The introduction of payday superannuation is set to transform how Australian businesses handle employee superannuation payments. Effective from 1 July 2026, employers will be required to make superannuation contributions in line with each payroll cycle, rather than on a quarterly basis. It is crucial for employers to make super contributions for eligible employees from the start of their employment to meet superannuation obligations and avoid penalties. While this change aims to improve employee outcomes, it also places a new layer of responsibility on business owners. What is Payday Superannuation? Under the current system, employers are required to pay superannuation quarterly. However, from July 2026, payday superannuation will mandate that super payments be made with each payroll cycle. This shift is designed to ensure employees receive their superannuation in real-time, reducing unpaid super issues and aligning with modern payroll practices. Benefits for Employers: 1. Simplified Payroll Processes Paying superannuation on payday can streamline payroll operations. Employers can manage wage and super contributions under a single schedule, simplifying their accounting processes. 2. Cash Flow Management Frequent, smaller super payments may ease the financial burden compared to larger quarterly contributions, potentially making it easier for businesses to manage cash flow. Challenges and Considerations 1. Cash Flow Implications Paying super more frequently could strain businesses with inconsistent revenue streams. It’s crucial to reassess cash flow strategies to ensure super is readily available during each payroll cycle. 2. Record-Keeping Accurate record-keeping is essential for effective superannuation management. Employers must maintain detailed records and ensure compliance with evolving regulations. For most businesses this will mean getting on board with a software that supports the payday super obligations. Fortunately, major accounting software platforms like Xero and MYOB have integrated features to support employers in adopting this approach. 3. Compliance Deadlines Employers will have 7 days to process the super from each pay cycle. If the obligation is not met, businesses will become liable for a Superannuation Guarantee Charge, which includes penalties and interest. Tip: You may wish to consider adjusting your payroll frequency. For example, moving from weekly to fortnightly cycles. This will reduce administrative workload and make it easier to effectively manage your superannuation obligations. If you would like any more information regarding Payday Superannuation, please contact us at Green Taylor Partners.

Deductions You Can Claim: Clothing and Laundry Expenses To claim a deduction for any work-related expense: - It must directly relate to earning your income - You must have spent the money yourself, and not have been reimbursed by your employer - You must have a record or receipt to prove it If your total claim for work-related expenses is more than $300, you must have written evidence to prove all of your claims. Clothing and laundry expenses have special rules in terms of their deductibility.  You cannot claim a deduction for the cost of buying, hiring, repairing or cleaning conventional clothing you buy to wear for work. For example, black work pants purchased from Target etc. However, you can claim a deduction for the cost of buying, hiring, repairing or cleaning work clothing that fits into any of these categories: - Occupation Specific - Protective - Compulsory Uniforms - Non-compulsory Uniforms (registered with AusIndustry) Conventional Clothing According to the ATO, ‘Conventional clothing ‘is everyday clothing worn by people regardless of their occupation. If the clothing could reasonably be worn outside of work and is not distinctive, it is not tax deductible, even if it is compulsory by your employer or only worn at work. For example: - business attire worn by office workers - jeans or drill shirts worn by tradesman Occupation Specific Occupation-specific clothing is attire that is necessary for certain jobs and distinctively identifies you as a person associated with that particular occupation. This type of clothing is tax deductible as long as it cannot be worn by multiple professions. For example: - Chef’s hat and apron - Pilot or flight attendant uniforms - Nurse scrubs Note that some items that are occupation specific, may also be considered compulsory uniforms. Protective Protective clothing includes items that you wear to protect you from any risk of illness or injury from your work activities or environment. This type of clothing must have a protective element to be considered protective rather than a conventional item. Protective clothing items are tax deductible. For example: - Construction workwear (high-vis vests, hard hats, work boots) - Medical personal protective equipment (PPE) - Fire resistant or UPF sun protection clothing - Any safety shoes or boots that may be steel-toed or non-slip. Compulsory Uniforms Compulsory uniforms are items that your employer makes compulsory to wear the uniform through a strictly enforced workplace agreement or policy. The uniform must be sufficiently distinctive to your particular organisation so it can be identified by anyone outside of the organisation. While many uniforms feature a logo, its presence does not determine whether the uniform is compulsory, as long as it meets the specified requirements. Compulsory uniforms are tax deductible. For example: - Police or firefighter uniforms - Fast food or restaurant uniforms - Military uniforms However, shoes, socks and stockings are generally not deductible unless they can be differentiated by conventional clothing by: - Being an essential part of a distinctive compulsory uniform - the characteristics (colour, style and type) are a distinctive part of your uniform that your employer specifies in the uniform policy Non-Compulsory Uniform Non-compulsory work uniforms are not tax deductible unless your employer has registered the design with AusIndustry. Single clothing items, however, cannot be registered. You can check with your employer if you are not sure whether your uniform is registered. Laundry, Cleaning and Repairs You can claim a deduction for the cost of cleaning and repairing items in these categories: - Occupation-specific - Protective - Compulsory - Non-compulsory clothing items registered with AusIndustry You may claim these expenses using the following provided by the ATO: - $1 per load if it contains only work-related clothing items - 50c per load if you’re washing work clothes with other items If you require dry cleaning or another specialist service for your work-related clothing, you can claim the actual expenses. However, you must have written evidence. If your laundry claim is $150 or less (not including dry-cleaning expenses), you can claim the expense and don’t need receipts. However, you can’t claim a deduction if your employer reimburses you for these expenses. Some tips: - If you are unsure whether you can claim a deduction for the cost of an item, keep all your receipts and records for your accountant to assess and advise you of the deductibility of the item. - Is your total claim for work-related expenses more than $300? You must provide written evidence for your other work-related expenses. This includes the $150 laundry claim that you would otherwise be able to claim without receipts. - Visit the ATO website using the following link for more information: Clothes and items you wear at work | Australian Taxation Office

1. Use the “Multiple Bank Accounts” We recommend using three main bank accounts for your business: Main Operating Account – for day-to-day expenses and receiving income GST Tax Account – strictly for GST and BAS lodgement obligations Wages & Super Account – for payroll, PAYG, and super contributions 2. Set Aside GST From Every Sale 1. If you’re registered for GST or have payroll obligations, it's important to set aside a portion of every sale to cover these liabilities. 2. Transfer a suitable percentage of each sale into your tax-related accounts. The percentage may vary based on your specific business needs and structure, but creating a buffer helps ensure you’re prepared for quarterly lodgements, unexpected tax liabilities, and timing issues. 3. Open separate tax accounts with your bank to prevent accidental spending of tax funds. 3. Plan for Wages, super and PAYG Withholding Even if you’re a sole trader or a small team, it’s critical to allocate a portion of each sale towards employee wages and entitlements. This should cover: · Salaries and wages · PAYG withholding · Superannuation · Workcover obligations 4. Track Your Expenses Weekly Use accounting software like Xero, or MYOB to: · Reconcile bank transactions as you go to avoid wrong accounted transactions · Track income and expenses in real time · Match payroll and GST accounts regularly Tip: Set weekly reminders to transfer GST and wages portions, don’t wait until end of quarter. 5. Stay BAS and Tax Ready Every quarter, you’ll need to lodge a Business Activity Statement (BAS). It includes: · GST collected · PAYG withholding · Any PAYG instalments due Having your tax and wage accounts pre-funded makes BAS lodgement smooth and stress-free, by having the money already sitting in your tax accounts, it becomes much easier to make arrangements for BAS payments without cash flow pressure. Conclusion Success isn’t just about increasing sales; it’s also about managing those sales with discipline. By setting aside appropriate amounts regularly into dedicated accounts, you'll foster a habit of tax preparedness and business stability. This allows you to focus on growth without the stress of last-minute tax shortfalls.  If you're unsure how much to set aside, or how your GST and PAYG are calculated, get in touch with our accounting team and we can tailor a plan based on your business cash flow and help automate your processes.

What are capital works? Capital works refer to substantial improvements, renovations, or construction that increase a property’s value or extended its life. Examples include: - Building extensions - Upgrading plumbing - Replacing roofs - Restumping of the house - Replacing the lawn - Replacing retaining walls These are long-term improvements, not regular repairs or maintenance. Unlike routine maintenance, which can be deducted in the year you spend the money, capital works deductions are spread out over 25 to 40 years. How do these deductions work? You can claim a percentage of the cost of capital works each year. Generally, residential properties built after 16 September 1987 can claim 2.5% per year up to 40 years.  Who can claim? Anyone who owns a property with significant improvements can claim this deduction, including property investors, business owners, and landlords. However, principle place of residence that are not rented out are not eligible for capital works deductions. Capital works deductions can be claimed as a deduction against the rental income that has been made for the year if you have made substantial improvements to you property.

Effective bookkeeping is vital for the success of any business. By understanding and implementing various methods, leveraging the right software, avoiding common mistakes, and following practical tips, you can maintain accurate financial records and make informed business decisions. Common Mistakes Below are some pitfalls to watch out for: By being aware of these common mistakes [...] Read More The post Bookkeeping Tips appeared first on Green Taylor Partners.

Fringe Benefits Tax (FBT) is an important consideration for employers who provide additional perks to their employees. Whether it’s a company car, free gym memberships, or entertainment benefits, these perks may be subject to FBT. Understanding how FBT works can help businesses remain compliant and avoid unnecessary tax liabilities. In this article, we’ll break down [...] Read More The post Fringe Benefits Tax (FBT) Explained: What Employers Need to Know appeared first on Green Taylor Partners.

There are some general rules you need to be aware of when preparing your own Estate Planning or having some role in the affairs of a deceased estate. Inheritance There is no tax payable on assets which pass from an Estate to a beneficiary in accordance with the deceased’s Will. Final Tax Return The deceased [...] Read More The post Death & Taxes – What happens when I die? appeared first on Green Taylor Partners.

As much as it sucks, tax is a part of life and I am sorry to say but it isn’t going anywhere! To reduce it, you could be doing some forward planning to make informed financial decisions. Everyone can benefit from tax planning from the biggest business to an individual. Why is tax planning important? [...] Read More The post Tax Planning appeared first on Green Taylor Partners.

What is compound interest? It is the interest you get on the money you initially invest and the interest you earn on the interest you’ve already earned. The power of compounding interest helps you save more money. The longer you save the more interest you earn. This means earning more interest on the interest you [...] Read More The post Compound Interest is an investors best friend appeared first on Green Taylor Partners.

Primary producers can smooth cashflow and tax liabilities with a Farm Management Deposit (FMD). Australia’s farmers and rural communities know that climate events such as drought, floods, and bushfires must be endured and planned for in our dry continent. Furthermore, primary producers know drought isn’t like a flood or fire. It creeps up slowly, but [...] Read More The post Farm Management Deposits: appeared first on Green Taylor Partners.

Pay As You Go (PAYG) instalments are regular payments toward your current year tax liability. The aim of them is to put aside money toward your tax bill so that when you lodge your tax return there isn’t as much to pay. Often referred to as just ‘instalments’, these tax payments can apply to individuals, [...] Read More The post What’s the go with PAYG instalments? appeared first on Green Taylor Partners.

At this time of year businesses may have spent money towards employee gifts and/or events, this can lead to two potential tax issue arising from these expenditures. These issues are income tax deductibility and fringe benefits tax (FBT). There are some important definitions to consider related to staff gifts or events, the main definition being [...] Read More The post Staff gifts, events and their deductibility appeared first on Green Taylor Partners.

There are two largely overlooked superannuation incentives available each year for lower income earners. Both of them are easy to access and the tax break available on your outlay makes these strategies extremely rewarding. SPOUSE CONTRIBUTION TAX OFFSET An amount of up to $540 per year is available if you make a super contribution on [...] Read More The post EASY & REWARDING Superannuation Offsets (Tax Breaks) appeared first on Green Taylor Partners.

This is something a lot of business owners or individuals would not have come across, but it is important to be aware of. The deductibility of legal expenses is determined the same way as other business expenses. That is, if they are necessarily incurred in earning your business income and are not capital, private or [...] Read More The post Are your legal fees deductible? appeared first on Green Taylor Partners.

For those businesses registered for Goods and Services Tax, managing the GST can be difficult. Picking the right GST codes is one of the most challenging parts of doing the books. These codes are essential for correctly tracking and reporting GST on transactions, ensuring compliance with tax regulations, and avoiding potential fines. What Are GST Codes? [...] Read More The post Demystifying GST Codes: A Guide for Small Business Owners appeared first on Green Taylor Partners.

We have all heard of it but most likely ignore it! Is more than 50% of your income generated from a contract due to your personal efforts or skills? If so, your income maybe considered Personal Services Income (PSI). What is it?!? Personal Services Income, also known as “PSI” is income when more than half [...] Read More The post What is Personal Services Income? appeared first on Green Taylor Partners.

If you’re experiencing a major milestone, it might be the right time to reassess your  life insurance needs. Major life events often prompt people to take out life insurance products, including having a baby, taking out a mortgage, buying a home and getting married. YOUR FIRST JOB Starting your career may not seem like the [...] Read More The post WHEN SHOULD YOU CONSIDER LIFE INSURANCE PRODUCTS? appeared first on Green Taylor Partners.

If you are currently undertaking additional study, attending work conferences or seminars that relates directly to your job, you may be eligible to claim certain expenses as deductions against your assessable income. Types of expenses you can claim: Types of expenses you can’t claim: To be able to claim the above expenses, you need to [...] Read More The post Are you a wage earner and undertaking additional study? appeared first on Green Taylor Partners.

Navigating property expenses can be tricky, but knowing the difference between repairs, maintenance, capital improvements and initial repairs is key to maximizing your tax deductions. Here’s a fun and simple breakdown to help you get it right! What Are Repairs? Repairs are all about fixing what’s broken or worn out to get things back to [...] Read More The post Repairs, Maintenance, Capital Improvements and Initial Repairs: A Fun Guide for Property Investors appeared first on Green Taylor Partners.