Super Guarantee Rate increasing to 12% from 1 July 2025
From 1 July 2025, the Super Guarantee (SG) rate will rise from 11.5% to 12%. This change will apply to all ordinary time earnings (including salary and wages) paid on or after 1 July 2025, even if the pay period started before that date.
What this means for your business:
> review your payroll software and contracts to ensure they reflect the new rate.
> Update your budgets to include the increase super contributions for better cash flow projection
> Communicate the change to your team (if required)
Please note: The Super Guarantee (SG) percentage is the minimum legal requirement. However, some awards or agreements may require you to pay a higher rate.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute teams or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Tax tip of the month: Writing off bad debts before year-end
As we approach the end of the financial year, now is a good time to review your accounts receivable and consider whether any outstanding debts are unlikely to be recovered. If so, you may be able to claim a tax deduction for those bad debts.
To be eligible for a deduction, you must:
- Have previously included the amount in your assessable income (i.e. invoiced the customer and recorded a sale)
- You need to be sure the debt is genuinely unrecoverable when you write it off. It’s not enough for the debt to just be overdue or uncertain—you must reasonably believe there’s no chance of getting paid.
- The debt must be formally written off in your books before 30 June.
- Document your efforts to recover the debt (e.g. Emails, letters, overdue notices, phone calls and or formal demands)
Call to action before 30 June 2025
- Review your aged receivables and follow up any long-overdue debt.
- Ensure you inform your bookkeeper and accountants of any bad debts that need to be written off
- Keep a detail record showing your efforts to recover the debt (you may need it for auditing purposes.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute teams or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
🚨 EOFY Reminder: Key ATO Deadlines Coming Up!
Upcoming key dates
21 June 2025:
- May 2025 BAS Lodgement & Payment (monthly lodgers)
25 June 2025:
- Deadline for lodging the 2025 Fringe Benefits Tax (FBT) return (with tax agent extension).
30 June 2025:
- Lodgement deadline for 2024 tax returns for those receiving Child Care Subsidy and Family Tax Benefit payments.
- Last day to submit a Notice of Intent (NOI) to claim a deduction for personal super contributions made in the 2023–24 financial year. (Must be submitted before you lodge your 2024 tax return, whichever comes first.)
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute teams or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Selling your business as a going concern
Selling your business as a going concern
Ordinarly if you sell your business, you will likely be liable for GST on the sale. However, if you sell as a going concern, the transaction will be GST-free.
A sale qualifies as a going concern if:
- Everything necessary for the business’s operation is included in the sale.
- The business activity is operated up until the sale date.
A sale of a going concern is GST-free if all of the following conditions are met:
- The sale involves a payment.
- The buyer is either registered or obligated to register for GST.
- Both the buyer and the seller have a written agreement stating that the sale qualifies as a going concern.
Can “going concern” apply to commercial properties?
Yes! “going concern” may apply to the sale of commercial properties in certain scenarios, such as:
- A commercial property that is subject to an active lease.
- A property that is essential to the operation of a business being sold.
- A fully tenanted building where all leases are included in the sale.
- A partially tenanted building, provided that vacant units are actively marketed or undergoing maintenance.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Things you should consider before a super rollover
Things to Consider Before a Super Rollover
- Insurances
Rolling over your super could cause any attached insurance policies to lapse, leaving you uninsured. Consult a financial advisor to review your insurance needs and consider alternatives, such as partial rollovers, to maintain coverage during the transition. It’s also wise to review your insurance if it’s outdated or your life circumstances have recently changed (e.g., marriage, a new family member or property purchase). - Notice of Intent (NOI)
If you’re planning to claim a tax deduction for personal super contributions, submit a valid NOI form to your current fund and receive acknowledgement before rolling over. Once the rollover is processed, you won’t be able to claim the deduction. - Payment Timing and Details
For SMSFs, rollover payments must be completed within three days. Use the Payment Reference Number (PRN) in the transfer description to ensure proper allocation. - Bank Daily Limits
Check your bank’s daily transfer limits if rolling over from an SMSF. If the limit is insufficient, request a temporary increase or coordinate multiple transactions with your accountant.
Additional Considerations:
- Fees: While super funds can’t charge exit fees, other costs like buy/sell spread fees may apply.
- Investment Options: Compare the investment options and returns of your new fund with your existing one.
- Lost Benefits: Check for member perks (e.g., discounted advice) that may not transfer to the new fund.
- Timing: Be mindful of market conditions, as fluctuations can affect your final balance.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Thinking of releasing equity in your home or investment property?
In recent months, we’ve seen the ATO ramp up its efforts to chase outstanding tax debts, with a significant increase in the issuance of Director Penalty Notices (DPNs), particularly to companies with larger debts ($75K and above).
A Director Penalty Notice (DPNs) is an ATO notice that makes company directors personally responsible for unpaid taxes like PAYG, super, or GST if their company doesn’t pay.
The recent surge includes DPNs related to tax debts that accumulated over time, particularly from the COVID-19 lockdown periods when enforcement was reduced.
If your business has overdue tax debts, it is crucial to have a clear plan to manage the debt by paying it or entering into a payment plan.
Directors who fail to act quickly can expect the following in addition to DPNs:
- Wind-up actions: The ATO has been actively pursuing the winding up of companies with unmanageable tax debts.
- Garnishee notices: These letters can be sent to your bank and customers, requiring them to pay the ATO directly instead of your business.
- Credit reporting: The ATO may also report your company's debt to credit reporting bureaus, impacting your ability to access future financing.
Don’t let tax debts spiral out of control. Now is the time to engage with the ATO or reach out to your accountant to assist you with managing and reducing your ATO liabilities.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Superannuation for contractors
Businesses engage contractors for specialised skills or to streamline costs. But keep in mind, that superannuation isn’t always off the table.
You generally don’t pay super for independent contractors. But, if the contract is wholly or principally for their labour, you might be liable. This applies even if they have an ABN, regardless of their earnings amount.
So, a seemingly genuine “contractor” might be classified as an “employee” under the Super Guarantee Act.
Here are the key factors that could trigger super on contractor payments:
- The individual is paid for their labour and skills
- The individual can't subcontract the work to someone else
- The individual is not paid to achieve a result or outcome
Tip: If the individual (i.e. independent contractor) is performing work for you through an entity such as a company or trust, they would not be considered an employee under the Super Guarantee Act.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Is there really a "Sales Gene"?
A recent study published in Harvard Business Review suggests that genetics may play a significant role in sales performance. Researchers from MIT Sloan found that top salespeople often possess “adaptive learning” skills, enabling them to quickly process information, adapt to changing customer needs, and identify selling opportunities in real-time.
It is easy to train people by repetition and sheer volume on memorising scripts and the use of simple yet effective language to convert leads into sales. However, “adaptive learning” is difficult and may be impossible to train.
So next time you are hiring for a position that requires an element of selling, consider adding assessments that measure candidates’ “adaptive learning” capabilities. This could include role-playing scenarios, problem-solving tasks, or even simple questions that test their ability to think on their feet.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Is a tax depreciation schedule worth it for your rental property?
Not all properties are created equal.
Newer properties often offer higher tax deductions from depreciation compared to older ones. However, even if your rental property is older, it’s still worth consulting a quantity surveyor specialist like BMT to assess its potential.
Additionally, if you’ve recently completed major renovations on your rental property, a depreciation schedule can be particularly valuable.
The fee payable to a licenced quantity surveyor specialist for preparing the tax depreciation is tax deductible too.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Will Australia ever get a 20+ year
fixed mortgage?
The idea of locking in a mortgage rate for two decades or more might seem like a pipe dream for Australian homeowners. Australian banks currently offer a maximum of 10-year fixed mortgage, however, other developed countries like the U.S. or France currently offer 25 or even 30-year fixed mortgage rates.
During a recent House of Representatives hearing, the CEO of National Australia Bank (NAB), Andrew Irvine, provided evidence on the popularity of variable-rate mortgages with offset accounts. While these accounts offer flexibility and potential savings, Labor MP Tania Lawrence argued that their popularity is partly due to the limited availability of other loan options, such as longer-term fixed rates.
The question of whether Australia will ever see 20+ year fixed mortgages remains unanswered. While there is a growing demand for such products, challenges such as interest rate risk and regulatory hurdles continue to hinder their widespread adoption.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Get Cashed Up
