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By Simon Terry LLB BCom CA, Director, Porters CA. As at 23 September 2026. From 1 July 2027, the 50% CGT discount for Australian resident individuals and trusts is replaced by indexation of the cost base, and resident individuals will pay at least 30% tax on their real capital gains. Assets you already own are treated as sold and reacquired just before 1 July 2027, and the gain to that…  Read more

By Simon Terry LLB BCom CA, Director, Porters CA. As at 23 September 2026. For many family businesses, the answer may still be yes. A discretionary trust retains useful for succession, asset protection and deciding who receives income. It is still worth checking whether those benefits outweigh the tax and administration costs for your particular group with any change in structure triggering a large volume of legal, tax (State and Federal)…  Read more

If a trust in your family group has made a family trust election, 31 December 2026 is an important date. For many years, the practical understanding of family trust election rules was relatively simple: keep distributions within the family group or risk family trust distribution tax. So family groups and accountants readily complied with that principle. That was broadly how the rules were expected to operate when introduced. The original…  Read more

You’ve no doubt been bombarded with budget summaries, hot takes, economists, talk back radio, winners and losers lists, headlines and opinions as to whether Jim Chalmers and Anthony Albanese are our saviours or should be voted out at the earliest opportunity. This is the most significant budget for tax planning in many years. The government claims to be targeting intergenerational fairness by shifting the tax burden from workers to capital…  Read more

From 1 July 2026, the new Payday super rules for employers requires paying employees’ Super Guarantee (SG) in line with each payday (your normal pay cycle), replacing the current quarterly obligation. Key changes include: SG remains 12%, but the earnings base shifts from the current Ordinary Time Earnings to Qualifying earnings (QE). The two are very similar and for standard wages subject to super likely no impact however review closely…  Read more

From 1 July 2025, interest the ATO charges on late payments or shortfalls is not tax-deductible. This covers General Interest Charge (GIC) and Shortfall Interest Charge (SIC), even if the debt relates to an earlier income year. The new rule applies from the date the interest is incurred. Australian Taxation Office What Changed  Some ATO debt such as on a personal tax return was never deductible but other interest was…  Read more

Working From Home Deductions: What’s Changed and What To Do Now From 1 July 2024 the ATO’s fixed rate deduction for working from home (WFH) running expenses is 70 cents per hour. In a frustrating approach by the ATO, estimates are not acceptable and you must keep contemporaneous records of actual hours for the whole year along with supporting copies of example invoices. ATO – difficult by design? If you…  Read more

The WA government has released an opportunity to apply for grants of up to $10,000 in co-funded services to help business growth initiatives for small business. Key qualification criteria: 1 to 20 employees, >$200k turnover, established in WA before 1 January 2024, must be a for profit business, capital purchases are not eligible, the grant is to a maximum of 50% of the proposed spend and a grant application must…  Read more

Succession planning in a family business is a complex and often emotional process that involves more than just passing on company control to the next generation. It requires careful preparation, open communication, and a deep understanding of the emotional dynamics at play. Effectively managing these emotional dynamics is crucial to ensure both family harmony and business continuity. Understanding emotional dynamics Family businesses are a unique blend of personal and professional…  Read more

Background A Western Australian Supreme Court recently ruled on an invoice scam dispute, shedding light on the legal risks businesses face if they fail to confirm suspicious payment details. In the case, hackers accessed a legitimate email account and sent fraudulent banking information to the paying party—leaving the payer on the hook for the unrecovered funds. What Happened An electrical contractor’s email account was hacked. The scammer emailed updated bank…  Read more

In recent times, there has been a notable increase in fraudulent tax return lodgments across Australia, often resulting from compromised myGov accounts. The Australian Taxation Office has indicated that breaches of myGov accounts have been in those with a Basic or Standard identity level and potentially none with a Strong identity level. On 13 November 2024 the Australian Government rebranded their digital identity management system from myGovID to myID. myID…  Read more

Starting a business without a plan is like setting sail without a compass. While you might eventually reach your destination, the journey will likely be longer and more challenging. A well-constructed business plan is essential for guiding your business towards success.  Here’s why: It Clarifies Your Vision A business plan helps you articulate the vision for your enterprise. It forces you to think through every aspect of your business, including…  Read more

In a discretionary trust structure, several key roles play distinct and important parts. Understanding the functions and interrelationships of the Appointor, Guardian, along with the Trustee, Directors and Shareholders (or the alternative of an individual trustee) is crucial. Let’s break down each role: Appointor Primary Function: The Appointor is the most powerful figure in a discretionary trust. Their key role is to appoint or remove trustees. Control: Through the power…  Read more

Your Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) by registered businesses to report their GST obligations, Pay As You Go (PAYG) withholding (PAYGW) and Pay As You Go (PAYG) instalments (PAYGI). Many business owners and their bookkeepers do a good job of preparing and lodging their own BAS, however recording the BAS payment back into the accounts is where things go astray. When…  Read more

You run a great business. You know your product/service but do you know enough about your finances? Even if you have outsourced your financial functions, as a small business owner, it is crucial to have a solid understanding of key financial concepts to work with your advisor and ‘speak their language”. This article outlines several important concepts that every small business owner should be familiar with. Basics of income and…  Read more

How many things can go wrong? We don’t have an exact number, but at a guess, quite a lot. Enough to take notice and manage risk as a process and with intent. Not so many that we need to wrap ourselves in cotton wool and stay indoors. What have we seen in recent years? This is probably not the full list, but it’s a pretty good start: Payment sent to…  Read more

The evolution of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation. Under STP employers must report pay, allowances, taxes and superannuation information directly to the ATO every payday through STP. Employers using STP will not give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov. Employers…  Read more

Cybersecurity Best Practices for Small and Medium-Sized Businesses In our digital age, cybersecurity is a crucial aspect of running any business. Cybersecurity breaches could lead to not only data theft but also reputational and financial loss. Hence, it’s imperative to establish robust cybersecurity measures to protect your business and customers’ sensitive information. Here are some cybersecurity practices that could help safeguard your online presence. 1. Invest in Security Software: One…  Read more

The Federal Government unveiled its annual budget on 9 May. The images of tradies in hi-vis were replaced by images of health workers, carers and the aged as the budget focus turned to helping with the cost of living, with support for low-income earners while also allocating funding to health and education with the support for small businesses more about headlines than substance. Small Business Support The accelerated depreciation provisions…  Read more

Debt can be a significant burden on one’s financial life. It can cause stress, anxiety, and make it difficult to achieve financial goals. However, with a little planning and dedication, anyone can create a debt repayment system and get on the path to financial freedom. Here are some tips for managing debt and creating a debt repayment system: Take Stock of Your Debt The first step in managing debt is…  Read more