admin.dlkadvisory, Author at DLK Advisory

What’s the difference between tax deductions and tax offsets?

Admin 26th May, 2026

With the 2026–2027 Federal Budget announcing both a new $1,000 standard work-related expenses deduction and a $250 working Australians tax offset (WATO) for future financial years, you might be wondering about the difference between these two types of tax benefits. While both deductions and offsets can reduce how much tax you pay, they work in quite different ways, and understanding this can help you make better decisions about your tax planning.

What are tax deductions?

Tax deductions reduce your taxable income before your tax is calculated. Think of them as amounts that our tax laws allow you or your tax agent to subtract from your income when working out how much tax you owe. Common deductions you might already claim include: work-related expenses like uniforms or tools; gifts and donations to registered charities; investment property expenses; and costs of managing your tax affairs, such as tax agent fees. For example, if you earn $60,000 and claim $2,000 in work-related deductions, your taxable income becomes $58,000, and you then pay tax on this reduced amount. The value of a deduction depends on your marginal tax rate—for example, a $1,000 deduction may save a resident taxpayer around $300 if their marginal tax rate is 30%, or $160 if their marginal tax rate is 16%, ignoring Medicare levy and other factors.

What are tax offsets?

Tax offsets work differently: they directly reduce the actual tax you owe, dollar for dollar, and are applied after your tax has been calculated on your taxable income. You might already receive offsets such as the low income tax offset (LITO) of up to $700 for those with taxable income under $66,667; seniors and pensioners tax offset (SAPTO) for eligible pensioners; private health insurance rebate (a rebate is the same as an offset); or spouse superannuation contribution offset. For example, if you have taxable income of $30,000 and owe $1,888 in tax, then receive a $700 LITO, your final tax bill becomes $1,188.

Why the difference matters

Understanding this distinction can help you prioritise your tax planning strategies. A $1,000 offset is always worth exactly $1,000 off your tax bill (if you have at least $1,000 of income to absorb it), while a $1,000 deduction might save you anywhere from $160 to $450 in income tax depending on your tax bracket. This is why the government’s Budget announcement of both types of measure is significant. The working Australians tax offset (WATO) provides an annual tax offset of up to $250 from the 2027–2028 income year for all eligible Australian workers, while the standard tax deduction of up to $1,000 from 2026–2027 allows workers to lower their taxable income from work by $1,000 without keeping receipts when they lodge their tax return. A $1,000 tax deduction could benefit some higher income earners more than lower income earners, while the (up to) $250 working Australians tax offset will provide the same dollar benefit to most of the 13 million Australian workers expected to receive the full $250 offset.

Most offsets aren’t refundable

There’s another important point to note: most tax offsets can only reduce your tax to zero, not below. If you don’t owe any tax, you typically won’t receive the offset as a cash payment, although some offsets like the private health insurance rebate are refundable.

Planning ahead

While the newly announced measures will not apply to 2025–2026 tax returns, it’s worth reviewing your current deductions and offsets—are you claiming all the deductions you’re entitled to, and are you receiving all available offsets? The ATO automatically calculates some offsets like LITO when you lodge, but others need to be claimed in the offsets section of your tax return.

Get professional advice

Tax planning involves balancing many moving parts, and the interaction between deductions, offsets and your overall financial situation can be complex. We can review your specific circumstances to help you understand your entitlements and make the most of the opportunities, so talk to us today.

Understanding your super contribution options

Admin 20th May, 2026

Navigating the types and limits of superannuation contributions can feel like decoding a complex puzzle. But understanding the difference between concessional and non-concessional contributions is crucial to maximising your retirement savings while avoiding unnecessary tax penalties.

What are concessional contributions?

Concessional contributions are generally made from your before-tax income and include: employer super guarantee contributions; and salary sacrifice contributions. Concessional contributions also include: after-tax personal contributions you claim as a tax deduction; paid parental leave super contributions; and after-tax contributions from certain third parties to your super fund – including parents and friends, or your spouse who lives separately and apart on a permanent basis. Note that spouse contributions and contributions from parents to children under the age of 18 are not concessional contributions. Concessional contributions are taxed at 15% within the fund (with the tax paid from your contributions), making this an effective way to reduce your overall tax burden while building retirement savings. The annual limit on concessional contributions for 2025–2026 is generally $30,000, depending on your total superannuation balance and other factors.

What are non-concessional contributions?

Non-concessional contributions come from amounts that have already been taxed and don’t attract additional tax unless you exceed the cap. These include: spouse contributions (where your spouse isn’t your employer); contributions for a child under 18 (if the contributor is not the child’s employer); personal contributions from your after-tax salary that you don’t claim as a personal tax deduction; excess concessional contributions not released from your fund; and most transfers from foreign super funds. The annual limit on non-concessional contributions for 2025–2026 is generally $120,000, depending on your total super balance and other factors.

Special exclusions to take into account

Certain contributions don’t count towards your non-concessional cap: contributions of certain CGT exempt sale proceeds from your small business; personal injury payments; downsizer contributions from home sales; government co-contributions; and re-contributions of COVID-19 early release amounts. Apart from government co-contributions, you must specifically request these exclusions using the appropriate forms before or when making contributions.

The importance of contribution caps

Your superannuation enjoys preferential tax treatment, but this comes with limits. If you exceed the annual limits that apply to you, higher tax rates apply to those contributions above your limit. All contributions across multiple funds count towards your caps, so careful tracking is essential. High-income earners earning over $250,000 (including concessional super contributions) may also face an extra 15% tax on some of their concessional contributions.

Key takeaways

Understanding contribution types helps you: maximise tax benefits through strategic contribution timing; avoid excess contribution penalties; plan effectively for retirement; and take advantage of available exemptions and exclusions. Remember that your age, work status and total super balance can also affect contribution eligibility and fund acceptance rules. Strategic planning becomes increasingly important as your circumstances change throughout your working life and as you approach retirement.

Need personalised advice?

Super contribution rules are complex and your circumstances are unique. For detailed guidance on optimising your contribution strategy and understanding how these rules apply to your situation, visit the ATO website and speak with your professional tax adviser.

2026 – 27 Federal Budget Update

Admin 15th May, 2026

The 2026 – 27 Federal Budget introduces a range of significant tax and policy measures impacting individuals, property investors, and private groups. The reforms are set against a backdrop of persistent cost of living pressures, elevated interest rates, global uncertainty, and a continued focus on fiscal sustainability.

Many measures are proposed to apply from 1 July 2027 or later and remain subject to consultation and legislative refinement. As such, further detail will be critical in assessing their full impact.

Key Tax Measures

Capital Gains Tax (CGT) Reform

From 1 July 2027, the Government proposes to:

Replace the existing 50% CGT discount with an inflation-based indexation method
Introduce a 30% minimum tax on net capital gains

Practical implications:

Taxpayers may need to obtain market valuations of assets as at 1 July 2027
Existing accrued gains up to that date are expected to retain current CGT treatment under transitional rules
Investment strategies and asset allocation decisions may require reassessment
The application of the minimum tax to superannuation funds and managed investment vehicles remains unclear

Overall, these changes represent a fundamental shift in the taxation of capital and may reduce the attractiveness of long-term passive investment strategies relative to other asset classes.

Negative Gearing – Residential Property

From 1 July 2027, negative gearing concessions for residential property will be limited.

Losses on established residential properties will be ring-fenced
These losses can only be offset against:
- Rental income, or
- Future capital gains from residential property
Losses will no longer offset salary or business income
Grandfathering applies to existing holdings (including contracts entered prior to Budget night)
Exclusions include:

- New residential developments
- Superannuation funds (including SMSFs)
- Widely held trusts and build-to-rent projects
- Certain government-supported housing investments

This measure is expected to influence investor behaviour, gearing strategies, and ownership structures, particularly in the residential property market.

Minimum Tax on Discretionary Trusts

From 1 July 2028, a 30% minimum tax is proposed on discretionary trust income.

Tax will apply at the trustee level, with beneficiaries generally receiving tax credits
Aimed at limiting income splitting and the use of bucket company structures
Exclusions include:
Fixed and widely held trusts
Complying superannuation funds
Deceased estates and charitable trusts
Special disability trusts

These changes are expected to significantly impact family groups and may necessitate review or restructuring of existing trust arrangements, subject to the availability of anticipated transitional relief.

Business Tax Measures

Several measures are aimed at supporting business cashflow and investment:

Loss carry-back
Companies (turnover under $1 billion) can offset current losses against profits from the previous two years (from 1 July 2026), subject to franking constraints
Instant asset write-off
The $20,000 threshold will become permanent from 1 July 2026 for businesses with turnover up to $10 million
Start-up support
Early-stage businesses may access refundable tax offsets for losses in initial years (from 1 July 2028, subject to limits)

These measures provide targeted relief, particularly for SMEs and growing businesses.

Research & Development (R&D) Tax Incentive

From 1 July 2028, the R&D incentive will be re-focused:

Increased support for core R&D activities
Reduced benefits for supporting (non-core) expenditure
Introduction of tighter thresholds and limitations on refundability

Businesses undertaking R&D should review project eligibility, expenditure categorisation, and expected cashflow impacts.

Venture Capital and Investment Incentives

Increased thresholds under VCLP and ESVCLP regimes to support larger investments
Measures aimed at encouraging innovation and growth-stage funding

These changes may enhance access to capital for emerging businesses.

Personal Tax Measures

Working Australians Tax Offset (WATO)
$250 annual offset from 1 July 2027
Standard deduction for work-related expenses
$1,000 deduction from the 2026–27 income year without substantiation
Personal income tax cuts (previously legislated)
The 16% rate reduces to:
- 15% from 1 July 2026
- 14% from 1 July 2027
Medicare levy thresholds to increase from 1 July 2025

These measures aim to provide modest cost-of-living relief and reduce compliance burden.

Other Measures

Electric vehicle FBT concessions to be phased down, moving to a 25% concession from 1 April 2029
PAYG instalments expected to become more dynamic and software-driven from 1 July 2027
Foreign resident CGT changes expanding the definition of taxable Australian property (including retrospective elements)
Pillar Two global minimum tax alignment from 1 January 2026

Economic Context and Policy Direction

The Budget reflects a broader policy shift focused on:

Productivity and investment in innovation
Housing supply and generational equity
Energy security and economic resilience
Fiscal sustainability and revenue integrity

Key structural themes include:

Reduced reliance on tax concessions for asset-based wealth (property and trusts)
Increased focus on labour income support and business investment
Measures aimed at encouraging capital into productive economic activity

DLK Advisory Commentary

The 2026 – 27 Budget represents a material shift in Australia’s tax landscape, particularly in relation to capital taxation and private wealth structures.

While the measures are significant, they are largely targeted rather than forming part of a comprehensive tax reform framework. This raises the potential for increased complexity and unintended interactions between rules.

Importantly:

Many measures are not yet legislated
Transitional rules and detailed design will be critical
A backlog of announced but unenacted measures continues to create uncertainty

What This Means

Clients should consider:

Reviewing long-held investment positions, particularly in light of CGT reform
Assessing property investment strategies and gearing approaches
Re-evaluating trust structures and distribution strategies
Modelling the cashflow and tax impact of proposed changes ahead of implementation

Next Steps

DLK Advisory recommends:

Early engagement to model the impact of proposed reforms
Identifying opportunities for restructuring or repositioning ahead of commencement dates
Monitoring ongoing consultation and legislative developments closely

DLK Advisory will continue to provide updates as further detail becomes available.

Will the proposed $1,000 instant tax deduction benefit you?

Admin 13th May, 2026

You may have heard about the Federal Government’s proposed $1,000 “instant” tax deduction for work-related expenses. Before you get excited about potential savings, it’s worth understanding who may benefit, when it could apply, and whether it would be better than claiming your actual expenses.

What’s being proposed?

The Government has released draft legislation for a new standard deduction of up to $1,000 for eligible taxpayers. The aim is to simplify tax returns by allowing people with smaller work-related expenses to claim a set amount without the need to substantiate actual expenses. If introduced, this would replace the current $300 no-receipt threshold and the separate $150 laundry concession. However, this is still just a proposal and is not yet before Parliament. If passed, it would apply from the 2026–2027 financial year, meaning it won’t help with 2025–2026 returns.

The deduction would be available to Australian tax residents earning assessable labour income, including salary and wages and certain PAYG-withheld payments such as director fees, termination payments, and parental leave pay. The deduction is capped at the lesser of $1,000 or total assessable labour income.

How much could you actually save?

A deduction reduces taxable income, not a direct cash refund, so the benefit depends on your tax rate. For example, someone on a 30% tax rate could save up to $300, while higher income earners could save up to $450 (or $470 including Medicare levy). The Government estimates 6.2 million taxpayers may benefit, with average savings of $205. However, if you already claim more than $1,000, you may be better off keeping receipts and claiming actual expenses. ATO data shows the average claim was $2,739 and the median $1,338, suggesting many taxpayers may not benefit financially, though those near $1,000 may value reduced record-keeping.

What expenses would count?

The deduction would cover home office costs, work clothing and uniforms, tools and equipment, work-related car expenses, and stationery and supplies. You could still claim certain items on top of the $1,000, including charitable donations, union fees, income protection insurance, and investment-related expenses.

Low-value pool changes:

From 2026–2027, you would no longer be able to allocate assets to a low-value pool where they are mainly used to produce assessable labour income. This applies only to new allocations and won’t affect existing assets, but it may slow down deductions for items like computers or tools.

What should you do?

Remember this is still a proposed change. Consider whether you typically claim more or less than $1,000—if more, the standard deduction may not benefit you. Tax changes can have unexpected consequences, so if you want to optimise your deduction strategy, contact our office to discuss your circumstances and ensure you’re maximising your legitimate tax benefits.

Fuel tax credit rates changed from 1 April 2026

Admin 5th May, 2026

If you’re a sole trader or small business owner claiming fuel tax credits, it’s important to know that fuel tax credit rates have changed from 1 April 2026. While the change may seem minor, using the wrong rate could affect the amount you claim and may lead to errors in your Business Activity Statement (BAS) or tax reporting.

Fuel tax credits allow eligible businesses to claim back the fuel tax included in the price of fuel used for business activities, such as running heavy vehicles, machinery, generators or equipment.

What’s changed? The Australian Government temporarily cut fuel excise on petrol and diesel for three months. Because fuel tax credits are based on the amount of excise included in the fuel price, the reduction in excise has directly reduced the credit businesses can claim in the 3 month period from 1 April 2026.

This means: fuel bought before 1 April 2026 must be claimed at the old rate; and fuel bought on or after 1 April 2026 must be claimed at the new rate. If you purchased fuel across both periods, you may need to use two different rates when calculating your claim. You can find the latest fuel tax credit rates on the ATO website.

Why this matters

Your claim amount may change. Even a small rate adjustment can affect the total amount you’re entitled to claim, particularly if fuel is a regular business expense. Using the updated rates ensures you are claiming the correct amount.

Good record keeping is essential. To claim accurately, you need records that show when fuel was purchased, how much was bought, and that it was used for eligible business purposes. This is especially important if you’re preparing your own BAS.

Errors may delay or affect your return. Using the wrong fuel tax credit rate may result in overclaiming or underclaiming. This can lead to BAS corrections later, or delays if the ATO reviews your claim.

Fuel costs affect cash flow. Fuel tax credits can provide valuable cash flow support, perhaps especially for sole traders and contractors. Claiming the right amount helps ensure you receive the full benefit available.

What you should do now. If you claim fuel tax credits, review any fuel purchases made from 1 April 2026 onward and make sure you’re applying the updated rate. The ATO offers an online fuel tax credit calculator to help work out the correct amount based on the fuel type, purchase date and business use. Staying on top of rate changes helps keep your BAS accurate and ensures you don’t miss out on valuable tax credits.

Understanding your redundancy payout

Admin 28th April, 2026

If you’re facing redundancy, the stress of job loss can be compounded by uncertainty about how your final payout will be taxed and what happens to your superannuation. Understanding the different components of your redundancy package is crucial, as each part may be treated differently for tax purposes.

What makes up your redundancy package?
A redundancy package is rarely a single payment for tax purposes. Your final payout may include several components that are taxed differently, including: genuine redundancy payment; unpaid salary and wages; payment in lieu of notice; unused annual leave; unused long service leave; and employment termination payments (ETPs).

Genuine redundancy payments
A genuine redundancy occurs when your employer decides your job no longer exists and terminates your employment as a result. If your payment qualifies as a genuine redundancy, part of it may be tax-free, up to an indexed limit that’s made up of a base amount plus an amount for each completed year of service. For 2025–2026, the tax-free limit is $13,100 plus $6,552 for each completed year of service. Any amount above this limit is generally treated as an ETP and taxed under different rules from your normal salary and wages.

What’s excluded from genuine redundancy treatment
Not all amounts in your package qualify for genuine redundancy treatment. The ATO excludes amounts such as: unpaid salary and wages; unused annual leave; unused long service leave; and payments made in lieu of superannuation benefits. These amounts are taxed and reported separately, so it’s important to ask your employer for a clear breakdown rather than assuming the entire package receives the same tax treatment.

Superannuation implications
Super guarantee contributions are payable on your final salary and wage amounts, and any commissions and bonuses that are part of your ordinary earnings. If your employer pays you out for the notice period instead of having you work it (known as “payment in lieu of notice”), this also attracts super. Generally, you won’t get super on ETPs, your genuine redundancy payment, or amounts paid out for your unused annual leave, long service leave or personal/sick leave. The super treatment can be a little different if you’re employed under an Award or agreement – sometimes industrial agreements or employment contracts include conditions that require your employer to pay super on more components of your redundancy package.

Centrelink considerations
If you may need to claim a JobSeeker Payment, timing matters. Redundancy and leave payments can create an income maintenance period, which may delay when your first payment starts. Services Australia indicates that waiting periods can apply, and an Employment Separation Certificate may be required to assess your eligibility.

What you should do
Ask your employer for a detailed breakdown that shows each component of your termination payment. Keep all separation paperwork and compare it with what appears in myGov and your income statement. This preparation can make tax time easier and help you understand any Centrelink waiting periods.

Seek professional advice
Because redundancy can have flow-on effects for tax, super, cash flow and government payments, this is an area where general information only goes so far. The rules are detailed and your package may be complex. Speak with your registered tax agent and, where appropriate, a licensed financial adviser about your specific circumstances before making decisions.

Super and tax obligations when you employ working holiday makers

Admin 21st April, 2026

If you employ working holiday makers, there are no special rules for your mandatory super contributions. You must treat them like resident employees by contributing 12% of their earnings to a fund in their name, giving them a choice of fund, and making the super contributions on time.

Super contributions must be received in your employee’s fund by 28 July 2026 for this last quarter of the financial year, or within seven business days of every payday from 1 July 2026 (the same rules that apply to resident employees). Otherwise you may be liable for the superannuation guarantee charge.

However for tax, there are difference in your obligations for working holiday makers compared to resident employees.

What is a working holiday maker?
Working holiday makers (WHMs) are temporary visitors to Australia who hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462). This definition is important for tax purposes, as tax must be withheld at special rates for WHMs.

Your obligations when employing WHMs
Check legal entitlement to work: you must take reasonable steps to check that a person is legally entitled to work in Australia before they start employment.

Visa conditions: you need to ensure the employee’s work complies with their visa conditions. You can check an employee’s visa conditions on the Australian Government’s Visa Entitlement Verification Online (VEVO) system.

Register with the ATO as a WHM employer: penalties may apply if you fail to register with the ATO as an employer of WHMs.

Withhold tax at the special WHM rates: registered employers of WHMs must withhold tax at the rate of 15% from the first dollar your WHM earns up to $45,000. Tax rates change for amounts above $45,000.

What if you’re not registered as a WHM employer?
Penalties may apply if you employ someone with a visa subclass 417 or 462, but don’t register as an employer of WHMs.

Addressing questions from your WHMs
Understanding some general basics can help you answer frequent questions without overstepping into personal advice.

Working holiday makers who leave Australia are able to claim their super as a “departing Australia superannuation payment” (DASP) once they’ve left Australia and their visa has ceased.

The tax rate on DASPs received by working holiday makers is a whopping 65% on any taxable component (such as mandatory superannuation guarantee contributions).

If a WHM doesn’t claim their super from their fund within six months of departing Australia, their super fund is required to transfer it to the ATO (where it can still be claimed).

Further details on DASPs and WHMs are available on the ATO website at https://www.ato.gov.au.

What to do now
The reassuring part is that meeting your obligations usually comes down to getting the fundamentals right. Check whether the worker is an employee for super purposes, use the correct super rate, pay on time using the right process, and keep clear payroll records.

Quarterly due dates remain important now, and payday super changes apply from 1 July 2026 for working holiday makers in the same way as for other employees.

If you’re unsure about your obligations for a particular worker, your registered tax agent can help. Where personal super decisions arise for your workers, they should consult a licensed financial adviser.

Seeking professional advice for your circumstances can give you confidence that you’re doing the right thing for your business and your staff.

AI might help with simple money questions, but it’s not a substitute for professional advice

Admin 14th April, 2026

Artificial intelligence tools are becoming increasingly popular for answering money-related questions. While these tools can be helpful for summarising information and helping you work out what to research next, the ATO and ASIC’s Moneysmart are reminding Australians that convenience doesn’t equal accuracy when it comes to tax, superannuation and financial decisions. Tax and super rules can be detailed, exceptions matter, and the right answer often depends on your own circumstances. If you act on incorrect information, the consequences can be serious.

Where AI can be useful
Publicly available general-purpose AI tools can be handy for broad, educational questions such as: “How does compound interest work?” “What does capital gains tax mean in simple terms?” “What is salary sacrifice?” “What’s the difference between concessional and non-concessional super contributions?” Used this way, AI can act as a starting point to help you understand terminology and prepare for conversations with your professional adviser.

Where extra caution’s needed
The situation changes when questions shift from general information to something that sounds like personal advice. Questions like “Can I claim this expense as a tax deduction?” or “How much should I put into super this year?” depend heavily on your individual circumstances, and AI tools aren’t the place to ask them. In particular, the ATO warns that AI tools can provide false or inaccurate tax and super information, even while sounding confident and reassuring.

Why AI answers can be unreliable
There are several reasons AI-generated answers can go wrong. First, AI can simply be incorrect—the ATO specifically warns that you may receive false or inaccurate information from AI tools. Secondly, AI’s likely to miss important details that affect your specific situation; AI tools can’t understand your complete financial position, objectives or risk tolerance well enough to make decisions for you. Thirdly, AI tools aren’t designed to provide regulated personal advice. Anyone providing personal financial advice must hold an Australian financial services licence, and providers giving tax advice services to retail clients for a fee must be registered with ASIC.

Protecting your privacy
You should also consider privacy when using AI tools. It’s not usually possible to know how publicly available AI tools use the information you type into them, or who might see it in future, so avoid entering your Tax File Number, myGov sign-in details, bank account details, or copies of notices of assessment and identification documents into your query.

Using AI more safely
If you choose to use AI for money-related questions, treat it as a starting point for explanation rather than for decision-making. Always check answers against official sources like the ATO, ASIC’s Moneysmart website and trusted, qualified professionals, and remember that AI can sound confident even when the information it gives you is incorrect. Keep personal information out of your chat wherever possible, and consider using AI to prepare questions for your professional adviser rather than seeking direct recommendations from the tool itself.

When to speak to a professional
If your question involves “What should I do?” or “Does this apply to me?”, it’s time to consult a qualified professional. For tax services, ensure your practitioner’s registered on the Tax Practitioners Board Register, and for personal financial advice, seek assistance from a licensed adviser recorded on ASIC’s Financial Advisers Register. AI can be a valuable learning tool, but it can’t replace professional advice tailored to your circumstances. Before acting on AI-generated information about tax, super or financial matters, verify it with trusted sources and consult your tax adviser or financial adviser to understand how the rules apply to your specific situation.

Is your café, restaurant or takeaway on the ATO’s radar?

Admin 7th April, 2026

If you run a food business, a joint operation by two of Australia’s most powerful regulators should put you on high alert and prompt a review of how you’re managing your obligations.

What happened? Gold Coast fast food outlets, restaurants and cafés have received surprise visits from the Fair Work Ombudsman (FWO) and the ATO.
Operation Crimson involved the two regulators inspecting about 25 eateries in Nerang and surrounding suburbs, to check they are paying employees correctly and complying with record-keeping, tax and super laws.
The targeted inspections were based on factors such as anonymous reports to the FWO from employees, a history of non-compliance, or employment of vulnerable workers such as visa holders.
For the FWO, Operation Crimson is part of its national Food Precincts Program of surprise inspections of fast food outlets, restaurants and cafés, commonly in “cheap eats” precincts.

Why does this matter? The track record in this sector is concerning.
The FWO previously recovered more than $215,700 in wages for nearly 450 underpaid workers after auditing 50 Gold Coast eateries in 2020, with 88% of those businesses found non-compliant with workplace laws.
The FWO secured more than $16 million in court-ordered penalties against employers in the fast food, restaurants and cafés sector nationally in 2024–2025.
These penalties included the FWO’s largest-ever penalty of $15.3 million against the former operators of Sushi Bay outlets, for deliberately exploiting vulnerable migrant workers.
The ATO has made clear it’s not just watching – it is acting.
The ATO uses “a range of sophisticated methods to detect shadow economy activities”, and works closely with partner agencies like the FWO, regularly sharing intelligence and community tip-offs.

What’s on the radar? Food businesses that employ young workers need to take particular care in two key areas.
First, pay rates. Most awards and enterprise agreements include specific minimum wages for juniors (workers under 21), based on their age.
Under the Fast Food Award, junior rates range from 40% of the adult rate for employees aged under 16 up to 90% for 20-year-olds. Juniors who serve or sell alcohol must be paid the adult rate regardless of age.
Second, superannuation. You must pay the superannuation guarantee on payments you make to an employee under 18 years old if they work more than 30 hours in a week, regardless of how much you pay them.
This is based on actual hours that week, not averaged across a pay period. A young worker doing a big week of shifts could trigger a super obligation even if other weeks do not.
Also, timing should be front of mind: payday super applies from 1 July 2026, meaning super needs to be in employees’ funds within seven business days of payday.

What should I do now? If you employ staff in a café, restaurant or takeaway, check that you are:

Paying the correct award rates, including the right junior rates based on each employee’s age.
Tracking actual hours worked each week for employees under 18 to determine whether super is owed that week.
Meeting your superannuation obligations for all eligible employees.
Keeping accurate records of time worked, rosters and payslips.
Correctly classifying employees under the right award.

You can use the FWO’s Pay and Conditions Tool to calculate minimum pay rates – visit www.fairwork.gov.au for more on junior pay rates.
For super eligibility, visit www.ato.gov.au and search for “super for employers”.

Need help? Employment obligations in the food sector are complex, and getting them wrong can be costly.
Contact our office today to review your payroll, record-keeping and superannuation compliance before a regulator does it for you.

Introducing ATO SmartDocs

Admin 2nd April, 2026

We’re excited to introduce an important enhancement designed to make managing your ATO correspondence even more secure and efficient.

From Monday 14th April 2026 DLK Advisory will utilise ATO SmartDocs, a secure digital platform that strengthens how we deliver ATO mail and communications. This enhancement ensures every exchange with our clients remains seamless, efficient, and protected.

What this means for you:

Enhanced Security
Protected by advanced safeguards, including two‑factor authentication (2FA), ensuring your information remains confidential at every step.

Faster Turnaround
ATO documents are processed and delivered promptly, reducing wait times and improving response time.

Streamlined Process
We’ve refined how ATO mail is managed, helping you spend less time on paperwork and more on what matters most.

Sustainable Practice
Supporting our continued commitment to reduce waste and operate responsibly.

How it works:

When new ATO mail arrives, you’ll receive an SMS notification
Log in to your email and use a 6-digit verification code to securely access your documents.
To ensure smooth delivery, please confirm we have your current email and mobile number.
All correspondence will be sent from admin@dlkadvisory.com.au. Please add this address to your safe sender list to prevent any delivery issues.

➡️ Quick video to access ATO documents

Video not loading? Please click here for written login instructions.

Frequently asked questions

Why have I received an SMS but no email?
Digital delivery requires both a valid email address and mobile number. Please check your junk folder or contact our office to confirm your details.

Why have I received an email but no SMS?
This may indicate your mobile number is outdated or incorrect. The document cannot be accessed without the SMS code, so please contact us to update your details.

I am receiving paper correspondence, how do I switch to digital delivery?
We may not have your current contact details, or you may have previously opted for paper delivery. Please contact us to update your preferences.

Can I continue receiving paper mail?
Yes. While we encourage digital delivery for its security and convenience, we are happy to accommodate your preference.

Can I reply to the email I receive?
No, these emails are sent from a no-reply address. For assistance, please email admin@dlkadvisory.com.au or call our office on 03 9923 1222.