It’s common to inherit land, shares or other investments and assume there won’t be any tax to think about. While inheriting an asset usually doesn’t trigger capital gains tax (CGT) straight away, CGT can become an issue later—particularly when you decide to sell. What affects the CGT outcome? · When the deceased originally acquired the asset (especially whether it was before or after 20 September 1985 ). · What the asset is (a home, an investment property, farmland, shares, a business asset, etc.). · Whether it was ever used to produce income (for example, rented out) or used in a business. · Who owned it and how (for example, owned jointly, or inherited through multiple generations). Questions we commonly ask (because the answers can change the result): · When did the deceased buy the asset? (And was it inherited from an earlier estate?) · Was the asset originally purchased with someone else (for example, a spouse or sibling)? · Was the asset used in a business (and could any small business CGT concessions apply)? As a general rule, there’s usually no CGT event when you inherit an asset . However, if you sell the inherited asset later, CGT may apply—and the calculation often depends on when the deceased acquired the asset and how it was used . If the inherited asset is a home: the main residence exemption may still apply after the owner’s death, but it can depend on things like when the deceased moved out, whether the property was rented, and who lived in the property after death. Cost base (the starting point for CGT): for many inherited assets, your cost base will depend on whether the deceased acquired the asset before or after 20 September 1985 . In broad terms, if the asset was owned by the deceased before that date, the cost base is often the market value at the date of death . If it was acquired after that date, the cost base is generally carried over based on the deceased’s position (with adjustments in some cases). Where the asset is connected to a business, small business CGT concessions may be relevant. If you’re thinking about selling something you inherited, it’s worth getting advice early—before contracts are signed—so we can confirm what records you’ll need and what the CGT position is likely to be.

It is Federal Budget night on May 12 and even though you may not be an excited accountant or tax agent counting down the days, if you are an investor, it is likely there will be changes announced which will impact you. The change which is likely to be unveiled will be the Albanese Government’s approach to capital gains tax, targeting mainly share and property investors, but will also impact business owners who sell business assets. It is likely the Albanese Government will re-introduce an inflation indexation model for calculating capital gains tax. This proposed change has gained more traction in the media over the last few weeks. Currently, individual taxpayers and trust beneficiaries are able to reduce their capital gains tax on the sale of any capital investment by 50 per cent, providing this investment has been owned for at least 12 months. Please note – superannuation funds receive only a one-third discount. For an individual, this means half the gain is tax free, the remaining half of the gain is taxed at the taxpayer’s marginal tax rate. This discount system on capital gains has been in place since 1999. Capital gains tax (CGT) was introduced in 1985 and is applied to realised gains and losses on assets acquired after 19 September 1985. If an asset was purchased prior to the introduction of CGT, then it is exempt from CGT when sold. From 1985 to 1989 an indexation system was used where inflation factors were applied to the original cost, so only the “real/after inflation” gain was taxed. At this stage there has been no indication whether the changes, if introduced, would be grandfathered, to spare existing investors from any initial pain.

Keeping a car logbook is an important part of managing your vehicle expenses, especially if you’re looking to maximise your tax deductions and GST claims or reduce your FBT liability. The Australian Taxation Office requires you to keep a logbook for a minimum continuous period of 12 weeks to establish your business-use percentage. Each trip should include the date, start and end times, kilometres travelled, and the purpose of the journey. Your logbook needs to reflect your typical vehicle use and can generally be relied on for up to five years, as long as your usage doesn’t significantly change. You’ll also need to record your vehicle’s odometer readings at the start and end of each FBT year and financial year. For many small business owners and tradies, keeping a car logbook is necessary but often pushed aside during busy workdays. Manually recording trips can be time-consuming, and it’s easy to forget details after the fact. There are now several apps available that reduce the manual effort of keeping a logbook. One we often recommend, which complies with ATO requirements, is Driversnote. Driversnote is designed to simplify the process by using GPS tracking to automatically record trips. This helps ensure journeys are logged consistently without relying on manual entry. Trips can be easily categorised as business or personal, and the app generates reports that align with ATO logbook requirements. This can make it easier to stay organised and provide accurate information at tax time. The app also stores data securely and keeps a history of trips, which can be useful if you ever need to review your records. For those who regularly use their vehicle for work, tools like Driversnote offer a practical way to maintain a logbook without the usual hassle—helping keep everything accurate, organised, and in one place. If you’re unsure whether a logbook is right for your situation, contact us— one of our team can help you work out the best way to track your vehicle use and ensure your records are accurate for FBT and tax time.

The Federal Government has once again extended the $20,000 instant asset write-off , providing continued support for small businesses looking to invest and grow. Under the latest legislation, eligible businesses can access the $20,000 threshold for assets first used or installed ready for use between 1 July 2025 and 30 June 2026 . This extension means businesses can continue to immediately deduct the full cost of qualifying assets, rather than depreciating them over several years. How the write-off works The instant asset write-off allows small businesses with an aggregated turnover of less than $10 million to claim an immediate deduction for assets costing less than $20,000 (excluding GST). The threshold applies on a per-asset basis , meaning multiple assets can be written off, provided each individual item is under the limit. Eligible assets can include tools, equipment, vehicles (subject to other limits), and office technology. Both new and second-hand assets may qualify, provided they are used for a business purpose. A critical point often missed is timing. It’s not enough to purchase an asset before 30 June— it must be installed and ready for use by that date to qualify for the deduction. What happens to assets that are above $20,000? If an asset exceeds the $20,000 threshold, it cannot be immediately written off in full. Instead, it is allocated to the small business general depreciation pool and depreciated over time. Under current rules, assets in this pool are typically depreciated at 15% in the first year and 30% in each subsequent year (on a diminishing value basis). This means the tax deduction is spread across multiple years rather than claimed upfront. Why the extension matters This measure continues to deliver meaningful cash flow benefits. By bringing forward deductions, businesses can reduce taxable income in the current year, freeing up funds for reinvestment or day-to-day operations. However, the extension is temporary. From 1 July 2026 , the threshold may revert back to just $1,000 unless further legislation is passed.  This ongoing uncertainty makes forward planning essential so talk to your accountant today to plan ahead.

Fringe Benefits Tax (FBT) is a separate tax from GST and income tax that applies when a business provides benefits to employees or other associates. With the FBT year ending on 31 March , now is the time to review any benefits provided over the past 12 months to ensure you remain compliant. Understanding Fringe Benefits? A fringe benefit is any non-cash benefit, reimbursement, or expense paid by a business that is provided instead of, or in addition to, salary and wages. A simple way to think about it is if the business is paying for a personal expense or private use of a business asset, it may be a fringe benefit. Who FBT Applies To? FBT may apply where benefits are provided to individuals who are employees or are otherwise associated with the business. This includes: Employees Company directors Associates of employees or directors (including family members) Trust beneficiaries who are involved in, or connected to, the business  For example, where a director is provided with the use of a company vehicle for private purposes, an FBT liability may arise irrespective of whether the director receives remuneration in the form wages. For businesses operating through a company or trust structure, it’s important to remember that the business is a separate legal entity . This means personal use of business assets is treated similarly to providing a benefit to an employee. Important Exception Sole traders or partnership owners using their own business assets personally do not trigger FBT. However, FBT can still apply if these businesses provide benefits to employees. Common FBT Areas for businesses While FBT can apply in many situations, the most common areas we see are: 1. Car Fringe Benefits If an employee, director or associate uses a company car for private purposes, FBT applies. Even parking the car at home overnight counts as personal use. TIP - Use the logbook method to track business-related travel and reduce FBT liability. 2. Entertainment Benefits Providing employees, directors or associates with free meals, drinks, and staff events (such as Christmas parties) may be subject to FBT. TIP - Limit to under $300 per person for minor benefits exemption, as this threshold deems the value insignificant. 3. Expense Payment Benefits If the business pays for personal costs on behalf of an employee or associate, this may be considered a fringe benefit. TIP - It’s important to distinguish between personal and work-related expenses. If the expense is work-related, the employer may be able to classify it as a business expense instead. 4. Housing and Accommodation Benefits Providing employees with rent-free housing or at a reduced rent can trigger FBT. TIP - Employers may be eligible for exemptions if housing is necessary for employees in remote areas or living away from their usual place of residence to carry out their duties. What you should to do If you believe you may be providing a fringe benefit to an employee, director, or associate, we recommend the following: Ensure accurate records and supporting documentation are maintained Complete the annual FBT questionnaire provided by Green Taylor Partners Provide all relevant information to enable us to assess whether FBT applies and assist you in meeting your compliance obligations

The answer to this question from an accounting perspective is generally to do with the difference between profit and cash. What is Cash? Cash is the money available in your bank right now. Cash is what is used to pay for business expenses such as rent and wages, or to purchase stock or assets. It can also be used to pay personal expenses. What is Profit? Profit = Business Income – Business Expenses Profit is the amount of money left on paper, after all business expenses have been deducted from your sales. The Difference Between Cash and Profit: Where Did The Money Go? Even when your business is making a profit, it is still possible to have little cash available in your bank. Here’s why: Unpaid Sales Invoices You send an invoice to a customer for $20,000 in May. · Sales revenue is recognised · Your profit increases · But if the customer hasn’t paid yet, your cash hasn’t increased. You may have to pay tax on the profit – even though you haven’t received the money yet. Loan Repayments You repay $10,000 off a business loan · Your cash decreases by $10,000 · Your loan balance decreases · Your profit does not decrease Only the interest paid on a loan is an expense that reduces profit. The principal repayment simply reduces a liability on your balance sheet. Plant & Equipment Purchases You purchase equipment for $50,000 · But you may not be able to claim the full $50,000 as an expense in the year the money is spent (depending on depreciation rules) For example, under small business depreciation rules, you may only claim $7,500 (15%) in year one. This means: · Cash is down $50,000 · Profit only reduces by $7,500 in the first year Owner withdrawals You transfer $20,000 from the business to your personal account · Your cash decreases · But this is not a business expense – it does not reduce profit. Drawings are simply moving money out of the business. Why This Matters for Business Owners Many small businesses struggle understanding the difference between cash and profit. Monitoring your cash balance and your profit regularly is essential. It is possible to be profitable and have a tax bill but have no cash available to pay for it.  Want to know what your profit for 2026 is looking like – and how to plan for your tax bill? Book in with your accountant here at Green Taylor Partners to review your cash flow and tax position.

Tax time doesn’t always end with a refund. For some individuals and small businesses, it can result in a tax debt that’s difficult to pay by the due date. The good news is that the Australian Taxation Office (ATO) has several options available to help taxpayers manage their obligations. If you find yourself in this situation, it’s important not to ignore the debt. Acting early usually means more options and less stress. 1. Set Up a Payment Plan One of the most common options is entering into a payment plan with the ATO. This allows you to pay off your tax debt in smaller instalments over time rather than in a single lump sum. Payment plans are available to both individuals and small businesses and can often be set up online through your myGov account or via your tax agent. The ATO will generally consider factors such as: The size of the debt Your payment history Your ability to pay over time Interest may apply to outstanding balances, but a payment plan can make the debt much more manageable. From 1 July 2026 interest charged is no longer tax deductible. 2. Request a Short-Term Payment Deferral If you only need a little extra time, the ATO may allow a short-term extension to the payment due date. This option may suit taxpayers who are waiting on incoming funds, such as: Business income Insurance payments Loan approvals Other receivables A short extension can help avoid immediate collection action while you organise your finances. 3. Apply for Remission of Interest or Penalties If your circumstances are exceptional, you may be able to request remission (reduction or cancellation) of interest or penalties applied to your tax debt. The ATO may consider remission where: You’ve experienced serious illness or natural disaster You’ve made a genuine effort to comply Circumstances outside your control prevented payment Each request is assessed on a case-by-case basis. 4. Speak With Your Tax Agent A registered tax agent can often help negotiate a suitable arrangement with the ATO on your behalf. They can also review your financial position and make sure you’re accessing all available options. Many taxpayers find this approach less stressful than dealing with the ATO directly. There are however some cases where the ATO will only speak with you, or where you are better placed to explain the circumstances leading to the debt. 5. Contact the ATO Early The most important step is to communicate early. The ATO is generally more flexible when taxpayers engage before the situation escalates. You can contact the Australian Taxation Office by: Calling the ATO on 13 11 42 for individuals Calling 13 72 26 for business enquiries Logging into myGov and accessing ATO online services Speaking with your registered tax agent Final Thoughts Tax debt can feel overwhelming, but ignoring it rarely helps. Whether it’s a payment plan, deferral, or negotiating relief from penalties, there are options available. If you’re struggling to pay a tax debt, reach out early — either to the ATO or your Accountant at GTP — to put a plan in place and stay on track with your obligations.

If you’re a business owner, there’s a good chance your financial statements, produced through your accounting software subscription, get a quick glance, but not the attention they deserve. The truth is, financial reports aren’t just compliance documents. They’re meant to help you make better decisions, spot problems early, and feel more in control of your business. You don’t need to understand every accounting rule. You just need to know what actually matters. Let’s break it down. The Profit & Loss: “Am I Making Money… and Is It Worth It?” The Profit & Loss (P&L) shows how your business performed over a period — usually a year. Most people jump straight to the bottom line. That’s understandable, but it’s also where mistakes happen. What to focus on as a business owner: Revenue Is revenue growing, flat, or declining? Is growth coming from more customers, higher prices, or both? Gross Profit Revenue minus direct costs. A shrinking gross margin is often an early warning sign — even if revenue is rising. Operating Expenses Are expenses increasing faster than revenue? Which costs are fixed, and which should move with sales? Net Profit Profit is important, but don’t assess it in isolation. A profitable business can still struggle if margins are thin or costs are poorly controlled. A good question to ask yourself: Where is the business making money easily, and where does it feel like hard work? The Balance Sheet: “How Strong Is My Business Right Now?” The balance sheet doesn’t get much love, but it should. It’s a snapshot of what your business owns and owes at a fixed point in time. In simple terms: Assets : cash, money owed to you, stock, equipment Liabilities : loans, tax, super, supplier bills Equity : what’s left over after everything’s paid What really matters here: Do you have enough cash, or is it all tied up in invoices and stock? Are customers taking longer to pay? Are short-term debts starting to pile up? Ask yourself: If sales slowed tomorrow, how comfortable would I be? The Cash Flow Statement: Where the Money Actually Went Cash flow explains why your bank balance changed, even if profit looked healthy. This is where many business owners have their “aha” moment. Why profit doesn’t equal cash: Invoices raised but not yet paid Loan repayments (not an expense, but a cash drain) Equipment purchases Tax and super payments A cash flow statement helps you see whether cash is being generated by: Core operations Borrowing Asset sales Business-owner question to ask: Is the business funding itself, or relying on debt and timing? Five Simple Questions That Matter More Than the Numbers Instead of staring at reports, start here: Is revenue growing in a healthy way? Are margins improving or slipping? What costs are quietly creeping up? Is cash flow predictable or always stressful? What does this tell me to do next? If your reports don’t help answer these, they’re not being used properly. Using Your Numbers to Make Real Decisions Your financial statements should help you: Price your work properly Decide when to hire Know when to invest (and when not to) Avoid nasty cash surprises Feel more confident about where the business is heading If you’re only looking at them once a year for tax, you’re missing most of their value. Final Thought You don’t need to become an accountant. You just need to stop treating your numbers like a foreign language. The goal isn’t perfection — it’s understanding. And often, the difference between a stressed business owner and a confident one isn’t how much they earn, it’s how well they understand what the numbers are trying to tell them.  If you’d like to start using your financial statements and business data more effectively but aren’t sure where to begin, please feel free to contact our office to discuss this further.

What is the Xero Me App? Xero Me is an employee self-service app that connects Xero Payroll and Xero Expenses. It is separate from your business and financial information. Your employees can only view their own timesheets, expense claims, leave, and pay, using the Xero Me app. Key Functions of the App: - Timesheets: employees can enter, edit, and submit timesheets for approval using start and end times or total hours worked. - Leave management: employees can submit leave requests and monitor their leave balances. - Payslips: provides access to view and download past and current payslips. - Expense claims: employees can submit expenses, take pictures of receipts, and monitor the status of reimbursements. - Payroll admin: assists managers to approve timesheets and leave requests on the go. Benefits: - Employees submit their own timesheets using Xero Me, which eliminates the need for you to manually enter data each time payroll is processed. - You spend less time chasing your employees for timesheets and expense claims. - Employees can only access their own payroll information, and all data is stored securely. Xero Me is included in Xero plans that feature payroll and is available on iOS and Android devices. Inviting employees to use Xero Me:  Under the payroll tab, in the employees’ section, select the employee you wish to invite (you will need to do this for each employee), scroll down in the details tab, and tick the box ‘Invite employee to Xero Me.’ Once the employee/’s have accepted the email invite, and created a login, they can access Xero Me via the web portal or on the go with the mobile app. Refer to the below link for more information. https://www.xero.com/au/xero-me/

Tax is an unavoidable part of life. However, with proactive planning, you can manage you tax obligations more effectively, reduce unnecessary expenses, and make well-informed financial decisions. Tax planning is not just for large businesses - but for individuals, families and businesses of all size who can benefit from taking a structured approach. Maximise your Deductions Many taxpayers miss out on deductions simply because they are unaware of what is available to them. Ongoing tax planning ensures you are claiming everything you are entitled to, helping you legally reduce your overall tax liability. Plan ahead with Confidence Tax planning isn’t just about this year’s taxes; it’s also about planning for the future. By making smart decisions now, you can set yourself up for a lower tax bill in the years to come. Avoid Costly Surprises Unexpected tax bills can place unnecessary pressure on cash flow. By reviewing your financial position throughout the year, you can estimate your tax liability early and prepare accordingly.  Stay Compliant Tax legislation is constantly changing, and it can be hard to keep up with all the latest updates. Tax planning helps ensure that you stay compliant while still minimizing your tax liability. Remember, the goal of tax planning isn’t to avoid paying taxes altogether; it’s simply to pay your fair share while keeping as much money in your pocket as possible.

When you take money out of your company for personal use, it’s not automatically a tax-free loan. To the ATO, that payment must be one of these: Salary and wages A declared dividend A properly set up loan If it’s none of the above, the ATO can treat the amount as a dividend and add it to your personal taxable income. This rule is called Division 7A. A common situation is when a business owner transfers money from the company account to their own account, planning to “put it back later”. Without the right paperwork, the ATO may say that money was actually a dividend, not a loan. For example: You take $50,000 from your company to renovate your home. If you do nothing, that $50,000 can be treated as a dividend. You will need to pay personal income tax on the full $50,000, and you don’t get any franking credits to reduce the tax. To avoid this, you can either: pay the $50,000 back to the company before the company’s tax return is due, or put a formal Division 7A loan in place. A proper Division 7A loan means: a written loan agreement interest charged at the ATO rate minimum yearly repayments over up to 7 years (or longer if secured by property) If you set up the loan correctly, you might repay roughly $9,000 per year (principal plus interest, depending on the rate and term). As long as you make those repayments on time each year, the ATO treats it as a loan, not a dividend. Problems usually happen when people: take money out casually don’t sign a loan agreement miss the required yearly repayment If a repayment is missed, the unpaid amount for that year can still be treated as a taxable dividend. In short, company money is not your personal spending account. If you use company funds for private purposes, either repay it quickly or set up a proper loan and stick to the repayments, or you risk an unexpected personal tax bill.  If you have any questions or would like to discuss how Division 7A applies to your situation, please feel free to contact our office for appointments.

For nearly 3 years now the Government has been proposing to bring in a new tax on taxpayers with high total superannuation balances. It has been referred to as the $3 million tax. Previous versions of the draft legislation resulted in significant opposition from both industry groups and political parties due to the unfair and unintended consequences of poorly worded legislation. Most significant was the taxing of unrealised capital gains within Self-Managed Superannuation Funds (SMSFs). Prior to Christmas, the Government finally released their updated draft legislation for the introduction of the new Division 296 tax. The main points are as follows: · The introduction of the tax will commence on 1 July 2026 (rather than 1 July 2025), which means the first financial year will be the year ending 30 June 2027. · The tax of 15% will apply on the portion of earnings on total superannuation balances above $3 million. · An extra tax of 10% will now also apply on the portion of earnings on total superannuation balances above $10 million. · The $3 million and the $10 million thresholds will now be indexed in line with CPI (previous legislation had no indexation). · After the first year the calculation of the portion above the $3 million will be based on the higher of the opening and closing total superannuation balance during the financial year. This is a significant change as previously it was only based on the 30 June balance at the end of each year. This allowed taxpayers to withdraw superannuation assets prior to 30 June to reduce their member balance and therefore avoid any application of Division 296 tax. · The definition of earnings has also changed. Earnings will now be based on normal tax principles and be closer to the calculation of taxable income (which is much fairer). Unrealised capital gains will no longer be considered as part of earnings.  · Special protections will be included to ensure any capital gains accrued up to 30 June 2026 will not be included in future earnings calculations. The draft legislation was open for industry comment up to 16 January 2026. The Self-Managed Superannuation Fund (SMSF) Association and other industry groups have tabled concerns regarding the complexity and over-complicated nature of the draft legislation. In their eyes this can only lead to higher compliance costs (in addition to the tax). We will keep you informed if there are any further proposed changes prior to this legislation becoming law.

Payday Super rules introduced by the Federal Government is now legislation and we can provide more detail for the new rules for employers. Currently employers have 28 days from the end of a quarter to process the quarter’s super guarantee (SG) amounts for employees through an approved clearing house. This means the December quarter SG is due for lodgement and payment by 28 January. The Payday super rules require an employer to lodge and pay the employee SG at the same time they are lodging and paying the employees. These are the new rules: New Deadline From 1 July 2026 the deadline for super payments will be 7 days from the day an employee pay is paid. This means a super fund must record receipt of the employee SG via an approved clearing house within these 7 days. There is an exemption for new employees where an extension is provided of 20 days when it’s the first payment of a new employees super. Calculating Super Amounts From 1 July 2026 you will calculate an employees’ superannuation based on their qualifying earnings (QE). Qualifying earnings is made up of: - An employee’s Ordinary Time Earnings (OTE) - Amounts of OTE that have been used as part of a salary sacrifice arrangement for super contributions - Other amounts which are currently included in an employee’s salary or wages for SG Late Payments and Super Guarantee Charge Super Guarantee charge (SGC) applies to amounts not received by a super fund within the 7 business days of payday. From 1 July 2026 Super Guarantee charge will be: - Assessed by the ATO (previously it was self-assessed by the employer) - Calculated based on Qualifying earnings - Includes interest that compounds daily at the general interest charge rate - Includes an administrative uplift based on the employer’s history of meeting super guarantee obligations - SGC will be tax deductible - Penalties start at 25% of unpaid SGC and will increase to 50% depending on prior history Small Business Superannuation Clearing House As previously advised the small business superannuation clearing house will no longer be available. Other Important Points - Super Choice Forms are still required to be provided to new employees - Employers can request Stapled super details for new employees at the time of suppling the super choice form rather than waiting until their first pay allowing employers to gain their super details in a timelier manner. - Super funds will have 3 days to advise and return super contributions rather than the previous 20 days Our tip is to start Payday super now. If you are already using a software based super option than consider building into your pay process of processing a super payment at the same time If you are using the ATO SBCCH as your super clearing house you need to consider your options to what super clearing house you will be using from 1 July 2026. Our team at Green Taylor Partners can assist you with the move to Payday super.

The True Cost of Hiring Your First Employee in Australia Hiring your first employee is a huge milestone for any business. It often signals growth, increased demand, and the shift from “doing everything yourself” to building a team. But while many business owners budget for wages, the true cost of employing someone is far higher than just their salary. If you’re planning to hire staff members, here’s what you really need to factor into your budget. Base Wage or Salary (The Obvious Cost) This is the figure most business owners focus on first. Whether you’re paying: An hourly wage A casual rate Or a full-time salary You must ensure it meets: Fair Work minimum award rates Any applicable enterprise agreements Penalty rates, overtime, and allowances where required Superannuation (Currently 12%) On top of wages, you must pay Superannuation Guarantee (SG) for eligible employees. This is currently 12% of ordinary time earnings. Example: If your employee earns $70,000 per year, super cost = $8,400 per year (at 12%) This cost is in addition to their salary, not part of it (unless you’ve structured a total remuneration package). Workers’ Compensation Insurance Workers’ comp insurance is compulsory in every state and territory. The cost varies depending on: Your industry Your claims history The risk classification of your work Total payroll For low-risk office environments it may be modest, but for trades, transport, or physical industries it can be a significant annual expense. Payroll Tax (For Growing Businesses) You won’t pay payroll tax immediately, but once your total wages exceed your state or territory threshold, payroll tax applies. This often catches growing businesses by surprise, especially when they: Hire their second or third employee Scale quickly Employ across multiple states While it may not apply to your very first hire, it should absolutely be part of your forward planning. Leave Entitlements If you employ someone full-time or part-time, you’re responsible for: Annual leave Personal leave Public holidays Long service leave These entitlements build up as a liability on your balance sheet, even though you’re not paying them immediately. This affects your real profit and cash flow. Recruitment & Onboarding Costs Hiring isn’t free. Many businesses underestimate the upfront costs, such as: Job ads on employment platforms or recruitment agencies Time spent reviewing applications and interviewing Training and supervision during the onboarding period During the early weeks or months, your new employee may not yet be fully productive — but you’re still paying full costs. Systems, Software & Equipment Your new employee may require: A laptop, phone, or tablet Software subscriptions Uniforms or protective equipment Desk space, tools, or vehicles These costs can easily run into thousands of dollars upfront. Increased Accounting & Compliance Costs Once you employ staff, your compliance responsibilities grow: Payroll processing Single Touch Payroll (STP) reporting Superannuation processing Workers’ comp reporting Leave tracking and entitlements Many businesses require upgraded accounting support or payroll services once they take on staff. The “Real Cost” Multiplier A common rule of thumb is that the true cost of an employee is 1.25x to 1.4x their base salary once you factor in super, insurance, leave, payroll systems, and overheads. For example: Base Salary Estimated True Cost $60,000 $75,000–$84,000 $80,000 $100,000–$112,000 This is why hiring without proper cash-flow forecasting can put enormous strain on small businesses. Can Your Business Actually Afford the Hire? Before hiring, it’s worth asking: Will this employee increase revenue, or only reduce workload? How many extra sales or billable hours are needed each month to break even? Do you have 3–6 months of wage costs buffered in cash? Hiring too early can be just as risky as hiring too late. Hiring your first employee is exciting, but it’s also one of the biggest financial commitments your business will ever make. Looking beyond wages to understand the full financial impact can help you: Avoid cash-flow pressure Stay compliant Grow your business sustainably  If you’re considering your first hire, or adding extra staff, and want help modelling the true cost, forecasting cash flow, or setting up payroll properly, please feel free to contact our office to discuss this further.

Over recent years, the Victorian Government has continued to tighten and evolve its approach to property taxation. What began in 2018 with the introduction of the Vacant Residential Land Tax (VRLT) in metropolitan Melbourne has now expanded across regional Victoria, meaning more property owners are captured by these rules than ever before. Many are surprised to learn that VRLT and standard Land Tax are not the same. VRLT applies where a residential property sits unused as a home and is calculated on the capital improved value (including buildings and improvements). Traditional Land Tax, however, is based solely on the land value, essentially the value of the land in its undeveloped state. As of recent months, the Victorian Government has announced further changes to the Vacant Residential Land Tax, coming into effect from 1 January 2026. These reforms will impact owners of undeveloped land held long-term across metropolitan Melbourne. What’s Changing? Prior to 1 January 2026, VRLT does not apply to land without a home on it (sometimes called undeveloped land), commercial residential premises, residential care facilities, supported residential services, retirement villages or land in alpine resorts. From 1 January 2026, VRLT is extending to undeveloped land in metropolitan Melbourne. Where does the new VRLT apply? VRLT is expanding to include land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development. This includes: land without a home on it land with a residence that was partially built but abandoned land with a residential unit, such as a unit, apartment or flat, that has a partially completed fit out but has not been occupied. Metropolitan Melbourne is made up of the Banyule, Bayside, Boroondara, Brimbank, Cardinia, Casey, Greater Dandenong, Darebin, Frankston, Glen Eira, Hobsons Bay, Hume, Kingston, Knox, Manningham, Maribyrnong, Maroondah, Melbourne, Melton, Merri-bek, Monash, Moonee Valley, Mornington Peninsula, Nillumbik, Port Phillip, Stonnington, Whitehorse, Whittlesea, Wyndham, Yarra and Yarra Ranges council areas. Timeframe Rules: The land must be vacant for a continuous period of 5 years or more to attract VRLT. This means for this type of land to become liable to VRLT in 2026, it must have been undeveloped and capable of residential development since midnight on 31 December 2020. If the land is sold, the new owner(s) has a further 5 years to begin construction before VRLT applies. This 5-year period provides adequate time for an owner of residential land to begin construction of a residence before it is regarded as vacant residential land. Exemptions may be available for: · Land being used for commercial or industrial purposes · Land intended for non-residential development with acceptable reasons for delay · Land incapable of residential development due to environmental conditions, land shape, size or natural features Undeveloped residential land that is contiguous with (adjoins) a principal place of residence. Common examples of contiguous land are a garden, swimming pool or tennis court. Crystal ball time: It will be interesting to see if the government extends this new VRLT out to regional Victoria as did the initial VRLT. What will this mean for people that are holding land parcels undeveloped long term? In the meantime, from a tax perspective, remember that if you incur VRLT or standard Land Tax, be sure to keep thorough records, as these costs will form part of your property’s cost base! 

From 1 December 2025 , new Psychological Health and Safety Regulations came into effect. These changes are designed to help workplaces better understand, manage, and prevent psychosocial risks—and ultimately create safer, healthier environments for everyone. The big message behind these updates is simple: mental health matters just as much as physical safety . When people feel supported, respected, and able to manage their workload, the whole workplace benefits. What’s Changing? The new regulations ask employers to take a more proactive approach to psychological wellbeing by: Identifying psychosocial hazards in the workplace Assessing and controlling the risks linked to those hazards Putting systems, policies, and training in place to support mental wellbeing Regularly reviewing those measures to make sure they're working Psychosocial hazards can include things like high or unrealistic workloads, low job control, poor communication, workplace conflict, or exposure to traumatic events. The goal is to address these risks early—before they impact people’s health.  Want to Learn More? WorkSafe has a range of clear, practical resources to help businesses understand the new requirements and get started with compliance. You can find guides, tools, and helpful examples on the WorkSafe Victoria website .

It is important that you provide your Accountant details regarding share purchases and disposals, as they contain relevant information required to calculate the cost base of your shares and the resulting capital gains tax when they are sold. Your accountant may also request your SRN or HIN number for their records, and any dividends or DRPs received through the year to assist with preparation of your income tax return. Obtaining Shares You can obtain shares in several ways, most commonly by buying them. You should keep a record of your share transactions so you can claim everything you’re entitled to and have your tax worked out accurately. You can obtain shares through: - Buying shares (either directly or through a stockbroker), - Inherited shares, - Dividend reinvestment plans (DRPs), - Mergers and takeovers of companies in which you hold shares, - Share purchase plans - And more. Inherited shares You may inherit shares as part of a deceased estate. In this case: - You treat inherited shares in the same way as any other CGT asset - Where the deceased acquired the shares before 20 September 1985, the market value is used on the day the deceased passed, not the market value on the day shares were received. Owning Shares When you own shares, there are tax implications from: - Receiving dividends, - Participating in DRPs, - Receiving franking credits, - And more. Dividends & DRPs You need to declare all your dividend income in your tax return, even if you use your dividend to purchase more shares (through a DRP). Most dividends are paid in the form of money, either by direct deposit or cheque. However, the company may give you the option of reinvesting your dividends in the form of new shares in the company. This is called a dividend reinvestment plan or scheme. If you take this option, you still pay tax on your reinvested dividends. The amount of the dividend received will also form part of the cost base for the shares you own in that company. Keeping record of your reinvested dividends is important to assist in calculating the capital gains or capital losses you may make when you dispose of the shares. Shares held in joint names If you hold shares in joint names, such as with your spouse, it is assumed that ownership of the shares is divided equally. You can own shares in unequal proportions, but you must be able to demonstrate this. For example. You can keep a record of the amount each party contributes to the acquisition cost. Dividend income and franking credits would be assessed in the same proportion as the shares are owned. Disposing of Shares You can dispose of shares in the following ways: - Selling them - Gifting them - Transferring them - Through share buy-backs - Through mergers, takeovers, and demergers - When the company goes into liquidation It is important to keep record of these events. Capital gains and losses when disposing of shares You must report the capital gain or loss in your tax return. You make a capital gain when your capital proceeds from disposing of the shares are greater than the cost base of your shares. You may be able to reduce your capital gain if you have held these shares for greater than 12 months. You make a capital loss if the capital proceeds are less than the cost base of your shares. For additional information see the link below: https://iorder.com.au/publication/Download.aspx?ProdID=75444-04.2025  Please communicate your share transactions to your Accountant for their records and to assist you with complying with tax obligations.

Fringe Benefits Tax (FBT) is a special tax separate from GST and income tax that businesses in Australia must pay when providing a fringe benefit to employees and other associates. What is a Fringe Benefit? A fringe benefit is a reimbursement, expense or non-cash payment provided by a business that is not salary and wages. Common examples include: · Personal use by an employee or associate of a business/company car · Paying or reimbursing personal expenses such as school fees, memberships, or insurance · Providing entertainment, such as meals at restaurants or tickets to events If it is a personal expense or private use of a business asset, and the business pays for it — it may be a fringe benefit. Who Can Trigger FBT ? FBT applies when fringe benefits are provided to: · Employees · Company directors · Family members of employees or directors · Beneficiaries of a trust who work in or help run the business For example, if a director uses a company car for private purposes, FBT applies — even if the director is not taking wages or making cash drawings. If your business is a company or trust, the business is a separate legal entity from you. This means that the owners’ use of assets is treated as if they’re an employee. Important Exception This rule does not apply to sole traders and partners of a partnership using business assets. However, sole traders and partnerships are still caught by FBT rules if providing benefits to employees. What You Need to Do Each FBT Year? If you think you may be providing a fringe benefit to an employee, director, family member or other associate: 1. Keep records of any benefits, reimbursements or private use of business assets. 2. Complete the annual FBT questionnaire provided by Green Taylor Partners. 3. Provide all relevant details so we can help you determine whether FBT applies and how to meet your obligations. 

Director Penalty Notices: What Every Company Director Needs to Know Running a business can be demanding, and it’s easy for tax obligations to slip down the priority list during busy periods. However, one area that company directors must never ignore is compliance with Pay As You Go (PAYG) withholding, Superannuation Guarantee Charge (SGC), and Goods and Services Tax (GST) obligations. The Australian Taxation Office (ATO) takes these matters seriously, and one of the key tools it uses to enforce compliance is the Director Penalty Notice (DPN). What Is a Director Penalty Notice? A Director Penalty Notice is a formal notice issued by the ATO to company directors who have failed to ensure their company meets its PAYG withholding, SGC, or GST obligations. The DPN makes directors personally liable for the company’s unpaid amounts — meaning the ATO can recover these debts directly from the directors themselves. There are two types of DPNs: Non-lockdown DPN – applies when the company has lodged its activity statements and superannuation guarantee statements on time but hasn’t paid the debt. Directors have 21 days from the date of the notice to take action (such as paying the debt, appointing an administrator, or winding up the company). Lockdown DPN – applies when the company has failed to lodge its BAS, IAS, or superannuation statements within the required timeframes. In this case, the penalty is locked down to the director personally, and placing the company into administration or liquidation won’t remove the liability. Where Are Director Penalty Notices Sent? DPNs are sent by post to the director’s address listed on the Australian Securities and Investments Commission (ASIC) register. This is important — even if you’ve moved and haven’t updated your ASIC details, the ATO considers the notice delivered once it’s posted to the registered address. There are no extensions or excuses if you don’t receive it in time due to an outdated address. You Should Contact Your Accountant Immediately If you receive a DPN, time is critical. You generally have only 21 days from the date of the notice (not the date you open it) to take action. That’s why it’s vital to contact your accountant or tax agent as soon as possible. Your accountant can: Review the notice and confirm what liabilities it covers Help you assess the company’s financial position Advise on the available options, including payment plans or formal insolvency appointments Liaise with the ATO on your behalf to explore possible relief or negotiate outcomes The sooner you act, the greater the range of options available to protect both you and the business. What Happens If You Ignore a DPN? Ignoring a DPN is one of the costliest mistakes a director can make. If no action is taken within the 21-day period, the ATO can: Enforce recovery directly from the director’s personal assets Issue garnishee notices to recover funds from your bank accounts or wages Begin legal proceedings against you personally In cases of lockdown DPNs, the personal liability remains even if the company later goes into liquidation or administration. Key Takeaways A Director Penalty Notice is not just another ATO letter — it makes you personally liable for company debts. Always ensure your company lodges its tax and super obligations on time, even if payment can’t be made immediately. Keep your details up to date with your Accountant and ASIC. And if a DPN arrives, contact your accountant straight away. Acting quickly can make all the difference between resolving the issue and facing significant personal consequences.