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Superannuation

About Payday Super – Superannuation Changes

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How Payday Super works Payday Super is a change to how you calculate and when you pay your employees’ super guarantee. From 1 July 2026 you must pay employees their super guarantee on payday, at the same time as their salary and wages.   Super guarantee is:  calculated as 12% of an employee’s qualifying earnings (QE), which is a new term that brings together ordinary time earnings (OTE) and other payments  paid to an employees’ super fund on payday and received by the super fund within 7 business days (unless an extended timeframe applies, such as for new employees).  You can download this page as a printable fact sheet, Payday Super (PDF 175KB)This link will download a file. What you need to do Check the information below about what’s changing. Plan ahead. Review your payroll systems and super processes and get ready to pay super guarantee more frequently. Stay informed. Keep checking these pages for updates or speak to your tax professional for advice. You don’t need to wait until 1 July 2026 to start paying super at the same time as you pay salary and wages – you can start now. What’s changing Deadline for super payments Calculating super guarantee amounts Reporting super payments Late payments and the super guarantee charge (SGC) Penalties Small Business Superannuation Clearing House (SBSCH) Checking employee data and processing payments Allocations by super funds Deadline for super payments Now Super guarantee payments must be received by a super fund within 28 days of the end of the quarter, but can be paid quarterly or more frequently, e.g. monthly. The due dates are 28 October, 28 January, 28 April and 28 July. From 1 July 2026 Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.  For more information see Payment deadlines for Payday SuperExternal Link. Calculating super guarantee amounts Now The super guarantee amount is calculated as 12% of ordinary time earnings (OTE).  From 1 July 2026 The super guarantee amount is calculated as 12% of qualifying earnings (QE). QE includes OTE, salary sacrifice contributions and other amounts that are currently included in an employee’s salary or wages for super guarantee. For more information see What payments are qualifying earningsExternal Link. Reporting super payments Now You report either OTE or super liability through Single Touch Payroll (STP).  From 1 July 2026 You report both QE and super liability through STP.  Late payments and the super guarantee charge (SGC) Now The SGC applies when amounts aren’t received by a super fund within 28 days of the end of a quarter. The SGC: is self-assessed by the employer, who must lodge an SGC statement is calculated based on salary and wages includes interest at 10% per annum includes a flat administration fee is not tax deductible.  From 1 July 2026 The SGC applies when amounts aren’t received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees). The SGC: is assessed by the ATO is calculated based on QE  includes interest that compounds daily at the general interest charge rate includes an administrative uplift, which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure is tax deductible. For more information see: Missed or late Payday Super paymentsExternal Link  The new super guarantee chargeExternal Link. Penalties Now Penalties are a maximum of 200% of the SGC, which can be remitted in part or in full. From 1 July 2026 Penalties are 25% or 50% of the unpaid SGC, depending on any prior penalties. Small Business Superannuation Clearing House (SBSCH) Now The SBSCH closed to new users on 1 October 2025. Existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super. See How to pay super. From 1 July 2026 SBSCH is no longer available.   Checking employee data and processing payments Now Super payments may take a number of days to be received by a super fund. Employers receive incomplete or inaccurate data from their employees, which causes errors when they try to contribute to a super fund and delayed payments. Employers are unaware of key changes to large super fund’s details. From 1 July 2026 To help employers and intermediaries meet the new deadlines, the SuperStream data and payment standards will be revised to: allow near real-time payments through the New Payments Platform improve error messaging so you can address errors faster provide a new member verification request, which enables employers to confirm that a super fund can match their employee contribution to the super fund for the first time and will accept a contribution for them. Improvements to the Fund Validation Service will also give employers early notice of key changes to large super fund’s details, such as fund mergers, that could affect their ability to make contributions to super funds. Allocations by super funds Now Super funds have 20 business days to allocate or return contributions.  From 1 July 2026 Super funds have 3 business days to allocate or return contributions. For more information see Changes to SuperStream. Expected change This information is not yet law The information below is intended to help you prepare for anticipated changes from 1 July 2026. For updates on the progress of the law see Payday superannuation legislation. Offering employees a stapled fund Now You must provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee.  From 1 July 2026 You can request a stapled super fund and offer this to your employee at the same time you provide their choice form. You must still provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee. 

Superannuation

About Payday Super – Superannuation Changes

Leave a Comment / Superannuation /

How Payday Super works Payday Super is a change to how you calculate and when you pay your employees’ super guarantee. From 1 July 2026 you must pay employees their super guarantee on payday, at the same time as their salary and wages.   Super guarantee is:  calculated as 12% of an employee’s qualifying earnings (QE), which is a new term that brings together ordinary time earnings (OTE) and other payments  paid to an employees’ super fund on payday and received by the super fund within 7 business days (unless an extended timeframe applies, such as for new employees).  You can download this page as a printable fact sheet, Payday Super (PDF 175KB)This link will download a file. What you need to do Check the information below about what’s changing. Plan ahead. Review your payroll systems and super processes and get ready to pay super guarantee more frequently. Stay informed. Keep checking these pages for updates or speak to your tax professional for advice. You don’t need to wait until 1 July 2026 to start paying super at the same time as you pay salary and wages – you can start now. What’s changing Deadline for super payments Calculating super guarantee amounts Reporting super payments Late payments and the super guarantee charge (SGC) Penalties Small Business Superannuation Clearing House (SBSCH) Checking employee data and processing payments Allocations by super funds Deadline for super payments Now Super guarantee payments must be received by a super fund within 28 days of the end of the quarter, but can be paid quarterly or more frequently, e.g. monthly. The due dates are 28 October, 28 January, 28 April and 28 July. From 1 July 2026 Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.  For more information see Payment deadlines for Payday SuperExternal Link. Calculating super guarantee amounts Now The super guarantee amount is calculated as 12% of ordinary time earnings (OTE).  From 1 July 2026 The super guarantee amount is calculated as 12% of qualifying earnings (QE). QE includes OTE, salary sacrifice contributions and other amounts that are currently included in an employee’s salary or wages for super guarantee. For more information see What payments are qualifying earningsExternal Link. Reporting super payments Now You report either OTE or super liability through Single Touch Payroll (STP).  From 1 July 2026 You report both QE and super liability through STP.  Late payments and the super guarantee charge (SGC) Now The SGC applies when amounts aren’t received by a super fund within 28 days of the end of a quarter. The SGC: is self-assessed by the employer, who must lodge an SGC statement is calculated based on salary and wages includes interest at 10% per annum includes a flat administration fee is not tax deductible.  From 1 July 2026 The SGC applies when amounts aren’t received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees). The SGC: is assessed by the ATO is calculated based on QE  includes interest that compounds daily at the general interest charge rate includes an administrative uplift, which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure is tax deductible. For more information see: Missed or late Payday Super paymentsExternal Link  The new super guarantee chargeExternal Link. Penalties Now Penalties are a maximum of 200% of the SGC, which can be remitted in part or in full. From 1 July 2026 Penalties are 25% or 50% of the unpaid SGC, depending on any prior penalties. Small Business Superannuation Clearing House (SBSCH) Now The SBSCH closed to new users on 1 October 2025. Existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super. See How to pay super. From 1 July 2026 SBSCH is no longer available.   Checking employee data and processing payments Now Super payments may take a number of days to be received by a super fund. Employers receive incomplete or inaccurate data from their employees, which causes errors when they try to contribute to a super fund and delayed payments. Employers are unaware of key changes to large super fund’s details. From 1 July 2026 To help employers and intermediaries meet the new deadlines, the SuperStream data and payment standards will be revised to: allow near real-time payments through the New Payments Platform improve error messaging so you can address errors faster provide a new member verification request, which enables employers to confirm that a super fund can match their employee contribution to the super fund for the first time and will accept a contribution for them. Improvements to the Fund Validation Service will also give employers early notice of key changes to large super fund’s details, such as fund mergers, that could affect their ability to make contributions to super funds. Allocations by super funds Now Super funds have 20 business days to allocate or return contributions.  From 1 July 2026 Super funds have 3 business days to allocate or return contributions. For more information see Changes to SuperStream. Expected change This information is not yet law The information below is intended to help you prepare for anticipated changes from 1 July 2026. For updates on the progress of the law see Payday superannuation legislation. Offering employees a stapled fund Now You must provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee.  From 1 July 2026 You can request a stapled super fund and offer this to your employee at the same time you provide their choice form. You must still provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee. 

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Managing a Business, Uncategorized

Government Boosts Small Businesses with Grants, Funding, and Support Programs

Leave a Comment / Managing a Business, Uncategorized /

Governments across Australia are rolling out a range of initiatives to support small businesses, including significant funding for startups, grants for disaster recovery, and financial aid during economic downturns. These programs aim to foster innovation, provide crucial relief, and ensure the continued growth and resilience of the small business sector. Key Takeaways Multiple government levels are actively providing financial and developmental support to small businesses. Funding ranges from innovation grants for startups to direct financial relief for businesses impacted by natural disasters and economic challenges. Programs are designed to enhance business capabilities, encourage investment, and mitigate the effects of unforeseen crises. Innovation and Startup Support The Western Australian government has injected over $2.5 million into its Innovation Pathways Program (IPP) to bolster startup growth. This funding, part of a larger $40 million New Industries and Innovation Fund, supports accelerators, founder education, and investor initiatives. Grants of up to $300,000 are available for accelerators and up to $200,000 for educational programs. The IPP aims to make startups investment-ready, improve commercialization skills, and expand the local investor network, with a strong focus on inclusion for regional WA, First Nations participants, and women in the startup ecosystem. Disaster Relief and Recovery Grants In response to the devastating bushfires, the federal government introduced a $10,000 grant for small businesses experiencing a significant revenue drop. To be eligible, businesses must demonstrate a 40% decrease in revenue over three months due to the fires. State governments are responsible for selecting eligible council areas, and applications opened on March 16. The government also relaxed criteria for existing bushfire relief loans and increased support staff at recovery hubs to assist businesses with applications. COVID-19 Support Measures Several states have implemented extensive support packages to help businesses navigate the challenges posed by COVID-19. Victoria: The Victorian government extended its Business Support Fund grants, offering additional payments to businesses affected by coronavirus infections. Businesses in metropolitan Melbourne could be eligible for up to $20,000, while regional businesses could receive up to $15,000. These funds are part of a broader $1.7 billion economic survival package. New South Wales: NSW businesses impacted by lockdowns can access various support measures. These include COVID-19 business grants ranging from $7,500 to $15,000 based on revenue decline, a micro-business support grant offering $1,500 fortnightly payments, and the JobSaver program providing up to 40% of weekly payroll as a cashflow boost. Additionally, payroll tax relief and rent relief measures are in place, including a mandatory code of conduct for commercial leasing and a hardship fund for landlords. Small Business Awareness Beyond direct financial aid, initiatives like SBS’s "Small Business Secrets" program aim to highlight the importance of small businesses in the Australian economy. The weekly television program, hosted by SBS finance editor Ricardo Goncalves, offers tips and insights for entrepreneurs, profiling businesses that have overcome challenges and showcasing how they contribute to national growth. An accompanying website provides a "Small Business Toolbox" with interactive resources for business owners. Sources WA startups score $2.5 million for innovation funding, SmartCompany. SBS to highlight secrets of small business in weekly TV program "Small Business Secrets", SmartCompany. Small businesses offered new $10,000 government grant to rebuild after the bushfires, SmartCompany. Victoria extends emergency small business grants, bringing total support to almost $800 million – SmartCompany, SmartCompany. Explained: The COVID-19 support payments available to small businesses in NSW, SmartCompany.

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Accounting, GST, Managing a Business

ATO Cracks Down on Small Business Tax Evasion and Unexplained Wealth

Leave a Comment / Accounting, GST, Managing a Business /

The Australian Taxation Office (ATO) is intensifying its focus on small business tax compliance, with a particular emphasis on "unexplained wealth" and undeclared income. This comes as the ATO also announces the closure of the Small Business Superannuation Clearing House, impacting how some businesses manage their superannuation obligations. The tax office is leveraging data matching and social media monitoring to identify discrepancies between reported income and observed lifestyles. Key Takeaways The ATO is targeting "unexplained wealth" and undeclared income among small business owners. The Small Business Superannuation Clearing House is closing, requiring businesses to adapt their super payment methods. Increased scrutiny on deductions, particularly for travel and phone/internet expenses. The ATO is enhancing IT services to improve stability and taxpayer experience. Focus on Unexplained Wealth and Lifestyle ATO Commissioner Chris Jordan has identified "unexplained wealth or lifestyle for individuals and small businesses" as a top priority. The tax office is employing sophisticated data-matching techniques and even monitoring social media platforms like Facebook to detect instances where individuals’ reported income does not align with their displayed wealth or lifestyle. This initiative aims to address the significant "tax gap" of over $2.5 billion annually, which is partly attributed to incorrect or undeclared income. Shifting Superannuation Landscape In a significant change, the Small Business Superannuation Clearing House (SBSCH) is set to close. This move is part of a broader reform to payday superannuation, where employers will be required to pay superannuation guarantee contributions at the same time they process their employees’ salary and wages, starting from July 1. While this aims to ensure timely super payments, businesses, especially those with fluctuating cash flow, need to adjust their financial planning. The ATO has released a checklist to help businesses navigate these changes and is working with payroll software providers and super funds to streamline the process. Increased Scrutiny on Deductions and Business Operations The ATO is also increasing its focus on specific areas of tax compliance for small businesses. This includes potential undeclared income, unpaid superannuation, and the operations of cash-only businesses. Tax agents are being urged to ensure their clients’ tax deduction claims are genuine and directly related to earning income, warning against carelessness or opportunistic claims. Specific attention is being paid to travel expenses and phone/internet deductions, where businesses often incorrectly claim 100% of costs that also have a personal use component. Furthermore, the ATO is targeting contractors who may be omitting taxable income and businesses misusing tax incentive schemes like the Technology Investment Boost and Skills and Training Boost. ATO’s Commitment to Service Improvement Despite the increased enforcement activities, the ATO has pledged to strengthen its IT services and ensure system stability. Commissioner Jordan acknowledged past system outages and assured the tax agent community that efforts are underway to improve service delivery across nine key areas, including the stability of tax agent and business activity statement portals. This commitment aims to support businesses in meeting their tax obligations more effectively. Sources ATO commissioner says tax office will be targeting "unexplained wealth" of small business owners – SmartCompany, SmartCompany. ATO reveals hit list for businesses in 2025, SmartCompany. Small Businesses left exposed as ATO shuts down Small Business Super Clearing House, Australian Bookkeepers Network. The Small Business Superannuation Clearing House is closing, Australian Taxation Office. New ATO checklist prepares small businesses for payday super, SmartCompany.

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GST, Managing a Business, Payroll, Superannuation

ATO’s Free Super Clearing House to Close, Small Businesses Urged to Prepare

Leave a Comment / GST, Managing a Business, Payroll, Superannuation /

The Australian Taxation Office (ATO) is set to close its Small Business Superannuation Clearing House (SBSCH) on July 1, 2026. This move, part of the government’s ‘Payday Super’ reforms, will require employers to pay superannuation contributions concurrently with salary and wages. The closure aims to streamline super payments and improve compliance, pushing businesses towards integrated payroll software or commercial clearing house providers. Key Takeaways The ATO’s Small Business Superannuation Clearing House (SBSCH) will close on July 1, 2026. New employer registrations for the SBSCH will cease on October 1, 2025. The closure is linked to the ‘Payday Super’ reforms, mandating super payments with salary and wages from July 1, 2026. Small businesses must transition to alternative payment solutions before the closure. Why the Change? The closure of the SBSCH is a strategic shift driven by the government’s ‘Payday Super’ initiative. This reform mandates that employers pay superannuation contributions at the same time they pay their employees’ salaries and wages. The objective is to enhance compliance and ensure employees receive their super entitlements more promptly. Instead of relying on the ATO’s clearing house, the government encourages businesses to adopt modern payroll software or commercial clearing house services that integrate directly with Single Touch Payroll (STP). These systems facilitate automatic super contribution flows with each payroll cycle, aligning with the new ‘Payday Super’ requirements. Important Dates to Remember October 1, 2025: New employer registrations for the SBSCH will be closed. Businesses not already using the service will be unable to sign up. June 30, 2026: The final day the SBSCH will be operational for existing users. July 1, 2026: The SBSCH will be completely switched off. All employers must have an alternative system in place by this date. Potential Risks for Employers The closure of the SBSCH presents several challenges for small businesses: Missed Deadlines: Superannuation is considered paid only when it reaches the employee’s fund. Failure to implement a new system by July 2026 could lead to missed ‘Payday Super’ deadlines and incur the Superannuation Guarantee Charge (SGC). Increased Administrative Burden: Without a replacement system, some businesses might revert to manual payments to individual employee funds, which is unsustainable under the new rules requiring contributions with every payroll. Cash Flow Strain: The shift from quarterly super payments to real-time contributions with each pay run could create short-term cash flow difficulties for businesses without adequate financial forecasting. Alternative Solutions Several viable alternatives are available for businesses to manage their superannuation obligations post-SBSCH: Payroll Software with Integrated Clearing Houses: Platforms like Xero, MYOB, and QuickBooks offer built-in superannuation payment services designed to work seamlessly with STP, automating contributions during payroll processing. Third-Party Clearing Houses: Private providers offer clearing house services, often with fees, but provide enhanced reporting, tracking, and support to ease the transition. Industry Super Fund Services: Some industry super funds offer their own clearing house facilities, which can be suitable for businesses with employees primarily in one fund. Small business owners are strongly advised to proactively explore these options, test their cash flow under the new real-time contribution model, and implement their chosen system well in advance of the SBSCH closure to ensure a smooth transition and maintain compliance. Sources Small Businesses left exposed as ATO shuts down Small Business Super Clearing House, Australian Bookkeepers Network. The Small Business Superannuation Clearing House is closing, Australian Taxation Office. ATO is shutting down the free super clearing house for SMEs. What you should do, SmartCompany.

Bookkeeping

Why NDIS and Allied Health Providers in Geelong Need a Specialist Bookkeeper

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Running an NDIS or allied health business in Geelong is deeply rewarding — but behind every great care provider is a mountain of compliance, invoicing, payroll, and reporting that never sleeps. If you’re spending more time wrestling with spreadsheets than supporting your clients, it’s time to talk to a specialist bookkeeper who understands your world. The Unique Financial Challenges Facing Geelong’s Health Sector General bookkeeping was never designed with allied health professionals or NDIS providers in mind. Whether you’re a physiotherapist, occupational therapist, psychologist, speech pathologist, or disability support coordinator in Geelong, your financial life is fundamentally different from a retail business or tradie — and your bookkeeper should be too. Here’s what makes health and disability sector bookkeeping genuinely complex: NDIS price guide updates: The NDIS Price Arrangements change regularly, and your invoicing must reflect current rates or risk non-payment from the NDIA or plan managers. SCHADS Award payroll: The Social, Community, Home Care and Disability Services (SCHADS) Industry Award is one of the most complex in Australia. Sleepover allowances, penalty rates, travel time, and split shifts all need to be calculated precisely. Medicare and private health billing: Allied health practices often reconcile income from Medicare, private health funds, NDIS, and direct billing — each with different processing timelines. Audit-ready records: Registered NDIS providers must maintain meticulous financial records for NDIS Commission audits. A general bookkeeper may not know what ‘audit-ready’ looks like in your context. BAS compliance: As a registered BAS agent, your bookkeeper must keep you on top of quarterly BAS lodgements and GST calculations — with zero tolerance for errors that attract ATO scrutiny. What to Look for in an Allied Health Bookkeeper in Geelong Not all bookkeepers are created equal. When searching for bookkeeping services in Geelong for your allied health or NDIS business, here’s what to prioritise: Registered BAS Agent: Always verify your bookkeeper holds current BAS agent registration with the Tax Practitioners Board. This is a legal requirement for anyone lodging BAS on your behalf. NDIS-specific experience: Ask whether they have worked with registered NDIS providers or unregistered providers before. Do they know the difference? Can they set up your Xero or MYOB chart of accounts specifically for NDIS service delivery? SCHADS Award knowledge: If you employ support workers, ask how they handle the SCHADS Award in your payroll software. Errors here are costly — both financially and in staff trust. Cloud accounting expertise: Look for Xero Certified Advisors or QuickBooks ProAdvisors who understand the NDIS-specific add-ons and integrations that streamline your workflow. Local Geelong presence: There’s real value in working with a Geelong-based bookkeeper who understands the local healthcare ecosystem, including relationships with Barwon Health, local NDIS plan managers, and the Geelong allied health community. NDIS Bookkeeping in Geelong: What the Right Support Looks Like At True Tally, we work specifically with NDIS providers and allied health businesses across the Geelong region. Our bookkeeping services are built around the real-world demands of your sector — not a generic checklist. Here’s what specialist NDIS bookkeeping in Geelong looks like in practice: Chart of accounts structured for NDIS funding categories (Core, Capital, Capacity Building) Accurate invoicing workflows aligned with NDIS price guides and claiming rules SCHADS payroll setup and ongoing processing in Xero or MYOB Monthly reconciliation and financial reporting tailored to your practice’s KPIs BAS preparation and lodgement by a Registered BAS Agent Support for NDIS Commission audits, including preparation of audit-ready financial records Accounts payable and receivable management to protect your cash flow Bookkeeping for Allied Health Professionals in Geelong Whether you run a solo physiotherapy clinic in Geelong’s CBD, a group occupational therapy practice, a psychology service, or a multidisciplinary allied health centre, the bookkeeping demands are substantial. And the consequences of getting it wrong — from missed tax deductions to BAS penalties — are real. Allied health bookkeeping in Geelong requires understanding of: Private health fund reconciliation (BUPA, Medibank, HCF, and others) Medicare billings via PRODA and claiming timelines Practitioner income splitting for group practices Equipment and fit-out depreciation for clinics Professional development expenses and deductibility Managing trust accounts where applicable Why Geelong Businesses Choose True Tally True Tally is a Geelong-based bookkeeping service with specialist expertise in NDIS providers and allied health businesses. We’re not a generalist firm that takes every type of client — we’ve built our practice around the health and disability sector because that focus means better outcomes for you. When you work with True Tally, you get: A dedicated bookkeeper who knows the NDIS and allied health space inside out Transparent, fixed-fee pricing — no surprise invoices Cloud-based systems so you can see your numbers in real time, anywhere BAS agent registered team — your compliance is in safe hands Local Geelong support — we understand your market More time to focus on what you do best: caring for your clients Ready to Get Your Bookkeeping Off Your Plate? If you’re an NDIS provider or allied health professional in Geelong looking for a bookkeeper who genuinely understands your business, we’d love to chat. Book a free discovery call with the True Tally team and let’s map out exactly how we can support your practice. Call us | Visit truetally.com.au | Based in Geelong, serving the region

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Accounting, Cash Flow Essentials, GST, Managing a Business

Government Boosts Small Businesses with New Tax Breaks, Grants, and Innovation Funding

Leave a Comment / Accounting, Cash Flow Essentials, GST, Managing a Business /

Governments across Australia are rolling out a series of initiatives aimed at bolstering small businesses and startups. These measures include significant tax relief, targeted grants for export markets, and substantial investments in innovation and technology, signaling a strong commitment to fostering economic growth and job creation within the small business sector. Key Takeaways Federal and state governments are implementing new tax incentives and financial support programs for small businesses. Focus areas include cost-of-living relief, export market development, and technological innovation. Significant funding is being allocated to startup ecosystems and commercialization efforts. Federal Budget Initiatives The upcoming 2025-26 federal budget is set to introduce several measures beneficial to small businesses. These include an extension of energy bill rebates, valued at $150 for approximately one million eligible small businesses, aimed at alleviating cost-of-living pressures. The popular instant asset write-off, allowing businesses to depreciate eligible assets under $20,000, is also expected to be extended beyond its June 30, 2025 expiry. Furthermore, the government is enhancing protections against unfair trading practices for small businesses and providing support for supermarket suppliers through the Australian Competition and Consumer Commission (ACCC). A “Buy Australian” plan will also be a focus, aiming to increase government contract access for Australian-owned businesses. Reforms to alcohol excise and the Franchising Code of Conduct are also on the agenda, alongside a new social enterprise loan scheme. State-Level Support Programs State governments are also actively supporting their small business communities. The Victorian government has launched a $500,000 grant program to help small businesses, particularly in the food and beverage sector, target China’s e-commerce market via platforms like Alibaba. In New South Wales, the 2025-26 budget allocates nearly $80 million to the Innovation Blueprint, designed to position the state as a leader in commercialization and startup growth. This includes funding for Sydney’s Tech Central, an Emerging Technology Commercialisation Fund, and programs for early-stage funding and manufacturer innovation. A new Investment Delivery Authority aims to fast-track major project approvals, reducing red tape for businesses. Additionally, funding for visitor and nightlife economy support, screen production, and regional research facilities is expected to have downstream benefits for SMEs. Startup Ecosystem Development Western Australia is investing over $2.5 million through its Innovation Pathways Program to bolster startup growth. This funding supports accelerators, founder education, and investor initiatives, aiming to make local startups more investment-ready. The program has awarded grants to 14 organizations across various sectors, with a strong emphasis on inclusion, supporting regional WA, First Nations participants, and women in the startup ecosystem. The program is designed to foster commercialization skills and expand the local investor network, with a focus on turning Western Australian ideas into scalable businesses. The next round of this program is anticipated to open in November 2026. Sources THE NEWS WRAP: Government unveils new tax break for small businesses, SmartCompany. The 2025-26 budget for small business: What we know so far, SmartCompany. Victorian government announces $500,000 grant for small businesses targeting China –SmartCompany, SmartCompany. 25 things small businesses & startups need to know, SmartCompany. WA startups score $2.5 million for innovation funding, SmartCompany.

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Accounting, GST

Small Businesses to Benefit from New $5,000 Tax Write-Off

Leave a Comment / Accounting, GST /

The Australian government has announced a significant new tax initiative aimed at bolstering small businesses. As part of an upcoming Federal Budget, Treasurer Wayne Swan revealed a $5,000 tax write-off for motor vehicle purchases, a move designed to simplify tax processes and inject much-needed cash flow into the sector. Work with your Xero bookkeeper to ensure you are taking advantage of this new tax incentive properly within your books. Key Takeaways A new $5,000 tax write-off for motor vehicle purchases will be introduced. This measure replaces the previous, more complex, entrepreneur’s tax offset. The new tax break is set to take effect from July 2012. Simplifying Tax for Small Businesses The new $5,000 tax write-off for motor vehicle purchases is intended to replace the existing entrepreneur’s tax offset. Many in the small business community had found the previous offset to be overly complicated. Treasurer Wayne Swan stated that these changes will “make tax simpler and increase cashflows so small business will be able to reinvest in their operations and grow.” However, small business owners will need to wait until July 2012 to take advantage of this new measure. The initiative aims to provide a direct financial incentive for businesses to invest in essential assets like vehicles, thereby stimulating growth and operational improvements. Broader Economic Context While the focus is on small business, the announcement comes amidst broader economic discussions. A leading currency expert has predicted the Australian dollar could reach $US1.30 in 2013 and $1.70 by 2014, driven by strong commodity prices, a weak US dollar, and Australia’s relatively high interest rates. This forecast, attributed to Savvas Savouri of Toscafund, suggests a potentially favorable environment for Australian businesses engaged in international trade. In the retail sector, grocery giants Coles and Woolworths are seeing success with their house brand strategies. The share of consumer spending on these own-label products has increased, though significant discounts may be impacting profit margins. Meanwhile, the Australian stock market is showing signs of optimism, with Wall Street’s positive performance following promising US employment data, although concerns about commodity prices persist. Sources THE NEWS WRAP: Government unveils new tax break for small businesses, SmartCompany.

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Accounting, GST, Managing a Business

ATO Turns Up the Heat: New Crackdown on Small Business Taxes and Lifestyle Claims

Leave a Comment / Accounting, GST, Managing a Business /

The Australian Taxation Office (ATO) is sharpening its focus on small business compliance, announcing a renewed crackdown on tax returns, lifestyle audits, and the management of superannuation obligations. The push targets ‘unexplained wealth,’ improper expense claims, and gaps in superannuation payments—signaling significant shifts in how small businesses will be monitored in 2025 and beyond. Key Takeaways The ATO is closely monitoring small business owners for signs of unexplained wealth and lifestyle inconsistencies. Monthly GST reporting and rigorous data-matching are being rolled out for more accurate monitoring. A new “vulnerability framework” is designed to support struggling businesses, but compliance remains strictly enforced. The closure of the Small Business Superannuation Clearing House adds complexity to super obligations for small business employers. Lifestyle Audits and Unexplained Wealth Under the Microscope Among the top priorities for the ATO is addressing ‘unexplained wealth’—cases where a business owner’s lifestyle doesn’t match their declared income. Investigators are increasingly using social media and public information to identify possible tax discrepancies. According to the ATO, the aggregated effect of small, incorrect claims has widened the ‘tax gap’ by billions, prompting more vigilant scrutiny. Inappropriate claims, such as lumping private expenses into business accounts or overstating deductions for travel, can trigger audits and penalties. Major Shake-Ups: New Compliance Targets for 2025 The ATO’s latest enforcement list for 2025 zeroes in on contractors under-declaring income, incorrect use of government incentive deductions, and erroneous GST reporting. Notably, some businesses will be shifted from quarterly to monthly GST reporting to enhance accuracy and reduce errors. This includes a focus on accurate bookkeeping.Other flagged areas include: – Capital gains tax concessions for small businesses and its implications for business restructuring– The distinction between business and personal income– Registration requirements and non-commercial loss rules– Ride-share and gig economy incomesThe distinction between business and personal income– The distinction between business and personal income– Registration requirements and non-commercial loss rules– Ride-share and gig economy incomesSmall business owners are urged to consult professional tax agents or use the ATO’s online resources to avoid compliance pitfalls. The Australian Taxation Office (ATO) is sharpening its focus on small business compliance, announcing a renewed crackdown on tax returns, lifestyle audits, and the management of superannuation obligations. The push targets ‘unexplained wealth,’ improper expense claims, and gaps in superannuation payments—signaling significant shifts in how small businesses will be monitored in 2025 and beyond. Key Takeaways The ATO is closely monitoring small business owners for signs of unexplained wealth and lifestyle inconsistencies. Monthly GST reporting and rigorous data-matching are being rolled out for more accurate monitoring. A new “vulnerability framework” is designed to support struggling businesses, but compliance remains strictly enforced. The closure of the Small Business Superannuation Clearing House adds complexity to super obligations for small business employers. Lifestyle Audits and Unexplained Wealth Under the Microscope Among the top priorities for the ATO is addressing ‘unexplained wealth’—cases where a business owner’s lifestyle doesn’t match their declared income. Investigators are increasingly using social media and public information to identify possible tax discrepancies. According to the ATO, the aggregated effect of small, incorrect claims has widened the ‘tax gap’ by billions, prompting more vigilant scrutiny. Inappropriate claims, such as lumping private expenses into business accounts or overstating deductions for travel, can trigger audits and penalties. Major Shake-Ups: New Compliance Targets for 2025 The ATO’s latest enforcement list for 2025 zeroes in on contractors under-declaring income, incorrect use of government incentive deductions, and erroneous GST reporting. Notably, some businesses will be shifted from quarterly to monthly GST reporting to enhance accuracy and reduce errors. This includes a focus on accurate bookkeeping. Other flagged areas include: – Capital gains tax concessions for small businesses and its implications for business restructuring – The distinction between business and personal income – Registration requirements and non-commercial loss rules – Ride-share and gig economy incomesThe distinction between business and personal income – The distinction between business and personal income – Registration requirements and non-commercial loss rules – Ride-share and gig economy incomes Small business owners are urged to consult professional tax agents or use the ATO’s online resources to avoid compliance pitfalls. Compassion and Compliance: The New ATO Vulnerability Framework Acknowledging the personal and financial strains on small business owners, the ATO has introduced a new vulnerability framework. This initiative aims to provide empathy and tailored support to businesses and individuals struggling with debts or at risk of disengagement. Factors like disability, age, mental health, and lack of digital access will be considered in how compliance actions are handled. However, the ATO emphasizes this isn’t a means to avoid tax—everyone remains responsible for their obligations. Superannuation Shake-Up: Closure of the Clearing House A significant operational shift is also taking place with the closure of the Small Business Superannuation Clearing House. Previously, this service helped small business employers meet their legal obligations to pay super contributions efficiently. The shutdown means employers now need to seek alternative methods to manage super payments, requiring adaptation and heightened vigilance to remain compliant. What Small Businesses Should Do Next With a heightened ATO focus, small businesses should review their processes for recording expenses, deductions, and income reporting. Key steps include keeping detailed records, regularly consulting tax professionals, and ensuring a clear separation between business and personal expenditures. As compliance expectations rise, proactive engagement with tax obligations will be essential for avoiding costly surprises. References ATO commissioner says tax office will be targeting “unexplained wealth” of small business owners –SmartCompany, SmartCompany. ATO reveals hit list for businesses in 2025, SmartCompany. Small businesses included in ATO’s new vulnerability framework, SmartCompany. Small Businesses left exposed as ATO shuts down Small Business Super Clearing House, Australian Bookkeepers Network. The Small Business Superannuation Clearing House is closing, Australian Taxation Office.

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Accounting, GST, Managing a Business

Federal Budget 2025-26: Small Businesses Eye Tax Relief, Energy Support, and Reduced Red Tape

Leave a Comment / Accounting, GST, Managing a Business /

The upcoming Federal Budget is poised to address key concerns for Australia’s small businesses, with a focus on cost-of-living relief, tax incentives, and easing the burden of regulatory compliance. As Treasurer Jim Chalmers prepares to unveil the budget, anticipation is high for measures aimed at fostering growth and stability within the sector. Key Takeaways Extended energy bill rebates for eligible small businesses. Potential for a permanent instant asset write-off, though details remain fluid. A strong push for reduced regulatory burdens and simplified compliance. New initiatives to support specific sectors like fresh produce suppliers and First Nations entrepreneurs. Energy Bill Relief Extension Eligible small businesses are set to benefit from an extension of energy bill rebates, valued at $150. This measure, part of a broader cost-of-living support package, will see these rebates applied automatically to energy bills from July 1, 2025, through to the end of the year. The initiative aims to alleviate financial pressure on businesses and households alike, with the government estimating it will reduce headline inflation and household energy bills. The Future of Instant Asset Write-Off The popular instant asset write-off scheme, which allows small businesses to immediately deduct the cost of eligible assets, is a significant point of discussion. While the current $20,000 threshold is set to revert to $1,000 without new legislation, there is strong advocacy for its permanent reintroduction, with some industry bodies proposing a higher threshold of $150,000. The final form of this policy remains a key area to watch. Tackling Compliance and Red Tape Reducing the “disproportionate burden” of regulatory compliance for small businesses is a central theme in pre-budget submissions. Organizations like COSBOA are advocating for simplified compliance, standardized definitions of ‘small business,’ and mutual recognition of licenses across states. The introduction of mandatory small business impact statements for new legislation is also being proposed to ensure that new rules do not unduly burden smaller enterprises. Sector-Specific Support and Other Initiatives The budget is also expected to include targeted support for various sectors. This includes funding for fresh produce suppliers dealing with major supermarkets, initiatives to boost First Nations entrepreneurs, and measures to enhance protections against unfair trading practices. Furthermore, reforms to alcohol excise and a ‘Buy Australian’ plan aimed at increasing government contract opportunities for local businesses are anticipated. Addressing the Shadow Economy and Corporate Integrity Significant funding is earmarked to combat the shadow economy and illegal phoenixing. This includes bolstering the Australian Taxation Office’s compliance programs to tackle under-reporting of income and worker exploitation, as well as enhancing the Australian Securities and Investments Commission’s (ASIC) systems to prevent dodgy directors from abandoning company debts. The Director Identification Number scheme will also receive increased investment to improve its backend systems and interconnections with company registers. Other Notable Measures Other potential measures include a ban on non-compete clauses for workers earning below $175,000, which aims to foster entrepreneurship, and continued investment in Free TAFE programs to upskill the workforce. The government is also looking to refine alcohol excise reforms, including expanding remission schemes for brewers and distillers and freezing indexation on draught beer. Sources THE NEWS WRAP: Government unveils new tax break for small businesses, SmartCompany. The 2025-26 budget for small business: What we know so far, SmartCompany. Make SME compliance easier, cheaper: COSBOA budget wishlist, SmartCompany. 13 things SMEs need to know, SmartCompany. $150 energy bill relief for one million SMEs, SmartCompany.