Talking Concepts
December 2025
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Stay current with Concepts & Results and any updates in the market
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Dates to Remember
21 December 2025 – Monthly IAS & monthly BAS lodgement and payment due
23 December 2025 – Office closes for Christmas break
8th January 2026 – Office re-opens
15th January 2026 – December 2025 Payroll Tax (Date extended, normally due 7th)
28th January 2026 – December Quarterly Super Due
Quarterly Super Due Dates –
Super contributions must be received by the employee’s super fund by the following deadlines:
1 October – 31 December → Due by 28 January.
1 January – 31 March → Due by 28 April.
Starting INTEREST RATES
RBA Drops rates by 0.25%!
4.79% p/a Fixed Rate
5.41% p/a Comparison Rate
Based on our lender panel, Bank Australia’s 3 Year Fixed Rate, provides the most competitive Interest Rate. Interest rates are correct as at 25/11/2025 and subject to change at anytime. The comparison rate is based on a loan amount of $500,000, over a 30 year term.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.
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Staff updates
Mikaela welcomed her beautiful boy, Sebastiano Filippo Scandizzo D’Addario 💙✨
Born on 07/11/2025 at 11:17pm, weighing 2.81kg / 6.2lbs.
Mikaela will be on Maternity leave over the next few months to enjoy this time with her family.
Client Success Stories:
The $38,000 Turnaround
Strategic planning, smarter income splits, big results.
Not every financial win is about scaling fast. Sometimes the smarter move is preserving wealth and optimising your structure.
One of our recent clients, two directors running a profitable business, were paying too much to the ATO each year. We helped them by:
- Rebuilding their structure into a trust
- Splitting income more strategically between both directors.
- Ensuring they paid themselves super and reduced excess company profit
Leveraging concessional and non‑concessional contributions
Result: $38,000 back in their pocket! No extra stress, no aggressive risk, just smart structure and tax planning.
Selling Your Rental Property:
What You Need to Know About Capital Gains Tax
Many property investors underestimate how significant CGT can be—but with the proper planning and advice, you can manage your tax position effectively and avoid surprises at tax time.
Many property investors underestimate how significant CGT can be—but with the proper planning and advice, you can manage your tax position effectively and avoid surprises at tax time.
When CGT Applies
A CGT event occurs as soon as you sign the contract of sale, not at settlement. This means the timing of your sale determines the financial year in which your gain or loss is reported. If you’re considering selling close to the end of the financial year, the contract date could impact your taxable income.
Calculating Your Gain or Loss
Your capital gain (or loss) is the difference between your sale proceeds and the cost base of your property. The cost base isn’t just the purchase price—it also includes things like legal fees, stamp duty, agent’s commissions, and capital improvements. On the other hand, you’ll need to reduce this figure by any depreciation or capital works deductions you’ve already claimed over the years.
For example, if you bought a property for $750,000, spent $30,000 on acquisition costs and $6,000 on improvements, but claimed $40,000 in deductions, your adjusted cost base would be $746,000. If you then sold the property for $900,000, your capital gain would be $154,000.
The CGT Discount
If you’ve owned the property for more than 12 months, you may be entitled to the 50% CGT discount as an individual. This can halve the amount of your gain that’s included in your taxable income—making timing an important part of your tax planning.
Other Key Considerations
- Co-ownership: If the property is jointly owned, each owner reports their share of the gain or loss.
- Pre-CGT properties: If you bought before 20 September 1985, the property may be exempt—but improvements made after this date could still trigger CGT.
- Losses: If you sell at a loss, you can’t claim it against regular income, but you can carry it forward to offset future capital gains.
Why Advice Matters
The way you calculate your gain, apply exemptions, and time your sale can make a big difference to your final tax bill. Small errors—like forgetting to adjust for depreciation claims—can be costly if the ATO reviews your return.
Don’t wait until after the sale to work this out. If you’re planning to sell, let’s review your figures in advance. Together, we can model the potential tax outcome, explore whether exemptions or discounts apply, and make sure you’re in the best possible position before signing the contract.
Get in touch before listing your property, so you can sell with confidence, knowing exactly where you stand on Capital Gains Tax.
When CGT Applies
A CGT event occurs as soon as you sign the contract of sale, not at settlement. This means the timing of your sale determines the financial year in which your gain or loss is reported. If you’re considering selling close to the end of the financial year, the contract date could impact your taxable income.
Calculating Your Gain or Loss
Your capital gain (or loss) is the difference between your sale proceeds and the cost base of your property. The cost base isn’t just the purchase price—it also includes things like legal fees, stamp duty, agent’s commissions, and capital improvements. On the other hand, you’ll need to reduce this figure by any depreciation or capital works deductions you’ve already claimed over the years.
For example, if you bought a property for $750,000, spent $30,000 on acquisition costs and $6,000 on improvements, but claimed $40,000 in deductions, your adjusted cost base would be $746,000. If you then sold the property for $900,000, your capital gain would be $154,000.
The CGT Discount
If you’ve owned the property for more than 12 months, you may be entitled to the 50% CGT discount as an individual. This can halve the amount of your gain that’s included in your taxable income—making timing an important part of your tax planning.
Other Key Considerations
- Co-ownership: If the property is jointly owned, each owner reports their share of the gain or loss.
- Pre-CGT properties: If you bought before 20 September 1985, the property may be exempt—but improvements made after this date could still trigger CGT.
- Losses: If you sell at a loss, you can’t claim it against regular income, but you can carry it forward to offset future capital gains.
Why Advice Matters
The way you calculate your gain, apply exemptions, and time your sale can make a big difference to your final tax bill. Small errors—like forgetting to adjust for depreciation claims—can be costly if the ATO reviews your return.
Don’t wait until after the sale to work this out. If you’re planning to sell, let’s review your figures in advance. Together, we can model the potential tax outcome, explore whether exemptions or discounts apply, and make sure you’re in the best possible position before signing the contract.
Get in touch before listing your property, so you can sell with confidence, knowing exactly where you stand on Capital Gains Tax.
Lodging a Tax Return in Retirement:
What You Need to Know
Retirement doesn’t automatically mean freedom from tax obligations.
While some retirees may no longer need to lodge a tax return, many still do – depending on their income sources.
Let’s take a look at a breakdown of the rules around tax returns in retirement and what to watch for.
Retirement doesn’t automatically mean freedom from tax obligations.
While some retirees may no longer need to lodge a tax return, many still do – depending on their income sources.
Let’s take a look at a breakdown of the rules around tax returns in retirement and what to watch for.
Do You Have to Lodge a Tax Return?
Even in retirement, the same Australian tax rules apply: if your taxable income exceeds the tax-free threshold (currently $18,200), you must lodge a return—unless specific tax offsets apply.
If the Age Pension is your only income source and no tax has been withheld, you generally don’t need to lodge a return. But if any other income is coming in—investment returns, part-time wages, super lump sums, or rental income—a return is usually required.
Special Considerations in Retirement
- Tax-Free Super Pensions (Age 60+)
If your only income is a tax-free pension from a taxed super fund and you’re aged 60 or older, you may not need to lodge a return—so long as no other income sources apply. - Capped Defined Benefit Pensions
These can include a tax-free component up to a threshold, after which any excess may be taxable and must be declared. Your fund typically provides a tax statement to assist. - Self-Managed Super Funds (SMSFs)
Trustees must continue lodging annual returns for their SMSF, even if members are in the retirement income phase. - Seniors and Pensioners Tax Offset (SAPTO)
This offset can significantly reduce or even eliminate tax liability—but eligibility depends on meeting age/pension criteria and income thresholds. The ATO also provides a tool to check if you need to lodge.
How to Decide What to Do
The easiest route is to use the ATO’s “Do I need to lodge a tax return?” tool, accessible via your myGov-linked ATO Services account. If it indicates you’re not required to lodge, you can instead submit a non-lodgment advice online.
If you received franking credits but don’t otherwise need to lodge a return, you may still be eligible for a refund—either via simple online application, phone, or mail.
If you’re still unsure, having a chat with your accountant could help work out whether or not you need to lodge a return.
Do You Have to Lodge a Tax Return?
Even in retirement, the same Australian tax rules apply: if your taxable income exceeds the tax-free threshold (currently $18,200), you must lodge a return—unless specific tax offsets apply.
If the Age Pension is your only income source and no tax has been withheld, you generally don’t need to lodge a return. But if any other income is coming in—investment returns, part-time wages, super lump sums, or rental income—a return is usually required.
Special Considerations in Retirement
- Tax-Free Super Pensions (Age 60+)
If your only income is a tax-free pension from a taxed super fund and you’re aged 60 or older, you may not need to lodge a return—so long as no other income sources apply. - Capped Defined Benefit Pensions
These can include a tax-free component up to a threshold, after which any excess may be taxable and must be declared. Your fund typically provides a tax statement to assist. - Self-Managed Super Funds (SMSFs)
Trustees must continue lodging annual returns for their SMSF, even if members are in the retirement income phase. - Seniors and Pensioners Tax Offset (SAPTO)
This offset can significantly reduce or even eliminate tax liability—but eligibility depends on meeting age/pension criteria and income thresholds. The ATO also provides a tool to check if you need to lodge.
How to Decide What to Do
The easiest route is to use the ATO’s “Do I need to lodge a tax return?” tool, accessible via your myGov-linked ATO Services account. If it indicates you’re not required to lodge, you can instead submit a non-lodgment advice online.
If you received franking credits but don’t otherwise need to lodge a return, you may still be eligible for a refund—either via simple online application, phone, or mail.
If you’re still unsure, having a chat with your accountant could help work out whether or not you need to lodge a return.
Key Documents to Have on Hand:
- PAYG Payment Summaries or Income Statements from super income streams, investments, part-time work, etc.
- Statements showing taxable components, particularly if receiving a defined benefit pension or accessing super lump sums.
- Any documents related to dividends, interest, rental or business income, along with necessary PAYG summaries.
- Franking credits and proof of super contributions (if claiming deductions).
- If applicable, SAPTO eligibility details or rebate income documentation.
While the rules around lodging in retirement can be confusing, the ATO’s online tools are invaluable for clarity.
In many cases, if your only income is a tax-free super pension or the Age Pension, and no tax has been withheld, a tax return may not be required—but notifying the ATO through non-lodgment advice is still important.
If your circumstances are more complex—such as additional income, SMSF obligations, or taxable super payments—it’s wise to lodge a return and consult a tax professional if needed.
Staying informed now ensures smoother tax compliance and peace of mind in your retirement years. Why not have a talk with your accountant and find out the right move for your situation?
Key Documents to Have on Hand:
- PAYG Payment Summaries or Income Statements from super income streams, investments, part-time work, etc.
- Statements showing taxable components, particularly if receiving a defined benefit pension or accessing super lump sums.
- Any documents related to dividends, interest, rental or business income, along with necessary PAYG summaries.
- Franking credits and proof of super contributions (if claiming deductions).
- If applicable, SAPTO eligibility details or rebate income documentation.
While the rules around lodging in retirement can be confusing, the ATO’s online tools are invaluable for clarity.
In many cases, if your only income is a tax-free super pension or the Age Pension, and no tax has been withheld, a tax return may not be required—but notifying the ATO through non-lodgment advice is still important.
If your circumstances are more complex—such as additional income, SMSF obligations, or taxable super payments—it’s wise to lodge a return and consult a tax professional if needed.
Staying informed now ensures smoother tax compliance and peace of mind in your retirement years. Why not have a talk with your accountant and find out the right move for your situation?
What is covered by building and contents insurance?
A strategic guide for property investors
Landlord insurance can protect your rental property, but it only works well when the cover matches the actual risks. One of the biggest points of confusion is the difference between building and contents insurance, and knowing which one you need.
Landlord insurance can protect your rental property, but it only works well when the cover matches the actual risks. One of the biggest points of confusion is the difference between building and contents insurance, and knowing which one you need.
Building insurance covers the structure of the property — walls, floors, roofing, built-in fixtures, ducted systems, garages, fences and essential services like plumbing and wiring.
Contents insurance covers removable items that belong to the landlord — furniture, loose appliances (like fridges or washing machines), curtains, rugs, artwork and other non-fixed items.
If the property is strata, the building may already be insured, meaning you may only need contents cover. If you own the full structure, you’ll usually need both.
Getting the classification right matters. Misunderstanding what falls under building or contents can lead to reduced payouts or denied claims — for example, built-in appliances are usually considered building items, while freestanding ones fall under contents.
To stay protected, investors should:
- Review their policy wording
- Keep an updated inventory of landlord-owned items
- Reassess sums insured regularly
- Make sure the insured amount reflects the true replacement cost
Choosing accurate cover helps avoid shortfalls at claim time and protects both your property and your cash flow.
Building insurance covers the structure of the property — walls, floors, roofing, built-in fixtures, ducted systems, garages, fences and essential services like plumbing and wiring.
Contents insurance covers removable items that belong to the landlord — furniture, loose appliances (like fridges or washing machines), curtains, rugs, artwork and other non-fixed items.
If the property is strata, the building may already be insured, meaning you may only need contents cover. If you own the full structure, you’ll usually need both.
Getting the classification right matters. Misunderstanding what falls under building or contents can lead to reduced payouts or denied claims — for example, built-in appliances are usually considered building items, while freestanding ones fall under contents.
To stay protected, investors should:
- Review their policy wording
- Keep an updated inventory of landlord-owned items
- Reassess sums insured regularly
- Make sure the insured amount reflects the true replacement cost
Choosing accurate cover helps avoid shortfalls at claim time and protects both your property and your cash flow.
Haven’t Owned in 10 Years?
You may qualify for the First Home Guarantee.
The First Home Guarantee Scheme now offers more flexibility for Australians looking to re-enter the property market. If you haven’t held an ownership interest in any property in Australia within the past 10 years, you may still be eligible to apply. The Scheme allows eligible buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance, helping more people achieve home ownership sooner.
Running A Business From Home?
Do You Know Your Eligible Tax Deductions?
If you run your business from home, you’re not alone – and you may be entitled to valuable tax deductions.
The ATO allows deductions for the portion of your home expenses that relate directly to your business.
Let’s break down the essentials so that you know what you might be able to claim on your tax return.
1. What Counts as a Home-Based Business?
A home-based business is one where a part of your home is used for business—whether that’s a dedicated study or even a corner in your living space.
The key rule is: only the business-use portion of expenses is deductible.
2. Two Types of Expenses
- Running expenses cover day-to-day costs like electricity, internet, phone, cleaning, and repairs. You can claim these even if your workspace isn’t a distinct “office” room.
- Occupancy expenses include rent, mortgage interest, council rates, and insurance. These are only deductible if your workspace acts like a true “place of business”—for example, it’s used exclusively, clearly separate from your personal living space, or used by clients.
3. How to Calculate Your Expenses
The ATO offers a few easy-to-use methods—choose whichever best suits your situation:
- Fixed-rate method: Claim 70 cents per hour worked from home. This covers energy, phone, internet, stationery, and computer consumables. Just keep a record of your working hours.
- Actual cost method: Claim your actual expenses (but only the business portion), provided you have the receipts to back it up.
- Floor area method: If you have a designated workspace, apportion occupancy costs based on the floor area used for business and the time it’s used.
4. Other Important Considerations
- Depreciation: You can separately claim depreciation for business-use items like laptops, phones, or office furniture—regardless of whether you use the fixed-rate method.
- Capital Gains Tax (CGT): If you sell your home and have claimed occupancy expenses, a portion may not be covered by the main residence exemption.
- Records: Keep detailed records—including diaries of hours worked (if using fixed-rate), receipts, and calculations—for at least five years.
Understanding and claiming the right home-based business deductions can mean real savings—if you do it the right way. Keep it simple: choose the method that works best for your business, track everything, and only claim your fair share of the expenses.
Your accountant can help you choose the best method for your situation and ensure you’re both compliant and maximising your entitlements. Why not speak with one of our trusted team, and find out how we can help you and your business today?
If you run your business from home, you’re not alone – and you may be entitled to valuable tax deductions.
The ATO allows deductions for the portion of your home expenses that relate directly to your business.
Let’s break down the essentials so that you know what you might be able to claim on your tax return.
1. What Counts as a Home-Based Business?
A home-based business is one where a part of your home is used for business—whether that’s a dedicated study or even a corner in your living space.
The key rule is: only the business-use portion of expenses is deductible.
2. Two Types of Expenses
- Running expenses cover day-to-day costs like electricity, internet, phone, cleaning, and repairs. You can claim these even if your workspace isn’t a distinct “office” room.
- Occupancy expenses include rent, mortgage interest, council rates, and insurance. These are only deductible if your workspace acts like a true “place of business”—for example, it’s used exclusively, clearly separate from your personal living space, or used by clients.
3. How to Calculate Your Expenses
The ATO offers a few easy-to-use methods—choose whichever best suits your situation:
- Fixed-rate method: Claim 70 cents per hour worked from home. This covers energy, phone, internet, stationery, and computer consumables. Just keep a record of your working hours.
- Actual cost method: Claim your actual expenses (but only the business portion), provided you have the receipts to back it up.
- Floor area method: If you have a designated workspace, apportion occupancy costs based on the floor area used for business and the time it’s used.
4. Other Important Considerations
- Depreciation: You can separately claim depreciation for business-use items like laptops, phones, or office furniture—regardless of whether you use the fixed-rate method.
- Capital Gains Tax (CGT): If you sell your home and have claimed occupancy expenses, a portion may not be covered by the main residence exemption.
- Records: Keep detailed records—including diaries of hours worked (if using fixed-rate), receipts, and calculations—for at least five years.
Understanding and claiming the right home-based business deductions can mean real savings—if you do it the right way. Keep it simple: choose the method that works best for your business, track everything, and only claim your fair share of the expenses.
Your accountant can help you choose the best method for your situation and ensure you’re both compliant and maximising your entitlements. Why not speak with one of our trusted team, and find out how we can help you and your business today?
Insights & Expertise: Explore Our Latest Resources
We believe that informed clients make the best financial decisions. That’s why we’ve curated a collection of free resources to help you understand the lending process, mortgage strategies, and financial planning.
Diversification: When It Makes Sense for Your Business (and When It Doesn’t)
Diversification is often hailed as a smart growth strategy—spreading your business into new products, services, or markets so you’re not reliant on a single revenue stream.
When done well, it can open doors to new opportunities, reduce risk, and strengthen resilience in uncertain times.
But diversification isn’t always the right move. Expanding too quickly or in the wrong direction can stretch resources thin and even harm your core business.
So how do you know when diversification is appropriate, and when it’s not?
When Diversification Can Be the Right Move
Your core business is stable and profitable.
Diversification works best when your current operations are running smoothly. If your existing business model is profitable, with strong cash flow and solid customer demand, you’ll have the resources and stability to support new ventures without risking what you’ve already built.
You’ve identified clear market opportunities.
Strong diversification isn’t about chasing trends; it’s about spotting gaps or unmet needs. If you see demand from your existing customer base, or you’ve identified a related market where your expertise gives you an edge, expansion can make strategic sense.
You can leverage existing strengths.
The most successful diversifications use your current capabilities—whether that’s industry knowledge, supply chains, or brand reputation. For example, a café branching into catering makes more sense than moving into clothing retail, because it builds on established skills and resources.
You’ve planned and tested.
A measured approach—such as researching competitors, piloting products, or trialling services—helps reduce risk. Diversification is rarely a leap of faith; it should be a calculated step backed by data and preparation.
When Diversification May Be the Wrong Move:
- Your core business still needs attention.
If your existing business struggles with cash flow, customer retention, or profitability, expanding into new areas can magnify these problems. It’s usually best to stabilise and strengthen your current operations first. - Resources are too stretched.
Diversification requires time, money, and people. If pursuing new opportunities means neglecting your primary offering or overburdening your staff, you risk damaging your reputation and weakening both sides of the business. - The opportunity is too far removed.
Venturing into areas unrelated to your expertise increases risk. Without knowledge or established networks, you could face steep learning curves and costly missteps. - It’s driven by fear, not strategy.
Diversifying purely out of panic—such as reacting to a temporary downturn—can lead to poor decisions. Proper diversification should be proactive, not a desperate attempt to plug short-term gaps.
The Bottom Line
Diversification can be a powerful growth tool—but only when your business is ready, the opportunity aligns with your strengths, and the move is backed by careful planning. Jumping in without a solid foundation can do more harm than good.
This is where your accountant comes in—not just as a tax adviser, but as your trusted business partner.
We can help you analyse your financial position, assess risks, model different scenarios, and determine whether diversification makes strategic and economic sense for your business.
Before you take the leap, talk to us. Together, we’ll ensure your next step is one that strengthens—not strains—your business future.
Diversification is often hailed as a smart growth strategy—spreading your business into new products, services, or markets so you’re not reliant on a single revenue stream.
When done well, it can open doors to new opportunities, reduce risk, and strengthen resilience in uncertain times.
But diversification isn’t always the right move. Expanding too quickly or in the wrong direction can stretch resources thin and even harm your core business.
So how do you know when diversification is appropriate—and when it’s not?
When Diversification Can Be the Right Move
Your core business is stable and profitable.
Diversification works best when your current operations are running smoothly. If your existing business model is profitable, with strong cash flow and solid customer demand, you’ll have the resources and stability to support new ventures without risking what you’ve already built.
You’ve identified clear market opportunities.
Strong diversification isn’t about chasing trends; it’s about spotting gaps or unmet needs. If you see demand from your existing customer base, or you’ve identified a related market where your expertise gives you an edge, expansion can make strategic sense.
You can leverage existing strengths.
The most successful diversifications use your current capabilities—whether that’s industry knowledge, supply chains, or brand reputation. For example, a café branching into catering makes more sense than moving into clothing retail, because it builds on established skills and resources.
You’ve planned and tested.
A measured approach—such as researching competitors, piloting products, or trialling services—helps reduce risk. Diversification is rarely a leap of faith; it should be a calculated step backed by data and preparation.
When Diversification May Be the Wrong Move:
- Your core business still needs attention.
If your existing business struggles with cash flow, customer retention, or profitability, expanding into new areas can magnify these problems. It’s usually best to stabilise and strengthen your current operations first. - Resources are too stretched.
Diversification requires time, money, and people. If pursuing new opportunities means neglecting your primary offering or overburdening your staff, you risk damaging your reputation and weakening both sides of the business. - The opportunity is too far removed.
Venturing into areas unrelated to your expertise increases risk. Without knowledge or established networks, you could face steep learning curves and costly missteps. - It’s driven by fear, not strategy.
Diversifying purely out of panic—such as reacting to a temporary downturn—can lead to poor decisions. Proper diversification should be proactive, not a desperate attempt to plug short-term gaps.
The Bottom Line
Diversification can be a powerful growth tool—but only when your business is ready, the opportunity aligns with your strengths, and the move is backed by careful planning. Jumping in without a solid foundation can do more harm than good.
This is where your accountant comes in—not just as a tax adviser, but as your trusted business partner.
We can help you analyse your financial position, assess risks, model different scenarios, and determine whether diversification makes strategic and economic sense for your business.
Before you take the leap, talk to us. Together, we’ll ensure your next step is one that strengthens—not strains—your business future.
Estate Planning For A Business:
Key Steps Owners Should Be Aware Of
Estate planning is often thought of in terms of personal assets—homes, investments, and superannuation. But for business owners, the business itself is usually one of the most valuable assets they’ll ever hold.
Planning for what happens to the business when you retire, step back, or pass away is essential for protecting its value and ensuring a smooth transition.
Here are the key steps business owners should keep in mind:
- Identify a Successor
One of the most important questions is: Who will run the business after you? This could be a family member, a business partner, or a trusted employee. Choosing a successor early allows you to prepare and train them, ensuring continuity and stability for staff and customers. - Create a Succession Plan
A clear succession plan outlines how ownership and control will be transferred. If there are multiple owners, this often includes buy-sell agreements that set out how shares are valued and purchased if one owner leaves or passes away. Without this clarity, disputes between heirs or business partners can quickly arise. - Review Business Structure
The way your business is structured—whether it’s a sole trader, partnership, company, or trust—will have a major impact on estate planning. For example, assets held in a company or trust may not form part of your personal estate. Understanding how control passes under each structure helps avoid confusion and ensures your wishes are carried out. - Address Tax Implications
Estate transfers often trigger tax consequences, such as capital gains tax or stamp duty. With careful planning, you may be able to access small business concessions or structure transfers in a tax-efficient way. Getting professional advice can help preserve more of the business’s value for your successors.
5. Update Your Will and Legal Documents
Your personal will, powers of attorney, and other legal documents should reflect how your business interests are to be handled. Inconsistencies between your will and your business agreements can cause costly disputes. Regular reviews are essential, especially if circumstances change.
6. Communicate Your Plan
Finally, it’s important to communicate your intentions with family members, business partners, and key staff. Transparency reduces uncertainty and helps avoid conflict during what may already be a stressful time.
Estate planning for a business is about more than just protecting wealth, it’s about safeguarding your legacy. By addressing succession, structure, taxation, and communication early, you give your business the best chance to thrive well beyond your direct involvement.
We can guide you through the process, from reviewing your structure to ensuring your agreements and tax planning align with your goals. Estate planning for your business doesn’t have to be overwhelming. If you’d like to discuss how to protect your business and your legacy, get in touch with us today.
Estate planning is often thought of in terms of personal assets—homes, investments, and superannuation. But for business owners, the business itself is usually one of the most valuable assets they’ll ever hold.
Planning for what happens to the business when you retire, step back, or pass away is essential for protecting its value and ensuring a smooth transition.
Here are the key steps business owners should keep in mind:
- Identify a Successor
One of the most important questions is: Who will run the business after you? This could be a family member, a business partner, or a trusted employee. Choosing a successor early allows you to prepare and train them, ensuring continuity and stability for staff and customers. - Create a Succession Plan
A clear succession plan outlines how ownership and control will be transferred. If there are multiple owners, this often includes buy-sell agreements that set out how shares are valued and purchased if one owner leaves or passes away. Without this clarity, disputes between heirs or business partners can quickly arise. - Review Business Structure
The way your business is structured—whether it’s a sole trader, partnership, company, or trust—will have a major impact on estate planning. For example, assets held in a company or trust may not form part of your personal estate. Understanding how control passes under each structure helps avoid confusion and ensures your wishes are carried out. - Address Tax Implications
Estate transfers often trigger tax consequences, such as capital gains tax or stamp duty. With careful planning, you may be able to access small business concessions or structure transfers in a tax-efficient way. Getting professional advice can help preserve more of the business’s value for your successors.
5. Update Your Will and Legal Documents
Your personal will, powers of attorney, and other legal documents should reflect how your business interests are to be handled. Inconsistencies between your will and your business agreements can cause costly disputes. Regular reviews are essential, especially if circumstances change.
6. Communicate Your Plan
Finally, it’s important to communicate your intentions with family members, business partners, and key staff. Transparency reduces uncertainty and helps avoid conflict during what may already be a stressful time.
Estate planning for a business is about more than just protecting wealth, it’s about safeguarding your legacy. By addressing succession, structure, taxation, and communication early, you give your business the best chance to thrive well beyond your direct involvement.
We can guide you through the process, from reviewing your structure to ensuring your agreements and tax planning align with your goals. Estate planning for your business doesn’t have to be overwhelming. If you’d like to discuss how to protect your business and your legacy, get in touch with us today.
Pre-Approval Activity Surges at Australia’s Biggest Lender
✍️ The Adviser
The Commonwealth Bank of Australia (CBA) has reported a sharp rise in home loan pre-approval applications as interest rates continue to fall and borrowing power increases.
After the RBA delivered three rate cuts this year, CBA saw pre-approval applications jump 12% compared to the same period last year. NSW led the growth with a 25% rise, followed by Queensland at 16%, while Victoria remained steady.
The average pre-approval amount is now just over $733,000 (up 13% year-on-year). First home buyers are applying for an average of $546,000, an 11% increase.
CBA says the rise shows more Australians are preparing to buy property, with borrowing capacity now up around 7% thanks to lower rates.
The bank has also cut a range of fixed and variable home loan rates, with owner-occupied fixed rates now starting from 5.49% p.a. and its lowest variable rate (online-only) at 5.34% p.a.
What Incurs An Audit From The ATO?
No one enjoys the idea of an Australian Taxation Office (ATO) audit, but it’s a reality that both individuals and businesses should be prepared for.
The good news is that most audits are triggered for specific reasons — and staying honest and transparent with your accountant can make all the difference if the ATO ever comes knocking.
No one enjoys the idea of an Australian Taxation Office (ATO) audit, but it’s a reality that both individuals and businesses should be prepared for.
The good news is that most audits are triggered for specific reasons — and staying honest and transparent with your accountant can make all the difference if the ATO ever comes knocking.
How Often Does The ATO Conduct Audits?
While not every taxpayer will face an audit, the ATO regularly reviews data and conducts targeted compliance activities across Australia. Thousands of reviews and audits are performed each year, particularly in industries or areas where discrepancies are more common — such as cash-heavy businesses, high-value property transactions, or unusually large deductions.
With data-matching technology improving every year, the ATO now automatically cross-checks information from banks, employers, super funds, and even online platforms like Airbnb and Uber. This means inconsistencies in reported income, deductions, or business activity are far easier to spot than in the past.
Who Might Be Audited?
The ATO uses data analytics to identify potential red flags, such as:
How Often Does The ATO Conduct Audits?
While not every taxpayer will face an audit, the ATO regularly reviews data and conducts targeted compliance activities across Australia. Thousands of reviews and audits are performed each year, particularly in industries or areas where discrepancies are more common — such as cash-heavy businesses, high-value property transactions, or unusually large deductions.
With data-matching technology improving every year, the ATO now automatically cross-checks information from banks, employers, super funds, and even online platforms like Airbnb and Uber. This means inconsistencies in reported income, deductions, or business activity are far easier to spot than in the past.
Who Might Be Audited?
The ATO uses data analytics to identify potential red flags, such as:
- Income that doesn’t match third-party data (like employer-reported earnings).
- Unusually high deductions compared to others in your occupation or industry.
- Sudden or unexplained changes in business income or expenses.
- Failure to lodge returns or BAS statements on time.
- Participation in schemes or arrangements that appear to artificially reduce tax.
Even if your records are accurate, you can still be randomly selected for review — so it pays to keep everything above board.
Why Full Disclosure To Your Accountant Matters
Your accountant’s advice and reporting are only as accurate as the information you provide. If you withhold or misrepresent income, expenses, or assets — even unintentionally — you may face serious consequences if an audit reveals discrepancies.
Importantly, your accountant cannot be held liable for errors or penalties resulting from incomplete or false information supplied by the client. When you disclose openly, you give your accountant the best chance to prepare accurate returns and ensure compliance with tax law — and to protect you in the event of an ATO review.
The Real Cost Of An Audit
An audit isn’t just stressful — it can also be costly. Depending on the scope and duration, professional fees, time spent gathering records, and potential penalties can add up quickly. If the ATO finds that you’ve underpaid tax, you could face interest charges, penalties, and repayment obligations stretching back several years.
Some businesses choose to protect themselves with audit insurance, which covers the professional fees incurred during an ATO review or audit. It’s worth discussing whether this option suits your circumstances.
Staying On The Safe Side
The best way to avoid audit trouble is simple — keep thorough records, stay compliant, and communicate openly with your accountant.
Double-check your information before lodging, seek professional advice before making unusual claims, and never ignore ATO correspondence.
By maintaining transparency and good record-keeping, you can face any ATO scrutiny with confidence — and stay focused on running your business, not defending your books.
- Income that doesn’t match third-party data (like employer-reported earnings).
- Unusually high deductions compared to others in your occupation or industry.
- Sudden or unexplained changes in business income or expenses.
- Failure to lodge returns or BAS statements on time.
- Participation in schemes or arrangements that appear to artificially reduce tax.
Even if your records are accurate, you can still be randomly selected for review — so it pays to keep everything above board.
Why Full Disclosure To Your Accountant Matters
Your accountant’s advice and reporting are only as accurate as the information you provide. If you withhold or misrepresent income, expenses, or assets — even unintentionally — you may face serious consequences if an audit reveals discrepancies.
Importantly, your accountant cannot be held liable for errors or penalties resulting from incomplete or false information supplied by the client. When you disclose openly, you give your accountant the best chance to prepare accurate returns and ensure compliance with tax law — and to protect you in the event of an ATO review.
The Real Cost Of An Audit
An audit isn’t just stressful — it can also be costly. Depending on the scope and duration, professional fees, time spent gathering records, and potential penalties can add up quickly. If the ATO finds that you’ve underpaid tax, you could face interest charges, penalties, and repayment obligations stretching back several years.
Some businesses choose to protect themselves with audit insurance, which covers the professional fees incurred during an ATO review or audit. It’s worth discussing whether this option suits your circumstances.
Staying On The Safe Side
The best way to avoid audit trouble is simple — keep thorough records, stay compliant, and communicate openly with your accountant.
Double-check your information before lodging, seek professional advice before making unusual claims, and never ignore ATO correspondence.
By maintaining transparency and good record-keeping, you can face any ATO scrutiny with confidence — and stay focused on running your business, not defending your books.
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DISCLAIMER: Whilst all care is taken in the preparation of the material in this newsletter, the information provided is of a general nature and individuals should seek advice as to their own specific needs. Accordingly, no responsibility for errors or omissions is accepted by Concepts & Results group of companies or any member or employee.