How Airwallex helps Australian small businesses cut international transaction fees on imports, exports, Meta ad spend and US subscriptions, with local accounts in the US, UK and Europe.
Cash flow management explained for Australian small businesses: what it is, why it matters more than profit, and simple ways to keep cash flowing year round.
Common questions about Bookkeeping and BAS for Ocean Grove small businesses answered for Ocean Grove small businesses. True Tally bookkeeping Geelong.
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. Related Reading Government Boosts Small Businesses with Grants, Funding, and Support Programs Best Software for Trades Businesses in Australia: Tradify and NX Ledger Is Dext Worth It? Why We Recommend It for Larger Businesses Looking for a small business bookkeeper? True Tally provides fixed-fee bookkeeping, BAS lodgement and payroll support for small businesses across Australia.
Many Sydney businesses face a number of challenges when managing their bookkeeping – from rising salary costs and a lack of skilled professionals to the constant pressure to meet ATO compliance deadlines. On top of that, business owners face ongoing recruitment challenges, seasonal workloads and the demand for accurate financial reporting. It’s easy to see why many companies are now choosing outsourced bookkeeping as a more practical and cost-effective approach. By allowing experienced professionals to manage their accounts, businesses save money, gain expert knowledge and receive timely, accurate reports without the burden of recruiting or training new staff. In this blog, we’ll discuss which bookkeeping tasks you can outsource, the key benefits of doing so and the key questions to ask your virtual bookkeeper before making a decision. Top 7 Outsourced Bookkeeping Services in Sydney 1. Truetally Bookkeeping Truetally is your trusted partner for complete financial management solutions. We specialize in bookkeeping services, accounting 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 Bookkeeping, we believe in providing reliable, transparent and efficient financial support tailored to your business needs. Whether you are running a startup or an established company, Truly offers smart financial solutions that help your business stay on track and thrive. Website: https://truetally.com.au/ 2. Jacoby Cameron & Co Taking care of your complete financial well-being. Jacoby Cameron & Co. At , we focus on giving your business the right advice when you need it, not just when you ask. We guide you through every part of your business, and because we build a personal connection with each client, our advice is specifically tailored to your business needs. Website: https://www.jaccam.com.au/ 3. Business Turnaround Services We are the only consultancy firm in Australia focused on building and implementing operational and strategic systems that help struggling businesses become stable, successful and profitable. We specialise in turning serious financial challenges into sustained, long-term profits for companies with annual revenues between $3 million and $20 million. Our business turnaround services are supported by a full team of professionals including bookkeepers, management accountants, IT automation specialists, managed IT specialists and digital marketing professionals. Website: https://businessturnaround.services/ 4. RippleBytes Ripplebytes is an innovative technology company dedicated to reshaping the digital world. We build smart, scalable solutions that accelerate efficiency and growth in today’s fast-paced digital age. From cutting-edge fintech systems to tailor-made software solutions, we combine modern technology with user-centric design to keep our clients ahead. At Ripplebytes, every project is a step towards creating meaningful digital experiences – one byte at a time, making waves across industries and shaping the future. Website: https://ripplebytes.com/ Also Read: Bookkeeper vs Accountant: What’s The Main Difference? (A Complete Guide) 5. CCS Partners – Chartered Accountants Established in 1992, CCS Partners is a trusted accounting firm with offices in Sydney CBD and Hurstville CBD. As an experienced and well-established firm, CCS Partners has built a strong reputation for providing expert professional advice and highly personalised services. We work hand in hand with our clients to provide taxation, accounting, audit and assurance, SMSF solutions and succession and estate planning support. Website: https://www.ccspartners.com.au/ 6. Aero Accounting Group – Tax Accountants We pride ourselves on delivering superior results for our clients, helping them move forward to achieve their dreams and ambitions. The way people interact with financial products and services is changing, and we are excited to be a part of this transformation. We aim to be your trusted partner in all things money, serving as a true ‘enabler’ on your journey to wealth growth and financial success. Are you ready to enhance your financial experience? We are always ready. Website: https://aerogroup.com.au/ 7. Operacy Staffing Operacy Staffing is a company that supports small businesses in Australia by helping them outsource specific tasks and duties to remote professionals from the Philippines. These remote workers are experienced in a variety of fields and can assist with tasks such as customer service, data entry, scheduling, and other business operations. By connecting small businesses with skilled and reliable remote staff, Operacy Staffing helps them increase their efficiency and productivity. It also provides businesses with a cost-effective way to handle a variety of responsibilities while maintaining quality and smooth workflow. Website: https://www.operacy.com.au/ Outsourced Bookkeeping Functions Offered by Sydney Firms Bookkeeping outsourcing companies in Sydney offer a full range of financial management services, including general ledger maintenance, accounts payable and receivable handling, financial reporting, tax filing, expense tracking and bank reconciliation. Below is a breakdown of the main virtual bookkeeping services available in Sydney and how they work together to provide better financial control and clarity: General Ledger Management: When Sydney businesses outsource general ledger management, they eliminate messy books and receive streamlined, accurate and ATO-compliant financial records that are always audit-ready. Accounts Payable: Accounts Payable outsourcing ensures that all invoices are managed correctly, GST credits are recorded correctly, and supplier payments are processed on time without errors or delays. Accounts Receivable: By delegating receivables management, companies maintain consistent cash flow, reduce overdue payments, and strengthen their working capital position through stable collections. Bank Reconciliation: A skilled remote bookkeeper reviews bank transactions daily, allowing businesses to always have a clear view of their actual cash balances, helping them make smart and timely financial decisions. Payroll Management: Outsourced payroll services manage superannuation, PAYG, STP submissions, award rates, holiday entitlements, and NSW payroll tax. This keeps your business in compliance with Fair Work and ensures that employees are paid accurately and on time. Financial Reporting: Professional outsourced bookkeepers prepare customized financial statements and provide insights to accelerate growth while meeting Australian compliance and reporting standards. Accounting Automation: Virtual bookkeeping teams use accounting automation tools to streamline processes, reduce manual work and increase accuracy by lowering overall operational costs. Tax Preparation: Outsourced tax specialists manage BAS, GST, and year-end tax liabilities, ensuring full compliance and helping businesses secure
Australian agencies face a unique set of compliance challenges, particularly around GST, international services and contractor payments. Getting this wrong won’t just lead to an audit; it can also hurt your financial bottom line. Here’s a checklist of essential bookkeeping and tax compliance areas that your marketing or SEO agency should master. 1. The GST Minefield: Domestic vs. International Your service location determines your GST obligations. Your bookkeeper should apply GST correctly to every transaction. Australian clients: The standard rule is to charge 10% GST. International clients (exports of services): If your client is outside of Australia (even if the work is delivered digitally), the service is usually GST-free (or “input tax”). This is important for agencies with overseas clients. Problem: Many agencies mistakenly charge GST to overseas clients or, conversely, do not claim GST back on local expenses related to GST-exempt income. Bookkeeping best practice: Use a specific tax code in your accounting software (e.g., “GST Free Export”) and ensure that the client’s location is clearly indicated on your invoices. This makes your quarterly Business Activity Statement (BAS) accurate and safe for ATO review. 2. Digital Services And Foreign Currency If you run campaigns that pay for services in foreign currencies (e.g., buying Google Ads in USD, paying a developer in INR), your bookkeeping must be accurate. Foreign Currency: When processing foreign currency transactions, your bookkeeping records should include two figures: the foreign currency amount on the date of the transaction and the AUD equivalent. You should use one of three consistent methods: daily exchange rate, 28-day average, or an acceptable rate from a public source. Impact: Fluctuations in exchange rates create a foreign exchange gain or loss. This should be properly recorded in your profit and loss statement, as it is a taxable event. 3. Contractor vs. Employee: SGC Risk Like many professional services, your agency relies on contractors (freelance designers, copywriters, specialist coders). This is a key compliance area for the ATO regarding the Superannuation Guarantee Charge (SGC). Rule: If you pay a contractor primarily for their labour, even if they have an ABN and issue an invoice, you may still be legally required to pay a superannuation guarantee (currently 11%). Bookkeeping priority: Use the ATO’s Employee/Contractor Decision Tool for every new engagement. Don’t rely solely on contracts. If the tool indicates an employee relationship (for super purposes), your bookkeeping system should track and make provision for SGC. Penalties: Failure to pay SGC for a deemed employee results in SGC, plus interest and administration fees, which are not tax-deductible. 4. Classify expenses For Deductions Digital agencies have unique expenses that must be classified correctly to maximize tax deductions. Research and Development Tax Incentives: If you develop new or significantly improved software, proprietary tools or unique processes for SEO/AI, you may be eligible for generous Australian Research and Development (R&D) tax incentives. You should carefully track related labour costs and direct costs. Software and Subscriptions: Clearly break down your expenses into: Operating expenses (now deductible): Monthly SaaS subscriptions (SEMRush, Ahrefs, Adobe, etc.). Asset purchases (depreciation over time): High-value purchases such as new computers, servers or large software licenses. Takeaway: Compliance is not a burden; it is a shield. By implementing these rigorous bookkeeping practices, your agency ensures it is ATO compliant, reduces unnecessary tax and penalty costs, and is positioned to focus entirely on client success. Read More: NDIS Bookkeeping: Why ‘Good Enough’ Isn’t Good Enough for Compliance Related Reading Airwallex for Australian Small Business: Cutting International Transaction Fees What Is Cash Flow Management? A Guide for Australian Small Businesses FAQ: Bookkeeping trust accounting and compliance for law firms in Victoria Looking for a small business bookkeeper? True Tally provides fixed-fee bookkeeping, BAS lodgement and payroll support for small businesses across Australia.
Navigating The Cycle of Multiple Funders And State Compliance For Australian allied health providers, each invoice you generate may be linked to a different regulatory body, a different pricing structure and a different set of compliance rules. Your bookkeeping system is a critical gatekeeper that protects your practice from financial and legal risk. Here are four key bookkeeping and compliance priorities for all allied health practices to focus on in 2026. 1. Multi-Funder Invoicing: Accuracy Is Profit You are dealing with more than just private fee-for-service. Your system must be configured to handle the nuances of each major funder: Medicare (EPC/CDM): Accurate tracking of the number of services claimed against annual limits, proper use of item numbers and proper linkage to the practitioner are required. Audit of false billing risks by the Department of Health. NDIS: Requires specific item codes, spending limits and detailed service records. Ensure your system can easily separate NDIS-funded income and expenditure. Private health funds: Requires specific provider numbers and often involves integration with third-party claims platforms (e.g., HICAPS). Your bank reconciliation process should match bulk fund payments with individual client invoices. WorkCover / CTP: These payers typically have state-specific fee schedules that change annually (e.g., WorkCover Queensland fees are updated mid-2026).6 Your system must be updated immediately to avoid claiming at outdated rates. Bookkeeping best practices: Use practice management software that integrates with your cloud accounting platform (Xero, MYOB). This single-entry system reduces errors and ensures that all revenue streams are coded to the correct service category. 2. Payroll Tax Red Zone: Reviewing Your Contractor Model The most significant financial threat to many Australian allied health businesses in 2026 is a crackdown on payroll tax. State revenue offices across Australia are actively investigating service contracts with contractor clinicians. Problem: If a contractor is considered an “employee” for payroll tax purposes (based on their level of control, provision of equipment, etc.), the practice could be liable for years of backdated payroll tax, plus significant penalties and interest. Bookkeeping priority: Accuracy in classification. You should take care to separate actual employee wages from contractor payments. Your accounting software needs specific general ledger accounts for each. Actionable step: Get immediate legal and tax advice to review your contractor agreements. Bookkeeping alone cannot solve this, but accurate financial data will be essential for your advisor to assess your risk exposure and restructure if necessary. 3. ATO Compliance: Don’t Let Interest Cost You Too Much The Australian Taxation Office (ATO) has tightened its rules on interest deductions on tax debts, making tax planning and timely compliance even more important for cash flow. Change: From mid-2026, interest charged by the ATO (General Interest Charge/GIC or Shortfall Interest Charge/SIC) will generally no longer be tax deductible. Impact: This significantly increases the real, after-tax cost of carrying ATO debts (e.g., overdue BAS or PAYG instalments). Relying on an ATO payment plan as a form of business financing is now too expensive. Bookkeeping priority: Real-time tax liability tracking. Your bookkeeper should regularly forecast your upcoming GST, PAYG withholding and superannuation guarantee contributions. Use separate bank accounts to temporarily hold these funds, ensuring you are never short when the compliance deadline arrives. 4. Record Retention And Security Compliance requires evidence. All financial and service delivery records should be stored securely and easily accessible for audit. Five-year rule: All records (invoices, receipts, BAS, payroll records, service contracts) should be kept for at least five years from the date of their creation or registration. Security and privacy: As a healthcare provider, you have sensitive patient data (financial and clinical). Your digital bookkeeping and practice management systems should comply with Australian privacy laws (e.g., the Privacy Act). Use reputable, cloud-based software with strong encryption and multi-factor authentication. Next Point: Bookkeeping is the engine of your allied health practice, but compliance is the fuel. By prioritizing accurate multi-funder invoicing, addressing payroll tax risk, proactively managing your tax obligations, and maintaining secure records, you are securing your business for a successful 2026 and beyond. Read More: Moving Your NDIS Bookkeeping from Reactive to Proactive Related Reading GST for Allied Health Practices: Medicare, NDIS and Private Fees Explained What Features Should I Look For in a Bookkeeper for Allied Health Businesses? Beyond the Books: The 3 Key Numbers Every Australian Allied Health Practice Must Master in 2026 Looking for a small business bookkeeper? True Tally provides fixed-fee bookkeeping, BAS lodgement and payroll support for small businesses across Australia.
Quick answer: A sole trader is one person running a business under their own ABN with no legal separation from themselves, simple and cheap to set up but carrying full personal liability. A Pty Ltd company is a separate legal entity that limits personal liability and pays a flat company tax rate, but costs more to set up and run. Most businesses start as a sole trader and convert once profit or liability risk grows. On this page: What is a sole trader? What is a Pty Ltd company? Sole trader vs Pty Ltd: side-by-side comparison Watch: sole trader vs company explained Common questions people ask AI assistants Choosing between a sole trader and a company structure can feel overwhelming because each option has its own advantages and disadvantages, and every business has different goals and financial priorities. Many people start out as a sole trader because it’s easier and cheaper, then reconsider as income grows and tax liabilities increase. The biggest difference between the two structures is how tax is applied, specifically the company tax rate versus your personal marginal rate. What Is a Sole Trader? A sole trader is someone who owns and runs a business as an individual, with no legal separation between the business and the owner. There’s no separate registration beyond an ABN, and the owner makes every decision and keeps every dollar of profit after tax. This structure is simple and low-cost, which makes it a natural starting point for small businesses. The trade-off is personal risk: because there’s no legal separation, any debts, liabilities or legal claims against the business fall on the owner personally. If the business is sued or can’t pay a debt, personal assets such as a home, car or savings can be used to cover it. What Is a Pty Ltd Company? A Proprietary Limited Company (Pty Ltd) is one of the most common business structures in Australia. Unlike a sole trader, the company is a separate legal entity from the people who run it, meaning it can enter contracts, own property and be sued in its own name, separately from its directors. The main advantage is limited liability: if the company owes money, directors generally aren’t personally liable for the debt, so personal assets stay protected. A Pty Ltd offers stronger asset protection and, above a certain profit level, tax advantages compared with a sole trader, but it comes with registration fees, ongoing ASIC compliance and more paperwork. Related reading: Capital Gains Tax in Australia: How to Calculate It Sole Trader vs Pty Ltd: Side-by-Side Comparison Aspect Sole Trader Company (Pty Ltd) Initial setup costs Simple and inexpensive. No ACN or ASIC registration needed. Getting an ABN is free; a separate bank account is optional but useful. Costs more, roughly $474-$597. Requires ASIC registration and an ACN. A dedicated business bank account is required and may carry fees. Record-keeping requirements Lower compliance burden. Business income is included in your personal tax return. Records must be kept for a minimum of five years, and business details updated within 28 days of any change. More detailed and regulated. Requires a separate company tax return. Tax documents are kept for 5 years, financial records for 7. Companies must complete ASIC’s annual review and document major meetings. Ease of starting Register quickly with just an ABN. A business name is only needed if you’re not trading under your own name. Requires ACN registration with ASIC, an ABN, and usually a registered business name. A dedicated business account is mandatory, and GST registration is required once turnover exceeds $75,000. Business revenue handling All profit is personal income. Business expenses can be claimed to reduce taxable income, and funds can be withdrawn freely as personal drawings. The company owns the revenue, not the individual. Directors are paid via salary or dividends, company and personal funds must stay separate, and the company lodges its own tax return. Setup and operating costs An ABN is free. Registering a business name costs $44/year or $102 for three years. Name reservation costs around $61, company registration runs roughly $474-$576, and ongoing compliance costs are higher. Liability for business debts Full personal liability. Creditors can claim personal assets such as a car or house. Liability is generally limited to company assets. Directors aren’t personally liable unless duties are breached. Control vs liability Complete control, but full personal exposure to financial and legal risk. Control is shared among directors and shareholders under company law, with personal assets generally protected from company debts. Taxation Taxed at personal marginal rates, which rise as income grows. Taxed at the flat company rate (25-30%), with directors paying personal tax only on what they draw as salary or dividends. Can be more tax-efficient at higher profit levels. Insurance needs You arrange your own insurance; workers’ compensation isn’t automatic. Companies must provide workers’ compensation for staff, and directors can take out additional liability cover. Access to funds Business funds can be used any time as personal drawings. Funds are accessed only through wages or dividends, with every transaction recorded. Related reading: ATO Directors’ Fees: What They Are and How to Pay Them Conclusion Operating as a sole trader gives complete control and an easy setup, but comes with more personal risk and can make it harder to raise finance. A company offers limited liability, more credibility with lenders and investors, and potential tax efficiency at higher profit levels, at the cost of higher setup and ongoing compliance. The right choice depends on your goals, business scale and how you expect the business to grow. Watch: Sole Trader vs Company Explained Common Questions People Ask AI Assistants Can a sole trader become a Pty Ltd later? Yes. Most businesses start as a sole trader and convert to a Pty Ltd when turnover passes roughly $100,000-$200,000, or once liability becomes a real concern. The process involves registering a company with ASIC, obtaining a new ABN, and transferring assets across, a bookkeeper or accountant should be involved to
Paying directors’ fees can often seem complicated, especially when you’re trying to get your business fully compliant with ATO requirements. Many business owners have similar concerns: should directors be paid? And if so, what’s the right way to handle those payments? It’s important to get this right because directors’ fees can be claimed as a tax deduction, helping you to reduce your business’s overall tax burden. However, paying directors’ fees isn’t as simple as just transferring money. There are a few steps you need to follow, and the ATO has specific tax rules for how to report and claim these fees. If you skip these steps, you could miss out on valuable deductions or run into compliance issues. In this guide, we’ll explain the rules around directors’ fees, how they should be paid, and the right way to claim them for your business. What Are Directors’ Fees? Before diving into the rules and procedures, it is important to understand how directors can receive payment. Typically, directors are compensated in one of the following ways: Salary Directors’ fees Dividends Each method rewards directors for their work but involves different tax implications and compliance requirements. Why Do Companies Pay Directors’ Fees? Companies pay directors’ fees to ensure that board members are appropriately compensated for their leadership, insight and strategic decision-making. This remuneration structure ensures transparent and balanced compensation for directors’ valuable input while providing flexibility in both financial management and tax planning. It also helps companies avoid the stringent rules of Section 7A of the Income Tax Assessment Act, which creates a more tax-efficient way for directors to earn income. Essentially, directors’ fees help align the company’s financial goals in a way that is consistent with and beneficial to the directors’ legitimate access to the company’s funds. How Are Directors’ Fees Structured And Paid Under Australian Law? Executive Directors In Australia, the structure of directors’ fees is based on the director’s level of involvement in the company. For executive directors involved in day-to-day business, fees are often paid in addition to their regular salary and must include mandatory superannuation contributions. This setup ensures fair compensation for both their executive duties and board responsibilities. Non-Executive Directors Non-executive or non-executive directors, who focus on strategic oversight rather than day-to-day management, usually receive only a director’s fee. However, these fees must also include superannuation contributions in accordance with the Superannuation Guarantee (SG) requirements set out in Australian law. All payments made to directors – whether executive or non-executive – must comply with corporate governance rules and Australian tax laws. This includes the correct calculation and payment of Pay As You Go (PAYG) withholding tax and reporting to the Australian Taxation Office (ATO) via Single Touch Payroll (STP). In addition, the company’s board must formally approve all director fees and record them in meeting minutes, ensuring that the remuneration is consistent with the company’s constitution and shareholder agreements. By following these rules, companies maintain transparency when remunerating their directors, meet legal obligations and adhere to strong corporate governance standards. Director Fees And Salaries: What’s The Difference? Many business owners often confuse director fees and director salaries or wages. It is important to understand this distinction because each is treated differently when it comes to taxes, legal obligations and retirement. Director Fees: These are payments made solely for their role as a director on the board. Directors may not have any other day-to-day work or management duties in the company. This is especially common for non-executive or independent directors who focus solely on governance, not performance. Director Salary or Wages: When a director also serves in an executive or operational position (such as CEO, managing director or other senior role), they receive a regular salary or wage for those duties. These payments are processed in the same way as any other employee’s salary. Sometimes, directors may receive both types of payments – a director’s fee for board work and a salary for management responsibilities. For example, a managing director in a private company often earns both. Always record these separately in your company’s accounts to keep things clear and consistent. Also Read: Sole Trader vs Limited Company in Australia: Key Differences & Which Is Better How Are Director Fees Determined? The process for determining director fees depends on the structure, size, composition of your company and whether it is privately held or publicly listed. Private And Small Companies: In small or private businesses, the board usually determines the amount and how it is paid. This may also be set out in the shareholders’ agreement or company constitution. Directors can set their own fees, provided they are consistent with these governing documents. Public Companies (e.g. ASX-listed): For listed companies, shareholders must approve the total pool of director fees during the AGM, as required by the Corporations Act and the company’s constitution. It is important to ensure that director remuneration is consistent with company policies, market standards and is clearly disclosed to shareholders (and sometimes the public). A transparent and consistent process helps prevent conflicts and supports long-term governance integrity. Formalising this framework in your constitution or shareholders’ agreement is not only best practice – it also protects your board from future disputes as the company expands or new directors join. How to Pay Director Fees: A Practical Guide When paying director fees – whether for yourself as a founder or for non-executive directors – it’s important to follow the correct legal and tax steps. Get Approval: Review your constitution or shareholders’ agreement to confirm the appropriate approval process. Then, pass the necessary board or shareholder resolutions. Set The Amount: Decide the amount of the fee and how often it will be paid. Process Through Payroll: All director fees should be passed through Payroll, even for owner-directors of the business. Register for PAYG withholding if not already done. Report to The ATO: Include director fees in your Single Touch Payroll (STP) reporting and issue an income statement or PAYG payment summary. Think About Superannuation: If super applies, make