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The Australian Government has announced significant changes to the Higher Education Loan Program (HELP), including HECS-HELP loans, aimed at reducing the financial burden on university graduates. These reforms, effective from the 2025 financial year, are set to benefit approximately three million Australians. 20% Reduction in Help Debt From June 1 2025 all outstanding HELP debts – including HECS-HELP, FEE-HELP, SA-HEPL, OS-HELP and Vet student loans will be reduced by 20% before any indexation is applied. This measure is expected to alleviate approximately $16 Billion in student debt across the country. The Australian Tax Office will automatically apply this reduction to eligible accounts. https://www.education.gov.au/higher-education-loan-program/20-reduction-student-loan-debt/faqs-20-reduction-all-outstanding-help-loan-debt?utm_source=chatgpt.com Change to Repayment Thresholds Effective July 1 2025 the minimum income threshold for compulsory HELP repayments will increase form $54,435 to $67,000. Additionally, a marginal repayments system will be introduced, where repayments are calculated only on income above the new threshold, rather than on total income. This adjustment means that graduates earning below this new threshold will not be required to make compulsory repayments, and those earning above it will pay a smaller percentage of their income towards their debt. These reforms are part of the government broader effort to make higher education more accessible and to support graduates in their financial journey’s.

Am I in business? This might seem like a strange question, but for some taxpayers it is very important to consider as income generated from a hobby is generally not taxable income and all expenses incurred are not deductible as a result. We’ve had lots of questions about this in the past from people who may be running a stall at local markets selling hand made goods, or creating digital content and receiving remuneration and goods as a part of this. Sometimes it can be hard to tell if this income is derived in pursuing a hobby or operating a business, but there are some important determinations set out by the ATO to consider. The entire scope must be considered in relation to the below, not just one point, for example if an activity is completed ad hoc with no business plan, but the activity is completed with profit making intentions this is likely to be deemed as a business. Essentially, the intention, regularity and purpose of the activity can help to identify whether it is a hobby or a business, the most important thing to consider is what is the purpose of the activity. If you are just completing an activity solely for enjoyment and recuperating input costs by selling to family and friends, this could just be a hobby. But this can get very difficult to determine when getting into the nitty-gritty details, so if you are needing any help in determining whether your activity is a hobby or a business, please contact our office to discuss this further. 

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!

How does GST Registration Work? GST registration is not mandatory for every business or enterprise, but failure to register when required may result in penalties. Once you are required to, you must register for GST within 21 days, and you must have an Australian Business Number (ABN) to do so. When you are no longer required to be registered, you can cancel your GST registration. When does your business need to register? Your business must register for GST: - When your business has a GST turnover (gross income from all businesses less GST) of $75,000 or more. - When you start a new business and expect your turnover to reach the GST threshold ($75,000) in the first year of operation. - If you’re already in business and have reached the GST threshold ($75,000). - If your non-profit organisation has a GST turnover of $150,000 per year or more. - When you provide taxi or limousine travel for passengers (including ride-sourcing), regardless of your GST turnover. This applies to both owner-drivers and those who lease or rent a taxi. - If you want to claim fuel tax credits for your business. It is optional to register for GST if your business doesn't fit into one of these categories. If you choose to register, generally you must remain registered for at least 12 months. How do you register for GST? Once you have an ABN, you can register for GST via the following platforms: - Online Services for Business. - Through your registered Tax or BAS agent. - By phone on 13 28 66. Following registration, you will receive written correspondence with your: - GST registration details, including the effective date of registration. - ABN details if you haven't previously received them. Once registered for GST, you must lodge a business activity statement (BAS). What if you choose not to register? If you're not registered for GST, you should monitor your turnover each month to determine if you’ve reached or are likely to exceed the threshold ($75,000). Failure to register for GST when required may result in you having to pay GST on sales made from the date you were required to register, even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest. Working out your GST turnover Your GST turnover is your total business income (not your profit), less: - GST that is included in sales to your customers - Sales to associates that aren't for payment and aren't taxable - Sales not connected with an enterprise you run - Input-taxed sales you make - Sales not connected with Australia GST Turnover Threshold You reach the GST turnover threshold if either: - Your current GST turnover (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 for non-profit organisations). - Your projected GST turnover (your total turnover for the current month and the next 11 months) is likely to be $75,000 or more ($150,00 for non-profit organisations).