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With the end of the financial year just weeks away, most business owners are heads-down managing day-to-day operations. But this is precisely the time to pause and take stock of how your business is actually performing — not just how it feels. A structured review of your key financial metrics now gives you the chance to fix problems, capture opportunities, and walk into the new financial year with a clear picture.

Gross profit margin

Start with your gross profit margin — the percentage of revenue left after you subtract the direct cost of delivering your product or service. If your margin is tracking below budget or below where it was at this point last year, something has changed. Either your prices haven’t kept up with rising input costs, your cost of goods has crept up without you noticing, or your sales mix has shifted toward lower-margin work. Any of these is worth investigating before they become a bigger problem in the new financial year.

Debtor days and cash flow

How long are your customers actually taking to pay you? Debtor days — the average number of days between issuing an invoice and receiving payment — is one of the clearest signals of cash flow health. If your debtor days have stretched out compared to the same period last year, you may have a growing pile of unpaid invoices quietly eroding your working capital. Now is a good time to identify your slow payers, review your payment terms, and consider whether your invoicing and follow-up process needs tightening. On the other side, check your creditor days too — are you paying your suppliers on time, or are there outstanding bills building up?

Revenue vs forecast and cash in the bank

Pull your year-to-date revenue and compare it directly against what you planned at the start of the year. If you’re tracking behind, ask why — is it a market issue, a pricing issue, or a specific client or product line underperforming? If you’re tracking ahead, consider whether your cost base has scaled appropriately, or whether there’s an opportunity to invest before 30 June. Then look at your bank balance right now compared to this time last year. Cash is the ultimate reality check — it doesn’t lie the way profit figures sometimes can.

End-of-year tax planning and write-offs

Before 30 June, this is also the window to consider whether there are any write-offs you should be taking — bad debts you’ve been holding onto, obsolete stock, or assets that are no longer in use. It’s also worth reviewing whether there are any asset purchases or prepayments that make sense to bring forward into this financial year. These decisions are worth running past your accountant rather than making on the fly — the tax implications vary depending on your business structure and current-year income.

The difference between planning and reacting

Businesses that review their numbers regularly — not just at tax time — consistently make better decisions. The metrics above aren’t just housekeeping; they’re the early warning system that tells you whether your business is on track or quietly drifting off course. Taking an hour now to work through these figures is one of the most valuable things you can do before the new financial year begins.

Most people assume superannuation contributions are either made by their employer or set up through salary sacrifice. But there’s a third option many Australians overlook — and it can deliver a meaningful tax saving before 30 June if you act in time.

What is a personal deductible contribution?

A personal deductible contribution is money you transfer directly from your own bank account into your super fund — not through your employer, not through salary sacrifice. You then claim it as a tax deduction in your personal return. The contribution is taxed inside the fund at 15% rather than at your marginal tax rate. For someone on a 34.5% marginal rate (including Medicare levy), that’s a saving of 19.5 cents in every dollar contributed. At the top marginal rate of 47%, the saving is 32 cents per dollar.

The Notice of Intent — a step most people miss

Here’s where many people come unstuck. It’s not enough to simply make the contribution. To claim the deduction, you must lodge a valid Notice of Intent to Claim a Deduction with your super fund — and you must do this before you lodge your tax return. Your fund must also acknowledge receipt before the deduction can be claimed. If you lodge your return first and forget the notice, you generally lose the right to claim. That’s a significant and entirely avoidable mistake. Some funds let you lodge the notice online; others require a paper form — check with your fund well before 30 June.

The 30 June deadline and the concessional cap

The contribution must be received by your super fund before 30 June for it to count in the 2025–26 financial year. Electronic transfers usually clear within one to two business days, but don’t leave it to the last moment — some funds have cut-off times, and a transfer that clears on 1 July belongs to the following year. The annual concessional contributions cap for 2025–26 is $30,000. This cap covers all concessional contributions: employer super guarantee payments, salary sacrifice, and personal deductible contributions combined. Check what your employer has already contributed before topping up, to avoid accidentally exceeding the cap.

Who benefits most?

Personal deductible contributions work particularly well for the self-employed, who don’t receive compulsory employer super and may be behind on retirement savings. They also suit employees with spare cash at year-end or those wanting to reduce taxable income below a particular threshold. If you haven’t used your full concessional cap in recent years and your total super balance was below $500,000 on 30 June last year, you may also be able to access carry-forward contributions to make additional catch-up payments above the standard cap. The 30 June deadline is real and unforgiving — the money must be inside your fund by the end of the financial year, so start the process now.

If you’d like to know whether a personal deductible contribution makes sense for your situation this year — including how much you can contribute within the cap — please contact us before 30 June. We can run the numbers and make sure the right steps are taken in the right order.

For years, the $20,000 instant asset write-off has been a lifeline for small businesses — letting you immediately deduct the full cost of eligible assets rather than writing them off gradually over multiple years. The only problem was the uncertainty. Each year, the question loomed: will it be extended again? That question has now been answered. The 2026 Federal Budget has made the $20,000 instant asset write-off permanent.

What this means for your business

From 1 July 2026, if your business has an annual turnover of less than $10 million, you can immediately deduct the full cost of any eligible business asset costing less than $20,000. This applies to assets purchased and first used (or installed ready for use) in your business before the end of the financial year.

Assets costing $20,000 or more can continue to be added to your small business simplified depreciation pool, where they are written off at 15% in the first year and 30% each year after that. The rules that previously prevented businesses from re-entering the simplified depreciation regime for five years after opting out will also continue to be suspended until 30 June 2027.

Why permanence matters

In past years, the write-off threshold changed multiple times and only ever existed as a temporary measure. This made planning difficult. Businesses were sometimes unsure whether to bring forward equipment purchases, or whether the write-off would still be in place when they finally committed. Making it permanent removes that uncertainty and lets you plan your capital expenditure with confidence.

If your business needs new equipment, tools, vehicles, technology, or other depreciating assets, you no longer need to time purchases around legislative renewal. You can buy what the business needs, when the business needs it — and claim the full deduction in the year of purchase.

Also from the Budget: monthly PAYG instalments

From 1 July 2027, small and medium businesses will be able to opt in to paying their PAYG income tax instalments on a monthly basis and to use ATO-approved calculations embedded directly in their accounting software to work out instalment amounts. This is designed to make tax payments better reflect real-time business activity, reducing the risk of large unexpected tax bills at lodgement time. This is an opt-in arrangement — you won’t be required to change unless you choose to.

The bottom line

The permanent instant asset write-off is one of the most practical budget measures in recent years for small business owners. If you have been holding off on equipment purchases while waiting for certainty, that certainty has now arrived.

Get in touch with us before 30 June to review your asset purchase plans and make the most of this permanent change.

Cash flow is the lifeblood of any small business. And for many businesses — particularly in hospitality, trades and personal services — that includes a mix of card and cash payments.

From time to time, headlines hit the stands, reminding business owners not to “hide” cash income. While those messages can sound heavy-handed, the underlying issue is important. As your accountant, our role isn’t to alarm you – it’s to help you understand the risks and make sure your business is protected.

Cash Is Still Income

It doesn’t matter whether a customer pays you via EFTPOS, direct transfer or a $50 note across the counter. If it’s income earned in your business, it must be recorded and reported.

Where businesses run into trouble is when cash payments are treated differently — not entered into the accounting system, used to pay expenses informally, or simply not banked. Even if the intention isn’t dishonest, inconsistent record-keeping can quickly create discrepancies in your numbers.

Over time, those discrepancies become visible.

Why Is This A Growing Risk Area?

Today’s compliance environment is very data-driven. Reported income is often compared against industry benchmarks, supplier data, contractor reporting and even lifestyle indicators. If your reported figures fall significantly outside what would be expected for your industry and turnover, that can raise questions.

In addition, employees, competitors and even customers sometimes report suspected under-reporting. That means relying on cash being “invisible” is no longer a realistic assumption.

For small businesses, the consequences of getting this wrong can be significant — reassessments of prior years, penalties, interest, and the stress of a review or audit. Even where there was no deliberate wrongdoing, poor systems can be costly to unwind.

It’s not just about sales

When we talk about cash income, we’re also talking about:

Cash wages paid without PAYG withholding

Superannuation is not being processed correctly

Contractors paid “off the books”

Personal expenses are being paid from business takings

These practices don’t just create tax risk — they create employment law and superannuation exposure as well.

Practical Steps To Protect Your Business

The solution isn’t complicated, but it does require discipline.

First, ensure every sale is recorded, regardless of how it’s paid. Your point-of-sale system or accounting software should capture the full picture of daily takings.

Second, keep business and personal finances completely separate. Cash taken from the till for personal use without proper recording creates accounting distortions and tax risk.

Third, reconcile regularly. Matching your sales records to bank deposits and merchant facility reports helps identify discrepancies early.

Finally, get advice early if something isn’t clear. If your margins look lower than expected, or your cash flow doesn’t align with the reported profit, your accountant can review it together with you before it becomes a bigger issue.

The Bigger Picture

Running a business is hard enough without the added stress of compliance concerns. Accurate reporting isn’t just about meeting obligations — it protects the value of your business, strengthens credibility with lenders, and gives you reliable data to make decisions.

If your systems aren’t as tight as they could be, that’s not a criticism — it’s an opportunity to improve them. A proactive review now is always far easier than dealing with problems later.

If you’d like to review your record-keeping processes or cash controls, let’s have that conversation.

The fringe benefits tax year runs from 1 April to 31 March — and if your business provided any non-cash benefits to employees or their family members during that period, an FBT return may be due. The lodgement deadline is 21 May, so now is the time to check whether this applies to you.

What is fringe benefits tax?

Fringe benefits tax, or FBT, is a tax paid by employers on certain benefits they provide to employees, associates of employees, or directors — in addition to, or instead of, salary and wages. The current FBT rate is 47%, which is aligned with the top marginal income tax rate. It is separate from income tax and is calculated on the grossed-up taxable value of the benefits provided.

It is worth noting that FBT is an employer obligation, not an employee one. The employee receives the benefit, but it is the employer who is responsible for calculating, reporting, and paying the tax.

Which benefits commonly trigger FBT?

The most common fringe benefits that create an FBT liability include company cars used for private purposes, car parking provided at or near a workplace, entertainment such as meals, functions, and tickets to events, low or no-interest loans to employees, and living away from home allowances. Housing provided to employees is also a common trigger, particularly in remote locations or when relocating staff.

Not all benefits are subject to FBT. Some are exempt — for example, certain work-related items such as laptops, mobile phones, and tools of trade used primarily for work. Minor benefits with a taxable value under $300 may also be exempt, provided they are provided on an irregular and infrequent basis. Understanding which benefits fall in or out of the FBT net is essential before you conclude that no return is required.

Reportable fringe benefits on payment summaries

If an employee receives fringe benefits with a total grossed-up taxable value exceeding $2,000 in the FBT year, the employer must record a reportable fringe benefits amount on the employee’s income statement. This amount does not increase the employee’s income tax liability directly, but it is taken into account for certain income tests — affecting things like Medicare Levy Surcharge eligibility, HECS-HELP repayments, and government benefit calculations. Employees should be aware of this if it applies to them.

What you need to do before 21 May

If your business has provided fringe benefits during the 2025–26 FBT year, you need to calculate the taxable value of those benefits, prepare and lodge your FBT return, and pay any FBT owing by 21 May 2026. If you are lodging through a registered tax agent, an extended due date of 25 June 2026 may apply. Even if you do not owe any FBT — for example, because all benefits were exempt — it is worth reviewing your position to ensure you are not inadvertently missing an obligation.

If your business has not provided any fringe benefits and you have previously lodged an FBT return, you may need to advise the ATO that you are no longer required to lodge. Your accountant can help you confirm this and make sure your obligations are fully met before the deadline.

FBT is one of the more complex areas of tax compliance — the rules around what is and is not taxable can be tricky, and the cost of getting it wrong can be significant. If you are not sure whether you need to lodge a return, get in touch with us before the 21 May deadline.

Financial fraud perpetrated by abusive partners and family members has emerged as a deeply damaging form of economic abuse, particularly when victims are nominated as company directors without their knowledge or consent.

These fraudulent appointments can expose unsuspecting individuals to significant financial and legal liabilities  –  long after the abusive relationship has ended.

At its core, this type of fraud manipulates corporate and tax systems to weaponise company structures against victims. An abusive partner might register their victim as a director of a business under false pretences  –  using their personal details, forged signatures, or coercing them into signing paperwork without explanation. In some cases, the victim may genuinely be unaware that they have been listed as a director until they receive official notices about debts or penalties.

Once registered as a director, the victim becomes legally responsible for the company’s obligations, including tax liabilities, unpaid wages, employee superannuation, and other corporate debts. These responsibilities are not minor. They can include Director Penalty Notices, which make directors personally liable for unpaid company taxes such as GST and PAYG withholding. For an unsuspecting victim, receiving a demand to pay tens or even hundreds of thousands of dollars for activities they never authorised or knew about can be devastating.

Consider a hypothetical scenario in which a woman is covertly appointed as a director by her partner. He controls all aspects of the business, makes financial decisions, and incurs debts, while she remains isolated from financial information. One day, she receives a notice from the tax office demanding payment for significant unpaid tax and associated penalties. She may not have signed any business documents that would clarify her involvement and had no access to the company’s bank accounts or records. She is left personally liable, scrambling to prove she neither managed nor benefited from the company.

The consequences of such fraud are far-reaching. Victims often face intense financial stress, litigation costs, damage to credit ratings, and in extreme cases, bankruptcy. These outcomes can persist for years  –  long after a relationship ends. The emotional toll is equally profound, as individuals confront not only legal battles but also the psychological burden of having their identity misused.

Beyond individual hardship, coerced directorship fraud undermines the integrity of corporate governance. Corporate and tax systems rely on accurate information about who manages and controls companies. When perpetrators exploit these systems, they erode trust and create loopholes that can be abused repeatedly.

Efforts to address this issue include policy proposals to strengthen consent requirements for director appointments, making it harder to register directors without clear, informed consent. Other suggested reforms focus on expanding legal defenses available to victims and extending timeframes to respond to enforcement actions like Director Penalty Notices. The goal is to ensure that individuals are not unfairly pursued for liabilities they did not incur.

For victims, early recognition and legal support are crucial. Professionals working with vulnerable individuals  –  including financial counsellors and legal advisers  –  increasingly recognise the signs of coerced directorships and other forms of economic abuse. As awareness grows, so does the call for stronger safeguards within corporate and tax frameworks to protect people from this hidden form of fraud.

Inheriting a home can be both an emotional and practical experience.

Alongside the personal significance, there are important tax considerations to be aware of  –  particularly if you decide to live in the property for a period and then sell it.

Understanding how the Australian tax rules apply can help you avoid surprises and make informed decisions.

From a tax perspective, the key issue is capital gains tax (CGT). Whether CGT applies  –  and how much  –  depends on how the property was used both before and after you inherited it.

If the deceased person lived in the property as their main residence and it was not being rented out at the time of death, the starting point is generally favourable. In many cases, the property can be sold CGT-free if it is sold within two years of the date of death. This two-year period is an important concession and often provides flexibility for beneficiaries while estates are being finalised.

However, things can change if you move into the inherited home, live in it, and later sell it. Living in the property does not automatically reset the tax clock or create a new CGT exemption.

The CGT outcome will depend on:

When the property is sold,

Whether it was ever used to produce income (such as being rented), and

The deceased’s original cost base and ownership history.

If the property is sold after the two-year window, a partial CGT exemption may still apply. The capital gain is generally calculated based on the period from the deceased’s date of death to the date of sale, with exemptions applied for periods where the property was treated as a main residence. Importantly, your time living in the property can help reduce or eliminate the taxable gain  –  but it doesn’t guarantee a full exemption.

If the deceased had rented the property out or never lived in it as their main residence, the CGT position can be more complex. In these cases, the property may be fully subject to CGT, and the starting cost base may trace back to when the deceased originally acquired the property  –  sometimes decades earlier.

Another common trap is assuming that no records are needed. In reality, keeping documentation such as probate valuations, ownership dates, and details of any improvements made to the property is critical. These records form the foundation of an accurate CGT calculation.

Inheriting property brings with it both opportunity and responsibility. Before making decisions about moving in or selling, it’s worth getting tailored advice. A short conversation early on can help you understand your options, manage tax exposure, and make choices that align with both your personal and financial goals.

Trusts can be a powerful tool for managing assets, protecting wealth, and planning for succession, but when they are poorly structured or managed, they can create unexpected complications.

Recognising the warning signs of inadequate trust planning can help trustees and beneficiaries avoid legal, tax, and financial pitfalls.

Lack of Clear Objectives

One of the most common indicators of poor trust planning is a lack of clarity about the trust’s purpose. A well-structured trust should have clearly defined goals  –  whether it’s asset protection, tax planning, or providing for beneficiaries. When the objectives are vague or inconsistent, the trust may fail to achieve its intended outcomes, leading to disputes among beneficiaries or inefficient use of assets.

Outdated Or Inflexible Trust Deeds

Trust deeds that are outdated or rigid can create significant issues. Laws, tax rules, and family circumstances change over time, and a trust that hasn’t been reviewed for years may no longer align with current needs. For example, an outdated deed may restrict the trustee’s ability to distribute income effectively or limit the flexibility to include new beneficiaries, resulting in unnecessary taxation or inequitable outcomes.

Poor Record-Keeping and Reporting

Trustees have legal obligations to maintain accurate records and prepare proper financial reports. Failure to do so is a major red flag. Poor record-keeping can lead to compliance issues with taxation authorities, create disputes among beneficiaries, and even expose trustees to personal liability. Regular accounting and clear reporting help maintain transparency and protect both the trust and its trustees.

Inadequate Tax Planning

Trusts often attract scrutiny from tax authorities, and poorly structured trusts can result in excessive tax liabilities. Common issues include incorrect income distribution, failure to utilise tax concessions, or misunderstandings about trustee responsibilities. Without careful tax planning, a trust can inadvertently generate higher taxes or penalties, undermining its purpose.

Conflicts Of Interest Or Ambiguous Roles

Trustees must act in the best interests of beneficiaries, but poor planning can blur responsibilities or create conflicts of interest. Ambiguity over who has the authority to make decisions or a lack of documented procedures can lead to disputes, delays, or even legal challenges. Clear governance structures and defined roles are essential to prevent these traps.

Trusts are valuable tools, but poor planning can turn them into sources of conflict, inefficiency, and unexpected liabilities. Regularly reviewing the trust deed, maintaining accurate records, clarifying objectives, and seeking professional advice can help ensure a trust operates smoothly and meets its intended purpose. By recognising these traps early, trustees and beneficiaries can protect both assets and relationships.

Catch-up contributions can be a powerful strategy — but eligibility conditions apply. Reach out to us to find out if this approach is right for your situation and how to get started.

When you’re running a business, there’s a lot going on behind the scenes in your financial reports that you may not think about day to day. 

One of the most important of these ideas is something called “going concern.” 

While it may sound technical, the concept is quite simple – and very relevant to your business.

Put plainly, a going concern means your business is expected to keep operating into the foreseeable future. It assumes you’ll continue trading as normal, paying your bills, meeting payroll, and growing your business, rather than needing to shut down or sell everything off in the near term. 

This assumption is a key foundation for how your financial statements are prepared and for how others assess your business’s health.

Why This Matters For Your Business

When your business is treated as a going concern, your financial reports are prepared with the expectation that you’ll continue operating. Assets like stock, equipment, or property are shown based on how they’re used in the business – not what they might be worth in a rushed sale. Likewise, liabilities are recorded with the understanding they’ll be paid over time from ongoing cash flow, not because the business is being wound up.

This approach gives a more accurate and practical picture of your business. It helps you, your bank, and any investors understand how the business is really performing and where it’s heading, rather than focusing on a worst-case scenario.

If a business is no longer considered a going concern, the story changes. Financial statements may need to reflect what would happen if the business had to close or restructure. Assets may be valued lower, and financial pressures become far more visible. This can affect lending arrangements, supplier relationships, and confidence in the business overall.

Signs Your Business May Be Under Pressure

There are certain warning signs that can put a business’s going-concern status at risk. These include ongoing losses that drain cash reserves, difficulty paying staff or suppliers on time, or trouble securing finance when it’s needed. Legal disputes, regulatory issues, or the loss of a key customer can also create uncertainty about the future.

As part of preparing your accounts, we’re required to consider whether any of these issues exist and could affect your ability to continue operating. If there are significant uncertainties, they must be clearly disclosed so everyone relying on your financials has a full picture.

How Does This Help You Make Better Decisions?

Understanding the going-concern concept isn’t about alarm bells – it’s about staying informed. Regularly reviewing cash flow, debt levels, and business risks helps identify issues early, when there’s still time to take action.

For lenders and investors, the going-concern assessment provides reassurance that your business is on a stable footing. As a business owner, you benefit from better planning, clearer conversations, and more confident decision-making.

Ultimately, going concern is about confidence in your business’s ability to keep moving forward – and making sure you have the right information to support that journey.

Ready to take control of your business’s financial health? Let’s review your accounts together and make sure your business is set up to keep moving forward with confidence. Contact us today to get started.