If you have customers who are not going to pay, writing off those debts before 30 June brings the deduction into the 2026 year.
What you need to have in place
- The debt must be genuinely bad, not just overdue or in dispute. You need to have taken reasonable steps to recover it and reached the view it won’t be paid.
- The write-off entry must be made in your accounts before 30 June.
- The amount must have been included in your assessable income in a prior year. Cash basis businesses generally cannot use this.
Key takeaway
Go through your debtors list before 30 June.
Let your accountant or bookkeeper know so they can reflect it in your books.
Making a personal super contribution before 30 June can be one of the most tax-effective moves available to individuals before year end.
Concessional contributions
The concessional contributions cap for 2025-26 is $30,000, including any employer contributions made during the year. If you are self-employed or your employer doesn’t contribute at a rate that uses your full cap, you can make a personal contribution and claim a tax deduction.
To claim the deduction you must lodge a notice of intent to claim with your super fund before you lodge your tax return. This step is not automatic. Missing it means losing the deduction.
Catch-up contributions
If your total super balance was below $500,000 on 30 June 2025, you may be able to use unused cap space carried forward from earlier years going back to 2019-20. This can allow a larger deductible contribution in a year where your income is higher than usual.
Key takeaway
Check where your concessional contributions are sitting for the year and talk to your accountant about whether topping up before 30 June makes sense for your situation.
Many business owners run their business from home. What most do not realise is that if you have been claiming occupancy expenses, selling your home may not be fully tax-free.
How the main residence exemption is affected
If you have been claiming a portion of mortgage interest and rates as a business expense, the main residence exemption only applies partially when you sell. The business-use portion of any capital gain is not exempt.
The calculation is based on floor area. The same percentage you used for occupancy expense claims is the percentage that falls outside the exemption.
What does this mean for you?
If you have a home office or a room set aside for the business and have been claiming occupancy expenses, a portion of the gain on sale will be taxable. The larger the business use percentage and the bigger the gain, the more significant the tax impact.
There may be CGT concessions that can be applied to minimise the tax but these can be complex and need to be preplanned with your accountant.
Key takeaway
If you run a business from home and are thinking about selling, speak to your accountant to understand your exposure to capital gains and whether any CGT concessions are worth applying. Every situation is different. Sometimes the taxable portion of the gain is small enough that the cost of applying concessions outweighs the benefit. Other times it can make a significant difference.
The ATO has published a new guideline (titled PCG 2025/5), targeting Personal Services Business (PSB) structures that lack genuine commercial substance.
PSI and PSB: The Basics
Personal Services Income (PSI) = income mainly from your personal skills and effort (e.g. financial professionals, engineers, consultants, IT professionals, medical practitioners, lawyers etc).
The PSI rules restrict income splitting and deductions UNLESS you meet one of four PSB tests.
Personal Services Business (PSB) = if you pass one of four tests, the PSI rules don’t apply.
Most people pass the “unrelated clients test” (2+ clients) and no more than 80% percent generated by one client OR “results test” (paid for outcomes, not time).
What’s changed?
The ATO published a guideline that highlights their approach to applying Part IVA (general anti-avoidance rules) to PSB arrangements that are artificial even if the PSI rules do not apply.
Follow this guideline in good faith and the Commissioner will administer the law accordingly. Structure your arrangements as low-risk and the ATO won’t review them.
How the ATO will assess your risk
Examples of low-risk arrangements (ATO review likelihood is low):
- Net PSI distributed to the individual who earned it, taxed at their rate
- Associates paid market rates for genuine work
- Intention to temporary profit retention for genuine commercial purposes (e.g. to buy a business asset, hire new employees, working capital). Ensuring that intention is carried out.
Examples of higher-risk arrangements (ATO likely to review and consider Part IVA):
- Individual receives less than commensurate remuneration
- Income split to family members not performing equivalent work
- Profits retained without clear commercial purpose
- Retained profits used for personal purposes such loans made to related parties.
The fringe benefits tax (FBT) year ends on 31 March 2026. If your business provides non-cash benefits to employees or their associates, you may have an FBT obligation for the year.
What counts as a fringe benefit?
Common examples include:
- Cars made available for private use
- Car parking
- Entertainment (meals, events, recreational activities)
- Expense payments (gym memberships, school fees, private health insurance)
- Low-interest or interest-free loans
What you need to do now
To prepare your FBT return, gather the following before we get started:
- Logbooks and odometer records for any cars provided to employees
- Details of any entertainment expenses paid during the year (including who attended and the occasion)
- Records of any other benefits provided to employees or their family members
- Declarations from employees where required
Key dates
The FBT return for the year ending 31 March 2026 is due 21 May 2026 if you lodge yourself, or 25 June 2026 if we lodge on your behalf.
Tip: Not everything attracts FBT. Common exempt benefits include:
- Cars with no or extremely limited private use (e.g. Ute or Van)
- Minor and infrequent benefits valued under $300 per employee per occasion
- Gift cards valued under $300 per employee (including GST and transaction fees)
- Light meals and refreshments consumed on business premises during work hours (e.g. pizza to celebrate a promotion, birthday cake, pastries for staff)
- Meals and drinks consumed by employees while travelling for work (e.g. a Brisbane-based employee dining in Sydney while attending a conference)
If you think FBT may apply to your business, reach out to your Inspire accountant now so we have enough time to gather what we need before the lodgement deadline.
Get ready for 2026FY Tax Planning with Inspire
Tax planning for the 2026 financial year will kick off in April. Inspire’s proactive tax planning aims to help you legally minimise tax, stay compliant and make better informed financial decisions.
- Maximising your savings – Identify key deductions and strategies to minimise tax liability.
- Compliance ready – Develop a clear plan to meet compliance requirements such as Division 7A, trust distribution, issuing dividends and FBT obligations.
- Timing matters – Set up or update required structures before 30 June.
- Gain a strategic advantage – Get clear on your tax position so you can make informed financial decisions and plan for future growth.
- Peace of mind & clarity – Early preparation and organisation during tax planning will aid in the preparation of your 2026FY financial statements & tax returns and ease the pressure of lodgement deadlines.
To ensure a smooth tax planning process with your accountant, consider the following:
- Reconcile your Xero (or accounting software) file up until 31 March 2026 or up until the end of the last month.
- Assess your business performance for the months leading up to 30 June, including projected sales, expected expenses, and any significant changes in cash flow.
- Let your Accountant know if you are planning a major purchase in the next 12 months (this can be a car, a home, an investment property etc.)
- Review your accounts receivable (people who owe you money) for any old debts that are unlikely to be paid.
Learn more about 2026FY Tax Planning from our recent Webinar:
FBT Year Ends 31 March: Time to Get Your Records Ready
The Fringe Benefits Tax year runs from 1 April to 31 March, which means the current FBT year ends in less than eight weeks. If your business provides any benefits to employees (including yourself as a director), now is the time to gather your records.
What to check now
Vehicle logbooks:
If you started a logbook in January (as we suggested in last month’s newsletter), keep it running until you’ve completed 12 consecutive weeks. If your existing logbook is more than five years old or your travel patterns have changed significantly, you’ll need a new one.
Employee declarations:
For certain benefits, you’ll need signed declarations from employees. This includes “otherwise deductible” declarations for work-related items and living-away-from- home declarations.
Entertainment records:
If you’ve provided meals, events, or entertainment to staff, make sure you have records of who attended, the business purpose, and the costs. The distinction between “entertainment” and “non-entertainment” food affects how it’s treated for FBT.
Expense reimbursements:
Review any reimbursements you’ve made to employees for items that have a private use element. This can include phones, laptops, and home office equipment.
Common FBT-exempt benefits to remember
Not everything triggers FBT. Items that are primarily for work (laptops, phones, tools of trade) are generally exempt. Minor benefits under $300 that are infrequent may also be exempt. Electric vehicles under the luxury car limit remain FBT-exempt, though plug-in hybrids lose this exemption from 1 April 2025.
Key FBT dates coming up
• 31 March 2026: FBT year ends
• 21 May 2026: FBT return and payment due (if self-lodging)
• 25 June 2026: FBT return and payment due (if lodging through an agent)
If you’re unsure whether your business has FBT obligations or need help pulling together your records, get in touch. It’s much easier to sort this out now than in the weeks leading up to lodgement.
Payday Super is Coming: Here’s What You Need to Know
From 1 July 2026, superannuation changes in a big way. If you employ anyone, including yourself as a director, this affects you.
What’s changing
Right now, you pay super quarterly, up to three months after the end of each quarter. From July, you’ll have seven business days after each pay run. That’s it.
I’ll be straight with you. This isn’t a change any of us asked for, and the timing isn’t ideal for business owners already juggling a hundred things. But the legislation
passed Parliament in November 2025, and it’s now law.
We don’t get a say in whether it happens. All we can control is how well we prepare.This change affects 900,000 businesses across Australia. The government sees it as a worker protection measure, addressing the billions in unpaid super sitting in employer bank accounts instead of employee super funds. From your perspective, it means a fundamental shift in how you manage cash flow.
What this means for your business
Pay fortnightly? Super’s due within seven business days of each pay run. Pay monthly? Seven business days after month end. The quarterly buffer you’ve been using to manage cash flow for years is gone.
Your payroll system will need to calculate super at 12% of “Qualifying Earnings” (that’s the new term replacing ordinary time earnings, though for most businesses it
covers the same ground: base pay plus allowances and bonuses). Every time you run payroll through Single Touch Payroll, you’ll report both the earnings and the super you owe. For new team members starting with you, there’s a slightly longer window of around 20 business days while you sort their fund details, but after that it drops back to seven business days.
Why you need to care
Miss the deadline and you’ll cop a Superannuation Guarantee Charge. This includes the unpaid super amount, interest that compounds daily, and administrative penalties that can add up to 60% of the shortfall depending on your history. If you get fund choice wrong, the penalties can be severe.
And here’s the thing that concerns me most for business owners: these penalties aren’t tax deductible. They come straight off your bottom line. The ATO has signalled they’ll take a reasonable approach in the first year if you’re genuinely trying but slip up. But “transitional relief” doesn’t mean “free pass.” You still
need your systems ready.
What to do now (you’ve got 5 months)
1. Check your payroll software
Most major platforms (Xero, MYOB, QuickBooks, KeyPay) have confirmed they’ll be ready. But check with your provider that your current plan includes the Payday Super functionality. Some may require upgrades.
2. Update your employee records
Make sure you have current, validated super fund details for everyone. Stapled super fund queries to the ATO should become part of your onboarding process if they aren’t already.
3. Talk to us about cash flow
This is the big one. If you currently pay $30,000 in super per quarter, you’ll now be paying roughly the same amount, just spread across multiple smaller payments
throughout the quarter. Same total amount, different rhythm entirely. Some businesses will find this easier to manage; others will need to adjust.
Our suggestion: start building a buffer now. Even putting aside a small amount each week between now and July will help take the edge off that first month when the new rhythm hits.
4. Review your payroll timing
Consider whether your current pay cycle makes sense. Some businesses are looking at whether monthly payroll (and therefore monthly super) might be simpler to manage than fortnightly.
We’re here to help
The legislation is set. Your job now is to make sure your systems, your cash flow, and your team are ready before July 2026. We’re already working with clients to map out what this means for their specific situations.
If you want to talk through the impact on your business, reach out. Better to plan now than scramble in June.
Small Business Superannuation Clearing House is shutting down – Here’s what small businesses need to know
What’s changing and when?
- The ATO’s Small Business Superannuation Clearing House (SBSCH) will be closed to new users starting 1 October 2025.
- It will fully close and stop servicing existing users on 1 July 2026.
This is part of the wider Payday Super reform, aiming to align super payments with employee paydays
Who’s affected?
The SBSCH currently helps small employers: those with fewer than 20 employees or under $10 million turnover pay all their staff’s super in one go. It’s a free, government run service.
Why it matters
All employee’s super is required to be paid following SuperStream standards. The SBSCH has been a simple, cost-free convenience for many small businesses to meet SuperStream standards. Its closure means an increase in potential costs as you will now be forced to find for an alternative SuperStream compliant clearing houses or payroll software that may charge you fees.
What you should be doing now
Start planning early. Here’s how:
- Audit your current setup: do you use the SBSCH?
- Explore alternatives: Look at alternatives clearing houses, super fund portals or payroll software that have their own clearing houses.
- Update your systems: If your payroll or accounting software handles super contributions, ensure it’s ready and tested your payroll.
- Train your team: Ensure any staff involved understand the new process to prevent mistakes or delays.
- Pay super more often: If cashflow permits try bringing the super payment forward to get used.
Final things to note
Xero now offers auto super on all their consumer subscription plans making it easy to be SuperStream compliant. Check with your default super fund if they offer a free or low-cost clearing house for you to use.
What is a default super fund?
Every employer must nominate a default superannuation fund. This is the fund that receives super contributions for any employee who has not chosen their own fund and does not have an existing “stapled” fund linked to them.
Government review of supermarket unit pricing: what it could mean for your business
The Federal Government recently wrapped up a consultation on supermarket unit pricing. While it might sound like a purely consumer issue, it could have very real commercial impacts for businesses supplying into the grocery sector.
On 1 September 2025, Treasury opened consultation on strengthening the Retail Grocery Industry (Unit Pricing) Code of Conduct. Submissions closed just a few weeks later on 19 September 2025, marking the end of a very short window for stakeholders to have their say.
A Quick Recap
Unit pricing allows shoppers to compare costs per standard measure (for example, $/100g or $/litre) across different pack sizes and brands.
Since 2009, large supermarkets have been required to display this information to help customers spot value. Compliance costs have generally been low and penalties limited but the Government’s review signals that much tighter rules may be coming.
Why Now?
The ACCC’s recent supermarket inquiry highlighted that while unit pricing is useful, there are still significant gaps.
The key concern is shrinkflation when pack sizes quietly reduce while prices remain the same or even increase.
With cost-of-living pressures dominating headlines, the Government wants clearer, fairer pricing to rebuild consumer trust.
What Might Change?
Proposals considered in the consultation paper include:
- Shrinkflation alerts – supermarkets may need to flag when a product’s pack size shrinks without a matching price cut.
- Clearer displays – larger, more prominent unit prices both in-store and online.
- Wider coverage – expanding the rules beyond major supermarkets to smaller retailers and online sellers.
- Standardised measures – eliminating confusing “per roll” vs “per sheet” comparisons.
- Civil penalties – introducing fines for non-compliance.
The Commercial Impact
- Suppliers: Packaging choices could come under closer scrutiny. Changes in size or format may trigger disclosure obligations.
- Retailers: Potential costs in updating shelf labels, in-store signage, software, and e-commerce platforms.
- Opportunities: Businesses that embrace transparency can build consumer trust and stand out in a competitive market.
What You Should Do
The consultation period has now closed. Treasury is reviewing submissions, and the Government is expected to announce its response later in the year.
Businesses in food, grocery, and household goods should stay alert. The final rules could affect pricing strategies, packaging decisions, and compliance obligations across the sector.
Keeping on top of these developments will allow your business to adapt early and potentially turn transparency into a competitive advantage.
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