Superannuation $3 Million Dollar Rule – update

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

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

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

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