Reminder from the ATO that its focus is on Businesses that use cash to avoid their tax and Business obligations.  

It stresses that this behaviour isn’t just a bad habit, it's a deliberate action that affects everyone and undermines the integrity of the tax system, erodes public trust and reduces funding for essential services. It also gives dodgy Business an unfair advantage over those doing the right thing. 

To detect Businesses that aren't doing the right thing the ATO is using sophisticated data and analytics and targeting cash-only Businesses that deliberately avoid their obligations.

The ATO encourage, don’t put your Business or workers at risk.  

If you are a small Business owner, it’s important to understand your responsibilities and take the steps to get it right.  

Have questions, need help? Blackburn Accounting is your Family Business Specialist. We can assist with all your taxation and accounting needs. Contact us today. 

Payday Super is a change to how you calculate and when you pay your employees’ super guarantee.  

From 1 July 2026. Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. 

There are some exceptions to the 7-day deadline, such as for new employees. 

Need help, have questions contact us today, Blackburn Accounting. Let us help you navigate the changes. We also offer a range of services to support small and family Businesses which include Family Business Management, Cashflow Mangement and Business Development.

The ATO also provides information on their website. 

The Tax Office is taking compliance seriously. 

This recent message from the Tax Office highlights the need for Insurance brokers to provide details of customers with high-value assets. If you have any of these, luxury vehicles, fine art, aircraft or motorhomes the ATO is keen to know! 

And Employers have been put on notice to ensure compulsory superannuation payments are on time as new details emerge about the rollout of ‘payday super’. The ATO has released a Fact Sheet targeting employers and employees to explain how the system will work when changes kick in on July 1, 2026. More about this to come! 

If this information raises any questions, contact Blackburn Accounting. We are your family Business specialists, available to advise on all your Taxation and Accounting matters.  

Planning is at the heart of achieving the best results and outcomes whatever task, activity or goal you are pursuing!

Simply put, planning is deciding in advance what to do, how to do it, when and who should do it! 

So, when it comes to managing your Business and personal financial affairs and tax obligations, doesn’t it make sound business sense to adopt a ‘tax planning’ strategy. If you are one of the smart operators, you have answered Yes!

Tell me more!

Tax planning is:

• the process of analysing financial affairs from a taxation perspective, with the aim to achieve tax efficiency. That means arranging your affairs, (your financial plan) and functioning to keep your tax to a minimum within the intent of tax laws. Be aware of tax schemes outside the bounds of the law will attract ATO attention.
• an important process that benefits Businesses to plan for their tax requirements. For example, by using deductions to reduce the total taxable income, such as structuring salaries and appropriate business planning.
• proactive planning and structuring all about flexibility, whether you are an existing Business, starting new, thinking retirement, or overseas opportunities. The right fit, structure and ownership model influence many areas, including tax planning and regulatory compliance, asset protection, wealth creation through business, growth and succession.
• compliance with statutory and regulatory reporting requirements.

What is the ATO looking at in 2024! 

The Australian Taxation Office (ATO) has announced it will be taking a close look at three common errors being made by taxpayers:

• Incorrectly claiming work-related expenses
• Inflating claims for rental properties
• Failing to include all income when lodging.

According to the ATO assistant Commissioner ‘the ATO is focused on supporting taxpayers to get their lodgement right the first time’. The above areas are where mistakes are most likely to occur, genuine errors but also sometimes deliberate. Taxpayers are being encouraged to get it right the first time.

• Work-related expenses

Last year, the ATO revised the fixed rate method of calculating a working-from-home deduction to broaden what is included, increase the rate, and adjust the records taxpayers need to keep.These changes are now in full effect this financial year, meaning you must have comprehensive records to substantiate your claims as you would for any other deduction. Important care needs to be taken as other home-related deductions such as internet expenses cannot be claimed if you choose to use the working-from-home deduction option.

If you are one of the many Taxpayers hoping for a tax refund it is crucial to submit your return ‘right’!

That is, submit it with all the necessary supporting documentation. This step can save you and the ATO time and effort.

And with Tax Time fast approaching,

• it is a timely reminder to start now and get your ‘paperwork in order’.  
• Also, make sure you have all the ‘evidence’, such as receipts, to substantiate your claims for deductions.  This applies to all claims.
• Be aware, the ATO recently announced it is putting the microscope on tax deductions. Remote workers, landlords and workers taking a liberal approach when claiming travel expenses can expect scrutiny as part of a compliance crackdown. 
• Have a job second that generates income remember to declare it! Freelancers, Influencers are also on the ATO's radar. 
• Taxpayers, those ‘work-from-homers' are reminded of the changes to the generous tax concessions offered during the pandemic. Changes, effective from March 1 this year. Anyone making these claims must now prove how much time they spent working from home and what were actual work expenses, not to be confused with household expenses.

 To claim or not to claim! 

It’s important to know what a legitimate claim is and isn’t and that can be confusing. Avoid mistakes, if you need advice contact Blackburn Accounting, we are experienced and available to help you maximise your return within the ATO guidelines.   

With costs of living spiraling what better way to add to your cashflow than with a tax refund cheque! 

If you have been organised, Tax Time doesn’t create a paperwork nightmare. Files are orderly, and you have your ‘Business’ matters tidy and in order.  

On the other hand, if you have been less diligent, you might find the shoe-box overflowing with receipts or the bottom drawer in disarray, a collection of bits and pieces. But don’t despair, start preparing now with these 7 Tips.  

1. Getting ready – start by sorting and filing, whether you are lodging your own return or have an agent. DIY, need advice, contact Blackburn Accounting, we can help take the stress out of tax time. 

2. Missing documents – don't wait to follow up if you need copies of receipts or expense records. Many deductions need supporting evidence to verify. 

 It's that time of year! 

Follow these 7 Tips to take the worry out of your Tax-Time. 

1. Prepare now. Start gathering all the information you need.  Receipts, tabs stored in a shoebox or bottom drawer, it’s time to take action. Sort, file, label and get your records up to date. You will need documents such as Income statements, bank statements, investment records, and private health insurance statements. If you are self-employed or a freelancer, you need Business income and expense records. 

2. Getting it right the first time saves both you, your accountant and ATO Office valuable time, work and effort.  Make sure your end of year Income Statement is complete with all relevant details before submitting. Don’t guess vital facts. Mistakes can be costly, causing delays in processing and attracting potential penalties. It also slows down receiving your refund if you are due.  

3. Declare all sources of income. This includes all types of employment and occupations, such as ‘side-hustles’, or selling services via an app. Each source of income will have different deductions available, depending on the nature of the income and the occupation. 

   Read more...

The following tips will help guide you when preparing this year's tax return, whether you or a Professional are lodging it.

1. Get it Right the first time

2. Support deductions with evidence

3. Know what is ‘claimable’

1.Getting it ‘right’ the first time saves both you and the ATO time and effort. Make sure your end of year Income Statement is complete with all relevant facts. Don’t guess vital information and avoid submitting incorrect or misleading data. Mistakes can cause delays in processing, there is potential for penalties and can slow down receiving a refund if due.

2.Support your deductions with evidence. If you are claiming any expenses, such as ‘remote’ or working from home costs be prepared to provide proof, (receipts/ documents) to support eligibility. All deductions require evidence to back a claim.

3.Know what is claimable. Know what you are entitled to claim! For example, work-related education and training and donations to charitable organisations. Also, subscriptions, union and membership fees if they are work related. But remember if your company pays for them, you are not entitled to claim the cost.

Call on an expert to help you get the most out of your hard work and tax dollar!

Contact Blackburn Accounting, we tick all the boxes when it comes to tax matters.

We will work closely with you to help avoid any mistakes, to stay in compliance with tax laws and make sure you claim all the deductions you are entitled to.  Don't delay, contact us now to make your appointment.

• ATO General interest charges are no longer tax-deductible. 

From 1 July 2025, interest charged by the ATO for late payments or underpayments will no longer be tax deductible.  

• Super Guarantee (SG), from 1 July 2025, will increase to 12%. 

Message from the ATO. ‘The 12% rate will need to be applied for all salary and wages paid to eligible workers on and after 1 July. This is even if some or all of the pay period it relates to is before 1 July. This is the final scheduled increase’. 

Don’t hesitate, contact Blackburn Accounting if you have any questions or concerns regarding these changes or enquiries about other taxation matters. 

If you are a small Business operator, as the dust settles, you may be wondering how this Budget affects you. 

The Budget brought a mix of tax changes, regulatory reforms, and investment incentives. Depending on your Business circumstances, the announced measures can impact you differently.  

Blackburn Accounting can help navigate the changes and provide professional advice. To stay up to date, we are monitoring the latest announcements as they come to hand. Don’t second-guess or put it off. Contact us today. 

Instant Asset Write-off 

• The $20,000 Federal Government instant asset write-off will become a permanent tax scheme available to small Business owners. 

• This allows eligible small Business owners to claim immediate deductions for new or second-hand plant and equipment asset purchases, such as, tools, office equipment, and vehicles. 

• The assets must first be used or installed for use in the income year you are claiming for. 

Are you an enterprising entrepreneur participating in the ‘gig’ economy? 

Yes!  

With the summer holidays, a busy time of the year for some, your side activities may be popular and well patronised. If so, be prepared for your next tax-time reporting. 

But whatever your product, goods or service, be aware that income generated from side-hustles is now in focus by the ATO. 

With record numbers of taxpayers now working multiple jobs or supplementing their income with ‘side hustles’ or ‘gig’ economy activities, the ATO is reminding taxpayers to declare all their income when lodging their tax returns. 

Earnings are no longer hidden. Digital service platforms are now legally required to report income earned by their users under the Sharing Economy Reporting Regime  (SERR). 

 How is your Business heartbeat! Is it pumping steadily? 

Is your Business flourishing, functioning at full capacity or coughing and spluttering along. 

Not well!  

Don't put it off, seek help! 

• Just as we are encouraged to look after our own health with an annual check-up, it makes good sense to undertake a health check of your Business.  
• We all know the importance of having our body's major systems running smoothly and effectively to let us enjoy our activities, work, leisure and play. Our check-ups are the means to assess functioning ability and detect any problems. No different to your Business, a Health Check-up will assess components, measure performance, and identify deficiencies, and ailments. It will also reveal what is working well.  
• In essence, a full diagnosis provides a current and comprehensive review of the Business financial stability, compliance risk, structure and key operational functions and processes. It allows you to see the ‘results’ and know the actual health of your Business! Importantly, if any ‘signs of disease’ determine what treatment is needed if any. 

The benefits of undertaking a Business Health Check-up are many! 

Let’s start with the top 7 areas to examine: 

1. Goal Setting 

2. Financial Status 

3. Mental Health & Wellbeing 

4. Workplace Safety 

5. Policies, Processes & Procedures 

6. Marketing 

7. Seek expert help if needed 

1. Goal Setting: Provides a solid framework or skeleton, supporting your Vision and Mission statements that are both inspirational and motivational forces. Having well defined goals with a set of criteria helps you take control of your Business direction, provides guidance and the opportunity to monitor targets and outcomes.  Following the SMART goal setting method is an option. 

2. Financial Status: Debt, earnings and equity! Finances, the heart of every Business. Know your bottom line! A complete examination looks at stability, profitability, cashflow, and balance sheet. We all need a healthy heart beating! 

The headlines say it all! Read and decide for yourself if this is the Budget to save our nation!

Highlights for Taxpayers and Small Business include:

New Tax cuts for every Australian Taxpayer:

The Government will deliver more tax cuts to all Australian taxpayers, to be delivered over the next two years.  

• From 1 July 2026, the 16 per cent tax rate, which applies to taxable income between $18,201 and $45,000, will be reduced to 15 per cent. 

• From 1 July 2027, this tax rate will be reduced further to 14 per cent. 

Supporting Small Businesses 

Easing the pressure on small Business:  

• The Government is extending energy bill relief for six months to the end of 2025. Around one million eligible small businesses will receive up to $150 in rebates directly off their bills.  

• The Energy Efficiency Grants for Small and Medium Sized Enterprises program is providing $56.7 million in grants of up to $25,000 to over 2,400 businesses, funding a range of energy upgrades, such as replacing inefficient appliances and improving heating systems. 

• The Government is supporting the hospitality sector and alcohol producers, by pausing indexation on draught beer excise and excise equivalent customs duty rates and by support available under the existing Excise remission scheme for manufacturers of alcoholic beverages and Wine Equalisation Tax Producer rebate.  

• In addition, the Government expects around 1.5 million sole traders to benefit from the Government’s tax cuts for every taxpayer. 

Levelling the playing field: 

• The Government will work with states and territories on extending Unfair Trading Practices protections to small businesses. 

• The Government is providing $7.1 million over two years to strengthen the Australian Competition and Consumer Commission’s enforcement of the Franchising Code. The Government will extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, subject to consultation. 

Digital and Cyber security supports:

The Festive season is upon us! A time of celebration and giving of gifts! 

As a Business, an Employer you might be planning a Christmas party and the giving of gifts to employees and Business Associates.

There are associated costs, and you might not be sure what falls under the ATO Rules. Here are some helpful tips. 

Christmas Parties and Gifts 

If your business holds a Christmas party:

• on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink
• off your business premises, or the party includes associates of employees (such as their partners), you don't pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit
• that includes clients, you don't pay FBT for the costs relating to the clients.

If you give your employees a Christmas gift, you don't pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.

If the Christmas party is not subject to FBT, you can't claim income tax deductions for the cost of the party.

Have questions, want guidance or assistance contact Blackburn Accounting.  

We can help you with tax matters, decorations and gifting of gifts. 

Read the story! You decide!

The Big Mac Index so described by the Economist has seen the price of McDonalds burgers more than tripled in the 40 years of reporting. And they are still in the business of selling burgers to the masses!

What is this index? The Big Mac Index published since 1986 measures the cost of a Big Mac in different countries and indicates the difference in purchasing power parity between them.  

How did McDonalds do it!

McDonalds generic competitive and growth strategies are designed to maximize efficiency, minimize costs and ensure profitability. Its pricing strategy includes price bundling along with psychological pricing that encourages customers to buy more products. Its a formulae for success as profits indicate.

 A different approach is used by another mega US retailer. Their strategy aims to keep prices steady following a business model, described by the company’s finance boss as ‘arrogantly simple’, to hook shoppers by offering high-quality products at the lowest prices.’  The company attributes its enduring success to this approach.  

What’s your Business model?  What Strategies do you use to be competitive!

During this period of inflationary pressures and price increases running a successful Business is challenging for most, whatever your industry.

You may be one of them, a small Business owner, faced with the rising costs of doing business. Increased costs for supplies, commodities, labour and energy. How do you tackle setting price points that keep customers happy while still maintaining reasonable profit margins.  It's push - pull economics! 

For example, a recent news headline ‘price hike on the menu for Aussie pub classic’ suggests possible further price increases to menu favourites Burgers, nuggets and chicken fillets. This follows as a major poultry producer warning of higher production costs that will need to be recovered.

Similar sentiments expressed by a local hairdresser, saying he was forced to absorb rising costs to avoid passing them onto his customers and possibly losing them as price can be the difference between someone coming to his salon or going somewhere else. He cited increased costs of electricity, rent, products and superannuation, and is the hardest time we've ever known at running a business. 

 Are there any answers, solutions! 

Yes, consider these Strategies.

Look at margins: Most retailers boost profits by marking up prices. Short term cost impacts can be managed thru margin initiatives, but these need careful planning to avoid losing customers.  Engaging with your customers is critical during these times

Case Study

Scenario 1:  Dad has verbally told his children that the Business will be left to his son, and his personal assets will go to his daughter. No one wants to think about Dad leaving the Business or his eventual passing away, so the sensitive conversation about formal arrangements is avoided. We are family, all will be ok! 

In reality, without a legal document, this verbal arrangement can be fraught with problems. The family assumes the Business will pass on according to the will, not realizing it’s legally separate and governed by a family trust. Dad does not own the Business directly. This leaves a fragmented and unplanned outcome for all concerned.

Need advice or if you want to have the hard conversation, we are here. Contact Blackburn Accounting, your Family Business Specialist, we can help you with Succession Planning, Financial structures, Strategic Planning and more! 

Scenario 2:

Dad, Jack, founder of the Business, a local hardware store, recognises the importance of Business structures in providing a clear framework for the Business unit.

Structure and the right structure are critical to ensure the best for all concerned. This should reflect your family’s values, decision-making style and strategies for growth. It’s more than just tax matters, it should provide protection, legacy, relationships and control. 

Types of Business structure include: 

• Sole Trader 

• Partnership 

• Company 

• Trust  

Considerations when setting up will depend on your personal circumstances, the type and size of your Business and how much you want to grow or expand the Business, who is involved. Considerations include: 

• Asset protection 

• Any ongoing costs 

• How the entity will be taxed regarding income, capital gains and land tax 

• Control and succession 

• Exit strategy 

• Flexibility to adjust as circumstances change 

Your Business structure determines your: 

Case Study: Scenario 1: 

A good news story!

A Family Business of 50 years is enjoying the benefits and reaping the rewards of a smooth transition as the next generation takes the reins.  

The founders, parents Mike and Mary, are stepping back confident that their early Succession Planning is paying off. Their legacy is embedded. A local Business, the brand remains family-owned, WA-based, providing locally crafted goods. And the next generation is passionate about keeping it that way. It is Business as usual for all concerned, staff, customers and suppliers. Everyone is a winner in this situation. 

Scenario 2: 

Even the most successful of Businesses and Business Leaders will share their experiences of setbacks, mistakes and sometimes failures along their journeys. The common thread is their willingness to speak of ‘lessons learned’ that turned these stumbles into opportunities. Opportunities for growth, improvement and overcoming challenges.

Capturing lessons learned provides a valuable opportunity to reflect on past events and experiences and identify areas for improvement. This allows Business and Teams to gain insight and understanding into what worked well and what didn’t.  

Most importantly how and what can be done differently next time to avoid making the same mistake twice. 

3 Reasons Why Lessons Learned are Important 

1. Avoids Reinventing the Wheel – saves money! Reflect, evaluate and record lessons learned to guide the future. Essential to document the tools and techniques used to help you and others save time and money going forward. 

2. Don’t Make the Same Mistake Twice – it’s been said a million times before but still resonates.  To quote Albert Einstein ‘if we cannot remember our past mistakes and avoid them, we are simply going to make the same mistakes again.’  The key is to document the lessons learned, sharing and revisiting them to ensure the same mistakes are not repeated. 

3. Reflection – provides the opportunity to review both ‘failures and successes’.  It's important to relive success as a reminder of how to succeed and how to build on that.  Analyse what made the venture a success to take to future projects.

No matter what the Project, Business venture, or Political Campaign undertaking a Lessons Learned exercise is invaluable in understanding what went wrong, and critically how to avoid making the same mistakes in the future.