Family trusts have long been a popular structure for Australian families and businesses due to their flexibility, asset protection benefits and succession planning advantages. The Federal Government has proposed introducing a minimum 30% tax on discretionary (family) trust income from 1 July 2028 . The aim is to reduce income-splitting opportunities and better align trust taxation with the tax paid by employees. While some trusts & types of income would be exempt (including primary production income & testamentary trusts), the proposal could affect family groups that regularly use trusts to distribute income, particularly where corporate beneficiaries are involved. Under the proposed rules, distributions to companies may not receive a credit for tax already paid by the trust, potentially leading to higher overall tax outcomes. The Government has also proposed a three-year window from 1 July 2027 to allow affected groups to restructure into alternative entities, such as companies or fixed trusts, without immediate tax consequences. However, restructures can involve significant legal, financial and administrative considerations. Importantly, these changes are not yet law . The proposal is currently undergoing consultation, and the final legislation may differ from the announcement. For now, there is no need to rush into major structural changes. Family trusts will continue to offer important benefits beyond tax, including asset protection and succession planning. However, if your business or investment structure includes a discretionary trust, it would be worthwhile to understand how the proposed changes could affect you. If you'd like to discuss your specific circumstances, please contact our team.

You will likely pay tax twice in your first year. Don't stress, you're not being taxed twice on the same income. Here's what's happening. When you're self-employed, tax is generally not automatically withheld from your income like it is for employees receiving wages or salaries.  When you lodge your first tax return, the ATO may ask you to pay: The tax owing for the financial year that has just ended; and An advance payment towards the tax you'll likely owe in the current financial year. This is called ‘PAYG Instalments’. PAYG Instalments are advance payments made throughout the year towards your expected tax bill. This helps spread your tax payments over time rather than receiving one large bill at tax time. For a more detailed explanation, read our blog article: Understanding (PAYG) Pay as you Go Instalments . Generally, you'll only be placed on the PAYG Instalment system if your tax bill exceeds $1,000. Paid too much or not enough? PAYG Instalments are only estimates based on your previous income, so the final amount may differ from your actual tax liability. If your PAYG Instalments are more than your final tax bill, you'll receive a tax refund from the ATO. If your PAYG Instalments are less than your final tax bill, you'll simply pay the difference. Our tip Many new business owners are surprised by their first tax bill because they haven't set money aside for tax. A good habit is to regularly transfer a portion of your business income into a separate savings account, so funds are available when tax time arrives.

Selling or closing a business involves more than simply stopping work or making your final sale. Before you finish up, you need to properly deal with the business’s tax obligations, registrations, employees, assets, debts and legal affairs. The exact process will depend on what entity you operate in.  Steps that generally apply to every business Following is a list of tasks that need to be ticked off for most ceasing business: prepare final invoices and collect outstanding customer debts; pay suppliers, loans and other liabilities; deal with remaining stock, equipment, vehicles and other business assets; terminate or transfer leases, contracts, licences and insurance policies; make final employee payments, including wages, leave entitlements and superannuation; finalise Single Touch Payroll reporting and PAYG withholding obligations; lodge any outstanding business activity statements, tax returns, fringe benefits tax returns and taxable payments annual reports; and retain relevant business and tax records, generally for at least five years. Selling, transferring or personally retaining business assets may have GST, capital gains tax, depreciation and other tax consequences. These issues should be reviewed before assets are distributed or registrations are cancelled. Sole traders A sole trader normally reports the final business income, expenses and asset disposals in their individual income tax return. If you are permanently closing all business activities, your GST, PAYG withholding and other registrations may need to be cancelled, followed by your Australian Business Number. If you are only closing one activity but intend to continue operating another business as a sole trader, you may be able to retain your existing ABN and update the business details instead. Remember to cancel any business names, permits or industry licences that are no longer required. Partnerships A partnership will need to prepare final accounts and lodge a final partnership tax return. Each partner must then include their share of the partnership’s final income, deductions and capital gains in their own tax return. The partners should review the partnership agreement and document how the partnership will be dissolved. This may include a written dissolution agreement covering: the closure date; responsibility for outstanding debts; the collection of unpaid accounts; the sale or distribution of assets; and the division of remaining funds. State or Territory partnership laws may impose additional requirements. Legal advice should be obtained to ensure the partnership is properly dissolved and the partners are protected from future liabilities. Trusts Closing a trust usually requires more than lodging a final tax return. A legal process called ‘Vesting’ is the formal process for closing down a trust. This needs to be done by a legal professional. The trustee should review the trust deed, settle liabilities, deal with loans and distribute all remaining trust property in accordance with the deed. Trustee resolutions, asset valuations and distribution records should be prepared and retained. Transferring assets directly to beneficiaries or unitholders can result in capital gains tax, GST or stamp duty consequences, even where no cash changes hands. Do not distribute trust assets without first obtaining appropriate tax and legal advice! Once the trust has been fully wound up, a final trust tax return should be lodged. Beneficiaries must also report their share of the trust’s final income and capital gains. Companies A company continues to exist until it is formally deregistered or wound up. Merely ceasing to trade does not end its obligations. Until deregistration, the company must generally continue meeting ASIC requirements, including paying annual review fees, updating company details and passing required solvency resolutions. Voluntary deregistration may be available where all shareholders agree, the company is no longer conducting business, its assets are worth less than $1,000, it has no outstanding liabilities or legal proceedings, and all ASIC fees and penalties have been paid. All outstanding tax lodgments should be completed before deregistration. Once ASIC deregisters a company, it ceases to exist and can no longer lodge forms with the ATO. Company assets should also be transferred or disposed of before deregistration. Assets left in the company may vest in ASIC or the Commonwealth after deregistration. Where a company cannot pay its debts, directors should seek immediate advice from a registered liquidator and lawyer rather than applying for voluntary deregistration. Plan before you close The order in which you sell assets, pay liabilities, make distributions and cancel registrations can significantly affect the outcome. Speak with us early so we can assist with the tax and reporting requirements and coordinate with your lawyer or financial adviser where necessary. Important: This article provides general tax information only. It does not constitute legal or financial advice and does not take into account your individual circumstances. We are registered tax agents and can advise on taxation matters within the scope of our engagement. You should obtain advice from an appropriately qualified lawyer regarding legal documents, dissolution, deregistration, insolvency and other legal obligations, and from a licensed financial adviser where financial product advice is required.

Many business owners judge performance by a simple measure: "We've had a good year." The problem is that "good" can be difficult to define. Revenue may have increased, but so have costs. Profit may have improved, but cash flow could be under pressure. You may be working harder than ever, but not necessarily seeing the financial rewards for that effort.  This is where benchmarking becomes one of the most valuable tools available to business owners. The most successful businesses don't simply look at their own results. They compare their performance against industry standards, historical trends and leading businesses within their sector. Benchmarking helps answer a critical question: How does my business actually compare? What Is Benchmarking? Benchmarking is the process of comparing key business metrics against other businesses operating in similar industries and circumstances. These metrics may include: Gross profit margins Net profit margins Labour costs Inventory turnover Debtor days Return on assets Revenue per employee Machinery and equipment utilisation Working capital levels Looking at these figures in isolation provides some insight. Comparing them against industry benchmarks often reveals opportunities and risks that would otherwise go unnoticed. The Best Businesses Measure More Than Profit Profit is important, but it is rarely the only indicator of success. The businesses consistently outperforming their competitors are tracking several key performance measures at the same time. For example, they regularly monitor: Cash Flow Strong businesses understand exactly where cash is being generated and where it is being consumed. They know that profitability alone does not pay bills. Productivity Whether it is a farm, retail store, manufacturing operation or professional service firm, leading businesses continually seek ways to improve output without proportionally increasing costs. Efficiency The best operators are always looking for opportunities to remove waste, simplify processes and improve systems. Small improvements implemented consistently often produce significant long-term gains. They Understand Their Industry Benchmarks One of the most common conversations we have with clients begins with: "I thought we were doing alright, but I didn't realise our labour costs were so much higher than similar businesses." Or: "I didn't realise our profit margins were actually well above average." Benchmarking removes guesswork and replaces it with facts. It helps business owners understand: What is normal. What is exceptional. What requires attention. Where the greatest opportunities exist. Without comparison, even good financial results can be misleading. They Focus on the Numbers That Matter Most The best businesses are selective about what they measure. Rather than tracking dozens of reports, they focus on a handful of key indicators that genuinely influence profitability and long-term performance. These vary between industries. A farming business may focus on: Cost of production. Yield performance. Machinery efficiency. Debt servicing capacity. A retailer may focus on: Gross margins. Stock turnover. Average transaction values. Wage percentages. A professional services business may focus on: Utilisation rates. Recovery rates. Revenue per team member. Client retention. The secret is not measuring everything. It is measuring the right things. They Turn Information Into Action Collecting data alone achieves very little. What separates the best businesses is their willingness to act on the information they uncover. When benchmarking identifies: Excessive costs, Poor margins, Capital tied up in inventory, Inefficient work practices, they make changes. Many businesses collect reports every month without ever using them to make decisions. The highest-performing businesses use benchmarking as a practical management tool rather than a reporting exercise. They Review Performance Regularly Successful businesses do not wait until tax season to assess their performance. They review results throughout the year and make adjustments when required. This allows issues to be identified early and opportunities to be acted upon before they disappear. Regular review creates accountability and keeps business goals front of mind. Benchmarking Isn't Just for Large Businesses A common misconception is that benchmarking is only relevant for larger organisations. In reality, some of the greatest benefits are often achieved by smaller businesses. When margins are tight, even modest improvements can have a significant impact on profitability. An improvement of just a few percentage points in gross profit, labour efficiency or inventory management can translate into meaningful increases in business profit and cash flow. Final Thoughts The best businesses don't rely on instinct alone. They use information to guide decisions, identify opportunities and continually improve performance. Benchmarking helps remove assumptions and provides a clearer understanding of where a business stands today and where it can improve tomorrow. At Green Taylor Partners, we regularly work with clients to analyse performance, compare results and identify practical opportunities for improvement. Sometimes the most valuable insight isn't whether your business is profitable. It's understanding how your business compares to the businesses performing at the highest level.

Expected a refund but received a tax bill? Here’s why Many people expect a tax refund when they lodge their tax return, so receiving a tax bill can come as an unwelcome surprise. In most cases, a tax bill doesn’t mean a mistake has been made. It usually means that not enough tax was paid throughout the year. Below are some of the most common reasons.  1. You worked more than one job If you worked for multiple employers during the year, there may not have been enough tax withheld from your pay. This can happen when you claim the tax-free threshold from more than one employer. Generally, you should only claim the tax-free threshold from one employer. This will usually be the employer who pays you the most. If you are currently claiming it from more than one employer, you can ask one employer to stop applying it. You can also ask your employer to withhold additional tax from your pay if needed. 2. You have a HELP or HECS debt If you have a HELP or HECS debt, your compulsory repayment is based on your repayment income for the year. From the 2025-26 financial year, compulsory repayments are calculated using marginal rates. This means that your repayment is calculated only on the income above the minimum repayment threshold. For the 2025-26 year: - No compulsory repayment applies if your income is $67,000 or less. - If your income is between $67,001 and $125,000, the repayment rate is 15 cents for each $1 over $67,000. Make sure your employer knows that you have a HELP debt. If you have multiple jobs or your income increases, you may also ask your employer to withhold additional tax from your pay. 3. You earned investment income Interest from bank accounts, dividends from shares, managed fund distributions, and other investment income are generally taxable. However, little or no tax may be withheld before you receive this income. Keep records of your investment income and provide them to your accountant at tax time. If you regularly receive investment income, consider setting aside some money to cover the possible tax. 4. You sold shares Selling shares can result in a capital gain, which may mean additional tax is payable. Before selling shares, consider speaking with your accountant so you understand the potential tax consequences. Make sure you keep records showing when you purchased and sold the shares. 5. You don’t have private health insurance If your income exceeds certain thresholds and you don’t have an appropriate level of private health insurance , you may have to pay the Medicare Levy Surcharge. The surcharge is in addition to the Medicare Levy that most taxpayers already pay and is calculated when your tax return is prepared. If you only had appropriate private health insurance for part of the year, you may have to pay the surcharge for the days you were not covered. Review whether private health insurance is right for your circumstances and ensure you have the correct level of cover if you wish to reduce or avoid the surcharge. Keep in mind that reportable fringe benefits, such as certain employer-provided benefits, can increase the income used to calculate your HELP repayment and Medicare Levy Surcharge. How can you reduce the risk of a tax bill? Some simple steps can help: - Only claim the tax-free threshold from one employer - Tell your employer if you have a HELP or HECS debt - Keep records of investment income and share transactions - Review your private health insurance - Ask your employer to withhold additional tax if needed - Speak with your accountant if your income or circumstances change The bottom line A tax bill can be frustrating, but it’s often the result of changes to your income or not enough tax being withheld during the year. If you’ve received an unexpected tax bill and aren’t sure why, contact your accountant. Understanding the cause now can help you avoid receiving another surprise tax bill next year.

PAYG Instalments: Which Method Should You Choose This September? Many business owners will shortly receive their September 2026 Activity Statements and be asked to choose a PAYG instalment method. PAYG instalments commonly apply to individuals, sole traders, primary producers, trusts and companies that earn business or investment income. Rather than paying all of their tax after lodging a tax return, affected taxpayers make instalment payments throughout the year towards their expected income tax liability. While PAYG instalments do not change the total amount of tax ultimately payable, selecting the most suitable method can help manage cash flow and avoid unexpected tax bills. For most taxpayers, the July to September quarter is the first PAYG instalment quarter of the financial year. If your Activity Statement outlines both methods, you generally need to lodge your Activity Statement and make your choice on or before the due date, and that election will usually apply for the balance of the income year. The Two Methods Option 1: Instalment Amount Method The ATO issues a fixed instalment amount based largely on your most recent tax return, which has been adjusted for expected growth by the GDP of 5% for the 2026–27 income year. This approach may suit businesses with relatively stable income and profits, or those who prefer predictable quarterly payments. Option 2: Instalment Rate Method Under this method, you multiply your ATO-issued instalment rate by your instalment income for the quarter. This usually comprises gross assessable business and investment income derived during the period, excluding GST. It is not the same as accounting profit or taxable income, and particular exclusions or adjustments may apply. For example, if your instalment income is $150,000 and the ATO-issued rate shown at T2 on your activity statement is 4%, your PAYG instalment would be $6,000 This method is often more suitable where income is seasonal, fluctuating or significantly different from the prior year. Which Option Is Best? When choosing a method, consider: Whether income is higher or lower than last year Seasonal fluctuations in revenue Changes in profitability or operating costs Significant capital purchases or deductions Changes in business structure or investments Cash flow preferences and payment predictability The instalment amount method can overestimate tax if your latest tax return reflected an unusually strong year. Conversely, the rate method may result in larger instalments during high-income quarters. Can You Vary an Instalment? If expected tax is materially different from the ATO calculation, it may be possible to vary the instalment amount or rate. A variation must generally be made by the instalment due date and applies to the remaining instalments for the income year unless varied again. A downward variation should be based on a reasonable estimate. If your varied instalments are less than 85% of the tax ultimately payable on your instalment income, you may have to pay general interest charge in addition to the outstanding tax. Penalties may also apply in some circumstances. Special Considerations for Primary Producers Eligible primary producers may be able to pay PAYG instalments twice a year using the instalment amount method: 75% of the annual amount due in April, and the remaining balance due in July. Eligible farmers can instead change to quarterly payments by choosing the instalment rate method by the first instalment due date.  Need Help? Before lodging your September quarter Activity Statement, contact us if your income, margins, seasonal conditions or business structure have changed. We can review your PAYG options, assess whether a variation is appropriate and ensure any available concessions are taken into account.

Has the ATO started you on PAYG instalments? Here's what you need to know. PAYG instalments are regular payments made towards your expected income tax liability throughout the year. Instead of receiving a large tax bill when you lodge your tax return, PAYG instalments allow you to spread your tax payments across the year, making it easier to manage cash flow and budgeting. The ATO will generally notify you if you are required to enter the PAYG instalment system based on the results of your most recently lodged income tax return. Most taxpayers make instalment payments quarterly. However, primary producers are typically required to pay in the March and June quarters, reflecting the ATO's recognition that these periods often coincide with higher seasonal cash flow. All PAYG instalments paid during the year are credited against your final income tax assessment. If your income changes, you may be able to vary your instalments, although reducing them too far could result in interest charges or penalties from the ATO. It is also important to note that PAYG instalments are different from PAYG withholding, which is tax withheld from employee wages and remitted to the ATO by employers.  PAYG instalments can help reduce the impact of a large year-end tax bill while allowing you to progressively meet your tax obligations throughout the year. If you have any questions regarding PAYG Instalments please get in touch with your accountant.

Navigating the aged care system can feel overwhelming, particularly when faced with the complex terminology, means testing rules, and various fees that may apply. Many families worry about whether they can afford aged care or whether a loved one will need to sell their home to pay for care. The good news is that Australia's aged care system is heavily subsidised by the Government, and there are protections in place to ensure that everyone can access appropriate care regardless of their financial circumstances. What Fees Apply in Residential Aged Care? If a person moves into an aged care home, there are generally four categories of costs that may apply. 1. Basic Daily Fee The Basic Daily Fee is paid by almost all residents and contributes towards day-to-day living expenses such as meals, cleaning, laundry and utilities. It is set by the Government and indexed regularly. As at March 2026, the maximum Basic Daily Fee is approximately $66.80 per day. 2. Means-Tested Contributions Depending on a person's income and assets, they may be required to contribute towards the cost of their care through means-tested arrangements. For people entering aged care under the newer fee arrangements, contributions may include: · Hotelling Contributions · Non-Clinical Care Contributions These fees are determined following a financial assessment conducted by Services Australia and are subject to annual and lifetime caps. Some residents pay nothing beyond the Basic Daily Fee, while others may make additional contributions based on their financial capacity. 3. Accommodation Costs Accommodation costs are often the most significant expense and are determined by the aged care provider. Residents may pay for accommodation by: · A Refundable Accommodation Deposit (RAD), being a lump sum payment; · A Daily Accommodation Payment (DAP); · Or a combination of both. A RAD is generally refundable when the resident leaves care, less any agreed deductions allowed under the legislation. 4. Additional Service Fees Some aged care homes offer enhanced services beyond the standard level of care. These may include superior accommodation, upgraded meal options, lifestyle programs or additional amenities. Where applicable, providers can charge additional fees for these optional services. Do You Have to Sell the Family Home? One of the most common concerns families raise is whether the family home must be sold to fund aged care. The answer is often "not necessarily." The home is only one factor considered in the aged care means assessment, and various rules apply regarding how much of the home's value is counted. In many cases, families can choose between paying a RAD, a DAP or a combination of both, allowing flexibility in managing cash flow and preserving assets. However, the decision to retain or sell the family home can have significant consequences for: · Aged care fees; · Centrelink entitlements; · Estate planning objectives; · Cash flow requirements; and · Tax outcomes. This is why obtaining specialist aged care advice is often worthwhile before making any major financial decisions. What About Home Care? For older Australians who remain living at home, government-funded home care programs can help support independence. Under the Support at Home framework, contributions are generally determined by a person's income and assets. Clinical services are typically government funded, while contributions may apply to other support services depending on financial circumstances. Unlike residential aged care, there is generally no accommodation component because the individual continues living in their own home. Can Everyone Access Aged Care? A common misconception is that people with significant assets are not entitled to government-supported aged care, or that those with limited resources cannot afford care. In reality, all eligible Australians can access government-subsidised aged care services. The financial assessment process is designed to determine an individual's contribution, while government funding covers the balance of approved care costs. Key Takeaways When considering aged care, families should remember: · Everyone generally pays a Basic Daily Fee. · Additional contributions may be payable depending on income and assets. · Accommodation can be funded using a RAD, DAP or a combination of both. · The family home can significantly affect aged care outcomes. · Government subsidies ensure aged care remains accessible regardless of financial position. · Obtaining financial and aged care advice before entering care can potentially save considerable costs and avoid unintended consequences. Final Thoughts Aged care is one of the most significant financial decisions many families will face. While the fee structure can initially appear complex, understanding the different components and planning ahead can make the process far less stressful. The best outcomes are usually achieved when aged care planning is considered alongside estate planning, tax advice, Centrelink entitlements and broader family objectives. Taking the time to obtain advice before entering care can help ensure that both the older person and their family make informed decisions with confidence.

In close to 57 years, I have received a lot of advice from many sources. Starting from my parents, my friends, community members, work colleagues, mentors across these fields as well as my clients. Below are a few that stand out. Some of which I live by, some I need to take more notice of. 1. Treat others as you would like to be treated. If you can be anything in this world, be kind. 2. It is never as bad as you think and its never as good as you think. 3. If it sounds too good to be true it usually is. 4. If you have bad news to deliver, get it over and done with. The longer you wait the harder it will be to deal with for you and the recipient. 5. It is impossible to know everything. If you are stuck, ask for advice, decent people will always help. 6. Comparison is the thief of joy. 7. If you want to learn something, surround yourself with people who see things differently than you. Collaboration is a great problem solver. 8. Borrowing to invest magnifies your result. If it is a crap investment, you will lose more by borrowing. If it is a great investment, you will get a great return in the long run. 9. Understand the importance of community and contributing to community groups. Volunteering and doing things for others provides immeasurable rewards. 10. Investing in anything (bank deposits, shares, property) all involves risk – the secret is to understand the risk you are dealing with. 11. Making mistakes is part of life, just get better at not making the same mistake twice. 12. Every investment needs to pass a “sleep at night” test. If you cannot sleep at night, do not invest in it. This test is different for every individual. 13. If you have a “bucket list” of things you want to do – tell others! Telling others will massively increase the chances of you achieving your bucket list items, because people will want to help you with your list. 14. Compounding investment returns are the eighth wonder of the world. 15. Measure your progress, it is OK to count your money. 16. Experience the thrill and energy of live music! 17. The only way to grow is by putting yourself in unfamiliar and uncomfortable situations. 18. The best time to invest is yesterday. 19. Be curious, it is amazing what you might find out. 20. Invest regularly, automatically and for the long-term, it pays off big time! 21. The best investment you can make is investing time and money with the people that mean the most to you. Invest in meals, get togethers, laughter, weekends with special friends and family – there is nothing like it!

In today’s digital world, scams are becoming increasingly sophisticated and widespread. As accounting professionals, we see firsthand how scams can impact businesses and individuals, from identity theft to fraudulent invoices. It’s more important than ever to stay vigilant and take proactive steps to protect your finances and sensitive information. Common Scams Targeting Australian Businesses Phishing Emails: These are emails that appear to be from legitimate organisations, such as the ATO or your bank, asking you to click a link or provide sensitive information. Invoice Scams: Fake invoices are sent, often with subtle changes to the payee details. Business Email Compromise: Cybercriminals hack email accounts and impersonate executives or suppliers, requesting urgent payments or confidential data. Tax Scams: Fraudsters pose as the Australian Taxation Office, demanding payment, threatening legal action, requesting changes be made to your MyGov account. Warning Signs to Watch Out For Scammers are crafty, but there are tell-tale signs to help you spot a dodgy approach: Unexpected requests for payment or personal information Spelling and grammar mistakes in emails or messages Unusual urgency or pressure to act quickly Inconsistencies in email addresses or payment details Requests to transfer funds to unfamiliar accounts How to Protect Yourself and Your Business Verify Before You Pay: Always double-check invoice details and payment requests, especially if they’re unexpected. Get on the phone and confirm with the supplier directly. Educate Your Team: Make sure your staff know the risks and signs of scams. Hold regular training sessions and circulate updates about new scam tactics. Use Strong Passwords: Ensure all accounts use strong, unique passwords. Consider multi-factor authentication for extra security. Update Software Regularly: Keep your systems and antivirus software up to date to patch vulnerabilities. Secure Your Data: Back up important files and restrict access to sensitive information only to those who need it. Report Suspicious Activity: If you suspect a scam, contact the ACCC’s Scamwatch or your bank straight away. Early reporting can help prevent further losses.  What To Do If You’ve Been Scammed If your business falls victim to a scam, don’t panic. Immediately contact your bank, the police, and your accountant. Preserve any evidence and report the incident to Scamwatch (www.scamwatch.gov.au). Quick action is key to minimising potential harm.

How to Process Payday Super in MYOB & Xero From 1 July 2026, employers are required to pay superannuation at the same time employees are paid. To avoid ATO penalties, super contributions must generally be received by the employee’s super fund within 7 business days of payday. If you use MYOB or Xero payroll, the process is straightforward, but it is important to submit and authorise super payments as soon as possible after each pay run. Processing Payday Super in MYOB Super is processed directly through MYOB. The super amounts will prefill based on the pay runs processed. To process and authorise super in MYOB: In MYOB, go to ‘Payroll’ then click ‘Super payments’ It will ask you to ‘login’, click login Click the green ‘create super payment’ button in the top right corner Select all super payments (these should all be from the pay run just processed), and click ‘record’ Click ‘yes’ and continue to authorise payment Click ‘authorise’ Click ‘get code’ which will send an SMS to the authorised mobile number Enter the code into the ‘authorisation code’ field and click ‘authorise’ The ‘Success!’ message should appear, and the status updated to ‘processing’ Once the payment is processing, you do not need to do anything else, the super payment will be automatically direct debited from your nominated bank account. Processing Payday Super in Xero Super is processed directly through Xero. The super amounts will prefill based on the pay runs processed. To process and authorise super in Xero: In Xero, go to ‘payroll’ then click ‘superannuation’ Click ‘add super payment’ or click into the box ‘X unpaid contributions’ Select the super payments (if multiple, then select all) Click ‘submit for approval’ on the right-hand side Click ‘continue to approve’ Enter the SMS authorisation code sent to your phone, then click ‘verify and pay’ Once approved and verified, the batch status updates to ‘processing’ Once the payment is processing, you do not need to do anything else, the super payment will be automatically direct debited from your nominated bank account. Need assistance with Payday Super? If you’re unsure whether your payroll setup is ready for these requirements, contact your accountant. We can help review your payroll processes and ensure super payments are being processed correctly and on time.

How long can you chase a debt? Unpaid debts are a fact of life in business. But there is a limit on how long you can legally recover them — and it’s something that often gets overlooked until it’s too late. So, how long do you actually have? The short answer In most cases (including Victoria), you’ve got 6 years to take legal action to recover a debt. After that, the debt becomes what’s called “statute-barred.” That doesn’t mean it disappears, but it does mean: you can’t enforce it through the courts, and your leverage to recover it drops significantly It’s not always a straight 6 years Here’s where it gets tricky. The 6-year clock doesn’t just run and expire, it can reset. If the debtor: makes a payment (even a small one), or acknowledges the debt in writing the clock starts again from that date. We see this a lot with older debtor balances that have had small, sporadic payments over time. A few quick exceptions Just to round things out: Court judgment? You may have up to 12–15 years to enforce it Secured debts (e.g. property)? Usually longer again ATO debts? Different rules entirely, they don’t follow the same 6-year limit Practical tips for managing old debts This is where it really matters for business owners. If you’ve got older receivables sitting there, here are a few simple checks: 1. Know the age of your debts Don’t just look at the balance, look at when it was last paid or acknowledged That’s what determines your real timeframe. 2. Don’t leave recovery too long If a debt is getting close to 6 years: consider escalating it earlier or making a call on whether it’s worth pursuing Waiting too long can remove your legal options completely. 3. Be careful with partial payments Even a small payment: can restart the 6-year clock which can work in your favour (or against you) 4. Clean up your books regularly Old debts sitting on the balance sheet can: overstate your financial position create tax complications Regular reviews help you decide whether to recover, write off, or formally deal with them. The takeaway As a rule of thumb: 6 years is your window for most debts but the timing isn’t always obvious and small actions can reset the clock If you’ve got older debts sitting there and aren’t sure where they stand, it’s worth reviewing them sooner rather than later, a quick check now can save you losing the ability to recover them altogether.

Minimum Wage Increase Effective from 1 July 2026 Australian workers received a pay rise following the Fair Work Commission's 2026 Annual Wage Review. From 1 July 2026, the National Minimum Wage increased to $26.44 per hour, while minimum award wages increased by 4.75%. These new rates applied from the first full pay period starting on or after 1 July 2026. For employees, the increase may provide some relief from ongoing cost-of-living pressures. It's a good idea to review your payslip and ensure your employer has applied the updated rates correctly. For business owners, the change serves as an important reminder to review payroll systems, employee classifications and award coverage to ensure the new rates have been applied correctly. As the increase took effect from the first full pay period on or after 1 July 2026, employers who have not yet updated their wage rates should act urgently. Any underpayments should be identified and rectified as soon as possible to avoid ongoing compliance issues and potential penalties. Reviewing wages now can help ensure your business remains compliant and employees receive their correct entitlements.  If you're unsure whether the increase affects your business or your employees, Green Taylor Partners can help you understand your obligations and ensure you remain compliant.

New ATO App Feature Helps Protect You From Scam Calls With tax time approaching, scam activity always ramps up and unfortunately, many of these scams involve fraudsters pretending to be from the Australian Taxation Office (ATO). To help combat this, the ATO has recently introduced a new feature within its app that allows you to verify whether a call is genuinely from the ATO in real time. You can read the official announcement here: ATO launches new app feature to stop scam calls What Is the New “Verify Call” Feature? The ATO has introduced a new “verify call” function in its mobile app that allows you to confirm if a call is genuinely from the ATO - while you are still on the phone. It works in real time and gives you an immediate answer, helping remove the guesswork when you receive an unexpected call. The goal is simple: put control back in your hands so you can quickly identify and shut down scam attempts. How It Works If you receive a call from someone claiming to be from the ATO, you can: Open the ATO app on your phone Log in securely Select the “verify call” option If the call is legitimate, you will receive a confirmation notification within approximately 30 seconds. If you do not receive a notification, you should treat the call as a scam and hang up immediately. What To Do If You Receive a Scam Call If you receive a suspicious call, SMS, email or social media message: Do not reply, click on any links or download any attachments. Visit verify or report a scam to check or report it. Call the ATO immediately on 1800 008 540 , if personal information or payment has been shared with a scammer. Visit ato.gov.au/scamsafe for more information on how to protect personal information and stay safe from scammers.

As we move into the new financial year, there is a noticeable shift in conversations with clients across Western Victoria. Whether you operate a grain and livestock enterprise, a family-owned retail store, or a manufacturing business servicing regional Australia, the themes remain remarkably similar. Many regional businesses are generating strong earnings, but are also facing increasing tax, compliance and cash flow pressures. The Three Issues We're Discussing Most With Clients 1. Cash Flow Remains King Despite profitability improving for many businesses, cash flow continues to be the biggest challenge. Higher wages, increased superannuation costs, rising insurance premiums and elevated interest rates mean that profitable businesses can still feel cash constrained. For primary producers, fluctuating commodity prices and seasonal conditions add another layer of complexity. For retailers, consumer spending remains selective, while manufacturers continue to face margin pressure from labour and input cost increases. The businesses performing best are those that actively monitor: Debtor collection times Inventory levels Business debt levels Capital expenditure decisions Tax and superannuation obligations Strong cash flow management is becoming a greater competitive advantage than ever before. 2. The Compliance Environment Is Tightening The Australian Taxation Office continues to increase its focus on data matching and compliance activities. Areas attracting attention include: Trust distributions Division 7A loans Superannuation compliance GST reporting Property and capital gains transactions Business versus private expenditure claims Many business owners are surprised by how quickly information is now shared between government agencies, banks and regulators. Our advice remains simple: Good record keeping has never been more important. The cost of addressing compliance issues after the event is almost always higher than investing in quality systems and advice upfront. 3. Superannuation Is Becoming More Important One of the most significant changes affecting employers is the continuing evolution of superannuation obligations. Industry commentary during EOFY 2026 has focused heavily on the upcoming Payday Super regime, alongside increased employer super obligations and payroll system readiness from 1 July 2026. [wealthworks.com.au] , [aimsaustralia.com.au] , [moula.com.au] For business owners, superannuation should no longer be viewed solely as a compliance matter. It is increasingly becoming a strategic tool for: Tax planning Retirement funding Intergenerational wealth transfer Succession planning Asset protection For successful farming families and private business owners, the ability to move wealth into the superannuation environment often remains one of the most effective long-term planning opportunities available.  Looking Ahead No one can accurately predict weather patterns, interest rates or global markets. What we can control are the fundamentals. The most successful businesses in regional Victoria continue to focus on: ✅ Understanding their financial position ✅ Managing cash flow carefully ✅ Investing in people and systems ✅ Reviewing structures regularly ✅ Planning for succession early ✅ Seeking advice before decisions become problems Businesses that plan proactively almost always have more options than those that wait until issues arise. The start of a new financial year is an ideal time to step back, review where your business is heading, and ensure your structure, finances and strategy remain aligned with your long-term objectives.

From 1 July 2026 , new anti-money laundering (AML) and counter‑terrorism financing (CTF) laws will apply to many accounting firms across Australia. While this is primarily a compliance change for us as your adviser, you will notice some changes in how we work with you. This article explains what’s happening and what it means in practical terms. What’s changing? The Australian Government is expanding its AML/CTF laws (known as “Tranche 2 reforms”) to include professions like accountants, lawyers and real estate agents. Previously, these rules mainly applied to banks and financial institutions. From July 2026, many accounting firms will also be regulated by AUSTRAC (the government financial intelligence agency). These changes are designed to: · Reduce fraud, tax evasion and financial crime · Bring Australia in line with international standards · Close gaps where advisers may unknowingly be used to move or disguise funds Why this matters for your business As your accountant, if we provide certain services (such as setting up companies or trusts, managing funds, or assisting with ASIC transactions), we must now follow strict compliance procedures. This means you may be asked for additional information or documentation. What you can expect to change More identity checks (‘Know Your Client’) We will need to verify your identity and, in some cases, the identity of related parties (e.g. directors, shareholders or beneficiaries). This may involve: · Providing photo ID · Confirming ownership structures · Updating details periodically Even long‑standing clients may be required to complete this process. Additional questions about your business activities We may ask further questions to better understand: · What your business does · Where funds come from · The purpose of certain transactions These are part of our obligations to assess the risk of financial crime. More documentation requests Depending on the service, we may request documents such as: · Contracts or transaction details · Source of funds evidence ● Trust deeds or company records, if we don’t already hold these This is a standard requirement under the new laws. Timing of work may be affected Some services cannot commence until required checks are completed. To avoid delays, we recommend: · Responding promptly to information requests ● Providing complete documentation upfront Ongoing monitoring (in some cases) For certain engagements, we may be required to: · Periodically update your information ● Review transactions or changes in your structure What won’t change Importantly: · Our role as your trusted adviser remains the same · Your information remains confidential and secure ● We will only request what is required under law Why this is ultimately a good thing While these changes will add some extra steps, they are aimed at: · Protecting legitimate businesses like yours · Strengthening the integrity of Australia's financial system · Reducing fraud and misuse of business structures In short, it helps ensure a fairer and safer business environment for everyone. What you need to do now There’s nothing you need to action immediately, but over the coming months you can: · Expect some new onboarding or update requests · Ensure your business records and ID documents are readily available ● Let us know of any changes to your structure or ownership  We’re here to help We understand these changes may feel like “more paperwork”, particularly for long‑term clients. Our goal is to make this process as smooth and practical as possible while meeting our legal obligations. If you have any questions about how these changes apply to your business, please feel free to get in touch.

For many Australians, a holiday home offers the best of both worlds — personal enjoyment and short‑term rental income through platforms like Airbnb or Stayz. However, recent draft guidance from the Australian Taxation Office (ATO) suggests that owners need to take a closer look at how these properties are treated for tax purposes. The ATO’s latest guidance makes it clear that earning some rental income does not automatically mean a property qualifies for full tax deductions . Instead, the focus is on whether the property is genuinely operated as an income‑producing investment or whether it is primarily a lifestyle asset. Investment Property or Lifestyle Asset? While all rental income must be declared, the ATO may restrict expense deductions where a property is mainly used for private purposes and only rented when convenient. If a property is classified as a holiday home rather than a genuine rental property, deductions for expenses such as interest, council rates, land tax, insurance and general maintenance may be denied. In many cases, owners may only be able to claim limited, direct costs associated with specific guest stays, such as cleaning or advertising. What Will Attract ATO Attention? The ATO is particularly focused on properties that: Are unavailable for rent during peak periods such as school holidays Are advertised inconsistently or priced above market rates Generate ongoing tax losses year after year Are clearly prioritised for personal use over rental income While no single factor is decisive, these patterns can indicate that the property is not being run on a commercial basis. Apportionment and Records Matter Where a property qualifies as income‑producing but is used partly for private purposes, expenses must be apportioned fairly and reasonably. Good records are critical, including booking calendars, listings, rental enquiries and notes of private use. The ATO can access booking platform data and readily cross‑check claims.  What Should Owners Do Now? Although the draft guidance is proposed to apply from 1 July 2026, now is the time to review your position. Owners should consider whether their property is genuinely operated to maximise rental income, whether pricing reflects market conditions and whether their record‑keeping would stand up to scrutiny. Final Takeaway The ATO isn’t banning deductions for holiday homes, but it is taking a firmer approach to distinguishing investment properties from lifestyle assets. A proactive review now can help avoid unexpected tax outcomes later. If you own a holiday property and are unsure where you stand, a proactive review could help protect your position and improve your tax outcome. Please contact us if you would like assistance assessing your current arrangements.

Capital Gains Tax (CGT) – What You Need to Know (and What’s Changing) If you own investments like property, shares, or a business, understanding Capital Gains Tax (CGT) is critical—especially with major changes on the horizon. What is Capital Gains Tax? Capital Gains Tax (CGT) is the tax you pay on profits when you sell an asset. It applies to assets acquired after 19 September 1985 Your capital gain is simply: Sale price (what you sell it for) minus Cost base (what you paid + associated costs) If the result is positive → you have a taxable capital gain If negative → you have a capital loss Do you always pay tax on the full gain? Not always. There have historically been concessions to reduce your tax bill, depending on when you bought the asset and how long you held it. The Two Main CGT Methods (Historically) 1. Indexation (Pre-1999 assets) This older method adjusted your cost base for inflation so you were only taxed on the real gain. Only applies to assets acquired on or before 21 September 1999 Adjusts the purchase cost using CPI This method is no longer available for newer assets. 2. The CGT Discount (Current system) This is the most common method used today. If you: hold an asset for more than 12 months, and are an eligible taxpayer (individual, trust, or super fund) You may reduce your capital gain: 50% discount for individuals and trusts 33.33% discount for super funds Example: If you make a $100,000 gain, you may only pay tax on $50,000 How CGT is Taxed Your net capital gain is added to your income It’s taxed at your marginal tax rate Capital losses can’t reduce other income—but can be carried forward Major CGT Changes Coming (From 1 July 2027) The government has proposed significant reforms that will change how CGT works. 1. The 50% Discount is Being Replaced From 1 July 2027: The current 50% CGT discount will be removed Instead, we return to a form of indexation Meaning: You’ll only be taxed on gains above inflation This is designed to tax the “real” gain only 2. A New Minimum 30% Tax Rate A key change: A minimum tax rate of 30% will apply to capital gains What this means: If your tax rate is below 30% → you still pay 30% If your rate is above 30% → you pay your normal rate The 30% is a floor, not a cap 3. Existing Assets – How Will They Be Treated? If you already own assets, the rules will split your gain into two periods: Before 1 July 2027 Existing rules apply (including the 50% discount) After 1 July 2027 New rules apply (indexation + 30% minimum tax) In practice: You may need a valuation at 1 July 2027 to determine the split 4. What About Pre-1985 Assets? Historically: Assets bought before 20 September 1985 were completely CGT-free From 1 July 2027: Any future growth in those assets will become taxable Past gains remain tax-free 5. Special Rule for New Housing To support housing supply: Investors in new residential property may choose between: The old 50% discount, or The new indexation method + minimum tax What This Means for You These changes could significantly impact: Investment property owners Share investors Business owners Family groups and trusts Key implications: The timing of asset sales will become more important Valuations at 1 July 2027 may be critical Tax outcomes could increase for lower-income taxpayers Long-term investment strategies may need review Final Thoughts Capital Gains Tax has always been complex—but the upcoming changes make planning even more important. If you own, or are thinking about selling: Property Shares A business Or any investment asset it’s worth reviewing your position well before 1 July 2027.

While most of the media focus around the 2026 Federal Budget has been on things like negative gearing and housing, one of the biggest changes has barely been mentioned at all — the taxation of discretionary trusts. And if you’re a small business owner or part of a family that uses a trust, this change could materially affect how your income is taxed in the future. Introduction One of the most significant outcomes of the 2026 Federal Budget isn’t aimed at the so‑called ‘top end of town’. It is aimed squarely at structures that everyday mum‑and‑dad businesses rely on. From 1 July 2028, discretionary trusts will be subject to a minimum 30% tax on taxable income, fundamentally changing how trust distributions are taxed. What Was Announced Under the measures announced in the 2026 Federal Budget:  • Discretionary trusts will pay a minimum of 30% tax on their taxable income • That tax will be withheld by the trustee • Beneficiaries will receive a non‑refundable tax credit for the tax already paid by the trust Why This Is a Big Deal for Individual Beneficiaries Under the current system, a trust distribution to an individual is taxed at the individual’s marginal tax rates, allowing access to the $18,200 tax‑free threshold and currently a 16% tax rate on income up to $45,000. Under the proposed rules, this benefit effectively disappears. Even beneficiaries with total taxable income below $45,000 will still bear an effective 30% tax on trust distributions. Why Small Businesses Are Most Affected Discretionary trusts are widely used by small businesses including trades, farming operations, professional practices, and family‑run enterprises. While paying wages instead of trust distributions may address the tax outcome, if your business does not already have employees it introduces real additional costs such as payroll software, payday superannuation compliance, Single Touch Payroll obligations, and WorkCover premiums. The Investment Company Issue A major concern with the proposed measures is how they apply where a company is a beneficiary of a trust, commonly referred to as ‘Bucket’ companies. Based on information released to date, companies do not appear to receive access to the non‑refundable tax credit. This creates the risk of double taxation and significantly undermines bucket company strategies commonly used to smooth income over multiple years and manage long‑term family tax outcomes. Another Common Structure Being Impacted Many small businesses operate through a company, but where all shares are owned by a discretionary trust. This has historically been prudent tax and succession planning, allowing flexibility, family involvement, and long‑term planning. While companies may continue to declare franked dividends to the trust, distributions from the trust to family members appear to be subject to the same minimum 30% tax outcome — even where that income represents the operating profit of the business. Practical Example Consider a modest family business earning $120,000 through a Trust. Under current rules, the Trust could be distributed across family members on low marginal tax rates, or at the least between Mum and Dad, therefore they would each have taxable incomes of $60,000. Currently Tax on that before Medicare and other offsets would be $17,576 combined. Under the new measure that same profit would result in tax of $36,000, an increase of $18,424 in tax paid! For a business operation we would strongly suggest wages be paid of at least $45,000 to each of Mum and Dad. If the same profit is from Trust where all income is from investments there may not be the justification of wages. Final Thoughts Although these measures are not scheduled to commence until 1 July 2028 and further legislative details are still to be released, the implications for small business owners and families using trusts are significant. This article is general information only and does not constitute tax advice.