Staying Compliant with Tax Laws - 8 Essentials for Business Owners
August 18, 2025
Budgeting is an important part of business planning. A well-designed budget helps leaders manage finances, allocate resources and stay on track to achieve business goals.
Here are 6 practical tips to help create a budget that works for your business.
1. Set Clear Goals
Define financial goals for the upcoming period. Whether it's increasing revenue, reducing costs, or expanding operations, clear objectives guide all budgeting decisions.
For example, a business aiming to increase sales by 15% in the next year, might budget for targeted online advertisements and promotions which drive traffic to the website. The budget would be quite different for a business aiming to cut costs by 5% in the coming 6 months.
2. Track Income and Expenses
Detailed records of the business's income and expenses help identify spending patterns and cost cutting opportunities which are taken into account in the next budget cycle.
These records help leaders analyse and identify patterns in revenue and expenses to develop intelligent assumptions on what may happen in the future.
3. Be Realistic (Even Conservative)
When creating the budget, be realistic about revenue projections and expense estimates. Overestimating income or underestimating expenses can lead to budget shortfalls and financial difficulties.
It can also be helpful to make budgets with different scenarios based on, for example, ‘aggressive’, ‘conservative’ and ‘expected’ assumptions. In any case, always err on the conservative side.
4. Prioritise Essential Expenses
Identify the business's essential expenses, such as rent, utilities, and payroll, and prioritise them in the budget. This ensures they’ll be covered even if revenue is lower than expected.
For example, we’d expect a manufacturing company to prioritise essential expenses such as raw materials and production costs over the website upgrade, company offsite and internal newsletter.
5. Plan for Contingencies
Include a contingency fund in the budget to cover unexpected expenses or revenue shortfalls. Having a buffer avoids financial difficulties if things don’t go as planned.
For example, a contingency fund can help a services business deal with a sudden increase in project scope, so they can hire additional staff to deliver the project on time.
6. Review and Adjust Regularly
Review the budget regularly and adjust as needed. As the business grows and market conditions change, the budget should evolve to reflect these changes. Most well-run businesses will review the budget at least monthly.
A budget helps leaders commit to certain forecasts and optimise business performance as things change. We suggest you follow these guidelines when preparing your next budget!
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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.
