Every small business owner should know a handful of key numbers: revenue, gross profit margin, net profit, cash flow, breakeven point, and how much tax they are setting aside. Knowing these figures and watching them monthly is the difference between running a business with confidence and flying blind.
Revenue is a vanity metric.
Business systems are documented, repeatable processes that let work be done consistently by anyone on your team, not just you. To build them, map how each key task is done, document it step by step, assign responsibility, and refine over time, so the business runs on process rather than the owner’s memory.
There is a point in every growing business where the owner becomes the bottleneck.
The instant asset write-off lets eligible small businesses immediately deduct the full cost of qualifying assets, rather than depreciating them over years. Recent measures have moved towards making it an ongoing feature for small business, though the threshold and eligibility apply per asset, so check the current limit before you buy. Companies investing in genuine research should also consider the R&D Tax Incentive alongside the write-off.
For years, the $20,000 instant asset write-off was a temporary measure — extended budget by budget, with business owners never quite sure whether it would survive the next announcement. That uncertainty is now over.
The $20,000 instant asset write-off has been confirmed as permanent for eligible small businesses with aggregated annual turnover under $10 million. If you run an established business with employees, real assets, and real expenses, this is a meaningful and reliable tax planning tool — available every financial year, not just this one.
Here is everything you need to know to use it correctly before 30 June — and how to plan around it going forward.
Missing a write-off like this is one of the biggest tax mistakes Australian business owners make. The other common errors are equally avoidable with the right advice in place before year end.
The instant asset write-off allows eligible businesses to claim an immediate tax deduction for the full cost of a depreciating asset in the year it is first used or installed ready for use.
Without this concession, a $15,000 piece of equipment might generate a $3,000 deduction per year over five years under standard depreciation rules. With the instant asset write-off, the entire $15,000 is deductible in the year of purchase — providing a significant accelerated tax benefit.
The ATO outlines the eligibility criteria and rules in full:
🔗 https://www.ato.gov.au/business/depreciation-and-capital-expenses/instant-asset-write-off/
The $20,000 instant asset write-off is available to businesses with:
It applies to sole traders, partnerships, companies, and trusts — provided the aggregated turnover threshold is met. If your business generates $500,000 to $9.9 million in annual revenue, you are likely eligible.
The 2026–27 Federal Budget confirmed the $20,000 threshold as a permanent feature for eligible small business entities. This is a significant shift from the previous approach, where the threshold and eligibility were subject to annual review.
Your business also faces another major change on the same date — the payday super changes starting 1 July 2026. Employers must now pay super with every pay run, not quarterly.
What this means in practice:
For Melbourne business owners with turnover between $500,000 and $10 million, this permanently changes how asset purchases should be planned and timed.
Assets eligible for the instant asset write-off include:
Assets that do not qualify include:
Important: The $20,000 threshold applies to each individual asset — not your total spend. If you purchase three pieces of equipment at $14,000 each, all three can be written off, because each asset is individually under $20,000.
The write-off applies to the financial year in which the asset is first used or installed ready for use. To claim the deduction in your 2025–26 tax return, the asset must meet both of these conditions:
Ordered but not delivered does not count. Paid for but sitting in a warehouse does not count. The asset must be in your possession and operationally ready before midnight on 30 June.
If you have been planning to replace equipment, upgrade technology, or invest in tools for the business, bringing that purchase forward to before 30 June allows you to claim the full deduction in this year’s return — rather than waiting until next year or depreciating it over time.
For a business structured through a company paying 25% tax:
For businesses in a trust with distributions to individual beneficiaries taxed at higher marginal rates, the tax saving per dollar of deduction is even greater.
This is the difference between tax planning and tax compliance. A compliance accountant records what happened. A tax advisor identifies the write-off opportunity in April, reviews your planned purchases, and positions them to generate maximum deductions before 30 June.
Purchasing but not installing before 30 June. The most common error. The asset must be installed ready for use — not ordered, not in transit, not waiting for setup. If delivery or installation falls in July, the deduction moves to next year.
Buying a single asset over $20,000 and expecting the write-off. Assets at or above the $20,000 threshold must enter the general depreciation pool and are not eligible for the immediate write-off.
Ignoring the car limit. For vehicles that meet the ATO’s definition of a car, only the first $69,674 (2025–26 limit) is depreciable. A $95,000 vehicle does not generate a $95,000 deduction — even if it is used 100% for business.
Getting the GST treatment wrong. Businesses registered for GST measure the $20,000 threshold against the GST-exclusive price. Businesses not registered for GST use the full amount including GST. One of these calculations may push you over or keep you under the threshold — and it changes the answer.
Claiming 100% on mixed-use assets. Only the business-use percentage of the cost is deductible. A vehicle used 60% for business means 60% of the write-off — not the full amount.
Tax planning is not a June event. At Pinnacle, we review our clients’ tax position mid-year, identify what deductions are available, and have the conversation about capital expenditure timing with enough lead time to actually act on it.
For business owners with $500,000 or more in annual turnover, the instant asset write-off is one tool in a broader tax planning conversation that includes:
If you are making these decisions based on a conversation with your accountant in late June, you are already behind.
If you want to confirm what is deductible before 30 June — or start planning asset purchases for the 2026–27 year with a permanent write-off factored in — book a meeting with Mina.
👉 Book a meeting with Pinnacle Accounting & Advisory
Yes. The 2026–27 Federal Budget confirmed the $20,000 threshold is now a permanent feature of the tax system for eligible small business entities with aggregated annual turnover under $10 million.
$20,000 per individual asset, excluding GST for businesses registered for GST. Each asset is assessed separately — not your cumulative spend across multiple purchases.
Assets at or above the $20,000 threshold are not eligible for the immediate write-off. They must be added to the small business general depreciation pool and depreciated at 15% in year one and 30% in subsequent years.
Yes. Trusts with aggregated turnover under $10 million are eligible, provided the asset is used in carrying on a business. The deduction flows through the trust and is distributed to beneficiaries.
Yes, but vehicles that meet the ATO definition of a car are subject to the car limit ($69,674 for 2025–26). The write-off applies to the lower of the cost and the car limit, subject to the business-use percentage.
You need assessable income and a business structure that can utilise the deduction. If the deduction creates a tax loss, it may carry forward to future years — but the mechanics depend on your entity type and circumstances. Speak with your accountant before assuming the full benefit is realised in year one.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Planning a business purchase before year end?
At Pinnacle Accounting & Advisory we help Melbourne business owners time asset purchases to maximise your deductions. Book a consultation with Mina to find out where you stand.
Book a ConsultationThe instant asset write-off allows eligible small businesses to immediately deduct the full cost of qualifying depreciating assets in the year they are first used or installed, rather than claiming depreciation over several years. It improves cash flow and reduces tax in the purchase year.
The threshold applies per asset and has changed several times, so you must check the current limit for the income year. Assets costing under the threshold can be written off immediately, while more expensive assets are depreciated under the normal small business rules.
Small businesses with aggregated turnover under the relevant threshold are generally eligible for assets used for business purposes. The asset must be first used or installed ready for use within the eligible period, and only the business-use portion is deductible.
Recent measures have moved towards making an instant asset write-off an ongoing feature for small business, but thresholds and rules are set year to year and can change with each Budget. Always confirm the current position before relying on it for a purchase.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Timing purchases like this is exactly where proactive tax planning in Melbourne saves you money before 30 June.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
From 1 July 2026, payday super requires employers to pay super guarantee at the same time as wages, rather than quarterly. For Melbourne employers this is a major cash flow and payroll change: super must be received by employees’ funds within a short window of each payday, so systems and processes need to be ready.
If you employ staff and run a business in Melbourne, payday super is not something you can afford to ignore. From 1 July 2026, the rules around superannuation payments change permanently. Employers who are not prepared will face ATO penalties from day one.
This is not a minor administrative update. It is a structural change to how super works in Australia — and it affects every business with employees, including yours.
Currently, employers are required to pay the Superannuation Guarantee (SG) at least once per quarter — typically within 28 days after each quarter ends. Many businesses pay super quarterly, which is compliant under the existing rules.
From 1 July 2026, that changes completely.
Payday super requires employers to pay SG contributions at the same time as wages. If you pay your staff weekly, super is due weekly. Fortnightly payroll means fortnightly super. Monthly payroll means monthly super payments — and the fund must receive the contribution by the relevant date, not just the clearing house.
The ATO’s guidance on superannuation for employers outlines these obligations in full:
🔗 https://www.ato.gov.au/business/super-for-employers/
Payday super applies to every employer in Australia with employees entitled to the Superannuation Guarantee. That includes:
If your business has payroll obligations, payday super applies to you.
For a complete breakdown of what you are legally required to provide your staff, see our guide to employee entitlements for Australian employers.
These are the specific changes every Melbourne employer needs to understand:
Super must be paid with every pay run. The quarterly payment cycle ends on 30 June 2026. From 1 July, contributions must be made at the same time as wages are processed — not in bulk at quarter end.
The Small Business Super Clearing House (SBSCH) is closing. The ATO’s free clearing house service, used by many small businesses to pay super, will no longer be available from 1 July 2026. Businesses that currently use the SBSCH must arrange a compliant alternative before the deadline.
Penalties apply from the first missed payment. Under the existing system, employers have some grace before the Superannuation Guarantee Charge (SGC) kicks in. Under payday super, the ATO will apply the SGC to any contribution not received by the employee’s fund by the due date — no grace period, no warnings.
Super funds will report to the ATO in near real time. Funds will be required to notify the ATO of every contribution received within a short window. This gives the ATO visibility of compliance that simply did not exist under the quarterly system.
For a small business with one or two employees, payday super is an inconvenience. For an established business with 5, 10, or 20 staff, it is a material operational and cash flow issue.
Consider the implications:
There are days left, not weeks. If you have not already acted, these steps need to happen immediately:
The ATO is not offering a soft landing for payday super compliance. Employers who miss contributions face:
For a business with 10 employees on average wages, a single month of missed contributions can generate a substantial non-deductible penalty. There is no upside to being caught short on this.
Most accountants will send a reminder email about payday super and consider the job done. We do not work that way.
At Pinnacle, we sit down with business clients — before changes like this take effect — to review payroll setups, update cash flow forecasts, confirm clearing house arrangements, and ensure there are no gaps that will become problems on 1 July.
If you are running a business with $500,000 or more in annual turnover, this is exactly the type of advisory conversation that should be happening now — not after the ATO sends a notice.
If you are also reviewing your tax position before 30 June, see our guide to the $20,000 instant asset write-off — now permanent for small businesses.
Book a meeting before 1 July to confirm your payroll and super setup is compliant and ready for the change.
👉 Book a meeting with Pinnacle Accounting & Advisory
Payday super begins on 1 July 2026. From this date, all SG contributions must be paid at the same time as wages. There is no transition period — compliance is required from day one.
No. The SBSCH closes on 30 June 2026. Businesses that currently use this service must arrange an alternative clearing house or use payroll software with built-in super payment functionality before the deadline.
The ATO will apply the Superannuation Guarantee Charge (SGC), which includes the unpaid amount, interest at 10% per annum, and an administration fee per employee. The SGC is not tax-deductible, making it significantly more costly than simply paying super on time.
Payday super applies to all employees entitled to the Superannuation Guarantee — including eligible casual employees who meet the relevant earnings threshold.
Yes. Quarterly super payments will not be compliant from 1 July 2026. You must transition to paying super at each pay run before that date. If you are unsure how to set this up, speak with your accountant or payroll software provider immediately.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Is your payroll ready for payday super?
At Pinnacle Accounting & Advisory we help Melbourne business owners get your payroll and cash flow ready for the payday super changes. Book a consultation with Mina to find out where you stand.
Book a ConsultationPayday super is a change requiring employers to pay super guarantee at the same time as they pay wages, instead of quarterly. It is designed to ensure employees receive their super sooner and to reduce unpaid super. It applies from 1 July 2026.
Payday super is scheduled to start from 1 July 2026. From that date, super contributions must reach employees’ funds within a short number of days of each payday, rather than being paid up to quarterly as under the current rules.
Because super must be paid every payday rather than quarterly, employers lose the timing benefit of holding super between pay runs and the quarterly due date. This can significantly affect cash flow, so planning ahead is essential for Melbourne employers.
Review your payroll software and processes, ensure super can be paid and cleared quickly each payday, and factor the changed cash flow timing into your budgeting. Getting your systems and cash flow ready before 1 July 2026 avoids compliance problems.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
Distributable surplus is the ceiling on how much of a Division 7A payment or loan can be taxed as a deemed dividend. Under section 109Y of the Income Tax Assessment Act 1936 it equals net assets plus Division 7A amounts, less non-commercial loans, paid-up share value and repayments of non-commercial loans. If a company has no distributable surplus, no deemed dividend arises even where Division 7A would otherwise apply. Use the calculator below to work out your own figure.
If you are dealing with a Division 7A loan, understanding distributable surplus is critical. Many private company directors assume the full loan balance automatically becomes a deemed dividend. That is not the case.
The amount treated as a deemed dividend is capped by the company’s distributable surplus for that income year, and where several loans or payments are caught in the same year the cap is shared between them proportionately. Understanding how the calculation works can significantly reduce your tax exposure.
This guide gives you a calculator, the statutory formula, a worked example, the pro rata rule most commentary leaves out, and the written statement obligation that follows when a dividend is reduced.
The distributable surplus is a statutory calculation that limits how much of a shareholder loan can be treated as a deemed dividend. The total of all deemed dividends a private company is taken to pay under Division 7A in an income year is limited to its distributable surplus for that year.
This means that if your company has no distributable surplus, there may be no deemed dividend at all, even where a loan exists. However, calculating distributable surplus is not as simple as looking at retained earnings. You can read the ATO’s overview of private company benefits and Division 7A dividends. Which amounts feed into the cap also shifted in 2026: as we explain in our guide to Bendel and Division 7A for bucket company UPEs, a UPE a bucket company simply leaves outstanding is no longer a section 109D loan, while drawings and Subdivision EA amounts still are.
Enter the figures from your company’s accounting records at the end of the income year. The calculator applies the section 109Y(2) formula and then works out the deemed dividend, including the pro rata reduction where the total of provisional dividends exceeds the surplus.
Section 109Y(2) sets out the formula:
Distributable surplus = Net assets + Division 7A amounts − Non-commercial loans − Paid-up share value − Repayments of non-commercial loans
Each element has a statutory meaning that does not match its accounting equivalent:
Because this is a statutory tax formula rather than an accounting one, reading distributable surplus off your balance sheet is unreliable. The ATO makes the point directly: because only present legal obligations and certain provisions are taken into account, a company that carries additional accounting provisions can have retained earnings lower than its distributable surplus. That is the trap. See the ATO guidance on distributable surplus.
Income tax is only subtracted where it has become a present legal obligation. The ATO sets out when that happens in TD 2012/10. The Commissioner also has a discretion under section 109Y(2) to substitute an appropriate value for the company’s assets where the accounting records understate them, covered in TD 2009/5. Both are reasons not to treat the calculator output as final.
Get your structure right
Distributable surplus, loan accounts and bucket companies are structuring issues. We review and fix multi-entity structures for Melbourne business owners so Division 7A stops being a yearly scramble.
Explore Business Structuring →Not sure where you stand? Take our Profit & Tax Health Check, or download our guide, 7 Tax Strategies Every $500K+ Business Should Be Using.
This is the part most commentary misses. Where a company has made several loans or payments in the same year and their total exceeds the distributable surplus, the cap is not applied first-in first-served. Every provisional dividend is reduced proportionately:
Your deemed dividend = Your provisional dividend × (Distributable surplus ÷ Total provisional dividends)
So two directors who each drew $100,000 from a company with a $120,000 distributable surplus are each assessed on $60,000, not one on $100,000 and the other on $20,000. The calculator above applies this automatically once you enter both your own figure and the total for all shareholders.
If a deemed dividend is reduced because of the distributable surplus cap, the private company must give the shareholder or their associate a written statement. It has to state the company’s distributable surplus and the total of the provisional dividends for the income year, so the recipient can work out how much their own dividend was reduced by.
This obligation is routinely overlooked. If your company has ever applied the cap and never issued the statement, that is a gap worth closing before the ATO asks about it.
For private companies, distributable surplus can limit the taxable deemed dividend amount, reduce unexpected personal tax liabilities, shape year-end tax planning, and determine whether loan elimination strategies are necessary at all.
A common misconception is that reducing retained earnings automatically reduces distributable surplus. That is not correct, because the Division 7A formula adjusts accounting figures for tax purposes and ignores provisions outside the statutory list. The ATO addresses this directly in its guidance on debunking Division 7A myths.
A director withdraws $150,000 from their company during the year. At year end the loan is unpaid. The company has total assets of $850,000 and present legal obligations of $690,000, no listed provisions, no non-commercial loans, and paid-up share capital of $2.
Net assets are $160,000. Distributable surplus is $160,000 less $2, or $159,998. Because that exceeds the $150,000 loan and there are no other provisional dividends, the full $150,000 is treated as an unfranked deemed dividend.
Change one figure and the answer changes completely. If present legal obligations were $770,000 instead, net assets would be $80,000 and the distributable surplus $79,998, so only $79,998 of the $150,000 would be assessed. The remaining balance is not taxed this year, but the loan stays on the books and is exposed again in any future year the surplus recovers. This is why reviewing distributable surplus before 30 June is an essential part of broader tax planning. Our guide on Division 7A loans, interest rates and rules explains how complying loan agreements fit into the picture, and the Division 7A loan calculator works out the minimum yearly repayment once an agreement is in place.
Worried a shareholder loan could trigger an unexpected deemed dividend?
At Pinnacle Accounting & Advisory we review your distributable surplus and Division 7A position before 30 June, so there are no surprises at tax time. Book a consultation with Mina to check where you stand.
Book a Consultation →Understanding distributable surplus is only one part of the strategy. If a loan exceeds distributable surplus, you may still need to:
For the mistakes we see most often, read our article on the top 5 Division 7A loan traps to avoid.
For a comprehensive guide covering all aspects of Division 7A, including complying loan agreements, deemed dividends, trust interactions and how to avoid a deemed dividend, see Division 7A Explained: The Complete Guide for Australian Business Owners.
The ATO has increased its focus on private company benefits, particularly shareholder loans, trust distributions to corporate beneficiaries, unpaid present entitlements and inter-entity loans. Businesses operating through family groups or trusts should have their Division 7A exposure reviewed every year.
Prefer to watch instead of read? Mina walks through Division 7A loan management and elimination strategies in this BusiHealth video:
At Pinnacle Accounting & Advisory we handle Division 7A compliance reviews, distributable surplus calculations, shareholder loan restructuring, EOFY tax planning, ATO audit support and private company structuring advice. Our Melbourne-based team assesses your Division 7A position proactively rather than reactively. Learn more about our tax planning service, our business advisory in Melbourne, or get in touch with our team.
Under section 109Y(2) of the Income Tax Assessment Act 1936, distributable surplus equals net assets plus Division 7A amounts, less non-commercial loans, less paid-up share value, less repayments of non-commercial loans. Net assets means the amount by which the company’s assets exceed its present legal obligations plus a closed list of provisions, being depreciation, annual leave, long service leave, and amortisation of intellectual property and trademarks. Other provisions are not deducted.
Yes. The calculator on this page applies the section 109Y(2) formula to the figures from your company’s accounting records and returns your net assets, your distributable surplus, and the deemed dividend assessed to you, including the pro rata reduction where provisional dividends exceed the surplus. It is a guide only, because the Commissioner can substitute an appropriate value for the company’s assets and the treatment of income tax as a present legal obligation depends on timing.
The deemed dividend is capped at the distributable surplus. Where several loans or payments are caught in the same year and together they exceed the surplus, each one is reduced proportionately rather than in order, using the formula: your provisional dividend multiplied by the distributable surplus, divided by the total of provisional dividends. The excess is not taxed as a dividend this year, but the loan remains outstanding and is exposed again in a later year if the surplus recovers.
Yes. If an amount treated as a dividend is reduced because of the distributable surplus cap, the private company must give the shareholder or their associate a written statement setting out the company’s distributable surplus and the total of the provisional dividends for the income year. This lets the recipient work out the reduction applied to their own dividend. The requirement is frequently overlooked.
Not necessarily. The Division 7A formula only takes into account present legal obligations and a specific closed list of provisions, so any additional provisions a company carries for accounting purposes are ignored. The ATO notes that this can leave retained earnings on the balance sheet lower than the distributable surplus, which is why reading the figure off your accounts alone is unreliable.
Reviewing it before 30 June lets you understand your Division 7A exposure while you can still act, whether that means repaying the loan before lodgement day, putting a complying loan agreement in place, or declaring a franked dividend. Discoveries made after year end leave very few options. Proactive annual review is the most effective way to manage Division 7A risk.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Distributable surplus can significantly influence how much tax you pay on shareholder loans. Reviewing it as part of your annual tax planning is the difference between a nasty surprise and a managed outcome. Speak with our team before your next return is due.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
Before switching accounting firms in Melbourne, check the new firm’s qualifications, whether they offer proactive advice and not just compliance, their communication style, industry experience, and fee structure. The right time to switch is before year end, so your new advisor can plan ahead rather than just clean up.
Choosing the right accountant in Melbourne is a critical decision for business owners. Your accountant is responsible not only for compliance, but also for managing tax exposure, identifying risk, and supporting informed financial decisions.
Many businesses remain with the same accountant for years, even as operations become more complex. Over time, this can result in missed planning opportunities, limited visibility, and unnecessary ATO exposure.
If you are considering changing accountants, here is what business owners in Melbourne should assess before making that move.
Not every accountant is equipped to support established businesses. Many firms focus on individual tax returns or basic compliance work, which may be insufficient for companies, trusts, or group structures.
A capable business accountant in Melbourne should:
If your accountant only contacts you at lodgement time, your business may have outgrown their level of support.
The Australian Taxation Office applies targeted review processes to business tax returns, focusing on areas where errors or inconsistencies commonly occur.
According to the ATO, business tax returns may be reviewed based on:
The ATO explains how it assesses business tax returns and identifies risk areas on its official guidance page:
🔗 https://www.ato.gov.au/business/business-tax-assessment/
A professional accountant for business owners should clearly explain where your business sits from a compliance and risk perspective — not leave you guessing.
For businesses seeking additional protection, Pinnacle Accounting & Advisory provides dedicated
👉 ATO Audit Support for Businesses
https://pinnacleaccountingadvisory.com.au/ato-audit-support-for-businesses/
The ATO is clear that business owners are responsible for managing their tax obligations throughout the year, not just at tax time.
The ATO outlines ongoing obligations for businesses, including reporting, payments, and compliance monitoring:
🔗 https://www.ato.gov.au/business/starting-your-own-business/ongoing-obligations/
A reliable business accountant Melbourne businesses depend on should:
Reactive accounting limits options and increases risk.
Accurate record keeping is a major focus area for the ATO and a common cause of penalties during audits or reviews.
The ATO requires businesses to maintain complete and accurate records to support tax positions:
🔗 https://www.ato.gov.au/business/record-keeping-for-business/
An experienced accountant in Melbourne will:
This becomes especially important when changing accountants, as unresolved record-keeping issues can follow the business.
GST, PAYG withholding, and superannuation obligations are among the most common compliance risk areas for business owners.
The ATO provides specific guidance on:
A knowledgeable business accountant in Melbourne should actively monitor these areas and explain how they affect your business.
Business owners should understand exactly what their accountant is responsible for.
Before switching accountants, ensure the new firm clearly explains:
Clear expectations reduce misunderstandings and improve long-term outcomes.
Changing accountants does not need to disrupt your business. A professional Melbourne business accountant will manage the transition by:
This structured approach protects business owners from inheriting unresolved issues.
Operating a business in Melbourne comes with industry-specific and regulatory considerations. A local accountant understands:
Local knowledge strengthens advice and reduces assumptions.
At Pinnacle Accounting & Advisory, we work exclusively with business owners who require clarity, control, and reliable advice.
Our team provides comprehensive
👉 Business Accounting Services
https://pinnacleaccountingadvisory.com.au/services/
We support businesses with:
If you are questioning whether your current accountant is still right for your business, a conversation can provide clarity.
If you want advice tailored to your business structure, obligations, and future plans, book a meeting with Pinnacle Accounting & Advisory. For dedicated business advisory, explore our business advisory Melbourne page.
👉 Book a meeting here:
https://pinnacleaccountingadvisory.com.au/#contact
The cost of a business accountant in Melbourne depends on the size of the business, the structure, and the level of support required. Ongoing business accounting typically costs more than basic compliance work, especially where tax planning and advisory support are involved.
Business owners usually change accountants when communication is poor, advice is reactive, or the business has grown beyond basic compliance. If you only hear from your accountant at tax time or feel unsure about compliance risk, it may be time to switch.
Yes. Business owners can change accountants at any time during the financial year. A professional accountant will manage the transition, obtain prior records, and ensure there are no disruptions to ATO reporting or deadlines.
A business accountant should manage compliance, review financial reports, identify tax and ATO risks, and provide advice that supports informed decisions. For established businesses, the role goes beyond tax returns and includes ongoing oversight.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Look for proper qualifications (CPA or CA plus tax agent registration), a proactive advisory approach, clear communication, relevant industry experience, and transparent fees. The goal is an advisor who plans ahead, not just one who lodges your returns after the fact.
The best time is well before 30 June, so your new accountant can do proactive tax planning for the current year rather than inheriting decisions already made. That said, a good firm can take over at any time and manage the handover smoothly.
Choose your new firm, sign an engagement, and they will request your records and history from your previous accountant through a standard ethical clearance letter. Most of the administrative work is handled for you, so the switch is usually painless.
Not if handled well. A professional firm manages the transition, obtains your prior records, and gets up to speed quickly. Any short-term effort is far outweighed by the benefit of having a proactive advisor who actually helps your business grow.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Thinking about switching? Here is how Pinnacle operates as a proactive small business accountant in Melbourne for growing businesses.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
Your accountant, not just your bookkeeper, should review and lodge your BAS because they can catch GST coding errors, ensure the numbers align with your overall tax position, and spot planning opportunities a bookkeeper may miss. An incorrect BAS can trigger ATO attention, so the extra oversight protects you.
When it comes to lodging your Business Activity Statement (BAS) or Instalment Activity Statement (IAS), many business owners assume their bookkeeper can handle it. While a bookkeeper in Melbourne plays an essential role in maintaining accurate records, lodging your BAS is more than just reporting numbers from your accounting software.
It requires tax judgment, interpretation of ATO rules, and a deep understanding of how GST, PAYG withholding, PAYG instalments, income tax, depreciation, and FBT reimbursements all interact.
If you want to avoid ATO issues, overpaying tax, or incorrect PAYG instalments, your accountant in Melbourne is better placed to lodge your BAS correctly and strategically.
Your BAS reports:
Your IAS typically reports PAYG withholding and PAYG instalments (without GST).
While bookkeeping ensures your transactions are recorded properly, BAS and IAS lodgements require interpretation of tax law, particularly under ATO guidelines.
An accountant understands:
This goes well beyond processing receipts.
One of the biggest risks in letting a bookkeeper lodge your IAS is incorrect PAYG instalments.
PAYG instalments are based on your expected taxable income for the year, not simply your cash flow or bookkeeping profit.
Your accountant will consider:
For example:
Bookkeeping software may not reflect correct tax depreciation. Your accountant applies ATO rules on:
These adjustments impact your taxable income, and therefore your PAYG instalment calculation.
A bookkeeper may report accounting profit.
An accountant calculates taxable profit.
That difference can mean thousands of dollars in overpaid or underpaid tax.
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Fringe Benefits Tax (FBT) is another area where BAS lodgement requires tax knowledge.
Reimbursements for:
may trigger FBT obligations.
FBT affects:
An accountant understands how FBT integrates with:
This prevents incorrect claims and avoids ATO scrutiny.
A BAS is not isolated from your tax return Australia.
Your accountant considers:
For example:
If your business profit has increased significantly, your accountant may recommend increasing PAYG instalments to avoid a large tax bill at year-end.
If profit has dropped, they may vary instalments to protect your cash flow, legally and strategically.
This proactive approach helps you:
Here’s where many business owners get caught.
Your bookkeeping software shows “profit.”
But that is accounting profit, not taxable income.
Differences may include:
Your accountant adjusts these before determining:
This ensures accuracy across:
The ATO imposes:
If PAYG instalments are incorrectly varied without reasonable basis, penalties may apply.
An experienced accountant Melbourne tax return specialist understands:
Bookkeepers are not registered tax agents unless separately qualified.
Only registered tax agents can legally provide tax advice.
Your BAS strategy also depends on your company structure in Australia.
Are you operating as:
For example:
Family trust distributions affect:
An accountant considers:
A bookkeeper generally does not advise on structure or tax optimisation.
Bookkeeping is transactional.
Accounting is strategic.
When your accountant lodges your BAS, they assess:
They also monitor:
BAS becomes part of your overall tax plan, not just a quarterly obligation.
Many business owners ask:
“How much tax do you get back in Australia?”
or
“How much tax will I owe?”
Your accountant uses BAS data to forecast:
This allows for better budgeting and business planning.
Common BAS errors when lodged without tax oversight:
These mistakes may not appear immediately, but can trigger audits or adjustments during your tax return Australia process.
Fixing errors later is far more expensive than getting it right upfront.
Your bookkeeper in Melbourne plays a vital role in maintaining clean financial records.
But your BAS and IAS lodgements require:
Your accountant in Melbourne is trained and registered to provide tax advice, not just report numbers.
When your accountant lodges your BAS:
In short — your BAS becomes part of a comprehensive tax strategy, not just a compliance task.
If you want accurate reporting, strategic PAYG management, and confidence dealing with the ATO, speak to a qualified accountant Melbourne tax return specialist today.
Because when it comes to tax, accuracy isn’t optional.
👉 https://pinnacleaccountingadvisory.com.au/#contact
Yes, a registered BAS agent or bookkeeper can legally lodge your BAS if they are registered with the Tax Practitioners Board (TPB). However, they are limited to BAS-related services and cannot provide full income tax advice unless they are also a registered tax agent. If your BAS involves PAYG instalment variations, depreciation adjustments, Fringe Benefits Tax (FBT) considerations, or broader tax planning decisions, a registered accountant in Melbourne who is also a tax agent is better equipped to ensure compliance with ATO requirements and to align your BAS with your overall tax return strategy.
PAYG instalments are calculated based on your expected taxable income, not simply the profit shown in your bookkeeping software. An accountant considers tax depreciation rules, non-deductible expenses, prior year losses, FBT reimbursements, and changes in your business structure such as operating through a company or family trust in Australia. Adjusting PAYG instalments without a proper understanding of income tax law can result in ATO penalties and interest. Your accountant ensures the instalment amount reflects your true projected tax liability and supports better cash flow planning.
Depreciation directly impacts your taxable income, which in turn affects your PAYG instalment obligations reported through your IAS. While accounting software may calculate depreciation for financial reporting purposes, tax depreciation must follow ATO legislation, including instant asset write-off rules, small business depreciation pools, and temporary full expensing provisions where applicable. These tax adjustments can significantly change your estimated annual income tax position and influence how much tax you will owe or potentially receive as a tax refund when lodging your income tax return in Australia.
If your BAS is lodged incorrectly, you may face ATO penalties, General Interest Charges, underpaid PAYG instalments, or GST review risks. Errors in quarterly reporting can also flow through to your annual income tax return, creating further complications and potential amendments. Having your BAS prepared or reviewed by an experienced accountant in Melbourne ensures compliance with current tax laws, accurate reporting, and alignment with your broader tax planning strategy, reducing the risk of unexpected tax liabilities.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Ideally your accountant reviews and lodges the BAS, or at least checks it before your bookkeeper lodges. An accountant can catch GST coding errors, reconcile the BAS to your overall tax position, and identify issues a bookkeeper focused on data entry may miss.
A bookkeeper records daily transactions, reconciles accounts and can prepare BAS. An accountant provides higher-level review, tax advice, structuring and planning. Both are valuable, but the accountant provides the oversight that keeps your compliance and strategy aligned.
Errors such as incorrect GST coding can lead to underpaid or overpaid GST, amendments, interest and even ATO review. Because BAS data feeds your annual return, mistakes can compound, which is why accountant oversight is worthwhile.
A bookkeeper can process transactions and lodge BAS if registered, but providing tax advice and tax planning is the role of a registered tax agent or accountant. For anything beyond bookkeeping, you need appropriately qualified advice.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
The biggest tax mistakes Australians make include poor record keeping, missing deductions, lodging late, using the wrong business structure, forgetting to set aside money for tax, and only seeing their accountant at tax time. Most are avoidable with accurate records and proactive advice through the year.
Every year, thousands of Australians unknowingly make tax mistakes that cost them money, delay refunds, or trigger unnecessary ATO reviews.
Most of these errors aren’t intentional, they usually happen because tax rules are misunderstood, assumptions are made, or people rely on software without fully understanding their situation.
They can also provide insights into tax planning strategies that align with your financial goals, ultimately leading to better financial outcomes.
In this article, we break down the biggest tax mistakes people make in Australia, why they happen, and how working with a trusted Accountant in Melbourne can help you avoid them.
Furthermore, consider utilizing financial management software that can assist in tracking expenses and generating reports, making tax preparation smoother.
Understanding the full scope of deductions available is paramount. Meeting with a tax advisor can reveal opportunities you might have otherwise overlooked.
For example, many small business owners are not aware of the potential deductions related to their home office setup, which could lead to significant savings.
Moreover, exploring education and training expenses relevant to your profession could also yield further deductions that contribute to your overall financial health.
It’s essential to keep abreast of allowable deductions, as they can change annually based on new tax regulations.
Additionally, understanding the limitations and legalities surrounding these deductions can help avoid potential pitfalls during audits.
When considering car expenses, for instance, ensuring you keep detailed logs of usage can substantiate your claims during potential audits.
Networking with other professionals in your industry can also enhance your understanding of common tax pitfalls and solutions that may be relevant to your specific situation.
One of the most common mistakes is assuming that using myTax or other online tools guarantees a correct return.
Moreover, the distinction between personal and business use should be clearly defined to avoid complications.
While myTax is free and useful for simple situations, it:
Many people miss legitimate deductions simply because they didn’t know they applied.
Being aware of tax credits and rebates available to you can further enhance your financial health, making it worthwhile to explore these options thoroughly.
On the other end of the spectrum, some people overclaim deductions — especially for:
Furthermore, double-checking your income declarations against bank statements and other records can prevent discrepancies.
The ATO closely monitors these areas. Claiming amounts that aren’t reasonable or work-related is one of the fastest ways to attract attention.
Additionally, maintaining an organized log of your income sources throughout the year can simplify the reporting process.
For investment income, ensuring you report gains and losses accurately is crucial, particularly when it comes to capital gains tax.
The $300 tax deduction without receipts rule is widely misunderstood.
For example, engaging in charitable donations can not only contribute to your community but may also result in tax deductions that benefit your overall tax position.
Missing these declarations can lead to significant penalties, as the ATO has robust data matching capabilities.
To stay compliant, consider consulting a tax accountant who can guide you on the proper reporting of diverse income streams.
Moreover, understanding which income sources are taxable and which are not can save you from potential issues later.
Identifying all available deductions is equally essential to maximizing your tax position. This includes keeping abreast of eligible expenses that can significantly lower your taxable income.
For instance, understanding the deductions related to education and skills development can also provide tax relief.
Common mistakes include:
With high-value items, understanding their depreciation schedule can further enhance your tax deductions.
While receipts aren’t needed up to $300, you must still be able to explain how the claim was calculated and how it relates to your job.
Also, personal superannuation contributions can be an effective way to not only save for retirement but also reduce your taxable income.
Many people are unaware of the nuances surrounding super contributions and their potential tax advantages.
Moreover, discussing personal super contributions with your accountant can ensure that you’re leveraging all available strategies.
Be mindful that mixing personal and business expenses can complicate financial reporting and affect deductions.
Establishing a clear separation between personal and business transactions is critical to maintaining accurate records.
Using dedicated accounts for business transactions can simplify this process significantly.
Maintaining organized records can also facilitate smoother audits and clarify claim validity.
Another major issue is failing to declare all sources of income, including:
With increased data matching, the ATO often already has this information. Leaving it out can result in amended returns and penalties.
By focusing on tax planning, you can position yourself for long-term success rather than short-term solutions.
The benefits of working with a knowledgeable accountant extend beyond compliance; they can create a financial roadmap tailored to your unique circumstances.
This roadmap not only emphasizes current deductions but also anticipates future changes that can impact your financial landscape.
Many Australians underclaim simply because they don’t know what’s available to them.
With tax laws frequently changing, having an accountant who can interpret these changes in your favor is invaluable.
Commonly missed deductions include:
A professional tax accountant can often identify deductions that don’t appear obvious at first glance
For sole traders and small business owners, this is a big one.
Mixing personal and business expenses without clear records can lead to:
Keeping clean records and getting advice early can save a lot of stress later.
Many people treat tax as a once-a-year task rather than an ongoing strategy.
Lodging without tax planning can mean:
Good tax outcomes are usually planned before 30 June — not after.
Tax laws change frequently, and generic advice doesn’t suit everyone. A local Accountant in Melbourne understands:
At Pinnacle Accounting & Advisory, we work with individuals and businesses across Melbourne and nearby suburbs including:
Dandenong, Cranbourne, Berwick, Narre Warren, Keysborough, Springvale, Pakenham, Officer, Endeavour Hills, Hallam
Contact us: https://pinnacleaccountingadvisory.com.au/#contact
One of the most common mistakes is either overclaiming or underclaiming deductions. Many people claim amounts that aren’t fully work-related, while others miss deductions they’re legitimately entitled to.
myTax works well for simple tax returns, but it doesn’t provide personalised advice. People often miss deductions or make incorrect claims because the system only processes the information entered, rather than reviewing what should be included.
Yes. The ATO uses data matching and benchmarks to review tax returns of all sizes. Even small errors can result in amended returns or follow-up questions.
It can be if it’s done incorrectly. You must still be able to explain how the expenses were calculated and how they relate to your work. Automatically claiming the full $300 each year can raise red flags.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Common mistakes include poor or missing records, claiming deductions incorrectly or missing them entirely, lodging late, using an unsuitable structure, not setting money aside for tax, and only engaging an accountant at year end when it is too late to plan.
The ATO can amend your assessment, recover any shortfall with interest, and apply penalties depending on whether the error was careless or deliberate. Making a voluntary disclosure before the ATO finds an error usually reduces the penalties that apply.
Keep accurate records year-round, understand what you can and cannot claim, lodge on time, set aside money for tax as you go, and get proactive advice from a registered tax agent rather than leaving everything to the last minute.
Yes. The wrong structure can mean paying more tax than necessary, weaker asset protection, and expensive restructuring later. Reviewing your structure as your business grows is one of the most valuable things a proactive accountant does.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Avoiding these mistakes starts with the right tax accountant in Melbourne who plans ahead, not just at lodgement.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
myTax is the ATO’s free online tool for individuals to lodge their own tax return through myGov, so it costs nothing to use. However, it does not provide advice, does not catch missed deductions, and is not suited to business or complex affairs, where a tax agent usually saves more than they cost.
One of the most common questions Australians ask during tax season is:
“How much does tax actually cost?”
If you’re lodging your tax return online through the Australian Taxation Office (ATO), the short answer is myTax is free. However, whether it’s the best or most cost-effective option depends on your situation.
In this guide, we explain what myTax is, what it costs, and when speaking to an Accountant in Melbourne may actually save you more money and set you up for a better future with wealth creation insights.
myTax is the ATO’s free online system that allows individuals to lodge their tax returns through myGov. It’s designed for people with simple tax affairs, such as:
Because it’s government-run, there is no direct cost to lodge using it.
👉 myTax costs $0 to lodge
There is no lodgement fee, subscription, or hidden charge.
However, “free” doesn’t always mean “best value”.
Using myTax may be suitable if you:
The system doesn’t tell you what else you could be claiming — it only processes what you enter.
This is where working with a qualified tax accountant in Melbourne can make a significant difference.
How Much Does an Accountant Cost Compared to myTax?
While myTax is free, accountant fees typically range depending on complexity. The good news is:
For many Melbourne taxpayers, the net cost of using an accountant ends up being lower than using it alone.
Visit our page for infomation: https://pinnacleaccountingadvisory.com.au/
Some of the most common issues we see include:
These mistakes can result in reduced refunds or amended tax returns.
Local knowledge matters. A professional Accountant in Melbourne understands the nuances of the system:
At Pinnacle Accounting & Advisory, we assist individuals and businesses across Melbourne and nearby suburbs, including: Dandenong, Cranbourne, Berwick, Narre Warren, Keysborough, Springvale, Pakenham, Officer, Endeavour Hills, Hallam
Yes. Lodging your tax return through myTax via myGov is completely free.
Yes. Lodging your tax return through myTax via myGov is completely free.
For simple returns, tax can be sufficient. For more complex situations, an accountant provides expertise, accuracy, and risk reduction.
Registered tax agents lodge returns through professional ATO systems, not myTax, and handle correspondence with the ATO on your behalf.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
myTax is free. It is the ATO’s online lodgement tool for individuals, accessed through myGov, with no charge to prepare and lodge your own return. The trade-off is that it provides no advice and will not tell you about deductions or strategies you may have missed.
myTax suits simple individual returns with straightforward income and few deductions. For business, investments, or anyone wanting to maximise deductions and plan tax, an accountant usually saves more than the fee costs and reduces the risk of errors and ATO issues.
Sole traders can report business income through myTax, but it does not handle companies or trusts and offers no advice on structure, deductions or planning. Most business owners are better served by a registered tax agent who understands their affairs.
For anything beyond a simple return, usually yes. Tax agent fees are deductible, and a good agent finds deductions, plans tax and avoids mistakes that typically outweigh the cost. myTax saves the fee but not the missed opportunities.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
You can claim up to $300 in total work-related expenses without receipts in Australia, provided the expenses are genuine, work-related, and you can show how you worked them out. This is a total cap across all such claims, not $300 per item, and once you exceed $300 you need written evidence for the whole amount.
Every tax season, one question comes up again and again with Australian taxpayers:
Can I claim a $300 tax deduction without receipts?
The answer is yes, but only under specific ATO rules.
Many individuals across Melbourne and surrounding suburbs misunderstand this rule and either underclaim or overclaim. In this article, we break down how the $300 tax deduction works, what you can legitimately claim, and when it’s best to seek advice from a trusted Accountant in Melbourne.
Understanding the $300 Tax Deduction Rule
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Book a Consultation → Call +61 431 413 530The Australian Taxation Office (ATO) allows individuals to claim up to $300 in total work-related tax deductions without receipts.
This does not mean you automatically receive $300. You must:
The rule exists to simplify small claims, not to replace proper record-keeping.
What Can Be Claimed Without Receipts?
Within the $300 limit, common work-related expenses include:
Even without receipts, claims must be reasonable and consistent with your job. Keeping notes or estimates is strongly recommended.
What Still Requires Receipts?
Some deductions always require documentation, regardless of value:
If you’re unsure whether an expense qualifies, this is where professional advice can make a real difference.
Vehicle expenses are one of the most commonly reviewed deductions by the ATO.
While small, work-related car expenses may fall within the $300 limit, larger or regular claims usually require:
If your role involves frequent travel, speaking with a tax accountant before lodging is highly recommended.
Read Relevant Article: https://pinnacleaccountingadvisory.com.au/claim-motor-vehicle-expenses-tax/
The ATO uses benchmarks and data matching to identify unusual tax deduction patterns. Repeatedly claiming the maximum amount without clear justification can increase the risk of a review.
Online tax deduction calculators can provide estimates, but they don’t assess whether your claim meets ATO compliance standards.
Read Relevant Article: https://pinnacleaccountingadvisory.com.au/ato-audit-support-for-businesses/
Tax legislation changes regularly, and local knowledge matters. Working with an experienced Accountant in Melbourne ensures your deductions are:
You can claim up to $300 in work-related tax deductions without receipts, but only if the expenses are real, reasonable, and work-related. When in doubt, professional advice is often the safest deduction you’ll ever claim.
Contact us: https://pinnacleaccountingadvisory.com.au/#contact
NDIS providers must register for GST if their annual business turnover reaches $75,000 or more. This threshold applies even if most or all of their NDIS services are GST-free. GST-free income still counts toward the registration threshold. If turnover is below $75,000, registration is optional, but it is important to seek professional advice before registering voluntarily to understand the reporting and compliance obligations involved.
Many NDIS-funded supports are GST-free if they are provided to an NDIS participant, are included in the participant’s approved plan, and meet the ATO requirements for GST-free disability services. If your services qualify as GST-free and you are registered for GST, your invoice should show that GST is $0 and clearly state that the supply is GST-free. If you provide taxable services and are registered for GST, you must charge 10% GST and issue a compliant tax invoice. If you are not registered for GST, you cannot charge GST.
You must register for PAYG withholding if you employ staff and pay them wages. This means you are required to withhold tax from their pay, report through Single Touch Payroll, pay superannuation, and meet Fair Work obligations. PAYG withholding generally does not apply to genuine independent contractors, but the working relationship must meet ATO criteria. Misclassifying employees as contractors can result in penalties and back payments.
The difference depends on the actual working arrangement, not what the contract says. An employee typically works under your direction, cannot delegate their work, and is paid wages with superannuation and PAYG tax withheld. A contractor usually runs their own business, invoices for services, controls how the work is performed, and may delegate tasks. Because the NDIS sector is closely monitored, it is important to assess these arrangements carefully to ensure compliance with ATO and Fair Work rules.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.
General Advice Disclaimer: The information in this article is general in nature and does not constitute personal financial, tax, or legal advice. Your individual circumstances will determine the most appropriate approach for you. Please consult a registered tax adviser or CPA before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
Yes. You can claim up to $300 in total work-related expenses without receipts, as long as the expenses are genuinely work-related and you can explain how you calculated them. This is a combined limit across all such claims, not $300 for each item.
In total. The $300 threshold is the combined total of work-related expense claims you can make without written evidence. If your total work-related expenses exceed $300, you must keep receipts and records for the entire amount, not just the excess.
Car expenses, meal allowance, award transport payments and travel allowance expenses have their own rules and are not covered by the $300 no-receipt threshold. These require their own records, such as a logbook or diary, regardless of the amount claimed.
Yes. Even without receipts, you must have actually incurred the expense, it must be work-related, and you must be able to show how you worked out the claim. The ATO can ask you to explain the basis of any deduction you make.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
Join the Melbourne business owners who work with a CPA and Chartered Tax Advisor, so you can focus on growing your business while we take care of the numbers.