG rate is 11.5% for the 2025 income year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Can staff celebrations attract FBT?

Thu, 05 Dec 2024 03:52:14 GMT

Can staff celebrations attract FBT?

With the holiday season coming up, employers may be planning to celebrate with their employees.

Before they hire a restaurant or book an event, employers should make sure to work out if the benefits they provide their employees are considered entertainment-related, and therefore subject to fringe benefits tax ('FBT'). This will depend on:

the amount they spend on each employee;
when and where the celebration is held;
who attends — is it just employees, or are partners, clients or suppliers also invited?
the value and type of gifts they provide.

Employers who do provide entertainment-related fringe benefits should keep records detailing all of this information so they can calculate their taxable value.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

What makes or breaks Christmas?

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 25 Nov 2024 23:07:51 GMT

What makes or breaks Christmas?

The cost of living has eased over the past year but consumers are still under pressure. For business, planning is the key to managing Christmas volatility. The countdown to Christmas is on and we’re in the midst of a headlong rush to maximise any remaining opportunities before the Christmas lull. Busy period or not, Christmas causes a period of dislocation and volatility for most businesses. The result is that it is not ‘business as usual’ and for many, volatility can create problems.

Added to this dislocation are cost of living pressures impacting consumers. Employee households are the hardest hit experiencing mortgage cost fuelled increases – spiked by the rollover of fixed rate loans to higher variable rate loans. While there has been some relief from energy subsidies and a reduction in fuel prices, underlying inflation remains persistently above the RBA’s target rate. Services inflation - the cost of your rent, insurance, your hairdresser, etc. – is sitting at around 5%. With the Reserve Bank of Australia (RBA) Board keeping rates on hold for now and hinting that it will be some time yet before they are comfortable reducing rates, consumers want a reason to spend based on value for money. The irony is that if we all spend up big, which a recent Roy Morgan poll suggests we are, there is a risk this elevated spending will further delay rate cuts. But, while we might spend more, some of this increase is simply to compensate for inflation - we need to spend more to buy at the same level as previous years.

The discounting trend

Consumers expect a bargain and can generally find one. If you choose to discount stock (or the market forces you to), it’s essential to know your profit margins to determine what you can afford to give away. A business with a 20% gross profit margin that offers a 15% discount, needs a 300% increase in sales volume simply to maintain the same position. Worst case scenario is that a business trades below its breakeven point and generates losses.

Increased sales from discounting can be great if you know your numbers, have excess or older stock that needs to be moved, generates demand, or drives new customers to you.

Also think about how you create value; it does not always have to be a direct discount on a product. Packaging might be a better option than a straight discount where you can increase sales of multiple items, even better if you can combine higher demand with lower demand stock. Quantity discounts, value added are also options.

The Christmas cost hangover

Costs tend to go up over Christmas. More staff, lower efficiency, downtime from non-trading days, increased promotional costs, all mean that the cost of doing business increases. It’s great to get into the Christmas spirit as long as you don’t end up with a New Year hangover. Cost control is important.

Many businesses also bring in casual staff. It’s essential that you pay staff at the correct rates and meet your Superannuation Guarantee obligations.

Check the pay calculator to make sure you have it right.

New Year cashflow crunch

The New Year often leads into a quieter trading and tighter cashflow period. The March quarter is often the toughest cashflow quarter of the year. You will need a cash buffer. Don’t over commit yourself in the run up to the end of the year and start the new Year with a problem.

Take a lesson from Scrooge

If you work with account customers, start your debtor follow up early. If your customers are under cashflow pressure, the Christmas period will only exacerbate it. The creditors that chase debt hard and early will get paid first. Don’t be the last supplier on the list; the bucket might be empty by then.

Christmas is a great time of year. Just don’t get caught up in the rush and forget about the basics.

Trading stock headaches

If business activity spikes over the Christmas period and you sell goods, then there is a temptation to increase stock levels. That makes sense as long as you don’t go too far. Too much stock post the Christmas period and you will either be carrying product that is out of season, or you will have too much cash tied up in trading stock. Try to work with suppliers that can supply on short notice.

Managing your trading stock is not just about managing cost. If your customers are in your store but can’t find what they need, have an online option available in store to take the sale.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Payday super: the details

Mon, 25 Nov 2024 23:02:50 GMT

Payday super: the details

‘Payday super’ will overhaul the way in which superannuation guarantee is administered. We look at the first details and the impending obligations on employers.From 1 July 2026, employers will be obligated to pay superannuation guarantee (SG) on behalf of their employees on the same day as salary and wages instead of the current quarterly payment sequence.

The rationale is that speeding up the payment sequence for SG will not only help reduce the estimated $3.4 billion gap between what is owed to employees and what has been paid, but will also improve outcomes for employees – the Government estimates that a 25‑year‑old median income earner currently receiving super quarterly and wages fortnightly could be around 1.5% better off at retirement.

Announced in the 2023-24 Federal Budget, payday super is not yet law. However, given the structural changes required to administer the new law, Treasury has released a fact sheet to help employers better understand the implications of the impending change.

How will payday super work?

Under payday super, the due date for SG payments will be seven days from when an ordinary times earning* payment is made. That is, employers have seven days from an employee’s payday for their SG to be received by their super fund. The only exceptions are for new employees whose due date will be after their first two weeks of employment, and for small and irregular payments that occur outside the employee’s ordinary pay cycle.

Over the last few years, employers have moved to single touch payroll (STP) reporting for employee salary and wages. It is expected that payday super will fold into the existing electronic systems and some changes will be made to STP to collect ordinary times earning data.

The impact for some employers however will not be the compliance cost of administering the regular SG payments, but the cashflow. Employers will not be holding what will be 12% of their payroll until 28 days after the end of the quarter, but instead paying this amount out on the employee’s payday. The upside is that where an employer has either fallen behind or not paying SG, particularly when the business is insolvent, the damage is contained.

What happens if SG is paid late?

The penalties for underpaying or not paying SG are deliberately punitive and this approach will continue under payday super.

Currently, a super guarantee charge (SGC) applies to late SG payments - comprised of the employee’s superannuation guarantee shortfall amount, interest of 10% per annum from the start of the quarter the SG payment was due, and an administration fee of $20 for each employee with a shortfall per quarter. And, unlike normal superannuation guarantee contributions, SGC amounts are not deductible to the employer, even when the liability has been satisfied.

Under payday super, employees are fully compensated for delays in receiving SG amounts and larger penalties apply for employers that repeatedly fail to comply with their obligations. If you make a payment late, the SGC is made up of:

Outstanding SG shortfall - Calculated based on OTE, rather than total salaries and wages as it is currently.
Notional earnings - Daily interest on the shortfall amount from the day after the due date, calculated at the general interest charge rate on a compounding basis.
Administrative uplift - An additional charge levied to reflect the cost of enforcement and calculated as an uplift of the SG shortfall component of up to 60%, subject to reduction where employers voluntarily disclose their failure to comply.
General interest charge - Interest will accrue on any outstanding SG shortfall and notional earnings amounts, as well as any outstanding administrative uplift penalty.
SG charge penalty - Additional penalties of up to 50% of the outstanding unpaid SG charge, that apply where amounts are not paid in full within 28 days of the notice of assessment.

As you can see, if the proposed SGC becomes law, late SG payments can spiral out of control quickly. This will be a particular issue for employers that pay employees less than their entitlements over time, or have misclassified employees as contractors and have an outstanding SG obligation.

But, unlike the current SGC, the new SGC will be tax deductible (excluding penalties and interest that accrue if the SG charge amount is not paid within 28 days).

Payday super is not yet law. We will keep you up to date as change occurs and work with you to get it right once the details have been confirmed.

*Ordinary time earnings are the gross amount your employees earn for their ordinary hours of work including over-award payments, commissions, shift loading, annual leave loading and some allowances and bonuses.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

AAT rejects taxpayer's claims for work-related expenses

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 25 Nov 2024 22:58:54 GMT

AAT rejects taxpayer's claims for work-related expenses

In a recent decision, a taxpayer's claims for various work-related expenses were rejected by the AAT.

The taxpayer was employed as a traffic controller in the 2020 income year. In his income tax return for that year he claimed $9,800 in work-related deductions, including for car expenses (using the cents per km method), travel expenses, clothing expenses and self-education expenses, as well as supplemental deductions.

The ATO disallowed all of the deductions, and the taxpayer then appealed to the AAT.

The AAT agreed that all of the taxpayer's claims for work-related expenses should be disallowed, largely because the taxpayer failed to substantiate these expenses, whether by way of receipts/bank statements or any other form of evidence.

Also, in relation to the claim for car expenses, the AAT noted that the taxpayer had been using company vehicles at least some of the time. The AAT also noted that there had generally been "no attempt to apportion work use against private use. . . Even if I could satisfy myself of some apportionment, the amount would likely be so insignificant that it would not result in any real deduction in taxable income."

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Eligibility for compassionate release of superannuation

Mon, 25 Nov 2024 22:53:19 GMT

Eligibility for compassionate release of superannuation

The ATO has been responsible for the administration of the early release of superannuation on compassionate grounds since 1 July 2018.

It will only approve a release of superannuation on compassionate grounds if the applicant meets all the conditions set out in the regulations, including that the applicant has no other means to pay the expenses.

The five main grounds of eligibility are:

medical treatment or transport (i.e., to treat a life-threatening illness or injury, or alleviate acute or chronic pain or mental illness) for the applicant or their dependant;
accommodating a disability for the applicant or their dependant;
palliative care for a terminal illness for the applicant or their dependant;
funeral expenses for a dependant of the applicant; or
preventing foreclosure or forced sale of the applicant's home.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

FBT on plug-in hybrid electric vehicles

Mon, 25 Nov 2024 22:51:01 GMT

FBT on plug-in hybrid electric vehicles

From 1 April 2025, a plug-in hybrid electric vehicle ('PHEV') will not be considered a zero or low emissions vehicle under fringe benefits tax ('FBT') law and will not be eligible for the electric car FBT exemption. However, an employer can continue to apply the electric car exemption if:

 use of the PHEV was exempt from FBT before 1 April 2025; and
 they have a financially binding commitment to continue providing private use of the vehicle to an employee or their associate on and after 1 April 2025 (note that any optional extension of the agreement is not considered binding).

If there is a change to a pre-existing commitment on or after 1 April 2025, the FBT exemption for the PHEV will no longer apply from the date of that new commitment.

An employer is not entitled to an exemption from FBT after 1 April 2025 if there was no binding financial commitment to provide the car to a particular employee in place before then.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's notice of government payments data-matching program

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 25 Nov 2024 22:47:45 GMT

ATO's notice of government payments data-matching program

The ATO will acquire government payments data from government entities which administer government programs for the 2024 to 2026 income years, matching data on government payments made to service providers against ATO records, including service provider identification details and payment transaction details.

The ATO estimates that records relating to approximately 60,000 service providers will be obtained each financial year, including approximately 9,000 individuals, with the remainder consisting of companies, partnerships, trusts and government entities.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Deductions for financial advice fees

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 25 Nov 2024 22:45:09 GMT

Deductions for financial advice fees

The ATO has provided guidance about when an individual not carrying on an investment business may be entitled to a deduction for fees paid for financial advice.

An individual is entitled to a deduction for fees for financial advice to the extent that the loss or outgoing is incurred in gaining or producing assessable income, unless the loss or outgoing is of a capital, private or domestic nature.

Fees for financial advice an individual incurs may also be deductible to the extent that the advice relates to managing their 'tax affairs' (e.g., fees for advice in relation to salary sacrifice arrangements).

However, fees for financial advice on a proposed investment prior to the acquisition of an asset, or about how to invest additional funds to grow an investment portfolio, will not be deductible.

The individual must also have sufficient evidence of the expenditure to claim the expense as a deduction, such as a properly itemised invoice.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Lodging and paying business activity statements ('BASs')

liz@rgaaccounting.com.au (Liz Gibbs) — Mon, 25 Nov 2024 22:42:32 GMT

Lodging and paying business activity statements ('BASs')

The ATO is reminding taxpayers that it is important to lodge BASs and pay in full and on time to avoid penalties and interest charges.

The BAS for the first quarter of 2024/25 is generally due on 28 October, but taxpayers may receive an extra:

four weeks if they lodge through a registered tax or BAS agent until 25 November; or
two weeks if they lodge online.

The cost of managing tax affairs is tax deductible for taxpayers, and a registered agent's help will allow them to focus on running their business.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Hiring employees for the festive season

Mon, 25 Nov 2024 22:37:42 GMT

Hiring employees for the festive season

As the festive season approaches, employers that hire new employees to help with their business should remember the following when it comes to their employer tax and super obligations:

Employers should make sure they are withholding the right amount of tax from payments they make to their employees and other payees, especially as this will help their employees meet their end-of-year tax liabilities;
Employers must pay super guarantee (currently at 11.5%) to all eligible employee's super funds in full and on time to avoid paying the super guarantee charge; and
If employers are still not reporting through single touch payroll ('STP') and they do not have an approved exemption, deferral or concession in place, they should start reporting now. If they have just started a business or recently employed staff, they will need to report through STP from their first payday.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

01 Succession: the series

Tue, 29 Oct 2024 20:21:38 GMT

01 Succession: the series : Inheriting property

Ok, not that Succession series. Each month we’ll bring you a new perspective on transferring property. Be it estate planning, managing an inheritance, or the various forms of business succession. This month, we look at the tax consequences of inheriting property.

Beyond the difficult task of dividing up your assets and determining who should get what, it’s essential to look at the tax consequences of how your assets will flow through to your beneficiaries.

When assets pass from a deceased individual to a beneficiary of the estate, the tax impact will generally depend on the nature of the asset and the tax characteristics of the beneficiary, such as their residency status.

Inheriting cash

When cash passes from a deceased individual to their estate and then to a beneficiary, generally, there should not be any direct tax issues to deal with, assuming that the cash is denominated in AUD.

Inheriting assets

Death is a taxing event. When a change of ownership of an asset occurs, generally, a capital gains tax event (CGT) is triggered. However, the tax rules provide some relief from CGT when someone dies. The basic rule is that a capital gain or loss triggered by a death is disregarded unless the asset is transferred to one of the following:

An exempt entity (although there are some exceptions to this where the entity is a charity with deductible gift recipient status);
The trustee of a complying superannuation fund; or
A foreign entity and the asset is not classified as taxable Australian property.

The exemption applies if the asset passes to the deceased’s legal personal representative (i.e., executor) or to a beneficiary of the estate, which is not one of the entities listed above.

Once the asset has been transferred to the beneficiary, the beneficiary will need to manage the tax impact when they sell the asset.

Inheriting shares

Let’s assume you inherit an ASX listed share portfolio under your mother’s will. The tax outcome will depend on whether your mother was an Australian resident for tax purposes when she died, and whether the shares were acquired by your mother before or after 20 September 1985 (i.e., pre-CGT or post-CGT).

If your mother was an Australian resident for tax purposes when she died, and the shares were acquired post-CGT, then the cost base of the shares is normally based on the original purchase price. That is, the tax rules treat the inherited shares as if you purchased them. For example, if your mother purchased BHP shares for $17.82 on 2 January 1997, when you sell the shares, the gain is calculated based on your mother’s purchase price of $17.82.

If your mother was a resident of Australia when she died, and the shares were acquired pre-CGT, then the cost base of the shares is normally reset to their market value at the date of death. That is, if your mother passed away on 1 October 2024, the share price at close was $45.96. If you subsequently sold the shares in three years, the gain or loss is calculated using this value.

If your mother was a non-resident when she died, then the cost base of the shares is normally based on their market value at the date of death.

But it’s not all about the tax. Managing shares in your will can be difficult as prices and allocations change over time, and the companies you are invested in evolve. A portfolio that was once worth a small amount 20 years ago, might be worth significantly more when you die.

Inheriting property

Let’s assume you inherit an Australian residential property from your father under his will. For certain tax purposes, you are taken to have acquired the property at the date of his death.

The general rule is that the executor and/or beneficiaries of the estate inherit the cost base and reduced cost base of the CGT assets (the house) owned by the deceased just before their death, but this isn’t always the case, especially when it comes to pre-CGT properties and a property that was the main residence of the deceased individual just before they died.

Special rules exist that enable some beneficiaries or estates to access a full or partial main residence exemption on the inherited property. If the house was your father’s main residence before he died, he did not use the home to produce income (did not rent it out or use it as a place of business) and he was a resident of Australia for tax purposes, then a full CGT exemption might be available to the executor or beneficiary if either (or both) of the following conditions are met:

The house is disposed of within two years of the date of death; or
The dwelling was the main residence of one or more of the following people from the date of death until the dwelling has been disposed of:
The spouse of the deceased (unless they were separated);
An individual who had a right to occupy the dwelling under the deceased’s will; or
The beneficiary who is disposing of the dwelling.

For example, if the house was your father’s main residence and was eligible for the full main residence exemption when he died, if you sell the house within the 2 year period, no CGT will apply. However, if you sell the house 10 years later, the CGT impact will depend on how the property has been used since the date of your father’s death.

An extension to the two year period can apply in limited certain circumstances, for example when the will is contested or is complex.

If your father did not live in the property just before he died, it still might be possible to apply the full exemption if your father chose to continue treating the home as his main residence under the ‘absence rule’. For example, if he was living in a retirement village for a few years but maintained the property as his main residence for CGT purposes (even if it was rented out).

If your father was not an Australian resident for tax purposes when he died, the cost base for CGT purposes will normally be based on the purchase price paid by your father if he acquired it post-CGT.

Inheriting foreign property

If you are an Australian resident who has inherited a foreign property or asset from an individual who was a non-resident just before they died, the cost base is normally taken to be the market value at the time of death. For example, if you inherited a house from your uncle in the UK, the cost base is likely to be the value of the house at the date of his death.

If a taxable gain arises on sale, then it is necessary to consider whether the CGT discount can apply, but the discount will sometimes be less than 50%. If the gain is also taxed overseas, then a tax offset can sometimes apply to reduce the amount of tax payable in Australia.

Managing an inheritance can become complex. For assistance with estate planning, or to understand the tax implications of an inheritance, please contact us.

Note: 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.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

More women using ‘downsizer’ contributions to boost super

Thu, 24 Oct 2024 20:22:58 GMT

More women using ‘downsizer’ contributions to boost super

If you are aged 55 years or older, the downsizer contribution rules enable you to contribute up to $300,000 from the proceeds of the sale of your home to your superannuation fund (eligibility criteria applies).

In 2023-24, over 57% of people making a ‘downsizer’ contribution to super were women. And, the average value of the contribution was marginally higher at $262,000 versus $259,000 contributed by men.

The most likely age someone makes a downsizer contribution is between 65 and 69. From age 65, a downsizer contribution can be withdrawn from super if your circumstances change, even if you are still working. Those aged 55 to 64 generally won’t have access to these funds until they are at least 60 and retired.

Downsizer contributions are excluded from the existing upper age test, work test, and the total super balance rules (but the amount that can be moved to a retirement pension is limited by your transfer balance cap).

For couples, both members of a couple can take advantage of the concession for the same home. That is, if you or your spouse meet the other criteria, both of you can contribute up to $300,000 ($600,000 per couple). This is the case even if one of you did not have an ownership interest in the property that was sold (assuming they meet the other criteria).

To be eligible to make a downsizer contribution you do not have to buy another home once you have sold your existing home, and you are not required to buy a smaller home - you could buy a larger and more expensive one and make a downsizer contribution if you have access to other funds.

Please contact us if you would like the facts about downsizer contributions, or speak to your financial adviser for advice on your personal scenario.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The ban on genetic test insurance discrimination

Mon, 14 Oct 2024 20:23:59 GMT

The ban on genetic test insurance discrimination

The ability for life insurers to discriminate based on adverse predictive genetic test results will be banned under a new Government proposal. Predictive genetic tests detect gene variants associated with heritable disorders that appear after birth, often later in life, but are not clinically detectable at the time of testing. To overcome concerns about discrimination by life insurers, the Government has announced a total ban on predictive genetic testing.

Life insurance and genetic testing

Voluntary insurance, including life insurance is individually underwritten and ‘risk-rated’. The cost of premiums is proportionate to the unique risks of the person seeking the cover. Most of us would be familiar with the questions about family history, personal medical history and habits.

As life insurance is a guaranteed renewable product, once a policy has been underwritten and commenced, the life insurer cannot change or cancel a person’s cover, provided they pay all future premiums when due – premium prices will change across a risk pool, for example based on age. This is why it’s important to carefully assess changing life insurance policies if health issues or conditions have arisen since you put the original policy in place.

In 2019, Australia’s life insurance industry introduced a partial moratorium on the requirement to disclose genetic test results. The moratorium, which is in place for life insurance applications received from 1 July 2019, prevents genetic results being used for certain types of insurance cover below certain thresholds. However, using APRA data, when compared to the average sum insured, the moratorium coverage thresholds are well below par:

Policy cover Moratorium limit APRA average

Death $500,000 $713,959

Total permanent disability $500,000 $849,128

Trauma and/or critical illness $200,000 $207,414

Disability income insurance $4,000* a month $7,706 a month

* any combination of income protection, salary continuance or business expenses cover.

Genetic test discrimination

Despite the moratorium, there is evidence that people are not undertaking genetic tests or participating in scientific research because of concerns about obtaining affordable life insurance. And, discrimination still exists.

The Australian Genetics and Life Insurance Moratorium: Monitoring the Effectiveness and Response Report by Monash University found that of the consumers surveyed who had undertaken a genetic test, 35% reported difficulties obtaining life insurance including insurers rejecting life insurance applications, financial advisers advising participants that their applications would be rejected, and insurers placing conditions on insurance policies or charging higher premiums. Alarmingly, a 43 year old woman with a BRCA2 variant and no personal history of cancer, was denied life cover outright despite having her ovaries and fallopian tubes removed, and regular intensive breast imaging.

The Government response

The Government has stepped in and announced a total ban on the use of genetic testing in life insurance underwriting. The ban will be subject to a 5 year review. However, the Government has not introduced legislation enabling the reforms nor has it announced the date that the ban will take effect.

And, the total ban impacts predictive genetic testing only – it does not cover clinical diagnostic genetic testing to confirm a suspected condition based on signs or symptoms.

A global issue

Australia is not the first country to grapple with the issue of adapting to the increase in available genetic data.

In the UK, insurers cannot use predictive genetic test results unless the result is favourable, or the result has been given to the insurer (voluntarily or accidently). Huntington’s disease is a specific exception for life cover worth more than £500,000.

Canada’s Genetic Non-Discrimination Act prohibits any entity (including insurers) from requesting or using genetic test results. The exception is for individuals to voluntarily disclosure a test result showing they do not have a genetic change that runs in the family.

In the USA, the Genetic Information Nondiscrimination Act (GINA), prevents genetic test results being used in health insurance and employment contexts but not life insurance. The US state of Florida however introduced a law prohibiting life insurers from using predictive genetic test results in underwriting.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Payday super: the details

liz@rgaaccounting.com.au (Liz Gibbs) — Sun, 13 Oct 2024 20:29:35 GMT

Payday super: the details

How will payday super work?

What happens if SG is paid late?

The penalties for underpaying or not paying SG are deliberately punitive and this approach will continue under payday super.

Outstanding SG shortfall - Calculated based on OTE, rather than total salaries and wages as it is currently.
Notional earnings - Daily interest on the shortfall amount from the day after the due date, calculated at the general interest charge rate on a compounding basis.
Administrative uplift - An additional charge levied to reflect the cost of enforcement and calculated as an uplift of the SG shortfall component of up to 60%, subject to reduction where employers voluntarily disclose their failure to comply.
General interest charge - Interest will accrue on any outstanding SG shortfall and notional earnings amounts, as well as any outstanding administrative uplift penalty.
SG charge penalty - Additional penalties of up to 50% of the outstanding unpaid SG charge, that apply where amounts are not paid in full within 28 days of the notice of assessment.

But, unlike the current SGC, the new SGC will be tax deductible (excluding penalties and interest that accrue if the SG charge amount is not paid within 28 days).

Payday super is not yet law. We will keep you up to date as change occurs and work with you to get it right once the details have been confirmed.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's notices of data-matching programs

Wed, 02 Oct 2024 05:59:28 GMT

ATO's notices of data-matching programs

The ATO will acquire officeholder data from ASIC and other bodies for the 2024 to 2027 income years, including name, address, date of birth, ABN, contact details, organisation details and officeholder details.

The ATO estimates that records relating to more than 11 million individuals will be obtained. The ATO will acquire property management data from property management software companies for the 2019 to 2026 income years, including property owner identification details, property details, and property transaction details.

The ATO estimates that records relating to approximately 2.3 million individuals will be obtained each financial year. The ATO will acquire lifestyle assets data from insurance providers for the 2024 to 2026 income years. Insurance policy data will be collected for the following classes of assets, where the asset value is equal to or exceeds the nominated thresholds.

Asset class Minimum asset value threshold

Caravans, motorhomes $65,000

Motor vehicles $65,000

Thoroughbred horses $65,000

Fine art $100,000 per item

Marine vessels $100,000

Aircraft $150,000

The data items include client identification details (names, addresses, contact details, dates of birth and ABN) and policy details (including total value insured, description and purchase price of the property insured).

The ATO estimates that the total number of policy records obtained will be approximately 650,000 to 800,000 each financial year, and that approximately 250,000 to 350,000 matched records will relate to individuals.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Valuing fund assets for SMSFs

Wed, 02 Oct 2024 05:53:15 GMT

Valuing fund assets for SMSFs

One of the many responsibilities SMSF trustees have every income year is valuing their fund's assets at market value.

The market value of an asset is the amount that a willing buyer and seller would agree to in an arm's-length transaction. These valuations will be used when preparing the fund's accounts, statements and SMSF annual return ('SAR').

Asset valuations will be reviewed by an approved SMSF auditor as part of the annual audit prior to lodgment of the SAR. The auditor will check that assets have been valued correctly and assess and document whether the basis for the valuations is appropriate given the nature of the asset. The auditor is not responsible for valuing fund assets.

Taxpayers should ensure that they have their valuations done before going to the auditor.

It is the responsibility of the SMSF trustee to provide objective and supportable evidence to their auditor for the valuation of the fund's assets, including all relevant documents requested to prevent delays in auditing the fund. Failure to do so could result in a potential late lodgment of their annual return or a contravention if mistakes have been made.

SMSF trustees should start researching now to find what type of evidence they need to support the valuation as this can take time. For some asset types valuations must be undertaken by a qualified independent valuer.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO security safeguards for victims of fraud recently enhanced

Wed, 02 Oct 2024 05:50:26 GMT

ATO security safeguards for victims of fraud recently enhanced

Where a taxpayer has been the victim of identity, tax or super fraud, the ATO may apply security safeguards to their account to prevent further harm. This may require the impacted taxpayer to contact the ATO each time they need to access their information and cause inconvenience for the taxpayer as well as their tax agents.

The ATO has recently enhanced processes to improve ongoing access to ATO online services. Impacted taxpayers must contact the ATO for initial access and then set a Strong online access strength.

To set a Strong online access strength, taxpayers need to:

set up their myGovID to a Strong identity strength using their Australian passport;
connect their myGovID to their myGov account;
sign in to myGov with their myGovID; and
go to ATO online services.

Once set, taxpayers no longer need to contact the ATO every time they access their information.

Impacted taxpayers must continue to use their Strong myGovID whenever they access ATO online services, or account access will be restricted to maintain ongoing protection of client information.

As noted in our previous blog, myGovID will soon be changing its name to myID.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

myGovId changing its name to myID

Wed, 02 Oct 2024 05:44:48 GMT

myGovId changing its name to myID

The digital identity app 'myGovID' will soon be changing its name to 'myID'. While the name is changing, the login and security will not change.

Taxpayers who have already set up their myGovID and use it to access government online services will not need to do anything when the app changes to myID. They will still have:

the same details — there is no need to set up a new myID. Their login details (including email address) and identity strength remain the same;
continued use — once available their existing app should automatically update to myID or they can manually update it from the APP Store or Google Play; and
access to services — they can still use the app to securely access government online services.

The new name aims to reduce the confusion between myGovID and myGov.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder of September Quarter Superannuation Guarantee ('SG')

Wed, 02 Oct 2024 05:38:10 GMT

Reminder of September Quarter Superannuation Guarantee ('SG')

Employers are reminded that employee super contributions for the 1 July 2024 to 30 September 2024 quarter must be received by the relevant super funds by 28 October 2024 in order to avoid being liable to pay the SG charge .

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Avoid a tax time shock

Wed, 02 Oct 2024 05:34:46 GMT

Avoid a tax time shock

Individual taxpayers can take the following steps right now to ensure the correct amount of tax is being put aside throughout the year:

let their employer know if they have a study or training support loan, such as a HECS or HELP debt;
check they are only claiming the tax-free threshold from one employer;
consider whether the Medicare Levy Surcharge may affect them this financial year (i.e., whether they have the appropriate private health insurance);
check their income tier is correct for their private health insurance rebate; and
consider voluntarily entering PAYG instalments and pre-paying tax throughout the year to avoid a large tax bill at tax time for investment or business income.

If you would like to discuss or implement any of these steps and strategies in more detail, please feel free to contact our office.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

$81.5m payroll tax win for Uber

Tue, 10 Sep 2024 06:47:23 GMT

$81.5m payroll tax win for Uber

Multinational ride-sharing system Uber has successfully contested six Revenue NSW payroll tax assessments totalling over $81.5 million. The assessments were issued on the basis that Uber drivers were employees and therefore payroll tax was payable.

The Payroll Tax Act 2007 (NSW) imposes the tax on all taxable wages paid or payable by an employer. The Act also extends to contractors by capturing payments made “by a person who, during a financial year, supplies services to another person under a contract (relevant contract) under which the first person (designated person) has supplied to the designated person the services of persons for or in relation to the performance of work.”

So, are Uber drivers employees? The New South Wales Supreme Court says no. Among the reasons is that, “amounts paid or payable by Uber to the drivers or partners were not for or in relation to the performance of work …and are not taken to be wages paid or payable.”

The payroll tax assessments were revoked.

Uber is a special case because of its method of operation. Businesses working with contractors need to be vigilant that they have assessed the relationship with their contractors correctly.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Is the RBA to blame? The economic state of play

Tue, 10 Sep 2024 06:44:01 GMT

Is the RBA to blame? The economic state of play

The politicians have weighed in on the Reserve Bank of Australia’s economic policy and their reticence to reduce interest rates in the face of community pressure. We look at what the numbers are really showing.

Treasurer Jim Chalmers has stated that global uncertainty and rate rises are “smashing the economy”.

Former Treasurer Wayne Swan weighed in and told Channel 9 that the RBA was, “putting economic dogma over rational economic decision making, hammering households, hammering Mums and Dads with higher interest rates, causing a collapse in spending and driving the economy backwards” and that the RBA was, “simply punching itself in the face.”

Australian mortgage holders and renters have had no relief from interest rates following 13 successive interest rate rises to the official cash rate since May 2022.

The Reserve Bank’s position and the flow through effects
The Reserve Bank of Australia (RBA) Board opted to maintain the official cash rates at 4.35% at its September Board meeting. The rationale is that inflation remains persistently high and has been for the last 11 quarters. The consumer price index (CPI) rose 3.9% over the year to the June quarter and remains above the RBA’s target range of 2-3%.

But, it is not persistently high inflation that is causing the politicians to weigh in. RBA Governor Michele Bullock has warned that “it is premature to be thinking about rate cuts” and “the Board does not expect that it will be in a position to cut rates in the near term.”

The Australian Bureau of Statistics (ABS) June Quarter National Accounts paint a bleak picture of the Australian economy. Per capita GDP fell for the sixth consecutive quarter by -0.4% to -1.5%. The longest consecutive period of extended weakness ever recorded.

Household spending weakest since COVID Delta
Household spending fell by -0.2% in the quarter, the weakest growth rate since the Delta-variant lockdown affected September quarter 2021.

Discretionary spending – travel and hospitality impacted most
The ABS says that we spent less on discretionary items (-1.1%), particularly for events and travel. It will come as no surprise that spending on hotels, cafes and restaurants was down 1.5%. Spending on food also fell -0.1% as households looked to reduce grocery bills.

Household savings lowest since 2006
The savings ratio remains low. Households saved only 0.9% of their income over the year. This was the lowest rate of annual saving since 2006-07. Net savings reduce when household income grows slower than household spending.

Economic growth from Government spending
The Australian economy did grow by 0.2%, the eleventh consecutive quarter of growth but the growth rate was unimpressive. The ABS says that, “the weak growth reflects subdued household demand, which detracted 0.1 percentage points from GDP growth while government consumption contributed 0.3 percentage points, the same contribution to growth as previous quarter.”

Government spending increased by 1.4% over the quarter. Commonwealth social assistance benefits to households led the rise, with continued strength in expenditure on national programs providing health services. State and local government expenditure also rose with increased employee expenses across most states and territories.

The RBA’s position on interest rates
The RBA is on a narrow path. It’s trying to bring inflation back to target within a reasonable timeframe while preserving the gains in the labour market over the last few years. The RBA expects to reach this target range by the end of 2025.

Through 2022 and 2023, most components of the CPI basket were growing faster than usual (the CPI is literally a basket of 87 types of expenditure across 11 groups such as household spending, education and transport.) Over the last 18 months, the price of goods has come down as supply disruptions like COVID-19 and the war in Ukraine have eased, and are now growing close to the historical average.

The key problem areas are housing costs and services. In housing, the growth is from increased construction costs and strong increases in rent. For services, while discretionary spending is down, as we can see from the June National Accounts, inflation in this category remains high at 5.3% to the June quarter. Wage increases and lower productivity, combined with the increased costs of doing business (electricity, insurance, logistics, rent etc) are all impacting.

The RBA is keen to point out that inflation causes hardship for the most vulnerable in our community. Lower income households tend to allocate more of their spending towards essentials, including food, utility bills and rent. Higher income households tend to spend more on owner-occupied housing as well as discretionary items such as consumer durables.

Younger households and lower income households have been particularly affected by cost-of-living pressures.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Property and ‘lifestyle’ assets in the spotlight

Tue, 10 Sep 2024 06:38:22 GMT

Property and ‘lifestyle’ assets in the spotlight

Own an investment property or an expensive lifestyle asset like a boat or aircraft? The ATO are looking closely at these assets to see if what has been declared in tax returns matches up.

The Australian Taxation Office (ATO) has initiated two data matching programs impacting investment property owners and those lucky enough to hold expensive lifestyle assets.

Investment property

What investment property owners declare and claim in their personal income tax returns is a constant focus for the ATO. Coming off the back of data matching programs reviewing residential investment property loan data, and landlord insurance, the ATO have initiated a new program capturing data from property management software from the 2018-19 financial year through to

2025-26. Data collected will include:

Property owner identification details such as names, addresses, phone numbers, dates of birth, email addresses, business name and ABNs, if applicable;
Details of the property itself - property address, date property first available for rent, property manager name and contact details, property manager ABN, property manager licence number, property owner or landlord bank details; and
Property transaction details - period start and end dates, transaction type, description and amounts, ingoings and outgoings, and rental property account balances.
While the ATO commit to specific data matching campaigns, since 1 July 2016, they have also collected data from state and territory governments who are required to report transfers of real property to the ATO each quarter.

This latest data matching program ramps up the ATO’s focus on landlords, specifically targeting those who fail to lodge rental property schedules when required, omit or incorrectly report rental property income and deductions, and who omit or incorrectly report capital gains tax (CGT) details.

Lifestyle assets

Data from insurance providers is being used to identify and cross reference the ownership of expensive lifestyle assets. Included in the mix are:

Caravans and motorhomes valued at $65,000 or over;
Motor vehicles including cars & trucks and motorcycles valued at $65,000 or over;
Thoroughbred horses valued at $65,000 or over;
Fine art valued at $100,000 per item or over;
Marine vessels valued at $100,000 or over; and
Aircraft valued at $150,000 or over.

The data collected is substantial including the personal details of the policy holder, the policy details including purchase price and identification details, and primary use, among other factors.

The ATO is looking for those accumulating or improving assets and not reporting these in their income tax return, disposing of assets and not declaring the income and/or capital gains, incorrectly claiming GST credits, and importantly, omitted or incorrect fringe benefits tax (FBT) reporting where the assets are held by a business but used personally.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

It wasn’t me: the tax fraud scam

Tue, 10 Sep 2024 06:33:56 GMT

It wasn’t me: the tax fraud scam

You login to your myGov account to find that your activity statements for the last 12 months have been amended and GST credits of $100k issued. But it wasn’t you. And you certainly didn’t get a $100k refund in your bank account. What happens now?

In what is rapidly becoming the most common tax scam, myGov accounts are being accessed for their rich source of personal data, bank accounts changed, and personal data used to generate up to hundreds of thousands in fraudulent refunds. For all intents and purposes, it is you, or at least that’s what it seems. And, the worst part is, you probably gave the scammers access to your account.

But it’s not just activity statements. Any myGov linked service that has the capacity to issue refunds or payments is being targeted. Scammers are using the amendment periods available in the tax law to adjust existing data and trigger refunds on personal income tax, goods and services tax (GST), and through variations to pay as you go (PAYG) instalments. In some cases, the level of sophistication and knowledge of how Australia’s tax and social security system operates is next level.

Once the scammers have access to your myGov account, there is a lot of damage they can do.

So, how does this happen and why is it so pervasive? Humans are often the weakest link.

Common scams utilise emails (78.9% of reported tax related scams in the last 12 months) or SMS (18.4% of reported scams) that mimic communication you might normally expect to see. The lines of attack used by tax related scammers are commonly:

Fake warnings about attempted attacks on your account (and requiring you to click on the link and confirm your details);
Opportunistic baiting where some form of reward is flagged, like a tax refund, that you need to click on the link to confirm and access; and
Mimicking common administrative notifications from the Australian Taxation Office (ATO) like a new message accessible from a link.

Approximately 75% of all email scams reported to the ATO to March 2024 were linked to a fake myGov sign in page.

How to spot a fake

Often the first sign that something is amiss is alerts about activity on your myGov account or a change in details - which might seem a little ironic if the way in which scammers got into your account in the first place is via these very same messages. But, there are ways to spot a fake:

The ATO, Centrelink and MyGov don’t use hyperlinks in messages. If you receive a message with a link, it’s a fake.
The ATO will not use QR codes as a method for you to access your account.
The ATO will never ask for your tax file number (TFN), bank account details or your myGov login details over social media. Some scammers have used fake social media accounts mimicking the ATO and other Government agencies. When a query comes in, they respond by asking for information to verify it’s you. The ATO will never slide into your DMs. ATO Assistant Commissioner Tim Loh said, “it’s like giving your house keys to a stranger and watching them change your locks.”
The ATO do not use pre-recorded messages to alert you to outstanding tax debt. The ATO will not cancel your TFN. Some scammers suggest that your TFN has been cancelled or suspended due to criminal activity or money laundering and then tell you to either pay a fee to correct it, or transfer your money to a ‘safe’ bank account to protect you against your corrupted TFN.
The ATO will not initiate a conference call between you and your tax agent and someone from a law enforcement agency. In one case, the taxpayer was told that the caller was from the ATO and a person from her accounting firm was on the call as well to represent her and work through a problem. The ATO caller and the tax agent were fake. Just hang up and call our office if you are ever concerned. The ATO will never initiate a conference call of this type.
The ATO will also not ask you to reconfirm your details because of security updates to myGov. The link, when activated, takes you to a fake myGov web page that can look very convincing.

In general, you should always log into your myGov account directly to check on any details alerted in messages rather than clicking on links. This way, you know that you are not being redirected to somewhere you should not be.

And, don’t log into your myGov account on free wifi networks. Ever.

Who is getting scammed?

There is a pervasive view that older, technology challenged individuals are the most at risk. And while this might be the case generally, scamming is impacting all age groups.

The ATO says that the demographic who most reported providing personal information to scammers was 25 to 34 year olds. And, the younger generation are more likely to fall for investment scams. According to the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3), people under the age of 50 are overtaking older Australians as the most reported victims of investment scams. Australians reported losing $382 million to investment scams in the 2023-24 financial year. Nearly half (47%) of the investment scam losses involved cryptocurrency.

Other scams

Scammers are in the business of scamming and they will use every trick and opportunity to part you from your money.

Investment scams.

Pig butchering. Pig butchering is a tactic where scammers devote weeks or months to building a close relationship with their victims on social media or messaging apps, before encouraging them to invest in the share market, cryptocurrency, or foreign currency exchanges. Victims think they are trading on legitimate platforms, but the money is siphoned into an account owned by the scammers, who created fake platforms that look identical to well-known trading and cryptocurrency sites. Scammers will show fake returns on these platforms to convince victims to invest more money. Once they have extracted as much money as possible, the scammers disappear with all the invested funds.

Deepfakes. Deepfakes are lifelike impersonations of real people created by artificial intelligence technologies. Scammers create video ads, images and news articles of celebrities and other trusted public figures to promote fake investment schemes, which can appear on social media feeds or be sent by scammers through messaging apps. Unusual pauses, odd pitches, or facial movement not matching their speaking tone are often giveaways but increasingly, the fakes are difficult to spot.

Invoice scams

The names and details of legitimate businesses are used to issue fake invoices with the money transferred to the scammer’s account. These scams are often tied to cyber breachers where hackers have accessed your systems and have identified your suppliers.

Bank scams

There has been a lot in the media of late about people receiving phone calls purporting to be from their bank, advising them there is a problem with their account, and then walking them through a resolution that involves transferring all their money into a ‘safe’ scammers account. Victims commonly state that they believed the scammer because of the level of personal information they relayed.

Your bank will never send an email or text message asking for any account or financial details, this includes updating your address or log in details for phone, mobile or internet banking.

A CHOICE survey found that four out of five of the victims of banking scams in their report said their banks did nothing to flag a scam before they transferred their money to the perpetrator.

The Australian Banking Association have stated that, if not already, banks will introduce warnings and payment delays by the end of 2024. And, in addition to other measures, they will limit payments to high-risk channels such as crypto platforms.

What to do if you have been scammed

myGov

If you have downloaded a fake myGov app, have given your details to a scammer, or clicked on a link from an email, text message or scanned a QR Code, contact Services Australia Scams and Identify Theft Helpdesk on 1800 941 126, or get help with a scam here .

Tax scams

Before acting on any instructions, please contact us and we will verify the information for you. If you have already acted, contact the ATO to verify or report a scam on 1800 008 540.

The Government use external agency recoveriescorp for debt collection but we will advise you if you have a tax debt outstanding.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

2024 income tax returns

Tue, 10 Sep 2024 06:26:23 GMT

2024 income tax returns

With millions of pieces of information now pre-filled (including information from most banks, employers, government agencies and private health insurers), the ATO is giving taxpayers with simple affairs the 'green light' to lodge their tax returns.

Taxpayers who plan to claim deductions this year should make sure they have the correct records , and, in most cases, "a bank or credit card statement (on its own) isn’t enough evidence to support a work-related deduction claim – you’ll need your receipts".

��Myth:
“I don’t need a receipt; I can just use my bank or credit card statement.”

Fact:
To claim a tax deduction, you must provide detailed evidence:

�� proof that you incurred the expenditure;

��️ what the expense was for;

��‍�� who the supplier was; and

�� the date of payment.

Personal bank or credit card statements alone won’t generally suffice for this purpose.

Only in specific cases where substantiation exceptions apply can you forgo these details.

The ATO reminds taxpayers that the rules regarding how and when they can claim a deduction can change, including in relation to car expenses and working from home costs. Therefore, they should not just 'copy and paste' their deductions from last year, and they may require assistance from their accountant in this regard.

The ATO notes that taxpayers using a registered tax agent normally have more time to lodge. Feel free to contact us if you want to urgently lodge your return, or if you want to confirm that you (and your related entities) are on our deferred lodgment program.

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If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Penalties imposed on taxpayer who falsely amended tax returns

Tue, 10 Sep 2024 06:20:16 GMT

Penalties imposed on taxpayer who falsely amended tax returns

The Administrative Appeals Tribunal ('AAT') recently affirmed the ATO's decision to impose shortfall penalties on a taxpayer who had lodged false amended income tax returns. The taxpayer had lodged income tax returns for the 2020 and 2021 income years through her tax agent. The taxpayer subsequently lodged amended returns to claim deductions regarding a non-existent family trust for those years. She did not consult her tax agent before doing so.

Following an audit, the ATO advised the taxpayer that she had no entitlement to the deductions claimed, and it imposed shortfall and administrative penalties.The AAT concluded that the conduct of the taxpayer was reckless, and in lodging her amended tax returns without the knowledge of her tax agent, the taxpayer had not taken reasonable care.

The AAT accordingly affirmed the ATO's decision to impose shortfall and administrative penalties on the taxpayer.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Tax incentives for early stage investors

Tue, 10 Sep 2024 06:14:30 GMT

Tax incentives for early stage investors

The ATO is reminding investors who purchased new shares in a qualifying 'early stage innovation company' ('ESIC') that they may be eligible for tax incentives.

These tax incentives provide eligible investors who purchase new shares in an ESIC with:

a non-refundable carry forward tax offset equal to 20% of the amount paid for their eligible investments – this is capped at a maximum tax offset amount of $200,000 for the investor and their affiliates combined in each income year; and
modified capital gains tax ('CGT') treatment, under which capital gains on qualifying shares that are continuously held for at least 12 months and less than 10 years may be disregarded – capital losses on shares held less than 10 years must be disregarded.

The maximum tax offset cap of $200,000 does not limit the shares that qualify for the modified CGT treatment.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Storing correct records for work-related expenses

Tue, 10 Sep 2024 06:08:57 GMT

Storing correct records for work-related expenses

Taxpayers need to consider what work-related expenses they will be looking to claim in the new financial year, and what records they will need to substantiate those deductions. Records can be kept as a paper version, an electronic copy, or a 'true and clear' photo of an original record.

Working from home deductions

Taxpayers can use two different methods to calculate their working from home deductions, and they each have different requirements:

With the fixed rate method, taxpayers will need a record of the actual number of hours they worked from home for the whole financial year, and at least one record for each of the additional running expenses they incurred that the rate includes (e.g., an electricity bill).

To use the actual cost method, taxpayers must also keep records for any additional running expenses they incurred, and the depreciating assets they bought and used while working from home, and show how they apportioned work-related use for their expenses and depreciating assets.

Please contact our office if you need any assistance with your record keeping requirements, such as logbook requirements for car expenses.

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If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Receiving payments or assets from foreign trusts

Tue, 10 Sep 2024 06:03:30 GMT

Receiving payments or assets from foreign trusts

Additional tax liabilities may arise when money or assets of a foreign trust are paid to an Australian resident taxpayer or applied for their benefit, and they are a beneficiary of the foreign trust. These can include:

loans to them by the trustee directly or indirectly through another entity;
amounts paid by the trustee to a third party on their behalf;
amounts that are described as gifts from family members, but are sourced from the trust; and
distributions paid to them or trust assets (such as shares) transferred to them by the trustee.

Taxpayers who receive money from a foreign trust may need to ask further questions to determine whether the amount must be included in their assessable income, including:

whether they are a beneficiary of the foreign trust;
where the foreign trust obtained the money; and
why the money was paid to them, e.g., is it a payment for services, a gift, a distribution or a loan.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Business self-review checklist: GST classification of products

Tue, 10 Sep 2024 05:54:34 GMT

Business self-review checklist: GST classification of products

GST classification errors can lead to significant under-reporting of GST for some taxpayers.

The ATO recently issued guidance for small to medium businesses on self-reviewing GST classification of food and health products.

The use of this guide is not mandatory, although the ATO encourages small to medium businesses to regularly self-review the GST classification of supplies, and adopt better practice processes and controls as listed in the accompanying checklist.

The checklist provides practical, step-by-step guidance for entities to:

· self-review the GST classification of their supplies (products they import, purchase as stock or produce for sale); and

· assess the robustness of their business systems, processes and controls that directly impact their GST classification systems.

Small business food retailers with turnover of $2 million or less may use one of the 'GST simplified accounting methods' to account for GST instead.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The rise in business bankruptcy

Fri, 16 Aug 2024 07:38:38 GMT

The rise in business bankruptcy

ASIC’s annual insolvency data shows corporate business failure is up 39% compared to last financial year. The industries with the highest representation were construction, accommodation and food services at the top of the list.

Restructuring appointments grew by over 200% in 2023-24. Small business restructuring allows eligible companies – those whose liabilities do not exceed $1 million plus other criteria – to retain control of its business while it develops a plan to restructure its affairs. This is done with the assistance of a restructuring practitioner with a view to entering into a restructuring plan with creditors.

Of the 573 companies that entered restructuring after 1 January 2021 and had completed their restructuring plan by 30 June 2024, 89.4% remain registered, 5.4% have gone into liquidation, and 5.2% were deregistered as at 30 June 2024.

In the latest statement from the Reserve Bank of Australia, Michelle Bullock stated that, “...there’s also some signs that the business sector is under a bit of pressure, that the business outlook isn’t as rosy as it was.” Productivity is also lagging. Strategically, managers need to be on top of their numbers to identify and manage problems before they get out of hand. If you do not know what the key drivers of your business are - the things that make the difference between doing well and going under - then it’s time to find out.

A business becomes insolvent when it can’t pay its debts when they fall due.

The top three reasons why companies fail are:

1. Poor strategic management

2. Inadequate cashflow or high cash use

3. Trading losses

It’s easy to miss the warning signs and rely on optimism that things will get better if you can just get past a slump. The common problem areas are:

1. Significant below budget performance.

2. Substantial increases in fixed costs without an increase in revenues - Fixed costs are costs that you incur irrespective of your business activity level. When fixed costs go up, they have a direct impact on your profitability. If your fixed costs are increasing, such as leasing more space, hiring more people, buying more plant and equipment, but there is no measurable increase in your turnover and gross profit, it might tip you over.

3. Falling gross profit margins - Your gross profit margin is the margin between your sales, minus cost of goods sold. Every dollar you lose in gross profit is a dollar off your bottom line.

4. Funding your business primarily from debt rather than equity finance.

5. Falling sales - If sales are falling, it is going to have a ripple through effect on your business, reducing profit contribution and inhibiting growth.

6. Delaying payment to creditors - Your sales are good but you don’t seem to have enough cash in the business to pay your creditors on time.

7. Spending in excess of cashflow - Trying to pay today’s expenses with tomorrow’s income.

8. Poor financial reporting systems - Driving your business with a blindfold over your eyes!

9. Growing too quickly - You’re making more sales than your business can sustain.

10. Substantial bad debts or ‘dead’ stock - Customers who won’t pay their accounts and stock that you can’t sell.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Divorce, you, and your business

Fri, 16 Aug 2024 07:29:44 GMT

Divorce, you, and your business

Breaking up is hard to do. Beyond the emotional and financial turmoil divorce creates, there are a number of issues that need to be resolved.

What happens when there is a family company?

For couples that have assets tied up in a company, the tax consequences of any settlements paid from the company will need to be assessed. Settlements paid out by a corporate entity can sometimes be treated as taxable dividends and taxed at the relevant spouse’s marginal tax rate.

If you are receiving assets from a corporate entity as part of a property settlement, it’s essential that you understand the tax implications prior to settlement or a sizeable portion of the settlement could go to the ATO.

For business owners, outside of the tax and financial issues, it’s important to not lose focus on what’s important to keep the business running efficiently.

What happens to your superannuation in a divorce?

A spouse’s interest in superannuation is a marital asset and can be split as part of the breakdown agreement. It’s important to be aware however that superannuation cannot be paid directly to a spouse unless the spouse is eligible to receive superannuation (they have met a condition of release) but it can be rolled over into the spouse’s fund until they are eligible to receive it. Laws exist to prevent taxes such as CGT being triggered when superannuation assets are transferred. This is particularly important where your superannuation fund holds property.

A Court order or Superannuation Agreement is required to give effect to the agreed split in the SMSF assets or to execute a rollover eligible for the CGT rollover concession.

If you have an SMSF and both spouses are members, it’s important to get advice to make sure that all of the appropriate administrative issues are taken care of. Where a divorce is not amicable, it’s important to keep in mind that the SMSF trustee is required under law to act in the best interests of the fund and its beneficiaries. Anything less and the fund members may seek compensation for loss or damage.

Can you protect both parties from divorce?

In a divorce, assets are split based on a multitude of factors such as earning capacity, maintenance of children, and the assets held pre-marriage. Many couples don’t go through their marriage with an equal view of how assets and income should be attributed until something goes wrong. If there is a disparity between the income levels of each spouse, there are a lot of benefits to the household in general of evening out how income flows through to the family. If your partner earns less than you, there is a very real financial benefit to topping up their super as superannuation has preferential tax rates. The same goes for taxable income. If you can even out income coming into the household, it spreads the tax burden. Good planning can make a difference.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

When is a gift not a gift?

Fri, 16 Aug 2024 07:24:57 GMT

When is a gift not a gift?

The Tax Commissioner has successfully argued that more than $1.6m deposited in a couple’s bank account was assessable income, not a gift or a loan from friends.

The case of Rusanova and Commissioner of Taxation is enough for a telemovie. The plot features an Australian resident Russian couple ‘gifted’ over $1.6m in unexplained bank deposits, over $67,000 in interest, the Russian father-in-law seafood exporter, a series of Australian companies, and the generous friend loaning money in $20,000 tranches.

The crux of the case before the Federal Court is whether you can prove to the Australian Tax Office (ATO) that unexplained deposits should be treated as gifts or loans and what happens when the Tax Commissioner thinks otherwise? If the Commissioner suspects the deposits are income, he can issue a default tax assessment and decide what tax should be paid. The burden of proof is then on the taxpayer to prove the Tax Commissioner wrong.

The unexplained deposits

Between 2012 and 2016, an Australian resident husband and wife had an estimated $1,636,000 deposited into their bank accounts. The ATO became curious when neither spouse had lodged tax returns in the mistaken belief that they had not earned any income.

The money deposited, they said, was a gift from the wife’s father and therefore not assessable income. Curiously, there were no records produced to support the deposits and not a single text or email notifying that money had been remitted, or acknowledging its receipt.

In addition, a friend of the couple deposited money into the husband’s account including a series of $20,000 transactions over about a week. These, the friend said, were interest-free loans with no agreed terms but an expectation that they would be repaid. The friend could not remember how he was requested to make the loans and there were no loan documents, emails, or texts disclosed to support the loans. Around the same time as the loans were being advanced, there was evidence of the husband ‘repaying’ amounts in excess of what had been lent. In addition, documents show the husband transferred a Porsche Cayenne to his friend in Russia, said to be repayment of the loan.

Compounding the issue were the four directorships of Australian companies held by the husband, none of which had lodged tax returns. One of the companies was a seafood wholesaler, distributing the product of his father-in-law’s American registered Russian export company. The dedicated son-in-law stated that he was merely trying to develop his father-in-law’s business during 2010 and 2016, without remuneration.

Contesting the Tax Commissioner

In 2017, a covert tax audit utilised entries in the couple’s bank accounts to assess their income tax liability and the ATO issued a default assessment based on the unexplained deposits and expenses. The couple objected to the assessment and this objection was partly allowed. A second assessment was then issued to which the couple again objected before the Administrative Appeals Tribunal (AAT) on the grounds that the assessment was excessive.

Can the Tax Commissioner really decide how much tax you should pay?

The Tax Commissioner has the power to issue a ‘default assessment’ for the amount he believes is owing from overdue tax returns or activity statements. The assessment is the amount the ATO believes is owing, not what has been declared.

The problem with a default assessment is not just the Tax Commissioner deciding how much tax you should pay, it is the potential addition of an administrative penalty of 75% of the tax-related liability for each default assessment issued. This penalty may be increased to 95% of the tax-related liability in certain circumstances for taxpayers who have a pattern of non-compliance.

But, here is the problem for the couple. While genuine gifts of money are not taxable, the burden is on the taxpayer to prove that the gift is truly a gift, if the ATO asks. The AAT held that, “absent any reliable evidence..., there is no proper basis to make any findings as to whether the deposits constitute part of the applicants’ taxable income or not.”

The Tax Commissioner can rely on a “deficiency of proof”.

The couple’s stance that the deposits were either gifts from the father or loans from a friend were rejected by the AAT. This is despite an affidavit and evidence from the wife’s father stating that the amounts transferred to them were gifts. The couple did not demonstrate what their income actually was to prove the Tax Commissioner’s assessment was unreasonable, and they could not substantiate that the gifts were indeed gifts from a very generous father.

The Federal Court dismissed the couple’s appeal with costs, leaving the Tax Commissioner’s default tax assessment and penalties in place.

Avoiding the gift tax trap

A gift of money or assets from an individual is generally not taxed if the gift is given voluntarily, nothing is expected in return, and the gift giver does not materially benefit.

However, there are some circumstances where tax might apply.

Gifts from a foreign trust

If you are a tax resident of Australia and the beneficiary of a foreign trust, it’s possible that at least some of the amounts paid to you (or applied for your benefit) will need to be declared in your tax return. This applies even if you were not the direct beneficiary of the foreign trust, for example, a family member received money from a foreign trust and then gifted it to you. This applies to cash, loans, land, shares, etc.

Inheritances

Money or property you inherit from a deceased estate is often not taxed. However, there are circumstances where capital gain tax (CGT) might apply when you dispose of an asset you inherited. For example, if you inherit your parents’ house, CGT generally does not apply if:

The property was their main residence; and
Your parents are Australian residents for tax purposes; and
You sell the property within 2 years.

However, CGT is likely to apply if for example:

You sell your parents former main residence more than 2 years after you inherit it; or
The property you inherit was not your parents’ main residence; or
Your parents were not Australian tax residents at the time of their death.

Managing the tax consequences of an inheritance can become complex quickly. Please contact us for assistance when planning your estate to maximise the outcome for your beneficiaries, or managing the tax implications of an inheritance. These issues are often not taken into account if you are drafting or updating a will.

Gifting an asset does not avoid tax

Donating or gifting an asset does not avoid CGT. If you receive nothing or less than the market value of the asset, the market value substitution rule might come into play. The market value substitution rule can treat you as having received the market value of the asset you donated or gifted when calculating any CGT liability.

For example, if Mum & Dad buy a block of land then eventually gift the block of land to their daughter, the ATO will look at the value of the land at the point they gifted it. If the market value of the land is higher than the amount that Mum & Dad paid for it, then this would normally trigger a CGT liability. It does not matter that Mum & Dad did not receive any money for the land. Mum & Dad might have a CGT bill for land they gifted with nothing in return.

Donations of cryptocurrency might also trigger CGT. If you donate cryptocurrency to a charity, you are likely to be assessed on the market value of the crypto at the point you donated it. You can only claim a tax deduction for the donation if the charity is a deductible gift recipient and the charity is set up to accept cryptocurrency.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Federal Court overturns AAT's tax resident decision

Fri, 16 Aug 2024 07:18:23 GMT

Federal Court overturns AAT's tax resident decision

The Federal Court has recently overturned an Administrative Appeals Tribunal ('AAT') decision that a taxpayer was a resident of Australia for tax purposes (even though he was mostly living and working overseas during the relevant period).

The taxpayer was a mechanical engineer who became an Australian citizen in 1978.

He lived and worked in Dubai, United Arab Emirates, from September 2015 until 2020, and he spent less than two months in Australia for each of the 2017 to 2020 income years visiting his family.

The AAT nevertheless held that he was a tax resident of Australia for each of the 2016 to 2020 income years, as he "maintained an intention to return to Australia and an attitude that Australia remained his home."

On appeal to the Federal Court, the taxpayer succeeded in having the AAT's decision overturned.

The Federal Court held, in considering whether the taxpayer was a resident of Australia according to 'ordinary concepts', that the AAT applied the wrong test, confusing it with the 'domicile test'.

Also, in relation to the 'domicile test', the Federal Court noted that the AAT further misunderstood how to establish that a person had a 'permanent place of abode' outside of Australia.

The Federal Court accordingly held that the taxpayer's appeal be allowed, and the matter be remitted to the AAT for determination according to law (i.e., the AAT needs to reconsider the matter).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

SMSFs acquiring assets from related parties

Fri, 16 Aug 2024 07:14:00 GMT

SMSFs acquiring assets from related parties

SMSFs cannot acquire an asset from a 'related party' (such as a member or their spouse or relative) unless it is acquired at market value and is:

a listed security (e.g., shares, units or bonds listed on an approved stock exchange);
'business real property' (broadly, land and buildings used wholly and exclusively in a business);
an 'in-house asset' as defined, provided the market value of the SMSF's in-house assets does not exceed 5% of the total market value of the SMSF's assets; and/or
an asset specifically excluded from being an in-house asset.

If the asset is acquired at less than market value, the difference between the market value and the amount actually paid is not considered to be a contribution. Instead, income generated by the asset will be considered 'non-arm's length income' and will be taxed at the highest marginal rate.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Importance of good record keeping when claiming work-related expenses

Fri, 16 Aug 2024 07:08:40 GMT

Importance of good record keeping when claiming work-related expenses

The ATO is advising taxpayers that having records to substantiate claims is essential to prove deductions can be claimed, having regard to the following in particular:

A bank or credit card statement on its own will generally not be enough evidence to support a work-related expense claim. Taxpayers instead need detailed written evidence such as a receipt.

If a taxpayer's total claim for deductible work expenses is $300 or less, they can claim a deduction without written evidence, but they must still be able to show that they spent the money and how they calculated the amount being claimed.

While some deduction types do not require receipts (e.g., laundry expenses), some kind of record may still be necessary. Taxpayers may also need a record that shows their private and work-related use (e.g., a diary), and how the amount claimed as a deduction was calculated. For cars, see the record keeping requirements here

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Small business energy incentive available for the 2024 income year

Fri, 16 Aug 2024 07:01:18 GMT

Small business energy incentive available for the 2024 income year

Businesses with an aggregated annual turnover of less than $50 million that had upgraded or purchased a new asset that helps improve energy efficiency during the 2024 income year should consider the small business energy incentive.

This new measure gives them the opportunity to claim a bonus deduction equal to 20% of the cost of eligible assets or improvements to existing assets that support more efficient use of energy.

This incentive applies to eligible assets that were first used or installed ready for use for a taxable purpose between 1 July 2023 and 30 June 2024.

Eligible improvement costs must have been incurred during this period to be eligible for the bonus deduction.

Up to $100,000 of total expenditure is eligible under this incentive, with the maximum bonus deduction being $20,000 per business.

This 20% bonus deduction is on top of other existing ones. Businesses can claim both the ordinary deduction for the expense as well as the bonus deduction.

Please make sure to let us know if you made any purchases that may be eligible for this bonus.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Notice of online selling data-matching program

Fri, 16 Aug 2024 06:57:28 GMT

Notice of online selling data-matching program

The ATO will acquire Australian sales data from online selling platforms for the 2024 to 2026 income years, including full names, dates of birth, addresses, emails, business names, ABNs, contact phone numbers and account details.

The ATO estimates the total number of account records to be obtained will be between 20,000 and 30,000 each income year, with approximately 10,000 to 20,000 of these records relating to individuals.

The objectives of this program are to (among other things) promote voluntary compliance and increase community confidence in the integrity of the tax and superannuation systems.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's tips for correctly claiming deductions for rental properties

Fri, 16 Aug 2024 06:53:19 GMT

ATO's tips for correctly claiming deductions for rental properties

Taxpayers who have work done on their rental property should consider the following factors in determining claims for expenses.

Repairs and general maintenance are expenses 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 the expense occurred.

Initial repairs include any work done to fix defects, damage or deterioration existing at the time of purchase. These are capital repair expenses and cannot be claimed as a deduction.

Capital work s are structural improvements, alterations and extensions to the property, claimed at 2.5% over 40 years (with some exceptions). Deductions for capital works can only be claimed after the work has been completed.

Improvements or renovations that are structural are also capital works. Work going beyond remedying defects, damage or deterioration which improves the function of the property are improvements.

Repairs to an 'entirety ' are also 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 (for example, a depreciating asset).

Depreciating assets must be claimed over time (as 'capital allowances') according to their 'effective life'.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Samford Office closed today today Wednesday 14 August for the Brisbane Ekka Holiday

Tue, 13 Aug 2024 20:32:52 GMT

Samford Office closed today 30 Jan due to localised flooding

Samford Office 2/32 Main St Samford

Samford Office closed today Wednesday 14 August for the Brisbane Ekka Holiday. Please call us 07 3289 1700 or email reception@RGAaccounting.com.au and we will get back to you as soon as we can.

Thank you for your understanding.

We look forward to seeing you soon!

Kind regards,

The RGA Team

Is your family home really tax free?

Mon, 01 Jul 2024 20:51:52 GMT

Is your family home really tax free?

The main residence exemption exempts your family home from capital gains tax (CGT) when you dispose of it. But, like all things involving tax, it’s never that simple. As the character of Darryl Kerrigan in The Castle said, “it’s not a house. It’s a home,” and the Australian Taxation Office’s (ATO) interpretation of a main residence is not fundamentally different. A home is generally considered to be your main residence if:

It's where you and your family live
Your personal belongings have been moved into the dwelling
It is where your mail is delivered
It’s your address on the electoral roll
You have connected services such as telephone, gas and electricity (in your name); and
It is your intention for the home to be your main residence.

The length of time you have lived in the home is important, but there are no hard and fast rules. Your intention takes precedence over time spent as every situation is different.

When does the main residence exemption apply?

In general, CGT applies to the sale of your home unless you have an exemption, partial exemption, or you can offset the tax against a capital loss.If you are an Australian resident for tax purposes, you can access the full main residence exemption when you sell your home if:

Your home was your main residence for the whole time you owned it (see Can the main residence apply if you move out?).; and
You did not use your home to produce any income (see Partial exemption below), and
The land your home is on is 2 hectares or less. If your home is on more than 2 hectares, for example on farmland, the exemption can apply to the home and up to 2 hectares of adjacent land.

Partial exemption

If you have used your home to produce income, you won’t normally be able to claim the full main residence exemption, but you might be able to claim a partial exemption.

Common scenarios impacting your main residence exemption include:

Running a business from home (working from home is ok), and
Renting the home or part of the home.

In these scenarios, from the time you started to use the home to generate income, that part of the home is likely to be subject to CGT. And, a word of caution here, as of 1 July 2023, platforms such as Airbnb must report all transactions to the ATO every 6 months. This data will be used to match against the income reported on income tax returns.

Foreign residents and changing residency

Foreign residents cannot access the main residence exemption even if they were a resident for part of the time they owned the property. If you are a non-resident at the time you enter into the contract to sell the property, you are unlikely to be able to access the main residence exemption. Conversely, if you are a resident at the time of the sale, and you meet the other eligibility criteria, the rules should apply as normal even if you were a non-resident for some of the ownership period. For example, an expat who maintains their main residence in Australia could return to Australia, become a resident for tax purposes again, then sell the property and if eligible, access the main residence exemption.

It’s important to recognise that the residency test is your tax residency, not your visa status. Australia’s tax residency rules can be complex. If you are uncertain, please contact us and we will work through the rules with you.

Can the main residence apply if you move out?

You might have heard about the ‘absence rule’. This rule allows you to continue to treat your home as your main residence for tax purposes:

For up to 6 years if the home is used to produce income, for example you rent it out while you are away; or
Indefinitely if it is not used to produce income.

When you apply the absence rule to your home, this normally prevents you from applying the main residence exemption to any other property you own over the same period. Apart from limited exceptions, the other property is exposed to CGT.

Let’s say you moved overseas in 2020 and rented out your home while you were away. Then, you came back to Australia in 2023 and moved back into your house. Then in early 2024, you decided it is not your forever home and sold it. You elected to apply the absence rule to your home and didn’t treat any other property as your main residence during that same period. In this case, you should be able to access the full main residence exemption assuming you are a resident for tax purposes at the time of sale.

The 6 year period also resets if you re-establish the property as your main residence again, but later stop living there. So, if the time the home was income producing is limited to six years for each absence, it is likely the full main residence exemption will be available if the other eligibility criteria are met.

Timing

Your home normally qualifies as your main residence from the point you move in and start living there. However, if you move in as soon as practicable after the settlement date of the contract, that home is considered your main residence from the time you acquired it.

If you buy a new home but haven’t yet sold your old home, you can treat both properties as your main residence for up to six months without impacting your eligibility to the main residence exemption. This applies if the old home was your main residence for a continuous period of 3 months in the 12 months before you disposed of it and you did not use your old home to produce income in any part of that 12 months when it was not your main residence.

If the sale takes more than six months and if eligible, the main residence exemption could apply to both homes only for the last six months prior to selling the old home. For any period before this it might be possible to choose which home is treated as your main residence (the other becomes subject to CGT).

If your new home is being rented to someone else when you purchase it and you cannot move in, the home is not your main residence until you move in.

If you cannot move in for some unforeseen reason, for example you end up in hospital or are posted overseas for a few months for work, then you still might be able to access the main residence exemption from the time you acquired the home if you move in as soon as practicable once the issue has been resolved. Inconvenience is not a valid reason and you will need to ensure that you have documentation to support your position.

Can a couple have a main residence each?

Let’s say you and your spouse each own homes that you have separately established as your main residences.

The rules don’t allow you to claim the full CGT exemption on both homes. Instead, you can:

Choose one of the dwellings as the main residence for both of you during the period; or
Nominate different dwellings as your main residence for the period.

If you and your spouse nominate different dwellings, the exemption is split between you:

If you own 50% or less of the residence chosen as your main residence, the dwelling is taken to be your main residence for that period and you will qualify for the main residence exemption for your ownership interest;
If you own greater than 50% of the residence chosen as your main residence, the dwelling is taken to be your main residence for half of the period that you and your spouse had different homes.

The same rule applies to your spouse.

The rule applies to each home that the spouses own regardless of how the homes are held legally, i.e., sole ownership, tenants in common or joint tenants.

What happens in a divorce?

Assuming the home is transferred to one of the spouses (and not to or from a trust or company), both individuals used the home solely as their main residence over their ownership period, and the other eligibility conditions are met, then a full main residence exemption should be available when the property is eventually sold.

If the home qualified for the main residence exemption for only part of the ownership period for either individual, then a partial exemption might be available. That is, the spouse receiving the property may need to pay CGT on the gain on their share of the property received as part of the property settlement when they eventually sell the property.

The main residence exemption looks simple enough but it can become complex quickly. You will need more than a ‘vibe’ to work with the exemption. In the words of the character of Dennis Denuto in The Castle, “it’s the vibe of it. It’s the constitution. It’s Mabo. It’s justice. It’s law. It’s the vibe and ah, no that’s it. It’s the vibe. I rest my case.”

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

What’s ahead for 2024-25?

Mon, 01 Jul 2024 03:47:51 GMT

What’s ahead for 2024-25?

Will 2024-25 be another year of volatility or a return to stability?

Personal tax & super

As you would be aware (at least we hope so after a $40m public education campaign), the personal income tax cuts came into effect on 1 July 2024. At the same time, the superannuation guarantee (SG) rate increased by 0.5% to 11.5%.

For employers, it’s critically important to ensure that your payroll system, and all interactions with it, like salary sacrifice agreements, are assessed and updated. Your PAYG withholding will also be impacted.

While we are on the topic of obligations, the ATO have recently warned employers to be vigilant about their super guarantee obligations:

Are you paying super guarantee to the right people? The definition of an employee for SG purposes is broad and, in some cases, extends beyond typical classifications. Temporary residents, backpackers, and some company directors working in the business, family members working in the business, and some contractors must be paid SG. Check your classifications are correct for SG purposes.
Check the fund details are correct for the employee and the employee’s tax file number has been provided to the super fund. It’s the employer’s obligation to ensure that SG for the employee is directed to the correct super fund account.
Ensure SG is paid into the employee’s fund by the quarterly due date (next SG payments are due by 28 July). If your business misses the deadline, the super guarantee charge applies (even if you pay the outstanding amount quickly after the deadline). The SG charge (SGC) is particularly painful for employers because it is comprised of the outstanding SG, 10% interest p.a. from the start of the quarter, and an administration fee. And, unlike normal SG contributions, SGC amounts are not deductible.

Wages

On 1 July 2024, the national minimum wage increased by 3.75% ($24.10 per hour, or $915.90 per week). The increase applies from the first full pay period starting on or after 1 July 2024. Traditionally, there is no correlation between an increase in minimum wages and inflation. Annual wage growth in the private sector fell slightly to 4.1% in the March quarter 2024 from 4.2% in December 2023 - the first fall since September quarter 2020, suggesting that wages growth is starting to even out.

Interest rates and cost of living

Reserve Bank of Australia (RBA) Governor Michelle Bullock has stated on several occasions that inflation, not interest rates, are at the heart of cost of living pressures. Interest rates are the

RBA’s “blunt instrument” to bring inflation under control. With inflation easing more slowly than anticipated, the RBA is not ruling anything out because the path of interest rates is determined by the actions required to bring inflation to target.Inflation has reduced from its peak of 7.8% in December 2022 to 3.6% in the March quarter, but increased again in May to 4% dampening expectations of an interest rate reprieve.

Business confidence

The latest NAB business survey is not happy reading with business confidence falling back into negative territory in May as conditions continued to gradually soften. Having experienced eight consecutive months of forward order declines, businesses are understandably circumspect over the outlook. GDP grew marginally in the March quarter and consumption per capita continued to decline. However, labour market conditions are strong with unemployment at 4% for May. Treasury forecasts that economic growth (GDP) will marginally improve to 2% in 2024-25. Not exciting but credible.

Migration & labour

Always a controversial topic. Post pandemic, Australia’s migration levels surged with the return of international students, working holiday makers, and an influx of temporary skilled labour to meet shortages. In the year ending 30 June 2023, overseas migration contributed a net gain of 518,000 people to Australia's population - the largest net overseas migration estimate since records began.

The 2024-25 Federal Budget estimates that net migration will fall to 260,000. While demand pressures from migration have been well publicised, particularly on housing, the positive impact was the impact on supply. Post COVID, Australia faced crippling labour shortages that impeded the return and growth of supply.

From 1 January 2025, student visa numbers will be capped, and according to the University of Melbourne Deputy Vice-Chancellor Professor Michael Wesley, student visa grants are already down 34% in March 2024 compared to the same time in 2023. The Government’s focus is on skilled migration. Employer sponsored places will rise by 7,175, however skilled independent visas will reduce by 13,475. The minimum salary requirement to sponsor an employee (Temporary Skilled Migration Income Threshold) will also increase to $73,150 on 1 July 2024.

What now?

Businesses fail (or fail to thrive) for a myriad of reasons, but the precursor is often a failure to understand what is occurring within the business and what to monitor. Strategically, managers need to be on top of their numbers to identify and manage problems before they get out of hand. If you do not know what the key drivers of your business are, then it’s time to find out (we can help you with that).

A lack of profit will erode your business, but not enough cash will kill it stone dead. Businesses often fail because they don’t manage their cash position. Plan, track, and measure your cashflow. This not only means closely monitoring your debtor collections and inventory but also running a rolling three month cashflow position. This should provide an early warning of any brewing problems.

Cash flows, operating budgets, cost control and debt management all need to be part of your business management. The more in control you are the lower your risk position.

Many small businesses also tend to absorb increasing costs. Putting up your prices during difficult times is not an act of social betrayal. If the cost of doing business has increased, you should flow these through unless you are comfortable making less for the same amount of effort, or you are in an industry that is so price sensitive you have no choice but to follow the lead of larger businesses.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

$20k instant asset write-off

Wed, 26 Jun 2024 00:11:02 GMT

$20K instant asset write-off

The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 was finally passed by both Houses of Parliament yesterday.

After extensive deliberation, the 2024 SBE instant asset write-off threshold will be $20,000 for eligible depreciating assets first used or installed ready for use between 1 July 2023 and 30 June 2024.

This will provide an immediate write-off for small business taxpayers satisfying the $10 million aggregated turnover test.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO issues notice of crypto assets data-matching program

Mon, 24 Jun 2024 21:00:00 GMT

ATO issues notice of crypto assets data-matching program

The ATO has advised that it will acquire account identification and transaction data from crypto designated service providers for the 2024 to 2026 income years.

This data will include the following:

client identification details (names, addresses, dates of birth, phone numbers, social media accounts and email addresses); and
transaction details (bank account details, wallet addresses, transaction dates, transaction times, transaction types, deposits, withdrawals, transaction quantities and coin types).

The ATO estimates that records relating to approximately 700,000 to 1,200,000 individuals and entities will be obtained each financial year.

The data will be acquired and matched to ATO systems to identify and treat clients who failed to report a disposal of crypto assets in their income tax return.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Support available for businesses experiencing difficulties

Sun, 23 Jun 2024 21:00:00 GMT

Support available for businesses experiencing difficulties

By paying their tax bill in full and on time, taxpayers can avoid paying the general interest charge ('GIC'), which is currently 11.34%, and which accrues daily for any overdue debts.

The ATO advises taxpayers that, if their business is dealing with financial difficulties, there are some options to help make their tax bill "less taxing".

Taxpayers who are struggling to pay in full or on time may be eligible to set up a payment plan. If they owe $200,000 or less, they may be able to do this themselves using online services. If they cannot do so, or they owe more than $200,000, they can contact the ATO to discuss their options.

Taxpayers can ask the ATO to remit their GIC. The ATO will then consider whether the tax bill was paid late because of circumstances that were:

beyond the taxpayer's control, and what steps the taxpayer took to relieve the effects of those circumstances; or
within the taxpayer's control, but led to results that the taxpayer could not foresee.

If you need assistance in relation to paying your tax bill, please contact our office.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Minimum yearly repayments on Division 7A loans

Sat, 22 Jun 2024 21:00:00 GMT

Minimum yearly repayments on Division 7A loans

To avoid an unfranked dividend under the Division 7A rules, loans from a private company to its shareholders or their associates must be either repaid in full or be covered by a 'Division 7A complying loan agreement' before the company's lodgment day.

Complying loan agreements require minimum yearly repayments ('MYRs') comprising of interest and principal to be made each year, starting from the income year after the loan is made.

Taxpayers must ensure they can meet the required MYRs on complying loans.

If they miss the MYR or do not pay enough in an income year, the shortfall may be treated as an unfranked dividend.

Note also that borrowing additional amounts from the same company, directly or indirectly, to make repayments on complying loans may result in the repayment not being taken into account in working out if the MYR has been made.

When making MYRs, borrowers need to:

start repayments in the income year after the complying loan was made;
use the correct benchmark interest rate (8.27% for the 2024 income year) to calculate the MYR for the current year; and
make the required payments on the loan by the due date — the end of the income year (i.e., usually by 30 June).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Getting trust distributions right

Fri, 21 Jun 2024 20:45:00 GMT

Getting trust distributions right

As trustees prepare for year-end distributions, they should do the following:

review the relevant trust deed to ensure they are making decisions consistent with the terms of the deed;
consider who the intended beneficiaries are and their entitlement to income and capital under the trust deed;
notify beneficiaries of their entitlements, so that the beneficiaries can correctly report distributions in their tax returns;
consider whether the trust has any capital gains or franked distributions they would like to stream to beneficiaries; and
check any requirements under the trust deed governing the making of trustee resolutions (e.g., that the resolution must be in writing). In any case, resolutions regarding distributions must be made by the end of the income year.

If you need any help with your trusts, please don't hesitate to get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

End of financial year obligations for employers

Thu, 20 Jun 2024 20:34:47 GMT

End of financial year obligations for employers

The ATO reminds employers they need to keep on top of their payroll governance. This includes:

using their tax and super software to record the amounts they pay;
withholding the right amount of tax; and
calculating superannuation guarantee ('SG') correctly.

As 30 June gets closer, employers should check their reporting obligations, along with any upcoming key dates, including for:

PAYG withholding — From 1 July, the individual income tax rate thresholds and tax tables will change, which will impact their PAYG withholding for the 2025 tax year;
SG rate change — From 1 July, the SG rate will increase to 11.5%. Employers must pay their SG contributions by 28 July in full, on time and to the right fund; and
Single touch payroll ('STP') reporting — Employers should remember to make STP finalisation declarations by 14 July for all employees the employer has paid during the financial year, and also check their employees' year-to-date amounts are correct.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO's three focus areas this tax time

Thu, 20 Jun 2024 01:54:16 GMT

ATO's three focus areas this tax time

The ATO will be taking a close look this 'tax time' at the following common errors made by taxpayers:

Work related expenses: Taxpayers using the 'revised fixed rate method' of calculating a working from home deduction must have comprehensive records to substantiate their claims, including records that show the actual number of hours they worked from home, and the additional running costs they incurred to claim a deduction.

Rental properties: Performing general repairs and maintenance on a rental property can be claimed as an immediate deduction. However, expenses which are capital in nature (such as initial repairs on a newly purchased property) are not deductible as repairs or maintenance.

Failing to include all income in tax return: The ATO warns taxpayers against rushing to lodge their tax return on 1 July. If they have received income from multiple sources, they need to wait until this is pre-filled in their tax return before lodging.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

What’s changing on 1 July 2024?

Fri, 07 Jun 2024 07:39:31 GMT

What’s changing on 1 July 2024?

Here’s a summary of the key changes coming into effect on 1 July 2024:

Tax cuts reduce personal income tax rates and change the thresholds. For more information see our blog here .
Superannuation guarantee increases from 11% to 11.5% - check the impact on any salary package arrangements.
Superannuation caps increase from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.
Luxury car tax threshold increases to $91,387 for fuel-efficient vehicles and $80,567 for all others.
Car limit for depreciation increases to $69,674.
$300 energy relief credit for households comes into effect (credited automatically quarterly).

For business

$325 energy relief credit for small business commences (for small businesses that meet the relevant State or Territory definition of a ‘ small customer ’).
$20k instant asset write-off extended to 30 June 2025 (subject to the passage of legislation).

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

5 million+ struggle with mortgage payments

Thu, 06 Jun 2024 07:33:07 GMT

5 million+ struggle with mortgage payments

New nationwide research released by ASIC’s Moneysmart reveals that 47% of Australian adults with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months.

Alarmingly, the research revealed that more than half surveyed, said they are not aware that they are entitled to ask their bank or lender for financial hardship assistance and just one in five said they had ever sought financial hardship assistance. Around 30% also stated that they would not seek a hardship assistance arrangement from their bank or lender and instead sell assets or get a second job rather than talking to their bank.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO fires warning shot on trust distributions

Wed, 05 Jun 2024 07:26:16 GMT

ATO fires warning shot on trust distributions

The ATO has warned that it is looking closely at how trusts distribute income and to who

The way in which trusts distribute income has come under intense scrutiny in recent years. Trust distribution arrangements need to be carefully considered by trustees before taking steps to appoint or distribute income to beneficiaries.

What does your trust deed say?

An area of concern is that trustees are not considering the trust deed before income is appointed. The answer to what the trust can do, and who it can allocate income to and how, is normally in the trust deed. This should be your first point of call.

Review your deed

Conduct a review of the trust deed and any amendments to ensure trustees are making decisions consistent with the terms of the deed;
Check the trust vesting date. The trust deed will specify what happens when the trust vests. If the trust vests, the trustees might be directed to distribute the income and property of the trust to particular beneficiaries. The trustee may no longer have the discretion to decide who to appoint income or capital to;
Check who the intended beneficiaries are, and also keep in mind that some beneficiaries might have different entitlements to income and capital under the trust deed;
Timing and requirements for resolutions - Check the deed for any conditions and requirements for trustee resolutions, including the need to have the resolution in writing and the timing of when it’s required to be made. For example, the deed might require trustees to take certain actions before 30 June;
If you are looking to stream capital gains or franked distributions to certain beneficiaries, check the trust deed doesn’t prevent this and the streaming requirements have been met.

Family trust and interposed entity elections

A family trust election helps wrap the workings of the trust around a specific individual’s family group. These elections can help protect trust losses, company losses, and franking credits but can also cause significant tax problems if they are used incorrectly.

An interposed entity election makes an entity a member of the family group of an individual.

Where these elections are in place, it is essential that trustees understand the implications before making any decisions on distributions. Distributions of trust income outside the specified individual’s family group will trigger family trust distribution tax at penalty rates.

Who receives the benefit?

The ATO is also on the lookout for arrangements where amounts are allocated or appointed to beneficiaries, but they don’t receive the real financial benefit of the distribution. If the arrangement has the effect of reducing the overall tax paid on the income of the trust, then this will normally increase the level of risk involved and attract the ATO’s attention.

Increased reporting on tax returns

Changes have been made to capture more information on the tax return about how trusts distribute income. These include:

Trust tax return – four new capital gains tax labels have been added. This information should be provided to beneficiaries to match what is reported in their returns.
Beneficiaries – all beneficiaries of trust income will be required to lodge a new trust income schedule. This schedule should align to your distributions as set out in the trust’s statement of distribution.

Trusts can be an excellent vehicle for many reasons including the flexibility to determine how income is distributed. The cost of that flexibility is strong controls and compliance.

The ATO is increasingly strident about how trusts are distributing income, and the tax impact of those distributions. It’s important for trustees to get it right because if trust distributions are found to be invalid, the tax ramifications can be significant.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

End of Year Financial Guide for your Business

Tue, 04 Jun 2024 07:15:13 GMT

End of Year Financial Guide for your Business

Opportunities

Bonus deductions

There are a series of bonus deductions available to small business in 2023-24, these include the instant asset write-off, energy incentive, and the skills and training boost. Announced in the 2023-24 Federal Budget, the increase to the instant asset write-off threshold enables small businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000. In the 2024-25 Federal Budget, the Government extended this measure to 30 June 2025. Without these measures, the instant asset write-off threshold would be $1,000.

However, legislation to enact the 2023-24 measure has not passed Parliament following a disagreement between the House of Representatives and the Senate about the amount of the threshold, and whether the measure should apply to medium businesses as well (up to $50m).

Similarly, the $20,000 energy incentive that provides an additional 20% deduction on the cost of eligible depreciating assets or improvements to existing depreciating assets that support electrification and more efficient use of energy in 2023-24, is not yet law.

Assuming both measures pass Parliament by 30 June 2024, any assets need to be first used or installed ready for use, or the improvement costs incurred, between 1 July 2023 and 30 June 2024 to be written off in 2023-24.

What is certain is the bonus 20% deduction for eligible expenditure for external training provided to your employees. The ‘skills and training boost’ is available to businesses with an aggregated annual turnover of less than $50 million. To claim the boost, the training needs to have been provided by a registered training provider and registered and paid for between 29 March 2022 and 30 June 2024. Typically, this is vocational training to learn a trade or courses that count towards a qualification rather than professional development.

Write-off bad debts

Your customer definitely not going to pay you? If all attempts have failed, the debt can be written off by 30 June. Ensure you document the bad debt on your debtor’s ledger or with a minute.

Obsolete plant & equipment

If your business has obsolete plant and equipment sitting on your depreciation schedule, instead of depreciating a small amount each year, scrap it and write it off before 30 June.

For companies

If it makes sense to do so, bring forward tax deductions by committing to directors’ fees and employee bonuses (by resolution), and paying June quarter super contributions in June.

Risks

Tax debt and not meeting reporting obligations

Professional firm profits

For professional services firms – architects, lawyers, accountants, etc., - the ATO is actively reviewing how profits flow through to the professionals involved, looking to see whether structures are in place to divert income to reduce the tax they would be expected to pay. Where professionals are not appropriately rewarded for the services they provide to the business, or they receive a reward which is substantially less than the value of those services, the ATO is likely to take action.

Need support or have questions? Talk to us today about maximising your outcomes and reducing your risks.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

End of Financial Year Guide for You

Mon, 03 Jun 2024 07:01:22 GMT

End of Financial Year Guide for You

Opportunities

Take advantage of the 1 July 2024 tax cuts by bringing forward your deductible expenses into 2023-24. Prepay your deductible expenses where possible, make any deductible superannuation contributions, and plan any philanthropic gifts to utilise the higher tax rate.

Bolstering superannuation

If growing your superannuation is a strategy you are pursuing, and your total superannuation balance allows it, you could make a one-off deductible contribution to your superannuation if you have not used your $27,500 cap. This cap includes superannuation guarantee paid by your employer, amounts you have salary sacrificed into super, and any amounts you have contributed personally that will be claimed as a tax deduction.

And, if your superannuation balance on 30 June 2023 was below $500,000 you might be able to access any unused concessional cap amounts from the last five years in 2023-24 as a personal contribution. For example, if you were $8,000 under the cap in each of the last 5 years, you could contribute an additional $40,000 and take the tax deduction in this financial year at the higher personal tax rate.

To make a deductible contribution to your superannuation, you need to be aged under 75, lodge a notice of intent to claim a deduction in the approved form (check with your superannuation fund), and get an acknowledgement from your fund before you lodge your tax return. For those aged between 67 and 75, you can only make a personal contribution to super if you meet the work test (i.e., work at least 40 hours during a consecutive 30-day period in the income year, although some special exemptions might apply).

And, if your spouse’s assessable income is less than $37,000 and you both meet the eligibility criteria, you could contribute to their superannuation and claim a $540 tax offset.

If you are likely to face a tax bill this year, for example, you made a capital gain on shares or property you sold, then making a larger personal superannuation contribution might help to offset the tax you owe.

Charitable donations

When you donate money (or sometimes property) to a registered deductible gift recipient (DGR), you can claim amounts over $2 as a tax deduction. The more tax you pay, the more valuable the tax deductible donation is to you. For example, a $10,000 donation to a DGR can create a $3,250 deduction for someone earning up to $120,000 but $4,500 to someone earning $180,000 or more (excluding Medicare levy).

To be deductible, the donation must be a gift and not in exchange for something. Special rules apply for amounts relating to charity auctions and fundraising events run by a DGR.

Investment property owners

Risks

Work from home expenses

There are two methods of claiming your work from home expenses; the short-cut method, and the actual method.

The short-cut method allows you to claim a fixed 67c rate for every hour you work from home. This covers your energy expenses (electricity and gas), internet expenses, mobile and home phone expenses, and stationery and computer consumables such as ink and paper. To use this method, it’s essential that you keep a record of the actual days and times you work from home because the ATO has stated that they will not accept estimates.

Landlords beware

If you own an investment property, a key concept to understand is that you can only claim a deduction for expenses you incurred in the course of earning income. That is, the property needs to be rented or genuinely available for rent to claim the expenses.

There are a series of issues the ATO is actively pursuing this tax season. These include:

Refinancing and redrawing loans – you can normally claim interest on the amount borrowed for the rental property as a deduction. However, where any part of the loan relates to personal expenses, or where part of the loan has been refinanced to free up cash for your personal needs (school fees, holidays etc.,), then the loan expenses need to be apportioned and only that portion that relates to the rental property can be claimed. The ATO matches data from financial institutions to identify taxpayers who are claiming more than they should for interest expenses.
The difference between repairs and maintenance and capital improvements. While repairs and maintenance can often be claimed immediately, a deduction for capital works is generally spread over a number of years. Repairs and maintenance expenses must relate directly to the wear and tear resulting from the property being rented out and generally involve restoring the property back to its previous state, for example, replacing damaged palings of a fence. You cannot claim repairs required when you first purchased the property. Capital works however, such as structural improvements to the property, are normally deducted at 2.5% of the construction cost for 40 years from the date construction was completed. Where you replace an entire asset, like a hot water system, this is a depreciating asset and the deduction is claimed over time (different rates and time periods apply to different assets).
Co-owned property – rental income and expenses must normally be claimed according to your legal interest in the property. Joint tenant owners must claim 50% of the expenses and income, and tenants in common according to their legal ownership percentage. It does not matter who actually paid for the expenses.

Gig economy income

It’s essential that any income (including money, appearance fees, and ‘gifts’) earned from platforms such as Airbnb, Stayz, Uber, OnlyFans, youtube, etc., is declared in your tax return.

Since 1 July 2023, the platforms delivering ride-sourcing, taxi travel, and short-term accommodation (under 90 days), have been required to report transactions made through their platform to the ATO under the sharing economy reporting regime. This is the first year that the ATO will have the income tax returns of taxpayers to match to this data.

All other sharing economy platforms will be required to start reporting from 1 July 2024. If you have income you have not declared, do it now before the ATO discover it and apply penalties and interest.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Budget 2024-25

Wed, 15 May 2024 06:57:39 GMT

Budget 2024-25

The Treasurer is promising that inflation will decline by 0.75% as a direct result of the 2024-25 Federal Budget initiatives including energy relief for all households, a boost to Commonwealth Rent Assistance, and the freezing of the maximum co-payment on the Pharmaceutical Benefits Scheme.

This is a pre-election budget for the people with everyone getting a little something to ease cost of living pressures. Like the Price is Right gameshow, it will all come down to the price paid at the checkout. If the consumer price index (CPI) returns to target by the end of 2024 off the back of the Budget initiatives as the Government anticipates, the Reserve Bank of Australia (RBA) may be inclined to reduce interest rates. However, at this stage, the RBA is not expecting inflation to return to the target range of 2-3% until the second half of 2025, and to the midpoint in 2026.

The 2023-24 surplus has increased to $9.3bn but is expected to decline to a deficit of $28.3bn in 2024-25, driven primarily by the Stage 3 tax cuts.

For business, the Government is picking winners through targeted public investment with its Future Made in Australia Framework that they are betting will pave the way for private investment in net zero transformation and the strengthening of Australia’s domestic economic resilience.

For small and medium business, there is a little but not a lot - an extension of the $20k instant asset write-off until 30 June 2025 and a $325 rebate to eligible businesses towards 2024-25 energy bills.

For foreign residents, the capital gains tax (CGT) regime will be amended to broaden the type of assets subject to CGT and introduce a modified 365-day principal asset testing period.

Key measures:

· Previously announced Stage 3 tax cuts

· $300 energy bill relief for all Australian households and $325 for eligible small businesses - applied as an automatic quarterly credit.

· Student HELP debts will be cut by changing the way indexation is calculated. From 1 June 2023, it will be the lower of the CPI or the Wage Price Index (WPI), reducing the debt accumulated by more than 3 million Australians when the CPI spiked to 7.1%.

· Increase to the Commonwealth rent assistance maximum rates by 10% from 20 September 2024.

· One year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for Medicare card holders and a five-year freeze for pensioners and other concession cardholders.

Those with large superannuation balances will be disappointed that the 30% tax on super earnings on balances above $3 million remains in place, this is set to commence from 1 July 2025.

Download our NTAA Budget Handout Here .

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Taxable payments annual report

Thu, 09 May 2024 20:43:56 GMT

Taxable payments annual report

If your business pays contractors to provide certain services, you may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August each year.

From 22 March, the ATO will apply penalties to businesses that:

have not lodged their TPAR from 2023 or previous years;
have received three reminder letters about their overdue TPAR.

Last year, the ATO issued penalties of approximately $18 million to more than 11,000 businesses.

If you do not need to lodge a TPAR, you can submit a non-lodgment advice (NLA) form. If you no longer pay contractors, you can also use this form to indicate that you won’t need to lodge a TPAR in the future.

Contractor details

For each contractor you pay, you must include the following details in your TPAR:

the ABN, if known (if a contractor’s ABN changed during the year, include each ABN for that contractor);
the contractor’s name (business name or individual’s name) and address;
the total amounts for the financial year of:
the gross amount paid, including GST, and any tax withheld;
the total GST you paid them; and
the total tax withheld where an ABN was not quoted.

When you receive an invoice:

check that the ABN on the invoice matches the ABN on your record for that contractor;
ensure you create a new contractor record, if necessary.

You can check that your contractor’s details (including ABN, name and GST registration) are correct by using ABN Lookup or the ATO app.

Lodging the TPAR

Use business software if:

it is SBR-enabled software;
your business can create a TPAR data file to the required Taxable payments annual reporting specifications. Lodge through Online services for business using the file transfer function.

If you do not have business software, use Online services for business. You need an ABN and a secure credential myGovID and Relationship Authorisation Manager (RAM).

Need assistance? We can work with you to successfully help you with your TPAR lodgment obligations.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Accessing money in your SMSF

Wed, 08 May 2024 22:21:54 GMT

Accessing money in your SMSF

The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of self-managed superannuation funds (SMSFs).

In general, access to your super is only possible if:

You retire and turn 60; or
You turn 65 (regardless of whether you’re working).

Early access to superannuation is only possible in very limited circumstances such as terminal illness, permanent incapacity, and severe financial hardship and there are very strict protocols to follow before any amounts are paid out.

One of the benefits of an SMSF is the control that it provides to members. The flip side of full control is the temptation to dip into the super account and approve transfers without proper controls.

There are two common ways illegal early access occurs:

When the trustees (or their business) are in financial distress and they use the superannuation account for a short-term loan; or
A promoter offers access through a scheme – often getting people to establish the SMSF and roll over their superannuation into the SMSF.

Illegal access to the SMSF’s account or assets is not difficult to identify and generally will be picked up by your auditor. Where illegal access has occurred, not only is it likely that your retirement savings have been lost or impaired, but you are likely to face additional tax, penalties and interest, and be disqualified as a trustee. In addition, your name will be published online.

One of the signs that there is a problem is when SMSF annual returns are not lodged on time or at all so ensure you are up to date with your SMSF compliance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Do your kids really want to take over your business?

Wed, 08 May 2024 07:00:11 GMT

Do your kids really want to take over your business?

Generational succession - handing your business across to your kids or family - sounds simple enough but, many families end up in a dispute right at the point when the parents, business, and children are most vulnerable. It’s important that generational succession is managed as closely and diligently as if you were selling your business to a stranger to avoid misunderstandings and disputes.

If you are looking to hand your business to your children or relatives, there are a few key issues to think about:

Capability and willingness of the next generation – do your kids really want the business?

There needs to be a realistic assessment of whether or not the business can continue successfully after the transition. In some cases, the exiting generation will pursue generational succession either as a means of keeping the business in the family, perpetuating their legacy, or to provide a stable business future for the next generation. All of these are reasonable objectives, however, they only work where there is capability and willingness.

The alternative scenario can also exist where generational succession is pursued by the younger generation. In some cases, it’s seen as their birth right. In these cases, the willingness will exist but this does not automatically translate to capability.

Capital transfer - how much money needs to be taken out of the business during the transition?

What level of capital do the current business owners, generally the parents exiting the business, need to extract from business at the time of the transition? The higher the level of capital needed, the greater the pressure that will be placed on the business and the equity stakeholders.

In most cases, the incoming generation will not have sufficient capital to buy out the exiting generation. This will require the vendors to maintain a continuing investment in the business or for the business to take on an increased level of debt.

In many cases, the exiting generation will want to maintain a level of equity investment. This might be a means of retaining an interest in the business or alternatively staging their transition. In either case, it is important to map the capital transition both from a business and shareholder perspective. This needs to be documented and signed off firstly from the business’s perspective and then by both generational groups. No generational transition should be undertaken without a clear and agreed capital program.

Income needs – ensuring remuneration is on commercial terms

In many SMEs, the owners arrange their remuneration from the business to meet their needs rather than being reasonable compensation for the roles undertaken. This can result in the business either paying too much or too little.

Under a generational succession, there should be an increased level of formality around compensation to directors and shareholders. Compensation should be matched to roles and where performance incentives exist these should be clearly structured.

Operating and management control

Once the capability and capital assessments have been completed, it is important to look at the transition of control. This can be a very sensitive area. It’s essential to establish and agree in advance how operating and management control will be maintained and transitioned.

The plan for operating and management control should be documented and signed off by all parties with either timelines for time driven succession or milestones for event-focussed transitions.

Transition timeframes and expectations

Generational succession is often a process rather than an event and achieved over an extended period of time. The critical issue is to identify and ensure that all parties have a common understanding and acceptance of the time period over which the transition will take place. This should be included in the documented succession plan.

The need for greater formality and management structure

Generational succession often requires a greater level of formality in the management and decision making process. This formality should achieve a separation of function between management, the Board, and shareholders.

Often in an SME business, these roles merge and there are no clear dividing lines or boundaries. Roles, responsibilities, and clear key performance indicators (KPIs) for management should be agreed and documented.

Need assistance? We can work with you to successfully transition your business.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Should you be the ‘bank of Mum & Dad’?

Mon, 06 May 2024 20:32:42 GMT

Should you be the ‘bank of Mum & Dad’?

The great wealth transfer from the baby boomer generation has begun and home ownership is the catalyst.

The average price of a home in NSW is $1,184,500, the highest in the country. Canberra is next at $948,500, followed by Victoria at $895,000, with the Northern Territory the lowest at $489,200. With the target cash rate expected to remain steady at a 12 year high of 4.35% over 2024, the pressure is on parents and family to help the younger generation become homeowners.

Over the last 15 years, home ownership has fallen from 70% to 67% of the population. Over time, declining home ownership will increase the wealth gap in Australia as for many, home ownership is a significant factor in wealth accumulation. According to the Actuaries Institute, wealth inequality is significantly higher now than in the 1980s, with the wealthiest 20% of households currently having six times the disposable income of the lowest 20%.

The Domain’s First Home Buyer Report 2024 estimates the time for a couple aged between 25 and 34 to save a 20% deposit for an entry level home to be 6 years and 8 months in Sydney, and 5 years and 5 months in Melbourne (the Australian average is 4 years and 9 months). In that time, they are begrudgingly paying rent (or staying with Mum and Dad).

So, should you help your children buy a home? If they can, many parents would prefer to assist their children when they need it most, rather than benefiting from an inheritance later in life. However, it’s essential that any support does not risk your financial security, and that means looking at what support you can afford to provide.

The downside of cash gifts

A cash gift towards a deposit or mortgage is a simple and effective method of helping a family member. However, there are a few downsides:

· Where the gift forms all or a significant portion of the deposit, lenders may want to ensure that the loan is serviceable and may require verification of the source of the funds to ensure the amount is not a loan and does not require repayment (i.e., a gift letter).

· In the event of a divorce or separation, the gift may not overtly benefit your child, and instead form part of the property pool to be divided.

For income tax purposes, gifts from a family member out of natural love and affection are not normally taxed.

The ‘bank of Mum & Dad’

If you provide a loan to your child to purchase a home, it’s essential that the terms of the loan are documented, preferably by a lawyer.

There are many ways to structure the loan depending on what you’re trying to achieve. For example, the loan might mimic a bank loan with interest and regular payments, require repayment when the property is sold or ownership changes, and/or managed by your estate in the event of your death (treated as an asset of the estate, offset against the child’s share of the estate, or forgiven).

There is a lot to think about before lending large amounts of money; what should happen in a divorce, if your child remortgages the property, if you die, if your child dies, if the relationship

becomes acrimonious, etc. As always, hope for the best but plan for the worst.

Providing security to lenders

A family guarantee can be used to support a loan in part or in full. For example, with some lenders you can use your security to contribute towards your child’s deposit to avoid lender’s mortgage insurance (which ranges between 1% to 5% of the loan).

When you act as a guarantor for a loan, you provide equity (cash or often your family home) as security. In the event your child defaults, you are responsible for the amount guaranteed. If you have secured your child’s loan against your home and you do not have the cashflow or capacity to repay the loan, your home will be sold.

If you are contemplating acting as guarantor for your child, you need to look at the impact on your finances and planning first. Your retirement should not be sacrificed to your child’s aspirations. And, where you have more than one child, look at equalising the impact of the assistance you provide in your estate.

Co-ownership

There are two potential structures for buying property with your children:

· Joint tenants - the property is split evenly and in the event of your death, the property passes to the other owner(s) regardless of your will.

· Tenant-in-common – the more popular option as it allows for proportions other than 50:50 (i.e., 70:30). If you die, your share is distributed according to your will.

Regardless of ownership structure, if the property is mortgaged and the other party defaults on the loan, the loan might become your responsibility. It is vital to consider this before loan arrangements are entered into.

It’s also essential to have a written agreement in place that defines how the co-ownership will work. For example, what happens if your circumstances change and you need to cash out? What if your children want to sell and you don’t? Will the property be valued at market value by an independent valuer if one party wants to buy the other one out? It’s not uncommon for children to assume that they will only need to pay the original purchase price to buy your share with no recognition of tax, stamp duty or interest. And, what happens in the event of death or dispute?

If you are not living in the home as your primary residence, then it is likely that capital gains tax (CGT) will apply to any increase in the market value of the property on disposal of your share (not the price you choose to sell it for). And, you will not benefit from the main residence exemption. In these situations, it is essential to keep records of all costs incurred in relation to the property to maximise the CGT cost base of the property and reduce any capital gain on disposal.

Utilising a family trust

A more complex option is to purchase a property in a family trust where you or a related company acts as trustee. This strategy is often used for asset protection purposes. Typically, at some point in the future, you would pass control of the trust to your child and it might be possible to do this without triggering material CGT or stamp duty liabilities, although this would need to be checked. On the eventual sale of the property, CGT will apply to any increase in value of the property and the main residence exemption cannot be used to reduce the tax liability, even if the child was living in the home.

Be wary of state tax issues. For example, in some states, owning property through a trust will mean that the tax-free land threshold will not apply, increasing any land tax liability. Also, if the trust has any foreign beneficiaries, this could result in higher rates of stamp duty.

Reduced or rent free property

Buying a house and allowing your child to live in the house rent-free or at a reduced rent enables you to put a roof over their heads but adds no value to your child’s ability to secure a loan or utilise the equity of the property to build their own wealth.

If you intend to treat the property your child is living in as an investment property and claim a full deduction for expenses relating to the property, then rent needs to be paid at market rates. If rent is below market rates, the ATO may deny or reduce deductions for losses and outgoings depending on the discount provided. Any rental income received is assessable to you. In addition, CGT will be payable on any gain when the property is sold, or ownership is transferred.

If the intention is to provide this property to your child in your estate, ensure your will is properly documented to support this intent.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Company money crackdown

Mon, 06 May 2024 02:54:48 GMT

Company money crackdown

The ATO is cracking down on business owners who take money or use company resources for themselves. It’s common for business owners to utilise company resources for their personal use. The business is often such a part of their life that the line distinguishing ‘the business’ from their life can be blurred.

While there are tax laws preventing individuals accessing profits or assets of the company in a tax-free manner, mistakes are being made and the Australian Taxation Office (ATO) has had enough. The ATO has launched a new education campaign to raise awareness of these common problems and the serious tax consequences that can arise.

What the tax law requires

Division 7A is an area of the tax law aimed at situations where a private company provides benefits to shareholders or their associates in the form of a loan, payment or by forgiving a debt. It can also apply where a trust has allocated income to a private company but has not actually paid it, and the trust has provided a payment or benefit to the company's shareholder or their associate.

Division 7A was introduced to prevent shareholders accessing company profits or assets without paying the appropriate tax. If triggered, the recipient of the benefit is taken to have received a deemed unfranked dividend for tax purposes and taxed at their marginal tax rate. This unfavourable tax outcome can be prevented by:

Paying back the amount before the company tax return is due (this is often done by way of a set-off arrangement involving franked dividends); or
Putting in place a complying loan agreement between the borrower and the company with minimum annual repayments at the benchmark interest rate.

The problem areas

Division 7A is not a new area of the tax law; it has been in place since 1997. Despite this, common problems are occurring. These include:

Incorrect accounting for the use of company assets by shareholders and their associates. Often, the amounts are not recognised;
Loans made without complying loan agreements;
Reborrowing from the private company to make repayments on Division 7A loans;
The wrong interest rate applied to Division 7A loans (there is a set rate that must be used).
Like life, managing the tax consequences of benefits provided to shareholders and their associates can get messy quickly. Avoiding problems can often come down to a few simple steps:
Don't pay private expenses from a company account;
Keep proper records for your company that record and explain all transactions, including payments to and receipts from associated trusts and shareholders and their associates; and
If the company lends money to shareholders or their associates, make sure it's on the basis of a written agreement with terms that ensure it's treated as a complying loan – so the full loan amount isn't treated as an unfranked dividend.

There are strict deadlines for managing Division 7A problems. For example, if the borrower is planning to repay the loan in full or put a complying loan agreement in place, this needs to be done before the earlier of the due date and actual lodgement date of the company’s tax return for the year the loan was made.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Taxpayer unsuccessful in having excess contributions reallocated

Sat, 04 May 2024 20:00:00 GMT

Taxpayer unsuccessful in having excess contributions reallocated

The Administrative Appeals Tribunal ('AAT') recently held that a taxpayer was liable to pay excess concessional contributions tax in relation to contributions made on his behalf by his employer.

In the 2021 income year, the taxpayer's employer made concessional super contributions to his super fund totalling $31,737, which resulted in the taxpayer exceeding his concessional contributions cap for the 2021 year by $6,737.

The AAT upheld the ATO's decision not to exercise its discretion to reallocate the excess contributions to another year, on the basis that there were no 'special circumstances' under the relevant legislation that would allow the ATO to do so.

The AAT noted that "The difficulty for the (taxpayer) is that he accepts that there was never any certainty around when his employer would pay contributions into his super fund and that there was no written agreement or even a verbal agreement that set out the timing of the payments into his super fund. As such it was not unusual for his employer to pay the (taxpayer's) concessional contributions into his super fund at differing times."

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO issues warning about false invoicing arrangements

Fri, 03 May 2024 20:00:00 GMT

ATO issues warning about false invoicing arrangements

The Serious Financial Crime Taskforce ('SFCT') is warning businesses about using illegal financial arrangements such as 'false invoicing' to cheat the tax and super systems.

False invoicing arrangements may consist of the following:

an entity (the 'promoter') issues invoices to a legitimate business but no goods or services are provided;
the business pays the invoices, by cheque or direct transfer, and the promoter returns most of the amount paid to the owners of the business as cash;
the promoter keeps a small amount as a commission;
the business then illegally claims deductions and GST input tax credits from the false invoice; and
the owners of the business use the cash they have received for private purposes or to pay cash wages to workers, and do not properly report the amounts in their tax returns.

The SFCT is warning businesses against using these types of arrangements, and that they "will get caught and face the full force of the law."

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Illegal early access to super

Thu, 02 May 2024 20:00:00 GMT

Illegal early access to super

Faced with tough times, some people may be thinking about accessing their super early.

Taxpayers may have been approached by someone (a 'promoter') claiming that members of super funds can withdraw their super or use an SMSF to pay off debts, buy a car, or pay for a holiday.

The ATO warns taxpayers that this is illegal. Super funds should remind members that super is for retirement. Members need to meet very strict conditions to access their super early, and acccessing their super outside of these strict conditions is illegal.

Illegal early access to super can have a significant impact on members' retirement savings, result in additional tax, penalties and interest, and lead to members being disqualified from ever being able to be an SMSF trustee again. When a trustee is disqualified, their name is published and this can affect their personal and professional reputation.

If a promoter gets a member to provide them with enough personal information, they may also steal their identity and use it to access their super for themselves.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

What to know about disaster relief payments

Wed, 01 May 2024 20:00:02 GMT

What to know about disaster relief payments

Taxpayers should be aware that some natural disaster relief payments are not taxable.

Businesses that have received a government support payment because of a natural disaster (such as a major weather event) should check if they need to include this as assessable income in their tax return before they lodge (although they may not need to pay tax on the payment).

Provided that they meet the criteria, taxpayers can treat some support payments as 'non-assessable, non-exempt income', which means they do not need to include them in their tax return.

Taxpayers can refer to the ATO's website (or check with us) for more information in this regard, including in relation to the criteria that needs to be satisfied.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Government warns of 'malicious' myGov scammers

Wed, 01 May 2024 06:04:58 GMT

Government warns of 'malicious' myGov scammers

The Government has urged Australians to be vigilant regarding scammers who target ATO log-in details to commit tax fraud.

The ATO has received a large number of reports of scammers using fake myGov sites to steal myGov sign-in details, which can be used to commit tax and refund fraud in other people's names.

These criminals will often use text message or email to lure people into clicking a link using phrases such as 'You are due to receive an ATO Direct refund' or 'You have a new message in your myGov inbox - click here to view'.

The Government says the ATO or myGov will never send an email or text message with a link to sign in to myGov.

Last year, the ATO introduced new fraud controls to help protect Australians from online identity theft. This included using myGovID to strengthen security during the sign-in processes on myGov accounts, making it more difficult for criminals to gain access.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Are your ABN details up to date?

Mon, 29 Apr 2024 23:24:12 GMT

Are your ABN details up to date?

When did you last check your Australian Business Number (ABN) details on the Australian Business Register (ABR)? If you’re not sure, it’s time to check your details are correct. Emergency services and government agencies use ABN details to identify businesses in areas affected by emergencies. Checking that both your physical business address and postal address are listed and up to date is important.

Other ABN details include authorised contacts, contact details and business activities. If your details are incorrect, you may miss out on important help, information or opportunities like financial grants.

The fastest way to update your ABN details is through ABR online services (using your myGovID). If you’re no longer using your ABN, you need to cancel it. The ATO actively reviews ABN entitlement and may cancel your ABN if there are no signs of business activity. Tip! Although it’s your responsibility to keep your ABN details up to date, your tax advisor can do it for you. Please get in touch with us for assistance.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Reminder of March 2024 Quarter Superannuation Guarantee (‘SG’)

Sun, 28 Apr 2024 20:00:33 GMT

Reminder of March 2024 Quarter Superannuation Guarantee (‘SG’)

Employers are reminded that employee super contributions for the 1 January 2024 to 31 March 2024 quarter must be received by the relevant super funds by 28 April 2024 (which is a Sunday), in order to avoid being liable to pay the Super Guarantee charge. When a super due date falls on a weekend or public holiday, your contribution must be received by the fund on or before the next business day. Contributions made via commercial clearing houses have been taking up to 10 days in some cases to end up in the employee's fund. We would always recommend allowing a decent buffer if contributions are made via commercial clearing house. If making the payment via the ATO clearing house, there is a bit of extra leeway for the contribution to be received if the 28th is a weekend or public holiday until the next business day. Click here for due dates.

The Super Guarantee Charge , which is owed to the ATO, is made up of three parts, the amount of super that's due plus interest, plus an admin fee. In addition to making that superannuation guarantee charge, the employer also has an obligation to lodge the Super Guarantee charge statement to the ATO within one month, generally that the Super was actually due. And failure to lodge this statement means that the employer is liable for a penalty that's calculated at twice the Super guarantee charge amount. This penalty is automatically imposed by the law, but the Commissioner has discretion to remit this penalty, but not for historic quarters that ended on 31 March 2018 or earlier, unless there were exceptional circumstances that prevented the employer from providing that information. PS LA 2021/3 outlines the Commissioner's approach to these penalties and the circumstances in which he will choose to remit them in part or in full.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

ATO announces audit crackdown on employers providing utes, dual cabs etc

Thu, 25 Apr 2024 20:32:47 GMT

ATO announces audit crackdown on employers providing utes, dual cabs etc

The ATO sees a significant level of non-compliance in situations where an employer provides a motor vehicle to an employee (or their associate) for their private travel or makes it available to use privately.

Situations that concern the ATO include when employers:

treat cars as 100% business use, even though they are used or available for private purposes
don't have a valid log book, or the log book is not a representative sample of actual travel
treat all eligible commercial vehicles as FBT exempt, without considering if the private use of the vehicle was limited.

To find out what you should do, see the ATO guide FBT on cars, other vehicles, parking and tolls .

Example: identifying private use

Eve is the owner and sole director of a company, Eve’s Consultancy Business Pty Ltd (ECB). Eve arranges for ECB to purchase a car, which she uses to visit clients and for other work-related travel.

Eve considers the car to be a business car because it is owned by the company and has a sign on the side with the business name. Therefore, ECB does not keep a log book and does not lodge an FBT return.

Based on ATO data and risk models, the ATO selects ECB for an FBT car review to check if the company is meeting its FBT obligations.

During the review, Eve explains that the car is garaged at her home and she uses it for her daily commute to the office.

The ATO advises Eve that:

home to work travel is private use
when a car is garaged at an employee’s home (as a director of ECB, Eve is considered an employee for FBT purposes), the car is considered to be available for their private use
in both instances a car fringe benefit has been provided and FBT applies.

The ATO provides Eve with information about how to calculate FBT. She agrees to lodge an FBT return for ECB.

Example: limited private use of eligible vehicles

BTE is an engineering business. It has a fleet of dual cab utes (with a carrying capacity of less than 1 tonne) and sedans, which its employees use to attend business sites and visit clients.

BTE considers that FBT doesn’t apply to the vehicles because the utes are eligible commercial vehicles and the sedans are only used for business purposes. Therefore, BTE does not lodge an FBT return.

Based on ATO data and risk models, the ATO select BTE for an FBT car review to check if the business is meeting its FBT obligations.

The review identifies that the sedans remain at the office and the utes are taken home by employees and used for private purposes (such as weekend sport and camping trips).

The ATO advises BTE that the private use of the utes must be limited to be an exempt benefit (see PCG 2018/3 Exempt car benefits and exempt residual benefits: compliance approach to determining private use of vehicles). The utes were used for extensive private purposes therefore these conditions have not been met. In this situation a car fringe benefit has been provided and FBT applies.

The ATO provides BTE with information about how to calculate FBT. The business lodges an FBT return.

ATO motor vehicle data matching program

The ATO matches data gathered from state and territory motor vehicle registry agencies. Vehicles that have been transferred or newly registered during the 2023, 2024 and 2025 income years and have a purchase price or market value equal to or greater than $10,000 attract ATO attention. The ATO matches the data gathered with intent of identifying taxpayers who are not meeting their FBT registration, reporting, lodgement and payment obligations.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Source including ATO QC 71179. Liability Limited by a scheme approved under Professional Standards Legislation.

Earning income for personal effort

Tue, 23 Apr 2024 21:13:08 GMT

Earning income for personal effort

Taxpayers should remember that, if over half their income is from a contract for their personal effort or skills, then their income is classified as personal services income ('PSI').

Taxpayers can receive PSI in almost any industry, trade or profession, e.g., as a financial professional, IT consultant, construction worker or medical practitioner. Take David for example. He charges $250 for a plumbing job. For the tools he supplied, he charges $60 and the rest is for his labour. David earned more than half of his income for the job through his personal efforts or skills, so the income is considered PSI.

If you earn PSI, you’ll need to work out if you are a personal services business (PSB) in the year that you received the PSI. This will affect the deductions you can claim.

Taxpayers who earn PSI while running a business (e.g., as a contractor) need to work out if they were a personal services business ('PSB') in the year that they received the PSI, as this will affect the deductions they can claim.

Taxpayers can self-assess as being a PSB if they:

meet the 'results test' for at least 75% of their PSI, or
meet one of the other PSB tests (i.e., the unrelated clients test, the employment test, or the business premises test), and less than 80% of their PSI is from the same entity and its associates.

Taxpayers who self-assess as a PSB still need to report their PSI in their income tax return and keep certain records. For more information, see the ATO personal services income guide here or contact us.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Non-compete clauses and worker restraints under review

Mon, 22 Apr 2024 20:15:49 GMT

Non-compete clauses and worker restraints under review

A new issues paper from Treasury’s Competition Review questions whether non-competes and other restraints are limiting job opportunities and movement.

A recent Australian Bureau of Statistics (ABS) survey found that 46.9% of businesses surveyed used some kind of restraint clause, including for workers in non-executive roles. The survey also found 20.8% of businesses use non-compete clauses for at least some of their staff and 68.2% for more than three-quarters of their employees.

Over the last 30 years, Australia has seen a decline in job mobility. Australia is not alone in this and other advanced economies have experienced the same issue. While restraint clauses are not the only factor contributing to the decline – an ageing population and a rise in post-pandemic market concentration in some industries has also contributed, it is specifically the role of restraints that is the focus of the Competition Review issues paper (submissions close 31 May 2024).

The review states that, “The direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”

For business however, this is the point - restricting the knowledge developed by a worker during their employment from benefiting a competitor, limiting the likelihood of a ‘mass exodus’ of key workers from the business to a competitor, preventing clients from employing key workers, and protecting the value of the business by preventing employees from walking away with customers that were hard won, at a cost, by the business.

The international trend is to either ban restraints for workers under a certain income level and time limit restraints for higher paid workers, or to limit the duration of restraints generally but specify a level of compensation to the worker for the restraint period.

Non-compete clauses - prevent workers from joining a competitor or starting a new business in competition with their current employer for a period of time.
Non-solicitation clauses - prevent workers from soliciting former customers and co-workers.
Non-disclosure clauses - prevent workers from disclosing confidential information relating to their employment.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

How much is my business worth?

Sun, 21 Apr 2024 19:48:27 GMT

How much is my business worth?

For many small business owners, their business is their largest asset and for many, one that is expected to help fund their retirement. But what is your business really worth and what sets a high value business apart?

Every business owner is naturally curious about just how much their business is worth. However, for every business that sells at an attractive price, there are others that struggle to sell, let alone fetch a premium. The question is, what makes a difference?

When you come to sell a business the first question is, what are you selling? In most cases, this is fixtures and fittings, plant and equipment, stock on hand, and the goodwill of the business. Generally, a buyer won’t want to purchase your liabilities or your business structure, nor will they want to collect your outstanding debtors. Most business sales become a sale of business assets.

These assets are relatively easy to value with the exception of the goodwill. The value of plant and equipment and trading stock can generally be agreed. The tension tends to be around the value of the goodwill because goodwill is made up of many intangible assets that can’t be readily quantified.

We can all agree that there is value in these assets but the question is, how much? Goodwill is basically the value of the future free cashflow of the business. Based on how your business is structured, it is the value of the profits the business can generate in the future. This is what a buyer is prepared to pay for.

If a buyer has a reasonable certainty of profits and free cashflow in the future, then this is worth something. By comparison, a start-up business will have a higher level of risk and no certainty that profits can be generated. In general, a new business may need to trade for a number of years at a loss before it can establish itself and generate profits. Goodwill is what you are prepared to pay to avoid the risk and the ‘time to establish’ factor.

So, what influences business value and what will people pay for?

· A history of profits, profits, and more profits

· Returns on capital invested (better than 30%)

· Strong growth and growth prospects

· Brand name and value

· A business not dependent on the owners

· A strong, verifiable customer list

· Monopoly income – exclusive territories

· A sustainable competitive advantage

· Good systems and procedures

It is possible to get a price that is widely different from the norm. Unique businesses, unique circumstances, and unique opportunities can always produce ‘an out of the box’ price. If you can build something unique, then you may achieve a price beyond normal expectations. At the end of the day however, the market will set the price.

If you are planning on selling your business, identify who your buyers might be. There could be a purchaser who is prepared to pay a large premium to own your business because of the accretive value or because it is pivotal to their growth strategy.

And, even if you are not thinking about selling your business, the reality is that one day you will. If you build your business with this in mind, then you should look to do the things that will grow your business value from year to year.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

The assault on professional services

Sat, 20 Apr 2024 19:49:43 GMT

The assault on professional services

The ATO has signalled that it is willing to pursue professional services firms who divert profits to avoid tax. Two new cases before the Administrative Appeals Tribunal demonstrate how serious the Australian Taxation Office (ATO) is about making sure professional services firms - lawyers, accountants, architects, medical practices, engineers, architects etc., – are appropriately taxed.

In both cases, the ATO pursued the practices using Part IVA. Part IVA is an area of the income tax law that enables the Tax Commissioner to attack schemes or arrangements undertaken to obtain a tax benefit, enabling him to cancel any benefit derived by the scheme. That is, you could have a legally viable structure in place but if the only purpose of that structure is to reduce tax, then the Commissioner can use Part IVA to remove the tax benefit. And, if Part IVA applies, you may end up with an additional tax liability as well as an administrative penalty of either 25% or 50% of the tax shortfall amount.

Broadly, the cases involved a solicitor who controlled a number of practice trusts that derived profits through marketing and facilitating tax planning arrangements.

While the arrangement in each case was complex and involved a large number of steps, the practice trusts ensured their business profits weren’t subject to tax by essentially making trust distributions on paper through a series of trusts and ultimately to either a company that had existing tax losses, or a tax-exempt entity. However, the real funds relating to the trust distribution (less a commission paid for the use of these entities) were ultimately received by the solicitor or their associated entities in the form of a loan.

Professional practices have been in the ATO spotlight for many years now for the way they distribute profits. Back in 2021, the ATO finalised its guidance on the allocation of professional firm profits, putting in place a series of risk ratings and gateway tests. These two cases however demonstrate the ATO’s willingness to pursue the issue in the courts using the Commissioner’s powers in Part IVA.

For professional services firms, it’s important to be aware that there are several ways in which the ATO can potentially challenge arrangements involving the distribution of profits from a professional practice. For example:

If a trading entity derives personal services income that mainly relates to the skills and efforts of a particular individual, the ATO has certain expectations around ensuring the profits are assessed to the individual performing the work.
If a trading entity doesn’t derive personal services income but income from a business structure involving a professional practice, the ATO has set out its compliance approach to targeting arrangements that don’t result in a reasonable level of profit being taxed in the hands of the individual practitioners.
If a trust makes paper distributions to loss entities to ‘soak up’ deductions or losses, there are integrity rules in section 100A, another area of tax law under intense scrutiny, that need to be considered.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Budget 2024-25

Fri, 19 Apr 2024 19:53:36 GMT

Budget 2024-25

The 2024-25 Federal Budget to be handed down on 14 May at 7.30pm AEST is the third for the Albanese Government and consistent with previous years, the primary themes are expected to be the cost of living and the economic shift to net zero. At a G20 meeting in Washington overnight, Treasurer Jim Chalmers said five global pressures – lingering inflation, slowing growth, rising tensions, fragmenting supply chains, and a transforming global economy – would “weigh heavily” on next month’s budget.

According to election guru Antony Green , the window for the next election starts on Saturday, 3 August 2024, “the first possible date for an election if writs are issued on 1 July. The election window will stay open until mid-May 2025, the last date being 17 or 24 May.” No doubt, the Government will have the election in mind when it presents the Budget on 14 May at 7.30pm AEST.

Stage 3 tax cuts

The redesigned stage 3 tax cuts have been passed by Parliament and will apply from 1 July 2024. The amendments broadened the benefits of the tax cut by focussing on individuals with taxable income below $150,000. See our blog about this here .

Investment incentives for small business

It remains to be seen whether an increased instant asset write-off threshold will apply to smaller businesses in the 2024-25 income year. The increased threshold to $20,000 announced in the 2023-24 Budget still has not passed Parliament (the Senate increased the threshold to $30,000). If the intent of this measure is to encourage investment, it is essential that legislation enabling these measures is passed by Parliament in a reasonable time to give business operators the certainty they need to commit to any additional investment spending.

Energy bill relief

The Prime Minister has hinted at another round of energy bill relief to ease cost of living pressures for low-income households and small business. The measure is subject to support from State and Territory governments.

Look out for our analysis on how the 2024-25 Federal Budget will impact you, your business, and your superannuation.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.

Warning on SMSF asset valuations

Thu, 18 Apr 2024 20:43:30 GMT

Warning on SMSF asset valuations

The ATO has issued a warning to trustees of SMSFs about sloppy valuation practices. ATO data analysis has revealed that over 16,500 self managed superannuation funds (SMSFs) have reported assets as having the same value for three consecutive years. With many of these assets residential or commercial Australian property, you can forgive the ATO for being incredulous.

For trustees of SMSFs, where asset values are consistently reported at the same value, it’s likely your SMSF will be flagged for closer scrutiny by the ATO. The value of assets in your SMSF impacts on member balances and by default, can impact the amount you can contribute, ability to segregate assets for exempt current pension income, the work test exemption and access to catch-up concessional contributions. And, as we move closer to the implementation of the Division 296 $3m superannuation tax, valuations will be very important for anyone with a member balance close to or in excess of $3m.

If the asset is an in-house asset, for example a related unit trust, then an accurate valuation is essential to ensure the fund remains within the 5% in-house asset limit. If the value of in-house assets rises above 5% of total assets, the asset/s need to be sold to bring the limit back below 5%.

Valuing at market value

Each year, the assets of your SMSF must be valued at ‘market value’ and evidence provided to your auditor. Broadly, market value is the amount that a willing buyer of the asset could reasonably be expected pay to acquire the asset from a willing seller assuming that the buyer and seller are dealing at arm’s length, and everyone acts knowledgeably and prudentially. It’s a common sense test that looks at the value you could reasonably expect to achieve for an asset.

If your SMSF holds collectible and personal use assets like artwork, jewellery, motor vehicles etc., a valuation must be performed by a qualified independent valuer on disposal. This does not necessarily mean that an independent valuation needs to be completed every year but at least every three years would be prudent. If you are not utilising an independent valuer, you will still need to make an active assessment based on market conditions. For example, if you hold artwork and the artist who created your investment artwork died, has this changed the value? Are the primary and secondary markets for the artwork transacting at a higher value? Leaving the value of the asset at its acquisition price calls into question the rationale for acquiring the asset within the fund in the first place. If the asset is unlikely to add any value to your retirement savings, then should it be held in your SMSF when you could achieve a higher rate of return elsewhere?

In most cases, the ATO require trustees to value an asset based on “objective and supportable data”. This means that you should document the asset being valued, a rational explanation for the valuation, and the method in which you arrived at it.

Valuing real property

Commercial and residential real estate does not need to be valued by an independent valuer. But, if there have been significant changes to the property, the market, or the property is unique or difficult to value, it is a good idea to have a written independent valuation from a valuer or estate agent undertaken (their report should also document the valuation method and list comparable properties).

If you are completing the valuation yourself, ensure that you document the time period the valuation applies to and the characteristics that contribute to the valuation. For example, a 10 year old brick four bedroom property on 640m ² of land in what suburb and any features that make it more or less attractive to a buyer, for example proximity to transport. And, you should access credible sales data either on similar properties in the same suburb that have sold recently or from a property data service. More than one source of data is recommended.

The estimates on a lot of online property sales sites are general in nature and not reliable for a valuation of a specific property. The average price change for the suburb however could be used as supporting evidence of your valuation.

For commercial property, net income yields are required to support the valuation. Where the tenants are related parties, for example your business leases a commercial property owned by your SMSF, you will need evidence that a comparative commercial rent is being paid and the rent is keeping pace with the market.

Valuing unlisted companies and unlisted trust investments

Valuing unlisted companies and unlisted investments can be difficult. The financials alone are not enough. But, if your SMSF invested in an unlisted company or shares in a unit trust, then there is an expectation that the trustees made the decision to make the initial acquisition based on the value of the asset, its potential for capital growth and income generation. That is, if you assessed the market value going into the investment, then it should not be a stretch to value the asset each year.

The difficulty for many investors is that in unlisted companies or trusts, the initial investment was broadly equivalent to the cash requirements of the activity being undertaken.

Generally, the starting point is the value of the assets in the entity and/or the consideration paid for the shares/units. For widely held shares or units, this is the entry and exit price.

Where property is the only asset, then the valuation principles for valuing real property are likely to apply.

Where there is no reliable data or market

We’ve seen a few scenarios where the assets purchased or created by the SMSF have no equal or there is no market – the true extent of the value will only really be known when the asset is realised. These unusual items default to either a professional valuation or a viable market assessment. This might be a derivative of the purchase price or data from a related market.

Valuations and the impending Division 296 tax on super earnings

The value of assets will be particularly important for those with super balances close to or above the $3m threshold for the impending Division 296 tax on fund earnings. Because the tax will measure asset values and tax the growth in earnings above the $3m threshold, accurate valuations will be important to ensure that the fund does not pay tax when it does not need to, and to reduce the likelihood of anomalies artificially inflating tax payable.

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IMPORTANT: This communication is factual only and does not constitute financial advice. Please consult a licensed financial planner for advice tailored to your financial circumstances. Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.