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Smart tax and super planning before EOFY

Tax time is just around the corner, so now is the time to make sure you’re prepared for 30 June.

Each year, the ATO highlights its areas of focus. Taking a few minutes now to review these can help you avoid issues when lodging your return.

Work-related deductions under scrutiny

This year, the ATO is focusing on work-related deductions and income that’s not declared on tax returns.

If you are claiming work-related expenses, ensure they meet the ATO’s three golden rules:i

The expense must be directly related to earning your income

You must not have been reimbursed

You must have records to support your claim, such as receipts or a logbook

For working from home expenses, you can use either the actual cost method or the fixed rate method.

Instant asset write-off

The instant asset write-off remains an important tax concession for Australian small businesses in the 2025–2026 financial year. Eligible businesses with an aggregated turnover of less than $10 million can immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them over several years. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.ii

Don’t overlook income

The ATO is also paying close attention to undeclared income. This includes:iii

Cash payments

Interest income

Rental income

Earnings from crypto assets

For those with a side hustle, check whether it may be considered a business. All business income, regardless of amount, is assessable and must be declared.iv

If you intend to claim deductions for business expenses related to your side hustle, ensure they are directly connected to earning that income and are supported by receipts.

Time for a portfolio review

Recent market volatility makes this a good time to review your investment strategy.

Checking your capital gains or losses before 30 June allows you to take action where appropriate.

For example, you may consider realising capital losses to offset gains from assets such as shares, property or crypto.

Tax timing strategies

If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepaying them before 30 June to claim a deduction for this financial year.

You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year may help reduce your tax liability.

Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, with a further reduction to 14 per cent the following year.

Super contribution strategies

The end of the financial year is an ideal time to review your super contributions.

If you plan to contribute before 30 June, check when your employer will make their contributions. The introduction of Payday Super means some employers are contributing earlier, which may affect your contribution caps.

For SMSF members, make sure that:

All contributions are received by the fund’s bank account by 30 June

Minimum pension payments are made

Asset valuations are up to date

Fund records are current

Be alert for tax time misinformation

The ATO is warning taxpayers to be cautious about the growing wave of tax “tips”, shortcuts and refund claims circulating online.

Content from social media, “finfluencers” and even artificial intelligence tools can sound convincing, but it is not always accurate or relevant to Australian tax law. Acting on this kind of advice can lead to incorrect claims, delays in processing returns and, in some cases, penalties.

Larger refunds, easy deductions or so-called “loopholes” should always be checked against trusted sources.

Ultimately, you are responsible for the accuracy of everything included in your tax return, regardless of where the advice came from.

Taking a few extra minutes to verify information before you lodge can help you avoid costly mistakes and keep your return on the right side of the rules.

Please get in touch if you need any help preparing for the end of the financial year.

Source: https://www.ato.gov.au

Tax Alert June 2026

Prepare your business for tax changes and Payday Super

Recent updates from the ATO highlight a mix of proposed tax changes and compliance priorities, with new draft legislation under consideration and practical guidance released ahead of the Payday Super changes starting 1 July 2026.

Check eligibility for tech booster deduction

Small businesses are being encouraged to review their eligibility for the government’s proposed Technology Investment Boost, although the legislation is yet to be passed.i

Under the original proposal, eligible businesses could claim a bonus tax deduction of up to $2,000 for technology spending. This applies to investments exceeding $4,000 in areas such as digital systems, e-commerce platforms, cyber security and online marketing tools.

Businesses with annual turnover of up to $10 million may qualify, with eligible expenditure incurred between 1 July 2025 and 30 June 2027.

While not yet law, reviewing planned or recent technology spending may help businesses act quickly if the measure is enacted.

Standard $1,000 deduction proposal

Another proposed measure is the introduction of a standard $1,000 deduction for work-related expenses, with draft legislation released for consultation.

If implemented from 1 July 2026, the deduction would be available to taxpayers earning employment income. Taxpayers with work-related expenses below $1,000 could claim the standard deduction without detailed receipts.

Importantly, existing rules will remain available for those with higher expenses, or for individuals earning only business or investment income.

The proposed deduction would sit alongside other claims, meaning taxpayers could still separately deduct investment expenses, charitable donations, and union or professional association fees.

Preparing for Payday Super

With Payday Super due to get underway on 1 July 2026, the ATO has released checklists and guidance to help employers prepare.ii

The new regime will require super contributions to be paid at the same time as wages, rather than quarterly. To support the transition, the ATO has published resources covering:

Key pre-implementation tasks

Managing pay runs across the June–July transition period

Single Touch Payroll reporting requirements

Ongoing compliance under the new system

Employers are encouraged to review payroll systems, processes and cash flow implications now to ensure a smooth transition.

GST reporting thresholds in focus

The ATO is also reminding growing businesses to review their GST reporting obligations as turnover increases.iii

Businesses that reach $10 million in GST turnover must move from Simpler BAS to full BAS reporting and adopt a non-cash (accrual) accounting method for GST.

Once turnover reaches $20 million, GST reporting must shift from quarterly to monthly lodgment.

The ATO says it’s noticed some businesses are failing to update reporting methods after crossing these thresholds and they will contact businesses directly.

Fuel tax credit rate changes

Taxpayers claiming fuel tax credits should ensure they are applying the correct rates following changes from 1 April 2026 to temporarily reduce fuel excise by 60.9 per cent.iv

As fuel tax credits are based on the excise duty payable on fuel, there will be different rates that apply before and after that date.

In addition, the heavy vehicle road user charge has been reduced to zero for the period 1 April to 30 June 2026.

Digital lodgment for partnerships

The ATO continues to expand digital reporting requirements, with all partnerships now required to lodge Statements of Distribution (SODs) electronically.v

This applies regardless of the size of the partnership. Lodgment can be completed through standard business reporting-enabled software or via a registered tax agent.

The digital data enables the ATO to cross-check that partners are accurately reporting their share of income in their individual tax returns.

Strengthening business security

Finally, the ATO is encouraging businesses to review access to their online accounts as part of good governance and fraud prevention.vi

Business owners should:

Regularly review authorised users in the Relationship Authorisation Manager

Remove access for staff who have left or changed roles

Check permissions for sensitive functions within ATO Online Services for Business and the Australian Business Register.

Keeping access controls up to date is a simple but effective way to reduce the risk of unauthorised activity.

Source: www.ato.gov.au

Finding your flow in thirds the 3-3-3 productivity hack

If your workday and list of things to do often feels unrelenting, you are not alone. For years, hustle culture glorified long hours, constant motion, and sacrificing rest to prove commitment. It promised success, but left many busy professionals drained, distracted, and stuck in a cycle of busyness without progress.

Structured focus offers a smarter alternative. Instead of working harder, break your day into manageable blocks, and get more done without the chaos. It’s simple, practical, and surprisingly effective for those who need to reclaim control over their time.

Why hustle culture is out and thirds are in

Hustle culture teaches that long hours equal achievement and that success comes only through constant activity. Back-to-back meetings, late-night emails, and glorified exhaustion are all symptoms of this mindset. While it may create the illusion of productivity, the reality is often stress, fatigue, and diminishing returns. The resulting lack of productivity is the opposite of what hustle culture was trying to achieve.

Structured focus provides a more appealing alternative to the ‘nose to the grindstone’ approach and one of the easiest methods to employ is known as ‘3-3-3′.

The 3-3-3 method divides your day into thirds for focused work, shorter tasks, and maintenance activities, prioritises quality over quantity and focus over frenzy. It allows high-value work, smaller responsibilities, and upkeep to coexist without competing for attention.

The benefits of working in thirds

Dividing your day into thirds offers several key advantages. It reduces stress by providing clear boundaries between different types of work, improves productivity by dedicating time to high-value tasks, and encourages sustainable performance over the long term. Working in thirds also gives a sense of control, transforming productivity from a stressful race into a deliberate, satisfying practice.

Making the 3-3-3 method work for you

Implementing the 3-3-3 method is simple but you do need a plan. It’s important that you stick to your plan. Don’t let extra tasks sneak in and steer you off course. Three tasks shouldn’t turn in seven. If you finish your three tasks early, take a break, go for a walk or make a cup of tea and think about what you accomplished. If you start adding more tasks, you could begin to feel overwhelmed, which may eventually lead to burnout.

Consistency is key. Practicing this approach day after day turns structured focus into a habit. Adjust the timing to suit your personal rhythm, but keeping the principle of thirds ensures your workday stays organised, productive, and balanced.

Working in thirds transforms the workday from stressful chaos into a structured, rewarding practice. For busy professionals, it is a game changer – a simple, practical way to work with focus, clarity, and calm accomplishment.

Federal Budget 2026-27 Analysis

Reform and resilience in uncertain times

Treasurer Jim Chalmers has framed the 2026 Federal Budget as “the most important and ambitious budget in decades”.

“This Budget is about getting us through the global oil shock and taking pressure off Australians while building a stronger economy, better tax system, a more sustainable budget and lifting living standards,” the Treasurer told Parliament.

With an overarching theme of ‘reform and resilience’, the Federal Government is aiming to shore up investor confidence at a time when the global economy teeters thanks to war in the Middle East and the disruption of global oil supplies. Despite the challenges, Treasury says Australia’s economy continues to grow faster than every major advanced economy.

For households and wage earners, the Budget delivers a mix of targeted cost-of-living relief and significant structural reform, particularly in tax and housing.

The big picture

At the headline level, the Budget forecasts an underlying cash deficit of $31.5 billion in 2026–27, an improvement of $2.8 billion on the mid‑year update, despite slower global growth and higher oil prices.

Economic growth is forecast to slow from 2.25 per cent this financial year to 1.75 per cent in 2026–27, reflecting weaker international conditions, before gradually strengthening over the medium term. Inflation is expected to rise temporarily in the June quarter to around 5 per cent driven largely by fuel and transport costs linked to the war‑driven global oil shock. Despite this near-term pressure, the Government continues to project a return to a balanced budget in the mid-2030s followed by modest surpluses.

The Treasurer maintains that budget repair is being driven primarily by savings and spending restraint, rather than broad-based tax increases.

From a policy perspective, the Budget rests on five pillars: managing the global oil shock; easing cost‑of‑living pressures; lifting productivity; reforming the tax system; and strengthening national resilience. Each has direct implications for household finances, superannuation, investment structures and long‑term planning.

The Treasurer has made clear that a major goal is to “rebalance the tax system” so that wage earners are not treated substantially differently from those who earn income through assets and investments.

While some measures will take years to flow through, the direction is to prioritise the national security, energy supply, productivity and care sectors, while accepting political risk, to strengthen the economy over the medium to long term.

Cost-of-living

The Government has been careful to structure cost-of-living measures so that they don’t meaningfully add to inflation. The most prominent initiative is the Working Australians Tax Offset, providing a $250 offset for more than 13 million employees from the 2027–28 income year.

In addition, workers will be able to claim a $1,000 instant tax deduction for work-related expenses from 2026–27, without the need to keep receipts.

Income tax thresholds will also be adjusted. From 1 July 2026, the 16 per cent tax rate, applying to income between $18,201 and $45,000, will be reduced to 15 per cent before falling further to 14 per cent from 1 July 2027.

The government will increase Medicare Levy low-income thresholds by 2.9 per cent from the 2025–26 income year, a change expected to benefit more than one million lower-income Australians who will remain exempt from the Levy or pay a reduced rate.

Productivity

Productivity comes in for renewed focus, reflecting concern that long-term improvements in living standards can’t be sustained without structural change. The Budget allocates funding aimed at reducing red tape by an estimated $10.2 billion per year, including faster environmental approvals and streamlined foreign investment processes.

Housing construction remains a central productivity priority. New funding for local infrastructure is designed to support up to 65,000 extra homes, alongside measures to fast‑track skilled migrant trades and improve construction capacity.

Investment in transport infrastructure also features prominently, with $8.6 billion committed to nationally significant road and rail projects, improving freight efficiency and workforce mobility particularly across the regions.

Taken together, these measures represent a shift toward capability building. For business owners and investors, the emphasis is on reducing friction, improving labour supply and supporting capital investment that lifts output over time rather than fuelling higher prices.

Tax reform

The most debated element of the Budget is the tax reform package directed at property investors and discretionary trusts.

From 1 July 2027, negative gearing will be limited to new housing, with existing arrangements grandfathered. At the same time, the 50 per cent capital gains tax (CGT) discount will be replaced with cost-base indexation, alongside a new minimum effective tax rate of 30 per cent on capital gains.

The CGT settings for super and self-managed super funds will remain unchanged, which means investors will continue to receive a CGT discount of 33.33 per cent for relevant assets held for over 12 months in super.

The Government argues these changes are essential to address intergenerational inequity and housing affordability, while continuing to support investors who add to new housing supply. Treasury modelling suggests a modest impact on rents over time, with savings redirected toward care services and tax relief for wage earners.

Trusts have also been brought into the Government’s tax reform agenda, with a new minimum 30 per cent tax rate to apply to discretionary trust distributions from 1 July 2028. The measure is aimed at improving integrity and reducing income‑splitting arrangements that allow some taxpayers to pay significantly less tax than wage earners on comparable incomes.

Housing affordability

The Treasurer aims to address housing shortages and affordability, by increasing total investment to $47 billion and supporting an estimated 75,000 additional Australians to achieve home ownership over the next decade through the tax reform package.

The Government claims around 65,000 additional homes will be delivered over 10 years through its support for new developments. A new $2 billion fund has been established to help local governments and state utilities build the infrastructure needed to support new housing.

To free up additional supply, the Government is extending the ban on foreign buyers purchasing established homes until mid-2029.

Aged care and health

Health and aged care receive significant additional funding as demand continues to rise. The Budget commits $25 billion in additional hospital funding over the medium term, alongside incentives to expand bulk billing and reduce strain on emergency departments.

The Government has confirmed further reductions in the cost of medicines, building on earlier PBS reforms, with cheaper scripts and faster access to newly listed drugs funded through additional PBS investment.

Aged care reform focuses on both supply and workforce sustainability. The Government will fund incentives to support construction of an additional 5,000 residential aged care beds per year by 2029.

The NDIS also features prominently, with continued efforts to rein in unsustainable cost growth and strengthen integrity. Measures include tightening eligibility, reducing rorting and redirecting funding towards participants with the highest needs.

Future proofing

The focus on national resilience is a defining characteristic of the Budget. Fuel security is front and centre following the global oil shock, with measures to secure domestic fuel reserves, reserve 20 per cent of gas exports for Australian use and provide concessional finance to logistics and manufacturing firms most exposed to price volatility.

Defence spending also rises sharply, with a record additional $53 billion committed over the coming decade. The focus is on readiness, supply chains and regional security, reflecting growing geopolitical risk in the Indo‑Pacific and beyond.

Looking ahead

The outlook remains uncertain. Treasury acknowledges the risk of further inflation spikes if global energy markets deteriorate, with worst-case scenarios still modelling inflation above 7 per cent and higher unemployment. But the central forecast avoids recession and assumes gradual improvement from late 2027 onward.

If you have any questions about how the 2026 Federal Budget may affect your personal finances, please contact us to discuss.

Information in this article has been sourced from the Budget Speech 2026-27 and Federal Budget Support documents.  

It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change. 

Got a side hustle? Don’t forget your tax

With the ongoing cost-of-living squeeze, record numbers of Aussies are supplementing their income with side hustles.

But before you dive into a new gig, it’s important to understand some of the tax essentials that come with running a small business.

Whether you’re monetising online content creations, or running bootcamp sessions, the ATO may consider that you’re running a business and expect you meet your tax obligations.

Are you running a business?

Under the current tax rules, if you earn money through continuous and repeated activities to make a profit, it’s likely you are considered to be carrying on a business.i

Income from genuine hobbies is non-assessable, but income from a business must be declared in your tax return.ii

Business operators face a range of obligations including applying for an Australian Business Number (ABN) and registering for pay as you go (PAYG) withholding if you hire any employees.iii

There is no legislative definition of “carrying on a business” but the ATO provides information and questions to help you decide:

Step 1: Identify relevant, related activities, including:

keeping records

obtaining and maintaining licences and permits

renting out premises or goods

providing goods or services.

Step 2: Are the activities a business?

Do you intend to be in business?

Do you intend to make a profit and is there a realistic chance of doing so?

Is the size or scale of your activity enough to make a profit?

Are the activities repeated and continuous?

Are your activities planned, organised and carried out in a business-like manner?

Accurate recordkeeping from the start

It’s important to set up a recordkeeping system from day one to track your income and expenses accurately.

You’re legally required to keep records of all transactions relating to your tax, superannuation and registration obligations when you start, run, sell, change or close a business.iv

Records need to be kept for five years,and you must be able to show the ATO your records if required.

Claiming genuine business-related expenses

If your side hustle is a business, all income must be declared, regardless of the amount.

The good news is you can claim tax deductions for business expenses, provided you keep receipts and the expenses directly relate to earning side hustle income (including the cost of managing your tax affairs).

If your annual turnover exceeds $75,000, you must register for Goods and Services Tax (GST) and pay all the GST collected on your taxable sales to the ATO every quarter.v

Managing cashflow

Good recordkeeping also helps you monitor the financial health of your business and know whether your business is running at a profit or loss.

It’s crucial for managing cashflow. One of the most common reasons small businesses fail, is losing control of their cash position and unable to pay their bills on time.

ATO data matching

If you are only earning small amounts, it might be tempting to assume the ATO won’t notice if you don’t report your side hustle income. But side hustles are now an important ATO surveillance target.vi

More than 600 million transactions are reported to the tax office each year. The ATO receives and matches data from banks, payment systems, government agencies, share registries, cryptocurrency service providers and building and construction payments.

Impact on government benefits

Extra income from your side hustle can also affect your eligibility for government benefits such as the Family Tax Benefit or Child Care Subsidy. It may also affect how much Medicare Levy surcharge you pay and when you are required to start repaying a HECS/HELP debt.

If you need help getting your side hustle onto a solid business footing, contact our office today.

i Are you in business? | Australian Taxation Office

ii What to include in your business’s assessable income | Australian Taxation Office

iii PAYG withholding | Australian Taxation Office

iv Overview of record-keeping rules for business | Australian Taxation Office

v GST – Goods and Services Tax | Australian Taxation Office

vi Side hustles are front of mind this tax season | Australian Taxation Office

Tax Alert March 2026

ATO tightens compliance and expands employer support

The ATO has released several new resources, including a checklist to help employers get ready for what it calls a “once-in-a-generation change” along with an updated guidance on commercial deal tax.

Here’s a roundup of the latest news.

Preparing for Payday Super

The ATO has issued a Payday Super Checklist to help employers prepare for the commencement of the new regime from 1 July 2026.

The timeline checklist is designed to help employers understand the new requirements, plan their transition, prepare their business systems and processes and switch to paying super each payday.

In addition, Practical Compliance Guidelines outlining the ATO’s compliance approach during the Payday Super legislation’s first year of operation, have now been released.

Barter credit tax scheme under the microscope

The ATO is warning taxpayers to steer clear of an emerging tax scheme involving barter credits, a form of alternative currency used in some business networks.i

The scheme involves artificially inflating deductions by claiming donations of barter credits to deductible gift recipients. This practice is unlawful and may trigger a tax audit and significant penalties.

According to the ATO, the scheme is enabled by barter exchanges issuing credits with a nominal face value far higher than the amounts actually paid by participants.

Get certainty on commercial deals

To help business owners understand the tax implications of proposed commercial transactions, the ATO has created a series of case studies and videos.

The current case studiescover a range of scenarios, including a small business capital gains tax (CGT) rollover for a primary production business, the CGT implications when two siblings wish to sell family company shares to a third sibling, and the restructuring of a small company and subsequent share sale.

The information resources are designed to show how engaging early with the ATO can help resolve tax issues before lodgement and avoid later tax disputes.ii

Protect your GST and fuel tax credits

Some taxpayers are missing out on GST and fuel tax credits because they are not claiming the credits within the four-year time limit, which generally expires four years from the due date of the original BAS in which the credits should have been claimed.

Lodging an amendment or voluntary disclosure does not protect these credit entitlements, as the ATO must process amendments and include it in your tax assessment within the time limit.iii

Once GST and fuel tax credit entitlements expire, the ATO has no discretion to amend a tax assessment to include the credits. Good processes and regular reviews are essential to avoid missing out.

Avoiding delays when winding up SMSFs

The ATO is reminding trustees to follow the correct procedure when winding up their SMSF if they wish to avoid errors and delays.iv

Trustees have 28 days after lodging their final SMSF annual return (SAR) to complete the final rollover before the fund can be officially wound up. Failing to roll out all member benefits can result in significant delays, an inability to use SuperStream and requires lodgement of an additional SAR if assets remain after the wind-up date.

Trustees need to keep their contact details updated, promptly finalise outstanding transactions and pay debts, close the SMSF bank account only after confirming the wind-up, and roll over most of the fund’s asset before lodging the final SAR.

ATO help with natural disasters

Following the series of natural disasters around the country, the ATO is reminding taxpayers that support is available for those affected by disasters such as bushfires, cyclones, drought, flood or storms.v

For major disaster areas, the ATO may pause correspondence and provide extra support depending on circumstances. This may include:

extra time to pay tax debts

more time to lodge tax returns, BAS or other obligations

personalised payment plans

remission of penalties or interest charged during the affected period.

If you need more information or clarification about any of the recent tax changes, please give us a call.

i ATO warns about barter credit tax scheme | Australian Taxation Office

ii Commercial deals service resources | Australian Taxation Office

iii Act early: Protect your GST and fuel tax credit entitlements | Australian Taxation Office

iv Get it right! Avoid delays when winding up your SMSF | Australian Taxation Office

v Summary of our disaster support | Australian Taxation Office

Self-employment

Being your own boss comes with freedoms – and responsibilities. Find out how to make the right start.

Manage your cash flow

If you’re self-employed you’re in good company. More than 62% of businesses in Australia are sole traders, with no employees. However, sole traders also have lower survival rates than larger businesses. Since 2019/20, more than half of new sole traders did not survive beyond three years. So planning for longevity means planning your money stuff. 

Cash flow means the money coming in and going out of your business. Many self-employed people earn a good living but the flow of money is not always regular. Sometimes you’ll have more going out than coming in, and invoices might not get paid on time.

To help with your cash flow, have a business plan and a budget to help you look ahead and prepare for the unexpected. Keep a close eye on your income and expenses, and make tweaks along the way. For example, consider only making larger purchases once you’ve paid yourself and covered regular bills.

Keep some money aside for the unexpected, as being self-employed means you won’t have the benefit of paid holidays or sick leave. Regularly saving a little extra will help you manage during quiet periods, as well as funding a well-deserved break.

Separate your wages and business money

Make a clear division between ‘your money’ and what belongs to the business. Pay yourself a wage, and keep separate bank accounts so that business spending doesn’t get mixed up with your own.

This makes it clear what the business has earned and paid out. It’s also easier to see the financial state (the ‘profit and loss’) of the business at any time.

Nathan stays on top of a variable income

Nathan runs his own business as a landscaper.

Nathan’s income and expenses go up and down through the year. At first, he found this hard to manage. So he added up his monthly expenses to work out an amount to pay himself each month.

Next, he worked out his monthly cash flow by looking at what he earned across the whole year, then dividing it by 12 to get a monthly average. This tells him whether he’s earned extra or not.

When Nathan earns more than usual, he now puts the extra into savings to get him through the leaner months. This means he has funds to cover unexpected business costs, such as an urgent repair.

Think about tax early

It’s important to think about tax throughout the year, not only at tax time. Get advice from an accountant and plan for what’s coming.

Income tax

If you’re self-employed, you need to pay your own income tax.

Put money aside as you earn it, rather than waiting to receive a big tax bill. Open a savings account and transfer a percentage each time you get paid. Make this account for tax payments only, and off limits for other spending.

If your business grows, the Australian Taxation Office may require you to pay income tax in quarterly instalments. This is known as pay as you go (PAYG). Get an idea of how much you might have to pay with their PAYG instalment calculator.

Goods and services tax (GST)

Businesses that earn over $75,000 per year must register for GST. Once you’ve registered, you must lodge a regular Business Activity Statement (BAS) to report how much GST your business has collected and is claiming. This may be quarterly or annually.

You can use our GST calculator to calculate the amount of GST you have to charge your customers or pay your suppliers.

Use the GST calculator

Tax deductions

You may be able to claim some of your business costs against your income, meaning you pay less tax. Speak to your accountant and keep all your receipts in case you need them.

Make your super count

Superannuation may not be at the top of your list when you’re starting out by yourself. But getting on top of it early can help you save for the future. Super is a tax-efficient way of saving money to live on when you stop working.

Since you won’t get regular super contributions from an employer, it’s up to you to make them yourself. As well as investing for your future, you can generally claim your super contributions as a tax deduction.

Protect your income — and your business

Without sick leave, getting sick or injured can mean financial difficulties. Income protection insurance can help you pay your bills if you can’t work.

If you have a super fund, find out whether they offer income protection insurance as part of the package. 

If you’re moving from employee to self-employed, check if this affects the insurance cover through your super. Insurance terms and conditions vary from fund to fund. 

Consider other types of insurance that can protect you and your business. Like public liability insurance and workers compensation insurance. 

Know the legal stuff

Setting yourself up properly – legally and financially – is key when you start a small business.

If you own and run your business as a director under a company structure, you will need to apply for a director ID.

Many small businesses form part of the value chain of larger businesses, who have reporting obligations to the Australian government related to climate change. If you deal with larger businesses, keep in mind that at times you may be asked for information about your business to help them fulfil their obligations.  

Get help if you need it

Help from a financial professional  

If you need help with your business finances, consider seeking out a licensed financial professional.   

We can help with your BAS (business activity statement) and PAYG (Pay as you go) instalments.

A bookkeeper can help keep track of day-to-day financial transactions.  

We can help you with tax and preparing your BAS.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/work-and-tax/self-employment
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
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Prepare for an SMSF shake-up in 2026

Self-managed superannuation fund (SMSF) trustees always have a lot on their to-do lists but the first few months of 2026 are likely to be busier than usual.

Topping the list is preparing for the introduction of Payday Super and the Better Targeted Superannuation Concessions on 1 July 2026.

Payday Super is a change to when you make your employees’ Superannuation Guarantee (SG) payment. From 1 July 2026, the SG must be paid to an employee’s super fund on payday and be received by the fund within seven business days. If you are taking on new employees or paying to a new super fund, these funds must be received within 20 business days.i

Employers are considered to have made a contribution when the fund receives it, not when they pay it, so SMSFs need to have the necessary systems set up and in place from 1 July.

Who’s affected?

The ATO has warned SMSF trustees that Payday Super should not be ignored.

If you are a business owner and pay contributions for yourself or your employees into an SMSF, the fund will be receiving more contributions and there will be increased administration requirements to deal with payment timing and record keeping.

The strict timing rules also come with tougher penalties and any delay may incur a Super Guarantee Charge, which is not tax deductible.

New clearing house partners

SMSFs also need to be prepared for closure of the ATO’s Small Business Superannuation Clearing House (SBSCH) from 1 July 2026.ii

Employers currently using the SBSCH should take immediate action to find an alternative. You could check your accounting software and payroll packages, which may already include super functions, or look at the options offered by commercial clearing houses or other software providers.

Failing to prepare for the SBSCH closure means you may risk a fine.

SuperStream updates

Payday Super’s 1 July start date will also usher in changes to contributions messaging within the SuperStream system, the electronic standardised format employers must use to make super contributions.iii

Changes include clearer error messaging and are designed to reduce employee contributions being rejected by the receiving super fund.

SMSF trustees need to ensure their internal systems are updated and ready to cope with the SuperStream changes, as timely and correct contribution payments are a key goal of the new rules.

According to ATO deputy commissioner Emma  Rosenzweig, one of the most common SMSF errors in this area is where the Electronic Service Address (ESA) was never activated with the provider or is no longer active.

This error means the employer receives a SuperStream error message but does not receive the matching refunded super contribution.

Prepare for earlier contributions

The ATO is encouraging employers not to wait until 1 July to start making Payday Super contributions to help improve the transition.

SMSFs should also ensure they are able to receive contributions via the New Payments Platform (NPP), as employers who currently use direct debit are being encouraged to move to faster payment methods such as EFT and NPP.

With contributions flowing in more regularly – rather than quarterly – it may also be timely to reassess your SMSF’s investment strategy and portfolio allocation to ensure it remains suitable for the shift in contribution flows.

High balance tax changes

Another thing to be mindful of is from 1 July 2026, SMSFs will need to be prepared for the commencement of the government’s much delayed Better Targeted Superannuation Concessions.iv

These new rules are intended to reduce tax concessions for individuals with a Total Super Balance (TSB) above $3 million.

Under the new rules, people with higher super account balances will face a higher 30 per cent concessional tax rate on the proportion of earnings corresponding to their TSB between $3 million and $10 million.

With a higher TBC in place for 2025-26, SMSFs should consider the implications of the new tax regime prior to making any pre-30 June contributions and potentially breaching the indexed thresholds in future financial years.

If you need help preparing your SMSF for the upcoming changes, contact our office today.

i Spotlight on… Payday Super | Australian Taxation Office

ii The Small Business Superannuation Clearing House is closing | Australian Taxation Office

iii SuperStream for employers | Australian Taxation Office

iv Better targeted superannuation concessions | Australian Taxation Office

RBA Announcement – February 2026

At its latest meeting, the Reserve Bank Board announced it was increasing the cash rate to 3.85 per cent.

Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.

We’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.

Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.

Get a jumpstart on your finances for 2026

The new year is just around the corner and, while many are thinking about the holidays, a little planning now can help get your finances off to a flying start in 2026.

It’s not just getting your paperwork done or starting your end-of-financial-year preparations, it’s also about spending some time considering the strategic side of your personal finances or business operations to make it more successful.

Where the ATO is focusing

With some changes to personal tax rules this financial year, it may be time to take a closer look at your tax affairs, particularly given the ATO’s focus is on personal deduction claims.

The tax regulator is continuing to emphasise its concern about some taxpayers’ work-related expense claims, deductions for investment properties and holiday homes, income from the sharing economy and cryptocurrency.i

Given this focus, it’s sensible to check you are following all the current tax rules and have the necessary documents to substantiate any deduction claims or income sources come 30 June.

For businesses, keep an eye on BAS lodgement dates and super contribution deadlines early in the new year to avoid missing them and copping a fine.

Upcoming tax rate changes

From 1 July 2026, the tax rate for individual income between $18,201 and $45,000 will be reduced from 16 per cent to 15 per cent.ii

From 1 July 2027, there will be a further reduction to 14 per cent for individual taxpayers. It’s worth checking the potential impact of these changes as you may need to update your existing salary packaging or super contribution arrangement with your employer.

It may also be worthwhile reviewing any capital gains tax obligations for this financial year and offset them against any capital losses.

Review your super position

With higher non-concessional contributions and total super balance caps in place for 2025-26, if you intend to make extra contributions into your super account prior to 30 June, check your account balance for the prior year to avoid exceeding your annual cap limits.

People with higher super account balances (over $3 million) should also review the Treasurer’s revisions to the Better Targeted Superannuation Concessions (Division 296) legislation.iii

These adjustments include the introduction of a second threshold on balances above $10 million and indexing of the threshold for balances between $3 million and $10 million.

Getting your business’ paperwork in order

Business taxpayers also need to focus on super, as 1 July will see the start of the new Payday Superannuation rules, which requires employers to make their Super Guarantee (SG) contributions at the same time they make wages and salary payments.iv

Preparations for this major change include checking whether your payroll software will be ready to cope with the shift from quarterly to more regular contribution payments.

At an operational level, employers traditionally paying their SG contributions on a quarterly basis should model the likely impact of the new payment rules on their business cashflow.

And don’t forget to ensure your digital records are secure and backed up. With the ever increasing threat of cybercrime, enable two-factor authentication, update passwords and review your data storage practices.

Strategic issues to consider

Now is also a good time to review your budget and financial position. Identify any potential bad debts that should be followed up in the new year.

Consider timing income and expenses strategically. For example, you may be able to defer income or bring forward tax deductible expenses. Depending on how the business is performing, start evaluating any planned deductible purchases or expenses now, rather than waiting until just prior to EOFY.

Although the government’s announced extension of the $20,000 instant asset write-off to this financial year is yet to be made law, consider whether you will take advantage of it. For new business assets to be eligible, they must be installed and ready to use by 30 June.

If you need help preparing your tax affairs or business strategy for 2026, contact our office today.

i ATO unveils ‘wild’ tax deduction attempts and priorities for 2025 | Australian Taxation Office

ii Personal income tax – new tax cuts for every Australian taxpayer | Australian Taxation Office

iii Reforms to support low-income workers and build a stronger super system | Treasury.gov.au

iv Payday superannuation | Australian Taxation Office

Tax Alert December 2025

Getting ready for Payday Super and clearing up FBT myths

Big payroll changes are coming. From 1 July 2026 employers must pay super contributions at the same time wages, not quarterly. The ATO is also cracking down on fringe benefits tax (FBT) compliance, especially when it comes to work vehicles. Here’s what you need to know.

Payday Super: what employers must do

Employers will need to ensure they start preparing their payroll systems following the passing of the Treasury Laws Amendment (Payday Superannuation) Act 2025 on 4 November 2025.i

From 1 July 2026, employers will be required to make superannuation contributions for their employees at the same time as they pay their salary or wages, rather than quarterly as currently required.

More frequent super contributions will help employees’ super balances grow faster. But, for employers, it may affect cashflow by removing access to funds previously held until quarterly payments, so planning ahead is essential.

Small Business Clearing House closing

The ATO is again reminding employers that as part of the Payday Super reforms, the Small Business Super Clearing House (SBSCH) will close on 1 July 2026.

Although new users can no longer register to use the service, small businesses who are still using the SBSCH, need to begin transitioning to alternative services.

During the transition process, most employers will need to review their current software and payroll packages for super payment functions, or check the options offered by super funds, commercial clearing houses and payroll providers. If you are unsure of your options, you can contact us.

ATO’s compliance approach

The ATO has released draft guidelines covering its compliance approach during the first year of operation for the Payday Super legislation.

Employers will be classified into three risk zones, with the ATO prioritising its compliance resources on employers classified as being high or medium risk. The risk zone can change from pay period to pay period.

High risk employers will be those who have one or more ‘final individual SG shortfalls’ that have not been reduced to nil by the 28th day following the end of the quarter the qualifying earnings were paid, or if the employer is not otherwise in the low or medium risk zones.

Payroll governance in the spotlight

Small business employers are being encouraged to take a closer look at their payroll governance to check they are meeting their employer obligations in relation to taxes (PAYG, FBT), reporting (Single Touch Payroll) and super (SG and other super contributions).

According to the ATO, employers must have payroll governance measures that are effective and fit for purpose, which means having systems and processes tailored to their business’ structure, size, complexity and industry.

These systems should support the business to comply with its legal obligations and help it to identify and mitigate risks (such as administrative errors, employee fraud and cybercrime).

SMSFs and NPP readiness

From 1 July 2026, all SMSFs and super funds will need to ensure they can receive and allocate New Payment Platform (NPP) payments.

The NPP is a real-time payments platform used across Australia and it improves how quickly contributions can be received by employees’ super funds.

The changes mean SMSFs will be required to accept contribution payments and related data from employers via the super industry’s SuperStream standard, which uses a standardised electronic format.

Dual cab utes: FBT myths

Dual cab utes remain in the ATO’s sights as there is a common myth that employee use of these popular vehicles is automatically exempt from FBT.

However, the ATO is warning employers that providing a dual cab ute to an employee to complete their duties and also making it available for personal use may be subject to FBT.

For an employee’s personal use to be exempt, the vehicle must be both an eligible vehicle and only used for limited private use, meaning minor, infrequent or irregular use. FBT applies if the vehicle is used as the family taxi or for weekend personal trips.

If you need assistance implementing any of these changes before 1 July 2026 or you need a better understanding of how FBT works, reach out to us, we’re always here to help.

i Treasury Laws Amendment (Payday Superannuation) Act 2025 – Federal Register of Legislation

Celebrating with heart – not habit

As the festive season approaches, there is a noticeable shift in the air. The days grow longer, school terms wrap up, and communities across the country begin to prepare for end-of-year celebrations in all kinds of ways.

For some, it is about unpacking boxes of decorations, preparing familiar family recipes and racing around the shops. For others, it is time to plan a beach day, host a casual BBQ, or simply enjoy a well-earned break from routine.

The festive season in Australia looks different for everyone. That’s part of what makes it so special. We live in a society full of rich cultural traditions. Some festive traditions have been passed down for generations, such as midnight Mass, lighting candles for Hanukkah, or gathering for a family meal on Christmas Day. Others have come to us through popular culture, often shaped by images of snowy winters and roaring fireplaces that don’t quite fit our sunny, southern hemisphere reality.

Think hot roast dinners in 35-degree heat, matching Christmas jumpers despite the sweat, and singing about snowmen and sleighbells.

And that’s okay. That’s part of the rich tapestry that is celebrating the festive season.

However, while tradition can be beautiful, it’s also worth asking yourself: do these traditions still bring joy to my life? Or am I doing them out of habit or obligation?

Reducing stress, reclaiming joy

The lead-up to the holidays can easily become overwhelming. This time of year often brings with it a long list of expectations about what to cook, how to decorate, where to be, and what to buy.

Trying to meet every expectation, real or imagined, can drain the joy right out of what is meant to be a time of celebration.

By letting go of pressure and embracing flexibility, we can shift the focus back to what really counts. Laughter. Connection. Rest. Reflection.

It is okay to opt out of what no longer fits. In fact, doing so often creates more space for what actually feels meaningful.

Rethinking what celebration looks like

While traditions can be a wonderful way to connect with our roots, they are not set in stone. Over time, life changes. Families grow and shift. Priorities evolve. The way we mark special moments can grow with us.

So, it is worth pausing to ask: are these traditions still adding joy to my life? Or am I continuing them out of pressure, or a sense of obligation?

Giving yourself permission to do things differently can be both freeing and fulfilling.

Making meaning in your own way

Reimagining tradition does not mean abandoning everything you love. It means choosing what feels right for you and creating space for joy, connection and rest – however that looks.

You might decide to swap the roast for prawns and salad and the pudding for a pavlova. Or ditch the mess of wrapping paper and presents in favour of shared experiences. You could even celebrate on a different day to reduce stress. Some people find joy in having a picnic in a beautiful location, taking a family beach walk at sunset, or simply spending the day unplugged from screens.

For others, creating new traditions might involve volunteering in the community or cooking dishes from their cultural heritage.

Whether your festive season is full of people or quiet moments, it only needs to reflect what matters most to you.

The season is yours to shape

There is no one way to celebrate. What is right for one person may not suit another and that is the beauty of it. The festive season does not have to look a certain way to be valid or joyful.

You might still love baking the same cake your grandmother made or singing carols in your street. Or you might find joy in starting completely new customs that reflect your values and lifestyle today. Either way, the important thing is that your celebrations feel true to you.

Small moments can become meaningful rituals too. A quiet morning coffee, a favourite song playlist, or calling someone you have not spoken to in a while are all things that can bring warmth and joy without adding stress.

Whatever this season means to you…

We hope it brings you joy.