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GST, Uncategorized

ATO Cracks Down on Small Business Tax Evasion, Targets ‘Unexplained Wealth’

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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 strategic shift aims to address the significant “tax gap” and ensure fairer contributions from businesses across the country. The ATO is leveraging advanced technology, including artificial intelligence, to identify discrepancies and non-compliance. Key Takeaways The ATO is prioritizing the detection of “unexplained wealth” among small business owners. Increased scrutiny on undeclared income, particularly from cash-based businesses. New AI tools are being deployed to identify potential tax evasion and non-compliance. Payday superannuation reforms are being implemented, with a checklist to assist businesses. A vulnerability framework is in place to ensure empathetic treatment for taxpayers facing hardship. Targeting Unexplained Wealth and Undeclared Income ATO Commissioner Chris Jordan has identified “unexplained wealth or lifestyle for individuals and small businesses” as a top priority. The tax office is utilizing social media and other data-matching techniques to identify individuals whose reported income does not align with their displayed lifestyle. This includes monitoring for undeclared income, especially from cash-only businesses, and ensuring private expenses are not incorrectly claimed as business deductions. The ATO is also focusing on instances of unpaid superannuation and the misrepresentation of income by contractors. Leveraging Technology for Compliance An audit revealed that the ATO employs numerous AI tools to enhance tax compliance among small businesses. These tools assist in identifying omitted income in the “black economy,” assessing the accuracy of tax agent reporting, and flagging potential understatements of income or overstatements of deductible expenses. AI models are used to support decision-making, with “nudge” messages prompting taxpayers to review their figures. While AI does not make fully automated decisions, it plays a crucial role in identifying areas of concern. Payday Superannuation Reforms In a significant shift, employers will now be required to pay superannuation guarantee payments at the same time they process regular salary and wages, starting from July 1. The ATO has released a checklist to guide small businesses through this transition, emphasizing the need to review cashflow management and payroll systems. While the ATO acknowledges potential challenges, it encourages proactive preparation to avoid compliance issues. A Framework for Vulnerable Taxpayers The ATO has also introduced a vulnerability framework to ensure fairer and more empathetic treatment for small businesses and individuals experiencing hardship. This framework broadens the definition of vulnerability to include social, economic, and health-related factors. While it aims to provide tailored support and understanding, it does not waive tax obligations. The ATO will continue to use all available tools to collect outstanding debts while applying a nuanced approach to those facing genuine difficulties. Sources ATO commissioner says tax office will be targeting “unexplained wealth” of small business owners –SmartCompany, SmartCompany. New ATO checklist prepares small businesses for payday super, SmartCompany. ATO reveals hit list for businesses in 2025, SmartCompany. Audit reveals how the ATO uses AI to assess small business tax, SmartCompany. Small businesses included in ATO’s new vulnerability framework, SmartCompany.

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Managing a Business

Fair Work Commission abolishes junior pay rates for young adult employees

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Young adults working in retail, fast food and pharmacies are set to receive a pay rise, after a decision by the Fair Work Commission described as “up there with the introduction of equal pay for women in the 1970s”. The commission moved to abolish junior pay rates for young adult employees while maintaining them for minors, but the staged changes won’t come into effect until December. Hearing from more than 80 witnesses across the three industries, it determined that employees aged 18 to 20 should no longer be subject to “discounted” junior rates. Terri Butler, deputy president of the Fair Work Commission, said in making the decision, it considered whether there was any difference in the value of work performed by junior employees and other employees in the same classifications under the same awards. “We have been particularly interested in the extent to which junior rates serve or do not serve the interests of children and young people,” she said. “Young teenagers who are trying to get their first job usually wanting to balance work with secondary education, can benefit from being able to accept discount rates compared with older people doing the same job.” Terri Butler is the deputy president of the Fair Work Commission. (AAP: Darren England) It decided not to vary the rates for employees who are still minors under 16. “They are in a position of particular vulnerability and greater labour market disadvantage,” Ms Butler said. “We consider that, among the other matters we’ve taken into account, there are strong fairness reasons for allowing them to continue to accept discount rates, to get their start in the workplace, gaining valuable experience.” Under the changes, it is estimated around half a million workers will be eligible for the pay rise, according to ABS data.  The ruling addresses an application to vary junior rates under the General Retail Industry Award, the Fast Food Industry Award, and the Pharmacy Industry Award. There will be a phase-in period of up to four years and the first wage adjustments are scheduled to begin in December.  ‘Landmark decision‘ “Junior pay rates” applied to people below the age of 21, meaning 18-year-olds were paid 70 per cent of the award rate, 80 per cent for 19-year-olds and 90 per cent for 20-year-olds.  Under the commission’s ruling, the rate for 18-year-olds will increase by 5 per cent each year until 2029, bringing it in line with an adult wage. Larger businesses previously claimed the case would have a “totemic” impact to the structure of employment. Big employers like McDonald’s and Coles are often stepping stones to full-time employment, with Woolworths alone providing about one in eight Australians with their first job. Woolworths alone provides about one in eight Australians with their first job. (ABC News: Simon Tucci) Advocates have argued youth should be paid adult ages because you can enlist in armed forces at 17, and can vote, drive, drink alcohol and smoke from 18. National Secretary for the Shop, Distributive and Allied Employees Association (SDA) Gerard Dwyer said it was a “landmark decision, up there with the introduction of equal pay for women in the 1970s”. “It may take longer than we would have liked, but the principle has been established that no longer will 18-year-olds be treated as second class citizens,” he said. “Their work is as valuable as anyone else’s and before too long they will be paid accordingly.” The National Union of Students said when students were underpaid it directly impacted their ability to succeed at university. “This is a real win for young people. Ending junior rates means fairer pay for the work they’re already doing and takes some pressure off students balancing work and study,” National president Felix Hughes said.

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Uncategorized

New Article

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Managing Financial Risk: A Guide for Allied Health & Trades Businesses For many health and trade businesses, bookkeeping is seen as a way to “stay square with the ATO.” However, international and Australian guidance now requires bookkeepers to use a Risk-Based Approach (RBA). This means your bookkeeper will be looking at your business through a lens of financial integrity and crime prevention. 1. Why the “Risk-Based Approach” Matters to You The RBA means your bookkeeper shouldn’t treat a solo mobile massage therapist the same way they treat a multi-state construction firm. They must assess the specific risks of your industry to decide how much “due diligence” (checking your ID and money sources) is required. For Allied Health: The focus is often on high-volume transactions, government funding (NDIS/Medicare), and third-party payments. For Trades: The focus is on large cash flow, high-value asset purchases, and complex subcontractor networks. 2. Industry-Specific Risks to Discuss with Your Bookkeeper A. Allied Health (NDIS Providers, Clinics, Specialists) Source of Funds: If your clinic suddenly receives large private payments from overseas for “wellness retreats” or “unspecified consultations,” your bookkeeper is now required to flag this. Third-Party Payments: A “red flag” occurs when a patient’s bill is paid by a company or person unrelated to the patient without a clear reason. Medicare/NDIS Fraud: Bookkeepers are being trained to spot “ghost billing” (charging for services not rendered), as this is a common way to “clean” illicit money through a legitimate business front. B. Trades & Construction (Builders, Sparkies, Plumbers) Cash Intensity: If your trade business handles significant cash (e.g., residential “cash jobs”), your bookkeeper must ensure these are banked and recorded. Discrepancies between your lifestyle and your declared business income are a major trigger. Supply Chain & Subbies: Paying “subcontractors” who don’t have an ABN, or whose bank accounts are in different names than their invoices, is a high-risk activity for money laundering. High-Value Assets: Using business funds to buy luxury vehicles or property that doesn’t align with the business’s actual profit is a key area of scrutiny. 3. What Your Bookkeeper Will Ask For (And Why) To comply with the new FATF-aligned standards, your bookkeeper will need more than just your receipts. Expect them to request: Proof of Identity (KYC): Not just for you, but for any “Beneficial Owners” (anyone who owns more than 25% of the company or trust). Explanation of “Outlier” Transactions: If you have a sudden spike in revenue or a weird refund request (e.g., a client pays $10k over, then asks for the refund to go to a different account), they must document the reason. Verification of Subcontractors: They may ask for more rigorous checking of your subbies’ credentials to ensure you aren’t accidentally facilitating a “labor hire” laundering scheme. 4. Red Flags: What Your Bookkeeper is Looking For The “Refund” Scam: A customer overpays by a large amount and asks for a refund to a different bank account. Complex Structures: Creating multiple trusts or companies for a simple 3-person plumbing business without a clear tax or legal reason. Unusual Urgency: Pressuring the bookkeeper to “just get the payment through” without following the usual verification steps. 5. The Benefit to Your Business While this feels like “more paperwork,” having a bookkeeper who follows this guidance protects you: Audit Readiness: You’ll be prepared for AUSTRAC or ATO reviews. Business Integrity: You ensure your “clean” business isn’t being used by others to hide “dirty” money. Professionalism: It signals to banks and lenders that your financial records are robust and trustworthy.

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Managing a Business

Fair Work Ombudsman Explores AI to Cut Through Red Tape

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The Fair Work Ombudsman (FWO) is investigating the potential of artificial intelligence to simplify complex workplace regulations for Australian businesses. This move signals a growing willingness among federal bodies to adopt AI technologies to improve efficiency and address administrative hurdles, aiming to make compliance more accessible. Key Takeaways The FWO is exploring AI to make workplace obligations easier to understand and follow. Speak to your bookkeeper about how this might affect your business. This initiative reflects a broader trend of government agencies experimenting with AI to streamline services. Concerns exist regarding the accuracy of third-party AI tools providing potentially incorrect or outdated information. The FWO aims to develop its own AI-enabled tools, drawing information from reliable sources. The Push for AI Integration The Fair Work Ombudsman is reportedly investing in a pilot program to assess whether an AI-enabled tool can simplify the understanding and adherence to workplace obligations. This exploration comes amid discussions among federal regulators about the complexity of current regulations and the risks associated with commercial AI tools that might offer inaccurate advice based on flawed data. While an FWO spokesperson clarified that the organisation is “not currently piloting an AI-powered tool, nor does it have imminent plans to do so,” they confirmed that “considering opportunities where AI could enhance our public tools” is an ongoing process, subject to resources and the agency’s AI framework. The FWO’s AI transparency statement, last updated in February, currently states a policy against using AI where the public might directly interact with or be significantly impacted by it, but this is subject to review. FWO Leadership’s Vision for AI Fair Work Ombudsman Anna Booth has previously expressed enthusiasm for AI’s potential to streamline challenging and time-consuming processes within the regulator. She has indicated a desire to “invest in world-class self-service tools” and make services “more accessible through use of technology, and AI particularly.” Booth envisions natural language tools capable of answering numerous daily queries, with responses sourced directly from authoritative FWO content. Discussions with government officials have also touched upon using AI to automate routine internal business processes forsmall business and the development of an improved pay rates calculation tool to replace the current legacy system, which is not meeting community expectations, especially given the rise of public AI tools that can produce inaccurate information. The FWO is also looking at how businesses can work closely with their bookkeeping team to leverage AI for improved efficiency and accuracy in financial management.Addressing AI Accuracy Concerns The FWO’s exploration into AI occurs against a backdrop of increasing concern about the reliability of third-party AI tools. Regulators are reportedly dealing with a surge of AI-generated claims of questionable quality, leading to investigations of unfounded cases. The Fair Work Commission (FWC), a related body, has noted an influx of such claims and is considering requiring applicants to disclose the use of generative AI, urging them to verify any cited cases, legislation, or facts. Despite these challenges, FWC President Justice Adam Hatcher acknowledges the potential benefits of AI in improving access to justice by informing workers of their basic rights. Government’s Cautious Approach to Public AI Tools Despite the capabilities of large language models in simplifying complex regulations, the federal government has launched few public-facing AI tools. Existing examples include the Small Business Peak chatbot, developed with grant funding to explain changes to the Fair Work Act, and the ‘Carla’ chatbot, designed to assist women entrepreneurs. While AI is increasingly used internally within the public sector for data analysis, lessons learned from past issues like Robodebt continue to inform the government’s approach to AI implementation. Sources Fair Work Ombudsman invests in AI pilot to battle red tape, SmartCompany.

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Managing a Business

Fuel Excise Cut Offers Relief, But Small Businesses Face Widening WFH Divide

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The Australian government has implemented a temporary halving of the fuel excise for three months and introduced a national fuel security plan to combat rising fuel prices and potential supply disruptions. This $2.55 billion package aims to ease cost-of-living pressures on households and stabilize the market, but its impact on small businesses is varied, particularly highlighting a growing divide between those who can work from home and those reliant on road transport. Key Takeaways A 50% cut to the fuel excise, lasting three months, aims to reduce prices by 26.3 cents per litre. A four-stage national fuel security plan is in place to manage potential supply disruptions. Small businesses reliant on transport face increased costs, while office-based businesses can leverage work-from-home policies. The government urges consumers not to stockpile fuel. Government Response to Fuel Crisis National cabinet has agreed to halve the fuel excise for three months, a measure expected to reduce the cost of a typical tank of fuel by approximately $19. This is part of a broader $2.55 billion package designed to shield Australians from the escalating fuel crisis, which has seen prices surge due to global conflicts. The government has also introduced a national fuel security plan, a flexible four-stage framework to manage potential supply disruptions. Currently, Australia is operating under stage two of this plan, focused on “keeping Australia moving” by taking precautionary steps to shore up supply and encouraging voluntary demand reduction, such as “only buying the fuel you need.” A Bookkeeper may find these measures helpful. Impact on Small Businesses The fuel excise cut and the broader security plan have significant implications for small businesses. While the excise reduction offers some relief, businesses heavily reliant on road transport, such as mobile dog groomers, water delivery services, and appliance repair companies, are still being forced to pass on increased costs to consumers through travel charges or call-out fees. This is in stark contrast to office-based businesses, like SEO agencies, which can implement work-from-home policies to mitigate the financial impact of high fuel prices on their employees. National Fuel Security Plan The national fuel security plan is designed to be adaptable, allowing governments to escalate or de-escalate responses based on supply conditions. The stages range from normal supply monitoring to more targeted interventions, including prioritizing fuel for critical sectors and implementing coordinated demand reduction measures. In the most severe scenario, governments would allocate fuel to ensure essential services remain operational. The government has also expanded emergency spending powers to secure additional fuel supplies if needed, with the ACCC monitoring fuel retailers to ensure the excise cut is passed on to consumers. Sources Fuel excise cut by 50% as cabinet unveils $2.55 billion crisis plan, SmartCompany. what happens if shortages worsen, SmartCompany. SMEs forced to pass on costs as others WFH, SmartCompany.

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Accounting, Managing a Business

Australia Post Undercharges Plague Small Businesses, Squeezing Margins

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Small businesses across Australia are voicing significant frustration with Australia Post’s MyPost Business service, citing a surge in “underpaid postage” fees. These unexpected charges, often levied after parcels have been lodged, are reportedly impacting already thin profit margins and creating substantial administrative burdens for business owners struggling to dispute the discrepancies. Key Takeaways Small businesses are experiencing frequent “underpaid postage” notices from Australia Post. Disputing these charges is time-consuming and often yields no resolution. The discrepancies appear to stem from Australia Post’s automated scanning systems versus manual measurements. The added costs and administrative hassle are forcing businesses to re-evaluate pricing and operations. Rising Costs and Administrative Headaches Numerous business owners have reported receiving “underpaid postage” notices even after meticulously measuring and weighing their parcels. These charges, which can range from a few dollars to over $7 per parcel, are accumulating, with some businesses facing dozens of discrepancies in a single billing period. The situation is exacerbated by the fact that Australia Post often requires these additional charges to be paid before businesses can continue shipping, effectively holding their operations ransom. Discrepancies in Measurement and Weight Many business owners suspect the issues arise from inaccuracies in Australia Post’s automated size and weight scanning technology. While Australia Post maintains its systems are highly accurate and independently verified, small business owners like Rebecca Lund of Sniff by Penny and Donna Wise of Hamptons Style claim they take extreme care in measuring and packaging their items. Despite these efforts, they continue to receive unexpected charges, leading some to adjust their packaging methods in an attempt to avoid further issues. The Burden of Disputes The process of disputing these underpaid postage charges is a significant pain point. Business owners describe it as a time-consuming and often fruitless endeavor, with disputes frequently passed between departments without resolution. Many feel the administrative time required to challenge even small charges far outweighs the potential refund, leading them to absorb the costs rather than pursue a resolution. This lack of recourse, coupled with limited alternative shipping providers, leaves small businesses feeling trapped. Impact on Business Operations The cumulative effect of these rising costs and administrative burdens is forcing small businesses to reconsider their pricing strategies and operational approaches. Some are contemplating price increases to offset the unexpected shipping expenses, while others are altering their packaging and fulfilment processes. The situation is compounded by broader increases in shipping costs, including Australia Post’s recent fuel surcharge adjustments for contract customers, further squeezing small business finances. Sources Australia Post underpaid postage fees hit small businesses margins, SmartCompany.

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Managing a Business

OpenAI Forges Alliance with Australian Small Business Lobby for Local Expansion and AI Policy Influence

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Artificial intelligence leader OpenAI is deepening its ties in Australia through a strategic partnership with the Council of Small Business Organisations Australia (COSBOA). This collaboration aims to foster local AI research, promote small business adoption of AI technologies, and shape favorable policy and product development for the sector. Key Takeaways OpenAI and COSBOA are actively collaborating on local AI research as OpenAI expands its Australian presence. A recent report highlights AI’s potential to boost small business productivity by 7.1% in five years. The partnership focuses on ensuring AI policy and product design genuinely support small business innovation and growth. Australia is seen as a crucial “proving ground” for global small business AI adoption. Strategic Partnership for AI Adoption OpenAI, the company behind ChatGPT, is working closely with COSBOA, representing over 2.5 million small businesses in Australia. This “two-way relationship” leverages OpenAI’s technological expertise and COSBOA’s deep understanding of small business operations. The goal is to create AI policies and products that are genuinely beneficial for innovation, access, and growth within the small business sector. Matthew Addison, COSBOA chair, stated that the collaboration is vital for understanding the impact of AI on small businesses, which are a critical engine of the Australian economy, accounting for more than 97% of all businesses. Research Highlights AI’s Potential for SMEs A recent report, “Australia’s AI Opportunities,” co-authored with insights from COSBOA and other key stakeholders, projects significant productivity gains for small businesses through AI adoption. The report suggests that AI could enhance small business productivity by 7.1% over the next five years, potentially outpacing larger corporations. This growth is expected to come from small businesses integrating “AI as a service” tools, a more scalable approach than investing in new hardware. OpenAI’s Growing Australian Footprint This partnership is part of OpenAI’s broader strategy to establish a stronger presence in Australia. The company has been actively engaging in policy discussions, advocating for grants, tax incentives, and enhanced research and development frameworks for AI. OpenAI has also appointed former Technology Council of Australia CEO Kate Pounder as its local policy liaison and plans to open its first Australian office in Sydney. Australia as a Global Test Case COSBOA views Australia’s diverse small business landscape as an ideal “stress test” for AI technologies. If AI tools can successfully help Australian small business owners navigate complex areas like tax systems, superannuation obligations, and compliance with modern awards, they are likely to be effective globally. This makes Australia a crucial “proving ground” for worldwide small business AI adoption. COSBOA itself is optimistic about AI’s potential and advocates for accessible training, affordable tools, and trusted frameworks to facilitate widespread adoption. The organization also supports a “light-touch” regulatory approach to AI, emphasizing the need for swift action to avoid falling behind other nations actively embracing AI. Sources OpenAI partners with small business lobby amid Aussie expansion, SmartCompany.

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Managing a Business

Summary of obligations (Anti-Money Laundering Reform)

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This page provides a summary of your upcoming anti-money laundering and counter-terrorism financing (AML/CTF) obligations. On this page New regulated services Key obligations summary 1. Enrol and register with us 2. Develop and maintain an AML/CTF program tailored to your business 3. Get your staff ready 4. Conduct customer due diligence 5. Report certain transactions and suspicious activity 6. Make and keep records Clear protections for legal professional privilege Related pages New regulated services From 1 July 2026, AML/CTF obligations will apply to certain services typically provided by the following professions and businesses, known as tranche 2 entities: real estate professionals – such as real estate agents, buyer’s agents and property developers dealers in precious stones, metals and products lawyers conveyancers accountants trust and company service providers.  More virtual asset-related services and intermediary transfer message services will also come under AML/CTF regulation from 31 March 2026. To check if you provide services that will be regulated under these changes and have AML/CTF obligations: use the online tool to check if you may be regulated visit our new industries and services to be regulated page. For information on the services we already regulate visit who and what we regulate. We’ve developed education resources to help you implement effective AML/CTF measures. You can subscribe to stay updated on AML/CTF reform. Key obligations summary The key obligations for businesses regulated by us are to: Enrol and register with us. Develop and maintain an AML/CTF program tailored to your business. Get your staff ready to implement your obligations. Conduct initial and ongoing customer due diligence (CDD). Report certain transactions and suspicious activities. Make and keep records. In meeting your obligations, the relevant laws also provide clear protections for information that may be subject to legal professional privilege. Understanding and meeting your obligations is essential to protect your business from misuse by criminals and make sure you comply with Australia’s AML/CTF laws. 1. Enrol and register with us If you provide a designated service with a geographical link to Australia you must enrol. Enrolment opens 31 March 2026 for newly regulated industries and can’t be done earlier. If you’re a remittance service provider or virtual asset service provider, you need to enrol and apply for registration. If you’re already enrolled or registered, you must update your enrolment and registration details to include any of the new designated services you provide from 31 March 2026. You must also continue to update us when your enrolment or registration details change. The Department of Home Affairs is considering whether transitional rules should be made to extend the deadlines for enrolment and registration mentioned below. This guidance will be updated if any transitional rules are made. Enrol Enrolment involves providing basic information about your business, such as its: structure services key personnel contact details. You must also update your details when they change. You must submit your enrolment application no later than 28 days after the day you start providing a designated service. If your business provides any of the newly regulated virtual asset services or intermediary transfer message services, these new laws start 31 March 2026. This means you’ll have until 28 April 2026 to enrol. If you provide any other newly regulated designated services, the new laws start on 1 July 2026, and you must enrol by 29 July 2026. Register You must not provide an existing regulated virtual asset or remittance designated service before you’ve registered with us. This obligation applies to newly regulated virtual asset services from 31 March 2026. Criminal penalties apply for non-compliance. Learn more about enrolment and registration and the consequences of not complying. 2. Develop and maintain an AML/CTF program tailored to your business An AML/CTF program protects your business from criminal exploitation through money laundering, terrorism financing and proliferation financing. It helps you fulfil your obligations and contributes to a safer Australian financial system. Your program must contain both of the following: A risk assessment: you must identify and assess your money laundering, terrorism financing and proliferation financing risks (we refer to these as ML/TF risks). AML/CTF policies: you must develop and maintain appropriate policies, procedures, systems and controls to manage and mitigate your ML/TF risks and comply with your obligations. Your program must be documented and approved by a senior manager of your business. It must be kept up to date, including to reflect significant changes to your business and relevant ML/TF risk products we release. It must also be independently evaluated at least once every 3 years. Reporting group If you want to share the costs of compliance with other businesses and fit within the framework established by the Act and Rules, you may be able to do so within a reporting group. Entities in a reporting group share some or all risk management and compliance arrangements. This includes those set out in a group AML/CTF program established by a lead entity of the group. Note that obligations apply differently to foreign branches and subsidiaries. Learn more about: your AML/CTF program obligations reporting groups. 3. Get your staff ready Preparing your staff is critical to help you meet your AML/CTF obligations. This includes making sure of all of the following: they’re fit to perform their roles they understand their obligations your business has strong governance and oversight in place. Governance Your AML/CTF program must be subject to appropriate governance arrangements. Strong governance and oversight help protect your business from criminal exploitation and support a culture of AML/CTF compliance. Your AML/CTF governance structure must clearly identify 3 roles: Governing body: has primary responsibility for your governance and executive decisions, empowers the AML/CTF compliance officer and oversees compliance at the highest level. Senior manager or managers: approves key AML/CTF compliance decisions. AML/CTF compliance officer: manages day-to-day AML/CTF compliance and makes sure policies and procedures are implemented. These roles are usually held by different people, but in smaller businesses, one person may conduct multiple governance responsibilities. Learn more about governance. Conduct personnel due diligence and provide AML/CTF training Personnel due diligence and training ensure the people performing AML/CTF

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GST, Managing a Business

Australia Post Underpaid Postage Fees Squeezing Small Business Profits

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Small businesses across Australia are voicing significant frustration over escalating “underpaid postage” charges levied by Australia Post. These post-shipment fees, coupled with opaque pricing and arduous dispute processes, are reportedly eroding the already slim profit margins of many small enterprises, leading to increased operational costs and administrative burdens. Key Takeaways Small businesses are experiencing a rise in “underpaid postage” notices from Australia Post, leading to unexpected additional charges. Discrepancies in parcel size and weight measurements between businesses and Australia Post’s scanning technology are a primary cause of these fees. The administrative effort required to dispute these charges often outweighs the cost of the fees themselves, leading many businesses to pay them without challenge. These increased costs are forcing businesses to re-evaluate their pricing strategies and packaging choices. Rising Costs and Measurement Disputes Numerous small business owners report receiving frequent “underpaid postage” notifications after lodging parcels. These charges, sometimes ranging from a few dollars to over $7 per parcel, require immediate payment before further shipments can be processed, creating cash flow issues and account pressure. Businesses claim to meticulously measure and weigh their parcels, yet discrepancies with Australia Post’s automated scanning systems persist. Australia Post maintains its scanning technology is highly accurate and independently verified, processing millions of parcels annually with the vast majority accurately scanned. The Administrative Burden of Disputes Many business owners find the process of disputing these charges to be time-consuming and largely unproductive. Anecdotal evidence suggests that refunds or credits are rarely issued, and disputes can be passed between departments without resolution. The effort involved in gathering evidence and communicating with Australia Post often makes disputing smaller charges financially unviable, leading to a de facto acceptance of the fees. This situation is exacerbated by limited alternative shipping providers, particularly for deliveries to PO boxes and regional areas, leaving many businesses feeling “at ransom” by Australia Post’s policies. Impact on Business Operations and Pricing The cumulative effect of these underpaid postage charges is forcing small businesses to consider price increases for their products. Some are also altering their packaging and fulfilment strategies, with a noted decline in demand for custom packaging as businesses opt for more cost-effective, albeit less branded, solutions like Australia Post’s prepaid satchels. This trend impacts not only the businesses themselves but also suppliers of packaging materials, as demand shifts away from personalized options due to shipping cost pressures. Sources Australia Post underpaid postage fees hit small businesses margins, SmartCompany.

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Bookkeeping

Top 8 Outsourced Bookkeeping Services in Melbourne (2026)

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Small businesses typically don’t have the budget or resources to hire skilled staff for every department. As a result, owners often end up juggling multiple tasks, which can actually create more problems than they solve. Imagine having your accounts handled by someone without the right experience – it could lead to errors, missed details, or financial losses. Financial accuracy is critical to keeping your operations running smoothly and ensuring consistent cash flow. That’s why outsourcing bookkeeping can be a smart decision to protect your company’s financial strength. In this blog post, we’ll discuss how outsourcing bookkeeping services in Melbourne can increase small business profitability and support long-term growth. Why Outsource Bookkeeping in Australia? Outsourcing bookkeeping simplifies financial management and supports steady business growth. Here are the key benefits: Expertise and efficiency: Get access to qualified professionals experienced in Australian accounting practice, including Tax Practitioners Board registered BAS agents and true tally Bookkeeping-certified specialists. Real-time financial view: Cloud-based platform provides instant financial reports, helping you make smart business decisions. Easy compliance: Stay up to date with GST, PAYG, superannuation and annual reporting requirements without the stress. Data security: Advanced systems comply with strict Australian privacy laws to protect your financial data. Flexible and scalable: Services can expand from simple reconciliations to full financial planning and CFO-level guidance as your company grows. Save valuable time: Spend more time growing your business when experts handle your bookkeeping tasks. When to Outsource Bookkeeping? You should consider outsourcing when you: Spend a lot of time entering data or handling reconciliations. Are having difficulty managing BAS, GST, or ATO reviews. Facing cash flow issues or payroll challenges. Experiencing rapid growth in any sector. Lack of in-house knowledge for compliance or financial planning. Outsourcing works best for managing Australia’s complex tax system, from handling superannuation to effectively claiming R&D benefits. Top 10 Melbourne Bookkeeping Services 1. Truetally Bookkeeping Truetally Bookkeeping is your trusted partner for complete financial management solutions. We specialize in bookkeeping services, payroll outsourcing services, cash flow management services, and tax services that help businesses stay organized and financially strong. Our expert team ensures accurate records, streamlined payroll processing, and effective tax planning so you can focus on growing your business. At Truetally, we believe in providing reliable, transparent, and efficient financial support tailored to your business needs. Whether you run a startup or an established company, Truetally offers smart financial solutions that help your business stay on track and thrive. Website: https://truetally.com.au/ 2. George Dimov, CPA George Dimov, CPA, provides high-quality tax and accounting services to both individuals and businesses. Our team handles audit and tax projects in all 50 states and internationally. With deep expertise, we handle all types of tax and accounting matters – from simple W2 filings to advanced forensic accounting cases and hedge fund or real estate accounting. When you work with George Dimov CPA, you can count on prompt communication, attention to detail, and accurate results that help you maximize your legal tax benefits. Website: https://dimovtax.com/ 3. Pilot Pilot is emerging as the leading and most trusted accounting, CFO, and tax partner for startups and small businesses in the U.S. Simply put, we help you save valuable time. You no longer have to worry about whether your books are accurate, find a new accountant every time someone visits, or use multiple confusing tools. Instead, you can focus entirely on growing your business. We provide accurate books you can trust, real experts you can reach anytime, and a single dashboard that connects all your financial tools – giving you a complete view of your business’s finances in one easy place. Website: https://pilot.com/ 4. CoCountant CoCountant helps business owners get accurate, decision-ready figures without the expense or hassle of hiring an entire finance team. From day one, you’re paired with a dedicated controller and bookkeeping team who understand your business, close your accounts in 10-15 days, and deliver GAAP-compliant reports you can trust. We partner with startups, agencies, non-profits, and growing teams across the U.S. to handle bookkeeping, payroll, bill payments, accounts receivable, budgeting, and cash flow management. Every plan includes fast response times backed by an SLA, ensuring you get answers in hours, not days. With CoCountant, you get more than organized books. You get financial clarity, confidence, and complete trust in your figures. Website: https://cocountant.com/ 5. Techno Global Team Inc The Techno Global team started with the goal of helping small and medium businesses in the Philippines connect with skilled professional service personnel. We focus on delivering high-quality professionals who enhance your current business setup and bring real value, all at a cost-effective rate. Website: https://www.technoglobalteam.com/ 6. Accounts NextGen Accounts NextGen is a professional chartered accounting firm and tax consultancy based in Melbourne. We specialise in delivering fast and maximum tax refunds across Australia while ensuring minimal risk. Our services cover all types of tax return solutions including personal, business and rental property tax returns. With a strong team of 20+ skilled tax accountants and consultants, we are committed to providing simple, reliable and stress-free accounting and taxation services. To date, we have successfully filed over 16,000 tax returns for our clients. In addition to tax and accounting services, we also offer accounting training and internship programs for migrants, university graduates and students who want to gain real-world, practical experience using real client data and accounting software. Our aim is to help them strengthen their professional skills and effectively prepare for the competitive job market. Website: https://www.accountsnextgen.com.au/ 7. Visory Visori aims to empower SMEs by transforming their back-office operations. We connect them with certified professionals who handle their bookkeeping, payroll, and accounting with care and accuracy. Our platform combines workflow management and collaboration tools to deliver a transparent, high-quality service built on trusted processes. With Visori, you can say goodbye to lost email chains and enjoy accurate financial data that keeps you and your accountant on the same page. Website: https://www.visory.com.au/ 8. Reliable Bookkeeping Services Trusted Bookkeeping Services is one of the most trusted names in accounting firms

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