The ATO is sharpening its focus on how taxpayers generating income from personal services deal with that income for tax purposes. In a recent Spotlight bulletin, Small Business Assistant Commissioner Tony Poulakis highlighted the release of Practical Compliance Guideline PCG 2025/5. This guideline clarifies the ATO’s compliance approach to the “alienation” of personal services income (PSI) — essentially, arrangements which involve routing income earned through your personal s

The Government’s Division 296 tax came into effect on 1 July 2026, and will be applied from 30 June 2027 to super fund members, where an individual member has a >$3M super balance across all funds. Although FY27 will be the first year the ATO will issue additional tax assessments to members who are required to pay Division 296 tax, there are things which need to be done at 30 June 2026 which may help minimise the impact of any Division 296 tax payable in FY27 and future yea

After more than 53 years with Sullivan Dewing and over 50 years as a Chartered Accountant, our Founder, Terry Dewing, has officially retired. On 1 July, our team had the privilege of celebrating Terry with a special luncheon, joined by his wife, family and the people who have worked alongside him, learned from him and been shaped by his leadership. Terry’s career has been extraordinary. Not only for the businesses he has helped build, the clients he has guided, or the contrib

IMPORTANT CLIENT NOTICE New AML/CTF Compliance Requirements from 1 July 2026 From 1 July 2026, a range of Australian professional service providers including accountants, lawyers, solicitors, and real estate agents will be subject to new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws. As a result, Sullivan Dewing will be regulated by AUSTRAC and, in certain circumstances, will be required to verify the identity of clients before providing specific

The ATO has announced a significant update that will affect anyone using electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs) for work or fleet purposes and where the vehicle is charged at the relevant individual’s home. From 1 April 2026 (for FBT purposes) or from 1 July 2026 (for income tax purposes), the ATO’s standard home-charging electricity rate will increase from 4.20 cents per kilometre to 5.47 cents. This rate acts as a simple, ATO-approved shortcut w

If you own a holiday home, or are considering purchasing one, two recent developments could significantly impact your tax position. The Australian Taxation Office (ATO) recently released new guidance on holiday home deductions, while the Federal Government announced changes to negative gearing for future property purchases. While these measures were introduced for different reasons, together they create an important shift for holiday home owners and investors. A Significant C

The annual concessional contribution (CC) cap will increase from $30,000 to $32,500 from 1 July 2026. The annual non-concessional contribution (NCC) cap will also increase to $130,000. When considering contribution opportunities some individuals may have higher caps due to the carry forward CC rules or the NCC bring forward rules, while others with higher super balances may have a reduced or nil NCC cap. This will depend on your total superannuation balance (TSB) at the prior

It’s that time of the year again! If you haven’t started tidying up your financial affairs before the end of the financial year, you’d better get cracking. Here are some tips to help you get started. Superannuation Pay all superannuation before 30 June 2026 in order to claim a tax deduction this year. We suggest to pay today in order to allow the clearing house time to process before 30 June. If processed late then the contributions count towards next year’s contribution ca

Thank you to everyone who joined our 2026 Federal Budget Webinar on Wednesday 27 May 2026. Jeni Wilcock and Heather Locker hosted a practical session discussing the key announcements from the 2026 Federal Budget and what the proposed changes may mean for property investors, trusts, businesses, and individuals. The webinar focused on the proposed changes to: Negative gearing Capital gains tax Trust taxation rules The session included practical examples, planning considerat

May 2026 Federal Budget Summary SIGNIFICANT TAX CHANGES What This Budget Means For You The 2026–27 Federal Budget, handed down by Treasurer Jim Chalmers on 12 May 2026, includes significant tax changes that will impact many of you. There is a strong focus on housing affordability, cost-of-living pressures and supporting broader economic stability. Substantial tax and property-related changes have been proposed, particularly for negative gearing, CGT concessions and taxing di

Rising fuel prices continue to place pressure on many Australian businesses — particularly those reliant on transport, logistics and supply chains. In response, the Australian Taxation Office (ATO) has introduced a targeted payment plan initiative to support eligible businesses struggling to meet their tax obligations due to these increased costs. Who is eligible? To access this support, businesses must hold an ABN and be able to demonstrate that: Increased operating costs ar

We’re proud to share that Sullivan Dewing has been named a finalist in the 2026 Australian Accounting Awards, recognised in three categories: Partner of the Year (Boutique Firm) - Jeni Wilcock SMSF Firm of the Year Boutique Firm of the Year (less than 20 employees) These awards celebrate the individuals and firms shaping the future of the accounting profession across Australia. Being named a finalist is a significant achievement and reflects the impact of the work being done

The Federal Government has announced a $1 billion zero-interest loan scheme to support businesses impacted by the recent fuel crisis and supply chain disruptions. If your business has been affected by rising fuel costs or related pressures, this may be worth exploring. What’s on offer 0% interest loans (you only repay the principal) Up to $5 million for many small to medium businesses Designed for industries such as transport, logistics, fuel, manufacturing, and a

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