As an Australian taxpayer, it is a legal requirement to lodge your annual tax return with the Australian Taxation Office (ATO) at the end of each financial year - 30th June. 
The ATO have warned taxpayers to not lodge until late July and early August. This is because information needs to be completed and pre-filled - information ranging from health statements to employer income statements. Waiting for this information to be pre-filled reduces the likelihood of mistakes and omissions, which can result in taxpayers having to submit an amendment possibly causing issues and delays. 

Understanding how deductions work
Deductions work by reducing your taxable income and thus lowering the amount of tax owing. Your taxable income is your total income made annually minus any allowable deductions.

Which work-related expenses can you claim:
If you spend money in the course of performing your job or running your business, some of those costs may be tax-deductible.
To claim a work-related deduction, the following must apply:

• You paid for the expense yourself and weren’t reimbursed.
• The expense is directly related to your income-earning activities.
• You have a record or receipt as evidence.

Common deductible work-related expenses include:

• Car, travel, and transport costs.
• Tools, equipment, and technology used for work.
• Work-related clothing and uniforms.
• Home office expenses.
• Training, education, and seminar fees.
• Union fees, memberships, accreditations, and licenses.
• Overtime meal costs.
• Certain health and medical-related expenses.

Other deductible expenses - non-work related
You may also be able to claim deductions for:

• Charitable donations and gifts.
• Expenses related to investment income.
• Personal superannuation contributions.
• Income protection insurance.
• Costs associated with managing your tax affairs.

How to claim your expenses
The ATO requires you keep receipts and documentations as proof for all claims - this means accurate record-keeping is essential. 
There are tools available to make this process easier. The office ATO app to track any deductions whether work-related or other, is myDeductions. These records can be uploaded directly when lodging your return via myTax, or shared with us if we are preparing your return as your registered tax agent. 

Need a helping hand?
Claiming all the deductions you're entitled to can significantly reduce your tax bill. Our team can guide you through setting up efficient record-keeping systems and ensure you claim the appropriate deductions - both work-related and personal.

Contact us today on (08) 9367 4199 to make sure you’re getting the most from your tax return.
Or checkout out checklists available that will help guide you through your individual tax return. 

We're nearing the end of the 2025 financial year, making it the perfect time to start planning how you will optimise your tax in the new year. 

As of 31 March 2025, the Fringe Benefits Tax (FBT) year has officially ended. While FBT might not be the most exciting topic, if your business owns a vehicle used by employees, you may be affected—and now is the time to take action.
The Australian Taxation Office (ATO) has significantly increased its focus on FBT compliance this year, particularly when it comes to cars. In fact, the ATO has received an additional $998 million in funding for audits, with high-value vehicles (especially those over $65,000) in the spotlight.

Why Lodging an FBT Return Matters
Here’s what every business owner should know:

• Lodging an FBT return—even if no FBT is payable—limits the audit window to three years.
  • If you don’t lodge, the ATO can audit you at any time in the future.
• Not lodging is an audit trigger. The ATO has confirmed that businesses not lodging FBT returns increase their risk profile.
• There are real consequences. A small business recently received an FBT bill of $13 million, covering the years 2012 to 2023—simply because they had never lodged any FBT returns.

Even if your risk level is much lower, the 47% FBT rate means it’s important to take this seriously.

Does Your Vehicle Qualify for FBT Exemption?
If you’re providing what you believe to be a commercial vehicle, it must meet specific definitions to be exempt from FBT:

• A taxi, panel van, or utility truck designed to carry a load under one tonne, or
• Any other road vehicle designed to carry a load under one tonne (excluding vehicles primarily designed to carry passengers).

Even if your vehicle qualifies under these definitions, exemption only applies if the private use is considered minor and infrequent.
According to the ATO guidelines (active since 2018), this means:

• No more than 800 km of private use per year, and
• No individual private trip exceeding 200 km.

What You Should Do Next
To protect your business and reduce FBT exposure, here’s what we recommend:

1. Have employees complete a "minor and infrequent use" declaration
   You can download a declaration form from our website here:
   👉 Work Horse Vehicle Declaration
2. If private use exceeds the exemption limits, then:
   • Have employees keep a logbook, ideally updated every 1–2 years (not every 5 years, as some mistakenly believe), or
   • Have employees reimburse the business for personal kilometres driven.
3. If your vehicle does not meet the commercial vehicle definition, it’s crucial you reach out. We can help calculate any required employee contributions and lodge an FBT return if necessary.

Our Final Advice
Lodge an FBT return—even if no FBT is payable.
It’s a relatively small cost that could save you thousands and provide peace of mind knowing your audit risk is minimised.
 
If you need help, clarification, or want us to handle this for you—please don’t hesitate to reach out either by email at [email protected] or call us at (08) 9367 4199. We’re here to support you.

When receiving a document from FuseSign, you will receive an email similar to this:

The process itself is very similar to Annature - that is, you are not required to login. Simply insert your signature where you are prompted and submit. ​

Keep an eye out for FuseSign emails and reach out if you have any questions either by email at [email protected] or call us at (08) 9367 4199. 

Several key updates have been announced by the Australian Taxation Office (ATO) this May that will affect small businesses across the country. These updates include extended tax concessions, new incentives for energy-efficient investments, and changes to GST reporting obligations. Understanding these changes can help small business owners make informed decisions before the end of the financial year and beyond. Here's a breakdown of the most relevant updates and what they mean for small business operations.

1. $20,000 Instant Asset Write-Off Extended
The $20,000 instant asset write-off has been extended through to 30 June 2025. This allows eligible small businesses to immediately deduct the full cost of eligible depreciating assets costing less than $20,000. To qualify, the business must have an aggregated annual turnover of less than $10 million, and the asset must be first used or installed ready for use between 1 July 2024 and 30 June 2025.
This measure continues to be a valuable tool for small businesses that need to invest in equipment, tools, vehicles, or technology. Rather than depreciating the asset over several years, the entire cost can be written off in the year it was installed or used. This boosts cash flow and reduces taxable income, making it a strategic option for businesses planning purchases in the next financial year. However, each asset must be under the $20,000 threshold individually to qualify, and assets over that amount will be subject to general depreciation rules.
 
2. ATO to Deny Tax Deductions for Interest on Tax Debts
The Australian Taxation Office (ATO) is set to introduce a new measure that could have significant implications for businesses with outstanding tax debts. From 1 July 2025, businesses will no longer be able to claim a tax deduction for interest charges applied by the ATO. This change applies to both the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC), which are commonly incurred when tax payments are late or when there is a shortfall in the amount paid. While these charges were previously deductible, allowing businesses to reduce their taxable income, that benefit will soon be removed.
The shift appears to be part of a broader strategy to encourage more timely payment of tax debts. By making the financial consequences of late payment more costly, the ATO is encouraging businesses to settle their obligations more promptly and avoid accruing unnecessary interest. Businesses should take this opportunity to review their current tax debt positions and consider the potential impact this change may have on their cash flow and tax planning strategies.

3. Small Business Income Tax Offset
The Small Business Income Tax Offset continues to provide relief for unincorporated small businesses. This offset can reduce the income tax payable by up to $1,000 per year. It applies to sole traders, as well as individuals who receive net small business income from a partnership or trust, where the business has an aggregated turnover of less than $5 million.
The offset is calculated automatically when lodging a tax return, based on the proportion of business income and the overall taxable income of the individual.
While it doesn’t reduce the tax rate itself, it can provide a modest but valuable reduction in the total tax liability, especially for micro and home-based businesses. It's a good reminder for small business operators to ensure their income is correctly classified as business income and to keep detailed records to support their claims.
 
4. Monthly GST Reporting for Some Businesses
The ATO has started moving certain small businesses from quarterly to monthly GST reporting as of 1 April 2025. This change applies to approximately 3,500 businesses that have shown a history of non-compliance, such as consistently late Business Activity Statement (BAS) lodgements, unpaid GST debts, or incorrect GST reporting. Businesses that are selected will be formally notified by the ATO and will be required to submit and pay GST monthly instead of quarterly.
​The intention behind this shift is to help the ATO monitor at-risk businesses more closely and reduce the likelihood of large tax debts accumulating over time. For businesses affected, this change can increase the frequency and complexity of their reporting obligations and may require adjustments in bookkeeping practices and cash flow planning. It’s important to take proactive steps to stay compliant and up to date with obligations to avoid being selected for monthly reporting. For businesses already affected, automating BAS preparation and improving recordkeeping systems can help manage the extra workload.

These ATO updates reflect a broader focus on compliance, sustainability, and support for business investment. Whether you’re looking to claim deductions, invest in energy-saving equipment, or improve reporting practices, understanding the latest changes can help you make smarter decisions. With the end of financial year approaching, it’s an ideal time to review your current position, plan upcoming purchases, and ensure your business is on track.

If you're unsure how these changes might affect you and your business, get in touch with us either by email at [email protected] or call us at (08) 9367 4199. We can help you understand and ensure you're compliant moving forward.

The ATO has made quiet but significant updates this year to how it manages debts—and if you’re not paying close attention, you could be hit with unexpected interest charges, stricter payment arrangement rules, or mandatory monthly GST reporting. These aren’t just administrative tweaks; they can affect your cash flow, compliance risk, and ability to plan ahead. We’re seeing how easy it is for businesses to get caught off guard. Below, we break down the key changes you need to know—and what you can do now to stay ahead.

The ATO Will No Longer Notify You When Only Interest Is Accruing – Here’s What You Need to Know
The ATO has changed how it communicates about tax debts, and it’s important for taxpayers to be aware of the implications—especially when significant interest charges are involved.
As of now, the ATO will no longer issue automated Statements of Account (SOAs) if the only activity on your account is the accrual of General Interest Charges (GIC). In other words, if you're incurring interest on an unpaid tax debt but there are no other recent transactions, you won't be notified.
Why this matters:
Many taxpayers assume they'll be alerted when interest is accruing—but with these changes, that's no longer the case. If you're unaware that a balance remains unpaid, GIC will continue to build up silently until the debt is cleared—potentially costing you more over time.
Key points to be aware of:

• You and your tax agent can check your account balance and recent transactions, including GIC, via ATO online services at any time.
• In some cases, the ATO may send reminders via SMS, email, or myGov, but these are not guaranteed.
• You can request a Statement of Account directly from the ATO if needed.

The ATO will still issue SOAs when:

• Interest accrues on early payments
• Credits or refunds are applied to offset other debts
• A Notice of Assessment is issued (in some cases)

To avoid unnecessary interest, it's a good idea to monitor your ATO account regularly—especially if you know there's an outstanding BAS or income tax liability.
​

ATO to Shift Non-Compliant Small Businesses to Monthly GST Reporting
The ATO has announced that from 1 April 2025, around 3,500 small businesses with ongoing GST compliance issues—such as late lodgements, missed payments, or incorrect reporting—will be moved from quarterly to monthly GST reporting.
This shift is part of the ATO’s broader strategy to improve compliance and help struggling businesses manage their obligations more effectively. Monthly reporting can make it easier for businesses to stay on top of GST liabilities and avoid falling further behind.
What this means:

• Affected businesses will be notified directly by the ATO, along with their tax agents.
• The monthly reporting cycle will apply for at least 12 months as part of the ATO’s “Getting it right” campaign.
• Monthly reporting can help with cash flow by breaking GST payments into smaller, more manageable amounts, and encouraging more frequent reconciliation.

Businesses that have voluntarily switched to monthly reporting often find it aligns better with their accounting processes and improves their ability to manage obligations in real time.

​ATO Tightens Rules Around Payment Arrangements
The ATO has significantly increased scrutiny around deferred payment arrangements, making them harder to secure—especially if previous plans have defaulted.
Avoid Defaulting on Existing Plans
If you currently have a payment arrangement in place, it's critical to lodge and pay all Business Activity Statements and Income Tax Returns on time. Missing a due date—even once—can result in the ATO automatically cancelling your arrangement, with the full balance becoming immediately payable.
Act Early if You’re Struggling to Pay
If you think you may be unable to meet an upcoming payment, contact us or the ATO as soon as possible to explore your options. A proactive approach improves your chances of negotiating a new plan.
Don’t Ignore ATO Correspondence
ATO letters about outstanding tax debts should never be ignored. Failure to respond can lead to debt recovery action or legal proceedings. Maintaining clear communication and a good compliance history is essential.
Prevent Tax Debt from Arising
The most effective way to avoid ATO debt is by lodging and paying your BAS and tax returns on time. Keep in mind that late payments attract General Interest Charges, which accrue daily.

​ 
If you're unsure whether these changes might apply to you, get in touch with us either by email at [email protected] or call us at (08) 9367 4199. We can help you get your records in order, set up better reporting systems, and make sure you're compliant moving forward.

​Are you confident in understanding the financial snapshot of your balance sheet?  You can book a session with us to analyse your reports with an experienced business advisor.
To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance.
​
So what’s involved?  - The balance sheet has three sections: assets, liabilities and equity.

What are Assets?
Assets are things and resources that a company owns. They have current and/or future value and can be measured in currency.
Assets may be subdivided on the balance sheet into bank accounts, current assets, (receivable within one year), fixed assets, inventory, non-current (or long term) assets, intangible assets and prepayments.
These include banks and other financial accounts held, accounts receivable (trade debtors), supplier deposits or bonds, stock on hand, property, equipment, vehicles, investments and intellectual property. All of these can be translated into monetary value.
What are Liabilities?
Liabilities are amounts owed to suppliers and other creditors for goods or services already received. Liabilities may also include amounts received in advance for future services yet to be provided by the business.
Liabilities are generally subdivided into current, (payable within one year), and non-current liabilities.
These include accounts payable (trade creditors), payroll obligations (salaries, taxes, superannuation), interest, customer deposits received, warranties and loans.
What is Equity?
Equity includes owner funds contributed, drawings, retained earnings and stocks. The value of the equity equals assets minus liabilities.
Transactions that affect profit and loss accounts also affect balance sheet accounts. For example, providing a service increases the accounts receivable balance, which therefore increases the equity.
The Balance Sheet Equation
The balance sheet must always balance! Asset value = liabilities + equity.
For example, if you buy a new vehicle for the business at say 50,000, having paid a 10,000 deposit and taking out a 40,000 loan, the value of fixed assets increases by 50k, but the bank asset value decreases by the 10k deposit paid. The value of liabilities increases by 40k loan, thus leaving the balance sheet balanced on both sides of the equation.
The balance sheet equation shows you how much money you would have left over if you paid all your bills and debts and sold all your assets at a given date. This amount is the Owner’s Equity.
Note that the balance sheet equity total is not necessarily how much the business is worth at market value. Assets are listed on the balance sheet at their transaction value, which may be very different from the market value. Some assets may be worth more, and others may depreciate in value. Business value is calculated not just on the balance sheet figures but many other factors.
​
Looking for your income and expenditure amounts for a specific period of time? Check your Profit & Loss Statement.

Need more information?
Talk to us on (08) 9367 4199. Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

We have looked at some key ways to optimise your business, exploring different avenues to evolve your enterprise and create a legacy you can be proud of.
Let’s see how you can have better control over your financial numbers.
Having the right numbers at your fingertips
One of the biggest causes of business failure with new startups is poor cashflow and a lack of capital. Having enough money to cover your expenses, pay your workforce and invest in growth is what separates the successful businesses from those that fall by the wayside.
But what can you do to improve your cash position and keep yourself in the driving seat when it comes to managing the financial side of the business?

Here are six simple things you can do to get more proactive with your finances:
 
Embrace financial technology and cloud accounting
Make sure you’re using cloud-accounting solutions like Xero, with integrated bank feeds, expense tracking, simple invoicing and a real-time view of your numbers. You can also use the advanced reporting features to get deep insights into financial performance and use financial metrics to monitor performance.
Develop a framework of financial key performance indicators (KPIs) including gross profit margins, operating expenses, customer acquisition costs and revenue growth rates. By tracking these metrics, you can gauge your performance, spot any financial threats and make well-informed decisions about your financial management.
 
Forecast your cashflow position and potential challenges
Use cashflow forecasting tools to track your expected cash inflows and outflows. These projections give you an overview of your cash position for the months ahead, allowing you to top up your cash as required. It’s also sensible to build up some meaningful cash reserves, so you have capital behind you when cashflow gets tight.
 
Work on your aged debt and debtor management
It’s important that customers pay on time and that your payment terms are clear. Use your accounting software to send out automated reminders and have structured follow-up procedures in place for overdue payments. It’s also a good idea to offer early payment incentives and to nurture strong customer relationships to minimise your aged debt and improve cashflow.

Review your expenses with fresh eyes
Start by looking at your expenses from last month. What did you spend money on that isn’t vital to your business growth today? Here’s a checklist to help:

• Subscriptions and memberships: Do you have any that you haven’t used in months? Maybe you signed up for an email marketing tool but haven’t sent a campaign in all year. Or maybe there’s a monthly membership that’s been “just in case,” but hasn’t added tangible value recently.
• Software: Are you paying for a project management system you no longer use? Or perhaps you’ve been doubling up on tools, paying for two different services that do the same thing such as PDF editors.
• Outdated services: Think about any third-party services you’re outsourcing that no longer serve your business. Maybe you’ve moved to a different software solution, but you’ve been keeping the old one active “just in case.” That’s money down the drain.
• Miscellaneous overhead: Office space, supplies, or other costs that were important in the early stages of your business but have since become unnecessary or redundant. Check out the supply closet and take inventory of what’s there to reduce unnecessary orders being placed for stationery and office supplies.

Once you’ve identified these, take a good look at them. If you’re not actively using these services to grow your business, they’re just sinking your profitability.
 
Get strategic with your working capital and access to finance
Having a viable level of working capital in the business is a must. Explore the various financing options for boosting your capital. This can include business lines of credit, invoice financing or term loans, all of which help to increase funding and raise the company’s capital.
 
Talk to us about ways to improve your digital transformation
There has never been more tools to help you manage your finances. By embracing the best in financial and accounting tools, you give yourself (and your finance team) the superpowers to become cashflow positive, with capital behind you to drive your business to new heights.
 
If you’re looking to upgrade your financial management, talk to us. Our team will suggest the ideal accounting tech and the best ways to control your numbers. Call (08) 9367 4199 or email us at [email protected].​