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Division 296 Super Tax Update: What It Means For Your Business

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As accountants who work closely with small and medium business owners, we keep a close eye on any changes in the tax and superannuation landscape that could affect you, your staff, or your business structure. The government’s latest announcement on Division 296 — highlighted by the Institute of Financial Professionals Australia (IFPA) — is one of those important updates worth understanding.

Here’s what’s changed, who’s impacted, and what you should be doing to stay ahead.

What’s Changed?

On 13 October 2025, the Treasurer confirmed major adjustments to how Division 296 will apply:

  • Only realised gains will be taxed, not unrealised gains.
  • The $3 million total super balance (TSB) threshold will now be indexed in $150,000 increments.
  • A new $10 million upper threshold will apply, also indexed in $500,000 increments.
  • The start date has been deferred to 1 July 2026, with first assessments expected for the 2027-28 financial year.
  • Defined benefit pensions will be included to ensure consistent treatment across structures.

These refinements remove some of the more contentious elements of the original proposal and provide additional planning time — a welcome move for both business owners and advisers.

Who Is Affected?

While most small business owners and employees won’t be directly impacted, the changes matter if you:

  • Have a Self-Managed Super Fund (SMSF) with significant assets;
  • Hold multiple funds or defined benefit interests; or
  • Are planning to sell or restructure assets inside super in the next few years.

For admin and payroll teams, understanding the change helps manage staff questions and internal communications — even though Super Guarantee (SG) contributions remain unaffected.

What This Means For Business Owners & Admin Teams

  1. Strategic Review
    Owners with larger balances should revisit contribution strategies and consider the timing of realising gains. Because only realised earnings are now taxed, there’s scope to plan around asset disposals more effectively.
  2. Cash-flow Planning
    Modelling your potential exposure under the new thresholds ensures your fund can handle any future liabilities. This is especially important for SMSFs with illiquid assets.
  3. Payroll & Communication
    Prepare simple talking points for staff: the change affects only high-balance members, and does not alter SG rates or processing. Clear messaging will reduce confusion and demonstrate proactive leadership.
  4. Compliance & Advisory Readiness
    Use the lead-time wisely. By the end of FY 2026, aim to have your structures reviewed, documentation ready, and reporting processes aligned with the new Division 296 framework.

Action Steps Before 30 June 2026

  • Review your total super balance and growth projections.
  • Model potential Division 296 exposure across thresholds.
  • Assess your fund’s liquidity and investment mix.
  • Communicate the key facts with your admin or payroll team.
  • Book a tax and super review meeting to finalise your position.

Final Thoughts

The Division 296 update brings welcome clarity — and time — for planning. Even if your fund isn’t immediately affected, understanding the implications now means you’ll be ready when the rules take effect.

If you’d like tailored advice or scenario modelling for your business or SMSF, contact us today for a 30-minute review and practical next steps.

AI in Accounting: Why Reports Slip-Up Matters for Your Small Business

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As your trusted accountant, I’ve been watching closely how artificial intelligence (AI) is increasingly used across business functions — including bookkeeping, payroll, tax-planning and financial reporting. AI offers tremendous promise: faster processing, smarter insights, reduced routine labour. But a recent high-profile mis-step by a Big 4 accounting firm shows exactly how things can go wrong — and why that matters for you, especially if you’re a small or medium business owner relying on accounting and payroll advice.

In July 2025, a Big 4 accounting firm published a report for a government department which reportedly incorporated generative-AI tools. The final version was found to contain fabricated references, mis-attributed court judgments and other factual errors — prompting Deloitte to issue a refund on part of its fee.
What’s significant is not just the mistakes themselves, but the system failures behind them — weak review, over-reliance on AI drafts, lack of provenance and human oversight.
For you as a small business owner, or someone managing payroll and accounts, this isn’t just consulting-world drama. It’s a reminder: when AI enters accounting, payroll or compliance workflows, it must be handled with discipline or it becomes a risk, not simply a productivity gain.

  1. What went wrong – and why you should care

For many small businesses, the core issues here translate into real-world risks:

  • The AI-generated elements introduced hallucinations (i.e., convincing but false content) — references and quotes that didn’t exist.
  • The review process apparently failed to catch those errors — meaning that the work reaching the client (in this case the government) was compromised.
  • Deloitte’s error undermines trust; in our sector (accounting, payroll) trust equals compliance, assurance and credibility. If your accounting tool or process uses AI in a weak way, you expose yourself to flawed advice, misclassification of payroll, incorrect tax treatment or audit issues.

In short: AI isn’t a magic bullet. Just using it doesn’t guarantee accuracy or reliability. Like we always say in accounting: checks, reviews, documented rationale still matter.

  1. Six AI-risks every SME in accounting and payroll should heed

While your business might not be drafting government-reports, here are risks that do apply in the SME context:

  1. Hallucinated outputs – AI might suggest incorrect tax rulings, mis-code payroll categories, invent vendor names or dates.
  2. Data privacy & confidentiality – When staff paste sensitive payroll, tax or client-data into generic chatbots, there’s risk of leakage or misuse.
  3. Compliance drift – The law, regulation (ATO, Fair Work, Superannuation, Payroll Tax) change regularly. If AI isn’t aligned to the correct Australian rules, you might act on outdated or incorrect advice.
  4. Opaque AI vendor behaviour – Some software may leverage “AI assistance” without telling you how much, or what validation occurs.
  5. Over-automation without human oversight – If you let AI generate payroll changes, journals, reconciliations without a human review step, small errors become big issues.
  6. Accountability gaps – If an AI-tool produces guidance but no one takes ownership, then when something goes wrong, who is accountable? This is especially important for SMEs with lean teams.

These are the kind of failures exposed in this case — and we should use this as a wake-up call for our own workflows.

  1. A practical AI governance checklist for your accounting & payroll

How can you use AI safely — and still gain benefit? As your accounting partner, here’s what I recommend we implement (or check) together:

  • Define approved tools & data-use policy: Use only tools that meet Australian privacy standards, avoid pasting TFNs, bank details, personal data into unvetted chatbots.
  • Human-in-the-loop review: Every AI-assisted output (e.g., payroll suggestion, cost-centre coding, financial forecast) must be reviewed by a qualified human (you or me).
  • Source-of-truth rule: Any advice or output from AI must be checked against legislation, ATO rulings, Fair Work awards, or professional judgement — AI doesn’t replace that.
  • Traceability / audit-trail: Keep records of what was generated by AI, prompts used, who reviewed, what changes were made. Good for compliance and future proofing.
  • Vendor due diligence: If your accounting or payroll software says “AI assisted”, check how the model was validated, how often it’s updated for Australian tax/award changes, what error-rate exists.
  • Training & awareness for your team: Staff who use AI tools need to know the risks — that the tool may be wrong, that they must apply professional judgement.
  • Start small, monitor results: Use AI for low-risk tasks (first draft letters, supplier-coding suggestions) before trusting it with payroll changes or tax advice.

When these guardrails are in place, AI becomes a booster for your accounting and payroll efficiency — not a liability.

  1. Where AI does work well in SME finance

It’s not all risk — there are practical win-wins for small business:

  • Invoice-processing-tool that suggests accounting codes (human reviews afterwards).
  • Spend-analysis dashboards that flag anomalies (you still decide on action).
  • Drafting standard letters or memos (you still personalise and check).
  • Payroll-software that highlights unusual payroll entries (you still approve).

In these cases you get improved efficiency and better oversight — but the key is controlled use, not delegate-and-forget.

  1. Book a Consultation: Stay Ahead of AI Risks

If you’re unsure how AI might impact your accounting or payroll, let’s talk. The Deloitte case shows what happens when AI goes unchecked — and small businesses can’t afford those mistakes.

Book a quick consultation with us to:

  • Understand the real risks of AI in your finance systems
  • Learn how to protect your data, compliance, and payroll accuracy
  • Get practical steps to use AI safely and confidently

AI should work for your business, not against it.
Book your consultation today and let’s make sure your accounting and payroll stay secure and future-ready.

Conclusion
This case is more than just a headline — it’s a reminder that in accounting and payroll, precision, accountability and trust matter. AI can absolutely be part of your business toolkit, but only when used with professional rigour. Let’s ensure your finance processes are efficient, modern and safe.

 

ATO Releases 2025 Tax Time Toolkit: What Small Business Owners Need to Know

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Tax time is here again, and for many small business owners, it can be overwhelming knowing what you can and can’t claim — especially when you’re trying to stay focused on running your business. Fortunately, the Australian Taxation Office (ATO) has released its 2025 Tax Time Toolkit, and it’s a resource I recommend every small business owner looks at.

We work with small to medium business clients daily, and I know from experience that confusion around deductions, record-keeping, and tax obligations can cause unnecessary stress — and mistakes. That’s why resources like the Tax Time Toolkit are so valuable.

What is the ATO’s Tax Time Toolkit?

The ATO’s 2025 Tax Time Toolkit is a set of free, downloadable resources designed to help individuals and businesses get their tax returns right. It includes clear guidance on:

  • ✅ Occupation-specific deductions
  • ✅ Common work-related expenses
  • ✅ Records you need to keep
  • ✅ Residency for tax purposes

It’s a practical tool that aims to reduce confusion and help business owners avoid common tax pitfalls. Whether you’re claiming vehicle expenses, equipment purchases, or professional development costs, the Toolkit helps clarify what you can and can’t claim.

Why This Toolkit Matters for Small Business

If you’re a small business owner, understanding your tax obligations — and your entitlements — is critical. The reality is, many small businesses miss out on deductions they’re eligible for simply because they aren’t sure what’s allowed. Others may unknowingly overclaim, which can trigger ATO scrutiny.

The Tax Time Toolkit provides much-needed clarity. It’s especially useful for industries with unique deduction rules — trades, hospitality, health services, and more. If your admin team handles parts of your tax, it’s a great reference to keep handy.

As accountants who specialise in small business, we often see how easily tax time can go off track. Using the ATO resources is a smart first step — but getting tailored advice ensures you’re compliant and maximising legitimate deductions.

Beware of Common Tax Mistakes — Especially Around CGT

The ATO has also highlighted a key area where many tax returns go wrong: Capital Gains Tax (CGT). Mistakes often occur when business owners sell assets — whether it’s property, shares, or other investments.

To avoid these errors:

  • ✔️ Make sure you’re providing your accountant with full details of any assets sold during the financial year.
  • ✔️ Use the Online Services for Agents (OSFA) pre-fill reports — a tool we use extensively to cross-check your tax information.

Missing or incorrect CGT details can lead to unnecessary tax bills or compliance issues down the track.

How We Support Small Businesses During Tax Time

Tax time doesn’t need to be stressful. Our team works closely with small and medium businesses to ensure tax obligations are met accurately — and opportunities for legitimate tax savings aren’t missed. We help you:

  • ✅ Understand and apply the ATO’s Tax Time Toolkit to your specific situation
  • ✅ Navigate CGT rules and avoid common errors
  • ✅ Keep proper records and claim eligible work-related expenses
  • ✅ Get peace of mind knowing your tax return is handled by specialists

Need Help This Tax Time?

I always tell clients — the Toolkit is a great resource, but personalised advice makes all the difference. If you’d like help navigating your tax return and ensuring you’re maximising every legitimate deduction, contact us today.

Payday Super is Coming: What Small Business Owners Must Do to Stay Compliant in 2026

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As an accountant who works closely with small and medium-sized businesses every day, I understand how challenging it can be to keep up with changing legislation — especially when it comes to payroll and superannuation compliance. And now, there’s another big change on the horizon: Payday Super.

The Australian Government recently confirmed that, starting from 1 July 2026, employers will need to pay their employees’ super at the same time as wages. This change is being introduced to close the multi-billion dollar unpaid super gap and ensure employees receive their super entitlements promptly.

But for many small businesses, this shift is more than just a compliance tweak — it could mean major changes to how you manage your cash flow, payroll systems, and reporting processes.

What Is Payday Super and Why Is It Changing?

Right now, most businesses pay super guarantee (SG) contributions on a quarterly basis. For many of our clients, this works well — it’s predictable, easier to manage cash flow, and allows time to catch and fix errors.

But from 1 July 2026, that will change. The new system will require employers to pay SG on or before payday. The rationale behind this is understandable: the ATO wants to crack down on unpaid super and ensure that employees aren’t missing out on their retirement savings.

While the intent is positive, the implementation will create added pressure on small businesses that aren’t well-equipped to handle frequent super payments.

What This Means for Small Business Employers

This change could have a significant impact on how your business operates:

  • Cash Flow Pressure: Instead of setting aside super for quarterly payments, you’ll need to have it ready for every single pay run.
  • Payroll Software Readiness: If you’re still using manual spreadsheets or outdated systems, they won’t cut it in the new world of real-time SG payments.
  • Admin & Compliance Burden: There’ll be a greater demand for accurate, timely processing.
  • ATO Penalties: The ATO will have greater visibility through STP, making it easier to detect errors or delays.

Quick Checklist:

  • Are you using up-to-date, cloud-based payroll software?
  • Do you regularly reconcile wages and super in real-time?
  • Do your admin or payroll staff know what the 2026 changes mean?
  • Have you reviewed your cash flow cycles to account for more frequent outflows?

How to Prepare Now (and Avoid Stress in 2026)

The good news is that there’s still time to prepare — but you don’t want to leave it until the last minute.

Here’s what I recommend as a proactive accountant working in this space every day:

  • Upgrade Your Payroll Software: Tools like Xero, MYOB, or QuickBooks can automate SG payments and integrate with STP.
  • Conduct a Payroll Health Check: Review how you’re managing payroll and identify gaps.
  • Review Your Cash Flow: Adjust your payroll calendar and budgeting to account for frequent payments.
  • Train Your Admin Team: Everyone involved in payroll should understand the new rules.
  • Get Expert Support: We specialise in helping small businesses stay compliant with less stress.

Our Perspective as Payroll & Super Experts

At our firm, we specialise in supporting small and medium businesses across a wide range of industries — and payroll compliance is one of our core strengths.

We know that many business owners don’t have the time or resources to deep-dive into legislative changes. That’s where we step in. From helping you modernise your systems to training your staff and ensuring you’re ATO-ready, our job is to make sure you stay compliant without adding stress to your plate.

📞 Book a Free Business Check-Up

Let’s review your payroll systems, assess your SG compliance, and help you plan for the transition to Payday Super — before it becomes a problem.

👉 Click here to book your free business check-up

Navigating Crypto Assets in Your SMSF

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The world of crypto assets is evolving rapidly—and for anyone running Self-Managed Super Funds (SMSFs), the risks and responsibilities are growing just as fast. The Australian Taxation Office (ATO) has issued fresh guidance on how SMSFs should handle crypto investments, and the message is clear: tread carefully, or risk non-compliance.

As an accounting firm, we’ve seen a noticeable rise in interest around using SMSFs to invest in digital assets like Bitcoin, Ethereum and other cryptocurrencies. While there are potential gains, there are also very real regulatory pitfalls. And if your SMSF fails to meet its obligations, the consequences can be severe.

Why the ATO Is Paying Close Attention

The ATO’s recent update highlighted three key areas of concern with SMSF crypto assets:

  • Poor record keeping – many trustees aren’t properly tracking transactions or documenting asset ownership.
  • Valuation issues – crypto’s price volatility makes end-of-year valuations tricky.
  • Ownership separation – personal use or mixing SMSF crypto with private assets breaches the sole purpose test.

The ATO is now monitoring crypto in SMSFs more closely and expects trustees to get these fundamentals right. If you’re a small business owner using an SMSF to invest in digital assets, this matters more than ever.

Key SMSF Crypto Risks for Business Owners

If you’re managing your own super and holding crypto, here are the biggest traps we see:

  • Ownership Confusion: Your SMSF assets must be held in the fund’s name—not your personal crypto wallet. If you’re storing them on an exchange or cold wallet linked to your name, that’s a compliance red flag.
  • Insufficient Record-Keeping: Crypto transactions can move fast, but that’s no excuse for messy or missing records. Each trade, transfer, or purchase must be documented clearly to satisfy auditors and regulators.
  • Valuation Headaches: SMSFs are required to report fair market value as of 30 June each year. But crypto’s volatility makes this difficult without the right tools or independent verification.

Best Practice Tips to Stay Compliant

If you’re investing in crypto within your SMSF, here are some steps we recommend to keep you on the right side of the ATO:

  • Use a wallet in the SMSF’s name and ensure you can prove control and ownership.
  • Keep detailed records of every transaction—timestamps, wallet addresses, exchange receipts, and values in AUD.
  • Work with an accountant and SMSF auditor experienced in crypto to prepare accurate tax returns and audit-ready documents.
  • Use reliable valuation tools or get independent assessments for year-end reporting.

We often see trustees get tripped up simply because they’re not aware of the rules or assume that crypto is “off the grid.” It’s not. And the ATO is watching.

How We Help Small Business Owners with SMSFs

At our firm, we specialise in working with small businesses and SMSF trustees who want to invest in emerging assets like crypto—without the compliance nightmares.

We offer:

  • SMSF setup and structuring advice
  • Crypto asset accounting and transaction tracking
  • Year-end SMSF audits and tax return preparation
  • Ongoing compliance support to keep your fund safe and ATO-ready

With deep industry knowledge and hands-on experience, we guide our clients through the complexities of crypto accounting and help them make informed, compliant decisions.

Final Thoughts

Crypto offers exciting opportunities—but for SMSF trustees, it also comes with serious compliance responsibilities.

If you’re unsure whether your SMSF is meeting the ATO’s expectations or just want peace of mind heading into audit season, we’re here to help.

Reach out for a quick consultation or SMSF check-up—we’ll ensure your fund is structured, documented, and reported correctly.

👉 Book a free discovery call here

Misleading TikTok Tax Advice: What Small Business Owners Need to Know

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In today’s digital age, social media platforms like TikTok have become go-to sources for quick advice, including tax tips. Unfortunately, not all of this advice is accurate, and some of it can be downright misleading. For Australian small business owners, this misinformation can lead to costly mistakes. In this article, we will explore the dangers of relying on social media for tax advice and provide practical, accurate guidance for your business.

Why Social Media is Not a Reliable Source for Tax Advice

Social media platforms prioritize engagement over accuracy. Content creators on TikTok, YouTube, and Instagram are incentivized to produce content that goes viral, often sacrificing factual accuracy for attention. As a result, well-meaning business owners may follow incorrect tax advice without realizing the consequences.

Common Misleading Tax Advice on TikTok

  • Claiming Personal Expenses as Business Deductions: Some creators suggest that any personal expense can be written off as a business expense.
  • Incorrect GST Reporting Tips: Misleading advice on how to report GST can lead to underpayment or overpayment.
  • Exaggerating Deductible Expenses: Overstating what can be deducted as a business expense, which can trigger an audit.

Real Consequences for Small Businesses

Following inaccurate tax advice can have serious repercussions, including:

  • Penalties and Fines: The Australian Taxation Office (ATO) can impose penalties for incorrect tax filings.
  • Audits: ATO audits can be stressful and time-consuming, especially for small businesses without dedicated accounting teams.
  • Reputational Damage: Your business could suffer if stakeholders discover you have engaged in misleading tax practices.

How Small Business Owners Can Avoid Tax Mistakes

1. Consult with Qualified Professionals

Always seek advice from registered accountants and tax advisors who understand the latest ATO regulations and can offer tailored advice for your business.

2. Verify Information

If you see a tax tip online, cross-check it with reliable sources like the ATO website or speak to a professional before taking action.

3. Educate Your Team

Make sure your team understands the basics of accurate tax reporting to prevent costly errors.

How Our Firm Can Help

At RA Business Advisors, we specialize in providing reliable, accurate, and compliant tax advice to small and medium businesses across Australia. Our team of experienced accountants stays up-to-date with the latest ATO guidelines and can help you navigate complex tax issues without falling for misleading online advice.

Book a Consultation

If you have any questions about your business’s tax obligations, don’t hesitate to reach out. Contact us today to schedule a consultation and ensure your business is on the right track.

Conclusion

Don’t let TikTok or other social media platforms become your primary source of tax advice. The cost of following misleading information can be high, but with the right professional guidance, you can ensure your business remains compliant and successful.

Ready to take control of your business’s tax compliance? Contact us today.

How New Tax and Super Changes Will Impact Australian Small Businesses in 2025–26

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We’re on the brink of some significant shifts that could catch many business owners off guard if not prepared. Let’s break down what’s coming, how it may impact your cash flow, and most importantly, how you can stay ahead of the curve.

What’s Changing for Small Businesses

There are four major updates rolling out over the next 18 months to two years:

  1. Super Guarantee (SG) Increase to 12% – from 1 July 2025
    The SG rate is rising again — this time from 11.5% to 12%. While this might seem like a small jump, when you’re running weekly or fortnightly payrolls, that increase stacks up quickly.
  2. ATO Interest No Longer Tax Deductible – from 1 July 2025
    This one will sting: businesses will no longer be able to claim tax deductions for General Interest Charges (GIC) or Shortfall Interest Charges (SIC). In short, if you’re late paying tax, it’s going to cost you more.
  3. Payday Super is Coming – from 1 July 2026
    This is a major shift. Employers will need to pay super at the same time as wages, instead of quarterly. It’s great for employee entitlements, but for employers, it means tighter cash flow planning and possibly updating your payroll software or service provider.
  4. Closure of the Small Business Super Clearing House (SBSCH) – from 1 July 2026
    The free, government-run SBSCH will be shut down, meaning small businesses will need to find another way to make super contributions. For many, this means researching new clearing houses or possibly paying fees to private platforms.

What This Means for Your Business

In practice, these changes — particularly payday super and the SG increase — will put more strain on your working capital. For some businesses, that could mean the difference between comfortably meeting payroll and scrambling to cover shortfalls.

The removal of tax deductibility on ATO interest also raises the stakes. A few days late on your BAS or income tax, and the cost to your business could rise sharply. We’ve always advised clients to keep on top of tax due dates, but now it’s even more important.

How to Prepare: Proactive Steps You Can Take

Here’s what we’re recommending to our clients:

  • Review Payroll Systems Now: Your software should be ready for payday super. Not all systems are equipped for this, so now’s the time to review and upgrade if needed.
  • Budget for Higher Payroll Outgoings: That extra 0.5% super adds up — factor it into your forecasts now so you’re not caught out later.
  • Plan Cash Flow More Frequently: Move from quarterly to monthly (or even fortnightly) cash flow tracking. With super going out more regularly, you’ll need to keep a closer eye on available funds.

Why This Matters More Than Ever

Small businesses are resilient — but staying compliant and financially healthy in this evolving environment takes planning and the right support. These changes aren’t just red tape; they directly impact how you pay your people, meet your obligations, and stay out of trouble with the ATO.

We specialise in this space. Our firm works with small and medium businesses every day, and we know how to make these transitions smooth, strategic, and stress-free.

Need Help Getting Ready?

If you’re unsure how these changes will affect your business, or if you want to stress-test your payroll and cash flow processes — reach out. We offer tailored reviews and planning sessions so you can move forward with clarity and confidence.

👉Book a payroll health check or chat with our team today.

Financial Relief for Small Businesses Affected by Tropical Cyclone Alfred

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Like many of you, I’ve been closely watching the impact of Tropical Cyclone Alfred. As someone who has worked alongside small business owners for over 20 years, I understand how difficult recovery can be after a disaster.

Government Support Available

Support includes:

  • Disaster Recovery Grants of up to $25,000
  • Low-interest concessional loans for repairs and working capital
  • Disaster Recovery Allowance for those who’ve lost income

Eligibility Criteria

To be eligible, your business must:

  • Be in a declared disaster area
  • Show direct impact from the cyclone
  • Provide supporting evidence (photos, receipts, financials)

How to Apply

Applications can be complex. We help ensure all your paperwork is accurate and submitted correctly to avoid unnecessary delays.

Recovery Tips

  • Document all damage and expenses
  • Check your insurance coverage
  • Consult professionals early

How We Can Help

We offer tailored assistance for cyclone-affected businesses:

  • Application support for grants and loans
  • Cash flow and recovery planning
  • Liaison with insurers and government agencies

Has your business been impacted? Contact us for a confidential chat about your recovery plan and how to move forward with confidence.

How Small Businesses Can Maximise the $20,000 Instant Asset Write-Off Before EOFY 2025

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As an accountant with more than two decades in the industry, I’ve seen just how powerful well-timed tax incentives can be for small businesses. One of the most valuable tools available to small businesses right now is the $20,000 instant asset write-off, which has been extended until 30 June 2025.

What is the $20,000 Instant Asset Write-Off?

The instant asset write-off allows eligible businesses with a turnover under $10 million to immediately deduct the full cost of an asset that costs less than $20,000. This can include equipment, tools, technology, or office furniture used for business purposes. The asset must be installed and ready for use between 1 July 2024 and 30 June 2025.

What Assets Qualify?

Common assets that qualify include:

  • Computers and laptops
  • Office furniture or fit-outs
  • Tools and machinery
  • Business-use vehicles under the threshold

Why This Matters for Small Business

This incentive is more than a tax perk — it’s an opportunity to invest in your growth. Benefits include:

  • Improved cash flow
  • Strategic upgrades to equipment
  • Better tax planning opportunities

What Happens After 30 June 2025?

The threshold is currently set to revert to $1,000, so acting before the deadline is critical for maximising your deduction.

How We Can Help

We help you:

  • Confirm asset eligibility
  • Align asset purchases with your broader tax strategy
  • Ensure compliance with ATO requirements

Need help planning for EOFY 2025? Contact us today for a personalised tax planning session tailored to your business.

Beware of Tax Scams: A Guide for Australians

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As tax season approaches, Australians need to be vigilant about the increase in tax scams. Cybercriminals are becoming more sophisticated, and it’s crucial to recognize and avoid these fraudulent activities. An article written by Martin Kraemer for Accountants Daily highlights some key points on what you need to know to protect yourself.

1. myGov Email Impersonation Scams

Beware of phishing scams that mimic ATO emails and myGov sign-in pages. These scams aim to steal your myGov credentials and are often disguised as legitimate ATO communications. Scammers cleverly create fake ATO emails containing links that encourage people to click on a link directing them to fake myGov sign-in pages designed to steal their usernames and passwords. Over the past six months, a staggering 75% of all email scams reported to the ATO involved a fake myGov login link. Stay cautious and verify any communication claiming to be from the ATO.
Scammers are also exploiting other digital channels such as SMS messaging to get individuals to click on fake myGov sign-in pages designed to steal their usernames and passwords. Scammers use different phrases to trick people into opening these links. Some examples are:
• You are due to receive an ATO Direct refund
• You have a new message in your myGov inbox – click here to view
• You need to update your details to allow your Tax return to be processed
• We need to verify your incoming tax deposit
• ATO refund failed due to incorrect BSB/account number
• Your income statement is ready, click on the link to view

2. ATO Social Media Impersonation Scams

Scammers also target social media users by creating fake ATO accounts. These scams impersonate both the ATO itself and ATO employees. The intent is to get you to interact with the pages, send messages, and ask questions, ultimately tricking you into sharing personal information such as email addresses, phone numbers, and bank account details. Always look for the blue tick of authentication on official ATO accounts (Facebook, Twitter, and LinkedIn) and avoid engaging with suspicious accounts.
How to spot a fake:
• The ATO prioritises secure communication. It will never send email or social media links directing you to log in to myGov or other online services. Treat any such requests as scams.
• The ATO’s official accounts are on Facebook, Twitter and LinkedIn. However, it will never initiate contact through these channels. It also has no presence on Instagram, so any ATO message there is guaranteed to be a phish.
• Be wary of suspicious ATO accounts. Legitimate profiles typically boast tens of thousands of followers and have been active for years. Steer clear of any new or low-follower accounts claiming to be the ATO.
• The ATO won’t send you an SMS or email with a link to log on to online services. These should be accessed directly by typing ato.gov.au or my.gov.au into your browser.
• While the ATO may use SMS or email to ask you to contact it, it will never ask you to return personal information through these channels.

 

3. Multifactor Authentication Phishing

Be cautious of emails requesting an “MFA update” for your ATO account. Legitimate updates will never be communicated via email links or QR codes. The ATO prioritizes secure communication and will not send email or social media links directing you to log in to myGov or other online services. Access these services directly by typing ato.gov.au or my.gov.au into your browser.
How to spot a fake:
• The ATO will never ask you to update MFA via email, especially with a QR code, or a link to log in to online services. These codes typically lead to fake myGov login pages designed to steal your credentials.
• If you receive an email like this, do not scan the QR code, click on links, open attachments or download files. Forward the email to reportscams@ato.gov.au, and then delete it.

4. Tax Refund SMS Scams (Smishing)

Scammers exploit SMS messaging to trick individuals into clicking on links that lead to fake websites. Remember, the ATO will never send SMS with links for tax lodgments or refunds. If you receive suspicious SMS messages related to tax refunds, verify their authenticity through official channels.
Stay informed and cautious. If you encounter any suspicious communication claiming to be from the ATO, do not engage and report it immediately. For more detailed information on how to protect yourself from tax scams, visit the official ATO website.
Remember, your vigilance can prevent falling victim to these scams. Keep your personal information secure and verify any unexpected communication. Stay safe this tax season!

5. For all incoming communication from the ATO

1. If you receive an email, SMS, or phone call that says it is from the ATO, STOP and take a breath.
2. If it includes a link – IT IS A SCAM. Do not engage and report it.
3. If it includes an attachment (usually in an email) – IT IS A SCAM. Do not engage and report it.
Remember
1. The real ATO will never send you any links to click on.
2. If the real ATO does contact you, they will only ever ask you to contact them directly via their official sites, such as https://www.ato.gov.au or https://my.gov.au/, to log into your account.
3. Call the ATO if you are unsure or want to clarify something