Self managed superannuation funds (SMSFs) can offer significant flexibility, allowing the members to make investments and enter arrangements that may not be available through retail or industry superannuation funds. However, being an SMSF trustee does come with important responsibilities to ensure that all dealings comply with superannuation law. Two critical areas to keep front of mind are: The sole purpose test, and The arm’s length requirements in both superannuation and t

Running a successful business is hard work—and sometimes, despite best intentions, tax obligations slip. If the business is being operated through a company structure, then the ATO can potentially issue a Director Penalty Notice (DPN), holding company directors personally liable for unpaid taxes. In 2024–25, DPNs skyrocketed by 136%, reaching over 84,000 notices, affecting directors of around 64,000 companies. The stakes are high, and now the Tax Ombudsman is reviewing how th

Running a business from home—whether as a sole trader, freelancer, or small operator—has many perks. But when it comes to selling your home and potentially saving on tax, recent guidance from the ATO serves as a reality check. The ATO has provided its views on how home-based businesses interact with the small business capital gains tax (CGT) concessions, providing a warning on how the ATO approaches a long-standing area of confusion. See: Home-based business and CGT implicati

The 2026 Fringe Benefits Tax (FBT) year ends on 31 March, with the ATO focussing much of their compliance and audit activity on FBT, it’s important to ensure that you are across any FBT issues before the ATO comes to you!   There are several types of fringe benefits, including: Motor vehicle benefits Expense payment benefits (paying your employees’ private expenses e.g. fuel, health insurance premiums) Loans to employees Entertainment Car parking (most small to medium busines

From 1 July 2026, the way employers calculate, pay and report super is changing. The new Payday Super  rules mean super will be calculated on qualifying earnings (QE)  and paid each payday , not quarterly.  Qualifying earnings is ordinary time earnings, salary sacrifice contributions and other payments included in salary or wages for Super Guarantee (SG) purposes. While many employers may not pay more super overall, the timing, reporting and compliance obligations  will chang

The ATO is paying closer attention to how income, assets and wealth are structured — particularly where trusts and family groups are involved. While much of the focus is on higher-wealth taxpayers, many small business owners and professionals could also be affected. Key Areas the ATO is Watching Trusts and Family Groups Errors in family trust elections and distributions can trigger unexpected tax and interest. The ATO is encouraging voluntary disclosures to correct past mista

When clients sell a long-held family home, they may be able to channel part of the proceeds into superannuation by using the downsizer contribution rules. Basic Eligibility Conditions To qualify, the seller must meet a number of conditions: They must have reached the eligible age of 55 years (at the time of making the contribution). The eligible dwelling must be located in Australia and have been owned for at least 10 years. The disposal of the dwelling must be exempt from CG

For many Australians, a holiday home is both a retreat and an investment. It’s a place to escape with family and friends, and during the rest of the year it’s listed on Airbnb or Stayz to help cover the costs. Until recently, many owners assumed they could claim most of the usual deductions for the property without much trouble, as long as appropriate apportionments were made. However, that position is now under more scrutiny than ever following the release of some new draft

Some lives are so full, so rich in purpose and contribution, that they leave a lasting imprint on everyone they touch. Our much-valued client, the late Dr Jack Woolridge, lived one of those lives. Many in our community knew Jack as a highly respected cardiologist, a pioneer in his field, and a man deeply committed to his patients. Others knew him through his passion for thoroughbred horses, or simply as a warm, humble gentleman with a great story to tell. What fewer people ma

The Division 296 tax legislation has now officially passed the Senate without amendment  and is expected to receive formal approval from the Governor-General shortly. Once enacted, the new rules will apply from 1 July 2026  and will impact individuals with superannuation balances exceeding $3 million . It represents a significant change to the way large super balances are taxed and may influence long-term retirement and estate planning strategies. Thresholds $3m–$10m  – Effec

If you’re a small business owner planning to invest in equipment or assets, the instant asset write-off (IAWO)  could provide a valuable tax benefit this year. Who can use it? Businesses with an aggregated annual turnover under $10 million  may be eligible to claim the instant asset write-off. What can you claim? You may be able to immediately deduct the business portion of eligible assets costing less than $20,000 . Key points: The $20,000 threshold applies per asset , meani

At Sullivan Dewing, being part of the Sutherland Shire community means more than simply operating a business here. It’s where many of us live, work and raise our families, and we believe in supporting the people and organisations that make our community strong. Throughout the year, we proudly support a range of local organisations through sponsorships, donations, raffle prizes and professional services. These partnerships reflect the diverse needs of our region, from grassroo

Bubbles & Brunch has been Sullivan Dewing’s way of celebrating women in business, while bringing together people from across our whole community to connect, be inspired, share ideas and enjoy a genuinely great morning together.  Held each year in support of  Orana Women’s Health Centre , the event has always balanced celebration with purpose. Together, we’ve heard powerful stories from incredible guest speakers including  Layne Beachley, Julie Goodwin  and  Jana Pittman , sha

The ATO has recently highlighted two sectors that will be under closer scrutiny this year: construction and professional services. This includes everyone from tradies and builders through to engineers, consultants, and even accountants. The key point is straightforward: accurate, consistent reporting is essential as small errors can quickly escalate. Why These Industries Are in the Spotlight According to the ATO, these sectors are showing recurring compliance issues across: R

There's a common myth that dual cab utes are automatically exempt from fringe benefits tax (FBT). However, that's not the case. If an employer provides dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT. By understanding how your employees use their dual cab utes, you can work out if FBT applies. When FBT doesn't apply To qualify for an exemption, 2 conditions must be met. The dual cab ute must

The ATO has recently sharpened its focus on employers who lodge their Superannuation Guarantee Charge (SGC) statements late — and the consequences can be costly. A key risk is the Part 7 Penalty , which can impose a minimum 40% penalty  (and up to 200%) on top of the unpaid super and interest. This penalty applies even if you eventually lodge the SGC statement voluntarily , and even if the super has since been paid. The ATO’s message is clear: late is late , and employers mus

Leaving debts outstanding with the ATO is now more expensive for many taxpayers. General interest charge (GIC) and shortfall interest charge (SIC) imposed by the ATO is no longer tax-deductible from 1 July 2025. This applies regardless of whether the underlying tax debt relates to past or future income years. With GIC currently at 10.61%, this is now one of the most expensive forms of finance in the market — and unlike in the past, you won’t get a deduction to offset the cost

When it comes to your superannuation, many people assume that their Will automatically decides who receives these funds  when they die .  T his is not the case however, as super is not automatically covered by your Will .  Without proper planning, your super may not end up with the people that you intend  it to . To ensure that your balance goes to the people that you choose, there are two types of nominations that you could make regarding your member balance on your death: 1

The Government has released further detail on the proposed Division 296 tax on super balances over $3M .  While the legislation is yet to pass Parliament, the latest information provides a clearer picture of how the rules are expected to operate once implemented. The summary below reflects the details currently available and may still change as the proposal progresses. Timing The start date has been delayed to 1 July 2026 so asset values on 30 June 2026 will be important Your

In support of young Australians and in response to the rising cost of living, the Australian Government has passed legislation to reduce...