Category: Uncategorized

Super and tax obligations when you employ working holiday makers

admin.dlkadvisory 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.dlkadvisory 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.dlkadvisory 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.dlkadvisory 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.

 

Travel expenses: What you can and cannot claim on your income tax return

admin.dlkadvisory Admin 31st March, 2026

Understanding which travel expenses are deductible can save you money and prevent disputes with the ATO. Recent court decisions and ATO guidance have clarified the boundaries, making it crucial to know where you stand.

What travel expenses are generally deductible?
Travel expenses incurred in the course of your work or business operations are deductible under general principles. These may include: motor vehicle expenses, including parking fees and tolls; car rental costs; air, bus, train, ferry and taxi fares; accommodation and meal expenses when work duties require travel; and travel between different work locations that are not your home. The key requirement is that the travel must be undertaken while gaining assessable income and not be private or domestic in nature.

Travel between work locations
You can claim expenses for travelling between work locations, provided neither location is your home. This includes travel between: different workplaces of the same employer; client premises; and other locations where you perform employment duties. However, you cannot claim deductions where you make a private decision to work from another location merely because it’s convenient.

What you cannot claim
Several categories of travel expenses are specifically non-deductible:

Home to work travel
The fundamental rule is that expenses for travelling between home and work are not deductible. Recent court decisions have significantly impacted fly-in fly-out workers. If your employment contract specifies the remote airport as your point of hire, you cannot deduct travel costs from your home airport to the remote workplace airport. The expenses are considered getting to work, not working.

Job-seeking travel
Travel expenses incurred while looking for a job are not deductible, nor are travel expenses for acquiring tools and equipment.

Residential rental property travel
You cannot claim travel expenses related to residential rental properties, including travel to collect rent, inspect properties, or conduct maintenance. This restriction applies unless you’re carrying on a business or are an excluded entity such as a company.

Overseas travel complications
The ATO scrutinises overseas travel expenses carefully, particularly if you’re accompanied by a spouse. Generally, visa costs, passport expenses, and travel insurance are not deductible.

Accompanying relatives
If a relative accompanies you on business travel, their expenses are not deductible unless they’re an employee undertaking separate work or work incidental to yours.

Limited exceptions to the home-work rule
Some exceptions allow deductions for home-work travel: transporting bulky equipment that cannot be securely stored at work; itinerant workers who travel to various locations as part of their employment; and professionals with a recognised base at home, such as some musicians and footballers. A recent case involving a radio presenter working from home during COVID-19 restrictions allowed deductions for travel to studios, though the ATO has appealed this decision.

Substantiation requirements
Remember that claiming deductible travel expenses requires proper record-keeping. For travel involving overnight stays, you’ll need written evidence and potentially travel diaries for trips of six or more consecutive nights.

Get professional advice
Travel expense deductibility involves complex interactions between employment law, tax law, and your specific circumstances. Recent court decisions show how contractual arrangements can significantly impact your tax position. If you regularly incur travel expenses for work, it’s worth reviewing your situation with a tax professional to ensure you’re maximising legitimate deductions while avoiding potential disputes with the ATO.

A reminder for employers as the FBT year draws to a close

admin.dlkadvisory Admin 24th March, 2026

Fringe benefits tax (FBT) operates on its own reporting cycle. Instead of following the standard income tax year, the FBT year runs from 1 April to 31 March. With 31 March 2026 approaching, employers may want to review any benefits you’ve provided to your staff during the current FBT period.

Understanding fringe benefits tax
FBT is a tax that applies to certain benefits employers provide to their employees or their employees’ associates. Unlike income tax, which is paid by your individual employees on their earnings, FBT is paid by you as the employer on the value of specific non-cash benefits. These benefits are often described as employee perks. They can include things such as access to a company vehicle, subsidised gym memberships, parking, entertainment expenses, accommodation costs, or the payment of school fees. However, regular salary or wages, approved employee share scheme benefits, and employer superannuation contributions aren’t considered fringe benefits.

Guidance from the ATO explains which items fall within the FBT rules and which may qualify for exemptions. In some situations, a benefit that might normally attract FBT may be excluded.

Calculating the taxable value of benefits
After identifying which benefits are subject to FBT, the employer must determine each benefit’s taxable value. To do this, the value of the benefit is generally “grossed up”. This step adjusts the value of the benefit to reflect the equivalent salary an employee would need to earn to purchase the item using after-tax income.

Two gross-up rates apply: 2.0802 when the employer can claim a goods and services tax (GST) credit for the benefit; and 1.8868 when no GST credit is available. Where a GST credit is available, the taxable value of the benefit is multiplied by 2.0802, and the FBT rate of 47% is then applied. The employer then lodges an FBT return and pay any tax owing for the year.

Possible tax deductions
While FBT can add an extra compliance step for businesses, there can also be some tax advantages. In many cases, employers who pay FBT can claim an income tax deduction for the amount of FBT paid in the financial year in which the liability arises. Your business may also be able to claim a GST credit and a deduction for the cost of providing the fringe benefit, depending on the circumstances.

Getting ready to lodge
Because the FBT year ends on 31 March, now is an appropriate time to check your business’s records and review any employee benefits provided during the year. Employers who prepare and lodge their own FBT return generally need to do so by 21 May. The deadline may extend to 25 June where the employer is registered as an FBT client with a registered tax agent by 21 May and the agent lodges the return on their behalf.

It’s logbook check-in time

admin.dlkadvisory Admin 17th March, 2026

Many taxpayers assume that once they’ve completed a logbook for their car, they’re set for the next five years. However, this common misconception could mean you’re claiming more, or less, than you’re actually entitled to when it comes to work-related car expenses.

When do you need a new logbook?
While logbooks can remain valid for five years, certain life changes require you to start fresh with a new one. Relying on an outdated logbook that no longer reflects your actual work-related travel patterns may result in incorrect claims. You’ll need to create a new logbook if you: change jobs; move to a new house or workplace; or experience changes to your pattern of car use for work purposes, such as taking on a different role or routine that affects your work-related trips.

Using the logbook method for multiple cars
If you’re claiming work-related car expenses for two or more vehicles, you must keep a separate logbook for each car. It’s important to ensure these logbooks cover the same period to maintain consistency in your record-keeping.

Purchasing a new car
If you purchase a new car during the income year and want to continue relying on your previous car’s logbook, you must make a written nomination before lodging your tax return. This nomination needs to state that you’re replacing your original car with a new car and specify the date the nomination takes effect.

Company cars and novated leases
Remember, if your employer provides you with a car or you salary sacrifice a car using a novated lease, you can’t claim work-related car expenses using the logbook or cents per kilometre methods. This is because you don’t own the car.

What records do you need to keep?
When claiming car expenses using the logbook method, you’ll need to maintain several types of records, including:

  • Odometer records for the start and end of the period you own the car during the income year you rely on your logbook.

  • Proof of purchase price, or a new lease agreement and lease payment records.

  • Decline in value calculations.

  • Fuel and oil receipts, or records of a reasonable estimate of these expenses based on odometer readings.

  • Receipts from commercial charging stations or evidence showing you incurred additional electricity costs to charge your electric or plug-in hybrid car at home, such as an electricity bill and the calculation of the direct cost to recharge.

  • Evidence of payment for registration and insurance.

  • Evidence of payment for servicing, repairs and tyres.

Special considerations for electric and plug-in hybrid vehicles
If you use the home charging rate of 4.2 cents per kilometre for a reasonable estimate of home charging based on odometer readings, you cannot claim any commercial charging costs. For plug-in hybrid vehicles, a specific formula must be used to calculate home charging expenses.

Need assistance?
Keeping accurate logbooks and records is essential for claiming the correct amount of work-related car expenses. If you’ve experienced any changes to your work situation, living arrangements or car usage patterns, now is the time to review whether your current logbook still accurately reflects your circumstances. For more information, visit the ATO’s cars, transport and travel webpage at www.ato.gov.au, or contact our office to discuss your specific situation and ensure you’re claiming correctly.

Payday Super – what business owners and employees need to know

admin.dlkadvisory Admin 10th March, 2026

From 1 July 2026, one of the most significant superannuation compliance reforms in decades will take effect. Known as “Payday Super”, the change will require employers to pay Super Guarantee (SG) contributions at the same time as wages, rather than quarterly. The reform is designed to reduce unpaid super, improve retirement outcomes and strengthen regulatory oversight through real time reporting to the Australian Taxation Office (ATO).

What is changing?
Under the current system, employers must pay SG contributions at least four times per year. From 1 July 2026, employers will be required to pay super within seven business days of paying employees their wages. This effectively aligns super payments with each payroll cycle. While the SG rate remains at 12 percent, the timing of contributions will change significantly. The Government’s objective is to reduce the estimated billions of dollars in unpaid super each year by improving transparency and earlier detection of non-compliance.

What business owners need to know

  1. Cash flow management will need adjusting – Many businesses currently benefit from holding super payments until quarterly due dates. Payday Super removes that flexibility. Employers will need to ensure funds are available at each pay cycle, which may require more detailed cash flow forecasting and tighter budgeting controls.

  2. Payroll systems must be compliant – Businesses will need payroll software capable of processing and reporting super contributions in real time through Single Touch Payroll. Employers should consult their payroll providers early to confirm system readiness and implementation timelines.

  3. Increased compliance visibility – Because contributions will be reported more frequently, late or missed payments will be easier for the ATO to detect. Penalties under the Superannuation Guarantee Charge regime will continue to apply where obligations are not met.

  4. Clearing house arrangements may change – Some small businesses currently use clearing house services to distribute contributions to multiple funds. Employers should confirm whether their existing arrangements remain appropriate under the new framework.

What employees need to know

  1. More frequent super contributions – Instead of waiting until the end of each quarter, employees should see super contributions deposited shortly after each pay period. This allows for greater visibility and earlier identification of missing payments.

  2. Potential long-term benefit from earlier investment – Receiving contributions sooner means funds are invested earlier, which may enhance long term compounding returns.

  3. Greater transparency – The reform is intended to make super entitlements more secure. Employees should continue to monitor their super accounts regularly to ensure contributions are being received correctly.

Why this reform matters
Unpaid super has been a persistent issue in Australia’s retirement system. By aligning super payments with wage payments, Payday Super aims to strengthen compliance, improve retirement savings outcomes and create a fairer system for workers. While the change increases administrative responsibility for employers, it also provides greater certainty and protection for employees. With the commencement date approaching, both businesses and workers should begin preparing now to ensure a smooth transition to the new requirements.

Investment property owners: 5 tax return errors that trigger ATO follow up

admin.dlkadvisory Admin 3rd March, 2026

Owning an investment property can be tax effective, but it’s also one of the ATO’s most closely monitored areas at tax time. Each year, the ATO uses third party data and targeted reviews to identify common mistakes made by landlords. Here are five errors that most often trigger ATO follow up and how to avoid them.

1. Over claiming repairs that should be capital works
Confusing immediate repairs with improvements. Incorrectly claiming kitchen, bathroom or structural upgrades. Repairs and maintenance can be claimed for work that remedies, or prevents, defects, damage or deterioration arising from using the property to earn income. These expenses are generally deductible in the year they are incurred. By contrast, capital works are structural improvements, alterations or extensions that go beyond merely fixing wear and tear. If the work improves the function or value of the property, it is likely to be capital in nature. Capital works are usually claimed at 2.5% over 40 years (subject to specific exceptions).

2. Incorrect interest deductions
Not apportioning interest where loans are partly private. Claiming 100% interest after personal redraws. If a loan is used for both private purposes and rental property expenses, the interest must be apportioned. You can only claim the portion that relates to the rental property. This applies whether the mixed use arises when the loan is first taken out or later through refinancing or redraws. Interest must continue to be apportioned over the life of the loan, and interest on amounts used for private purposes is never deductible.

3. Claiming deductions during private use periods
Holiday homes or mixed-use properties. Property not genuinely available for rent. You can’t claim deductions for interest or other expenses for periods when the property is used privately, even if the private use is brief. To claim deductions, the property must be rented or genuinely available for rent. A property may not be genuinely available if it is advertised only through limited channels, offered only during periods of very low demand, or subject to unreasonable conditions such as above market rent or overly restrictive tenant requirements. Repeatedly refusing suitable tenants without valid reasons can also indicate the property is being held for personal use rather than income producing purposes.

4. Poor record keeping and lack of substantiation
Missing invoices or relying on estimates. No evidence supporting apportionment calculations. You must keep records of your rental income and expenses for at least five years from the date you lodge your tax return. If a dispute with the ATO arises during that period, you must retain relevant records until the dispute is resolved.

5. Not reporting all rental related income
Insurance payouts, letting fees or short-term rental income. Data matching with banks and property platforms. Rental related income includes more than just rent. It can also include bond money retained for unpaid rent or damage, letting or booking fees from cancelled reservations, and insurance payouts, whether for property damage or loss of rent. Disaster relief payments received in relation to a rental property may also be assessable. The ATO now cross checks data from banks, state land registries, insurers, rental bond authorities and digital platforms, making errors easier to detect than ever.

If you own an investment property, getting your tax return right is critical. Before lodging, speak with your accountant to review your rental income, deductions and records. Small mistakes can lead to unexpected ATO scrutiny.

The ATO’s focusing on small businesses in 2026: are you ready?

admin.dlkadvisory Admin 24th February, 2026

The ATO is encouraging small businesses to start 2026 strong by taking proactive steps to avoid compliance issues that could lead to penalties or enforcement action. Don’t forget we’re here to help you get your tax processes running smoothly.

Why this matters now
Small business tax debts have grown to over $50 billion nationally, and the ATO is accelerating efforts to collect unpaid taxes. It warns that many businesses run into avoidable problems simply because they haven’t maintained proper records, reported all income or managed cash flow effectively. Part of the estimated $27.2 billion small business income tax gap stems from these preventable mistakes, making it crucial for business owners to understand the ATO’s focus areas and take corrective action early.

Key areas of concern
The ATO has identified several critical compliance risks that small businesses should address: late lodgments and unpaid tax debts, which can trigger firmer recovery actions; poor cash flow management, particularly failing to set aside funds for GST and PAYG withholding obligations; inadequate record keeping, especially businesses still using the “shoebox of receipts” strategy; unreported income, particularly from cash transactions; and superannuation guarantee obligations, which should especially be top-of-mind with payday super changes coming in July 2026.

Simple steps to stay compliant
The good news is that most compliance issues are preventable with some basic habits. For example:

  • Set up separate accounts: Keep dedicated bank accounts for GST collections and PAYG withholding. Don’t be tempted to use these funds to boost cash flow, as this creates bigger problems when obligations fall due.

  • Lodge and pay on time: Mark your calendar for all lodgement deadlines and payment due dates. If you can’t meet a deadline, contact us or the ATO early to discuss options rather than ignoring the problem.

  • Keep accurate records: Move away from paper-based systems and embrace digital record keeping. The ATO app offers useful features like myDeductions and business performance check tools for sole traders.

  • Report all income: Ensure you declare all business earnings, including cash payments. The ATO receives data from multiple sources and conducts audits to identify unreported income.

  • Prepare for payday super: From 1 July 2026, employers must pay superannuation guarantee contributions each payday rather than quarterly. Review your payroll systems now to ensure you’re ready for more frequent payments.

Getting professional help
The ATO strongly recommends engaging a registered tax practitioner who understands your business. That’s where we come in! Above all, avoid relying on informal advice from friends or social media for tax guidance. Professional support can help you navigate complex areas and prevent costly mistakes.

ATO support available
The ATO also provides resources to help small businesses stay compliant, including a record keeping evaluation tool, a cash flow kit with templates and planning tools, online services for checking lodgment status and managing debts, a payday super checklist, and multilingual support through the Translating and Interpreting Service.

Take action now
Don’t wait for problems to escalate. The ATO emphasises that engaging early is always better than dealing with consequences later. Implementing these simple steps and seeking professional advice now means you can focus on growing your business in 2026 rather than worrying about compliance issues. Contact our office to discuss how we can support your business and help ensure you’re meeting all your tax obligations properly.