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After a proper break, getting back into business mode can feel tough. January can feel like one long Monday, making your vacation seem further away by the day. But for businesses, it’s imperative. 

Between catching up on emails, reconnecting with clients and getting your team back into routine, it’s easy for tax and compliance obligations to slip through the cracks. 

To help you start the year on the right foot, here are the key tax-related responsibilities every business should stay on top of when returning from a holiday shutdown.

• Reconfirm Your Payroll And PAYG Withholding Settings
  

  If your business processes were paused over the break, give your payroll system a quick health check before the first pay run. 

Make sure employee details, pay rates, leave balances, and PAYG withholding settings are correct – especially if any pay rises or role changes took effect from 1 January. This is also a good time to check that STP reporting is functioning properly to avoid late lodgment issues.

• Catch Up On BAS And IAS Deadlines
  

  It’s surprisingly common for businesses to lose track of upcoming activity statement due dates when the holidays disrupt normal workflows. Review the next BAS or IAS deadline as soon as you reopen and set reminders for your team –  for many businesses, this should be 28 February 2026. If cash flow is tight after the break, plan ahead to meet your GST and PAYG instalment obligations without scrambling.

• Review Superannuation Contributions
  

  This is a good time to confirm that contributions from pre-Christmas pay runs have been paid and cleared on time. The next quarterly super guarantee (SG) contribution deadline is 28 January 2026. If you missed a deadline, address it promptly to minimise Super Guarantee Charge exposure.

• Stay Alert For ATO Correspondence
  

  ATO letters and notices may have arrived while your office was closed. Make sure someone checks the business mailbox and myGovID inbox early in the new year to avoid missed correspondence. Missing an ATO request – especially one related to overdue lodgments or verification checks – can lead to penalties or payment complications.

• Restart Good Record-Keeping Habits

  Holiday mode sometimes means receipts pile up or bookkeeping gets put on hold. 

A clean reset in January helps avoid errors later in the year. Updating your reconciliations, lodging any outstanding documents, and reviewing financial workflows will help restore order quickly. 

Returning from a break is the perfect opportunity to reset, regroup, and make sure your tax affairs are starting the year tidy, compliant, and stress-free. Taking the time now to review where things stand can help you avoid last-minute pressure and unexpected issues later on.

If you’re unsure about upcoming obligations, reporting requirements, or deadlines, having the right support can make all the difference.

Working with an accountant can help you prioritise what needs attention, stay on top of compliance, and ease the transition back into business – allowing you to focus on the year ahead with greater confidence and clarity.

As the year winds down, many businesses are preparing to celebrate with end-of-year parties, staff gifts, and client events. 

While these celebrations are a great way to recognise your team’s hard work, it’s important to understand the Fringe Benefits Tax (FBT) implications that can arise. 

Getting it wrong can lead to unexpected tax bills – so here’s what you need to know before the festive season kicks off.

When Does FBT Apply to Christmas Parties?

The good news is that not all Christmas party costs are subject to FBT. The tax applies only when a benefit is considered “entertainment” and exceeds certain thresholds or does not fall under available exemptions.

A Christmas party held on the business premises on a working day is usually exempt from FBT for employees. This is because it typically qualifies as a minor benefit or falls under the property benefit exemption.

However, if your party is off-site – for example, at a restaurant or venue – FBT may apply depending in the cost per person, who attends, and whether the minor benefits exemption applies.

The Minor Benefits Exemption

One of the most commonly used exemptions for Christmas events is the minor benefits exemption. Costs under $300 per person, including GST, may be exempt from FBT if the benefit is infrequent and irregular.

This $300 threshold applies to each person individually. So, an off-site Christmas dinner costing $150 per employee and $120 per partner would generally fall under the exemption.

Note: The exemption applies separately to party costs and gifts. This means an employee could receive a party benefit under $300 and a gift under $300, and both may still be exempt.

What About Clients?

FBT does not apply to entertainment provided to clients. However, the cost is typically not tax-deductible, nor can you claim GST credits. So while inviting clients won’t cause FBT issues, you should be aware of the deduction limitations.

FBT on Gifts vs Entertainment

Gifts for employees can be tricky. Items such as gift cards, hampers, wine, or store vouchers may be considered minor benefits if under $300 per person. In that case, they are not subject to FBT, but you also can’t claim a deduction or GST credits.

Entertainment-type gifts – like theatre tickets or holiday vouchers – are more likely to attract FBT unless under the minor benefits threshold.

Best Practices for a Compliant Festive Season

• Keep detailed records of attendees and costs
• Check whether each benefit is under the $300 minor benefits limit
• Separate costs for employees, associates, and clients
• Consider holding events on business premises to reduce FBT risk
• Speak to your accountant early if planning gifts or multiple events

With a bit of planning, your business can celebrate the festive season while avoiding FBT surprises – and ensuring everyone enjoys the end-of-year cheer.

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:

• 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.

If you haven’t yet lodged your tax return, you’re not alone. With the 31 October deadline fast approaching, now’s the time to get everything in order so you can lodge on time and avoid penalties. 

A little organisation in these final days can save you stress and ensure you don’t miss out on legitimate claims.

1. Gather Your Income Records

Start by collecting all records of your income for the year, including:

• PAYG payment summaries or income statements from your employer (available in myGov).
• Bank interest statements.
• Dividend statements from shares.
• Any rental property income.
• Income from side hustles, freelance work, or the gig economy.

Even small amounts matter—missing income can raise red flags with the ATO.

2. Pull Together Your Deductions

Deductions reduce your taxable income, so make sure you’ve got evidence for what you plan to claim. Common deductions include:

• Work-related expenses (tools, uniforms, protective gear).
• Home office expenses (if you worked from home).
• Vehicle expenses where travel was directly related to your job.
• Self-education expenses tied to your current employment.

Remember: you must have spent the money yourself, and it must relate directly to earning your income.

3. Review Investment Records

If you hold investments, gather:

• Dividend and distribution statements.
• Records of any shares or assets sold (for capital gains tax).
• Rental property expenses such as interest, rates, insurance, repairs, and agent fees.

These ensure your return captures both income and deductions accurately.

4. Check Your Private Health Insurance

If you have private health insurance, make sure you’ve received your annual statement. This helps determine whether you qualify for the rebate and whether the Medicare levy surcharge applies.

5. Make Sure You’re Lodging on Time

If you’re lodging yourself, the deadline is 31 October. Missing it may result in penalties. If you’re working with a registered tax agent, you may be eligible for an extended lodgement period—but you need to be on their client list before the deadline.

A last-minute dash doesn’t need to be stressful. By pulling together the essentials—income records, deduction evidence, and investment details—you’ll be ready to lodge with confidence.

Need help getting everything in order before 31 October? You can still reach out to an accountant or tax adviser today. With professional support, you can be sure your return is accurate, compliant, and takes advantage of all legitimate deductions available to you. Plus, as an added bonus, if you engage an accountant, we can take the stress out of your hands, and may be able to lodge a return for you after the deadline. 

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’re thinking about selling your rental property, one of the most important things to prepare for is Capital Gains Tax (CGT). 

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.

What If You Lived There Before?

If the property was once your main residence, you may qualify for a full or partial exemption. For example, if you lived in the property before renting it out, or if you only rented out part of it, you could reduce the taxable portion of your gain. This is where accurate records and dates become critical.

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.

If you own a rental property, there’s a good chance you’re claiming interest expenses as part of your tax deductions. It’s one of the most common (and often one of the largest) claims for landlords. 

But there’s a catch – you can only claim interest to the extent that it relates to earning assessable rental income.

That means in many situations, you’ll need to apportion (split) your interest expenses between deductible and non-deductible portions. 

Getting this wrong can lead to over-claiming, which may result in amended returns, penalties, and unwanted ATO attention.

Let’s walk through when and how interest needs to be apportioned – and some common pitfalls to avoid.

When Do You Need to Apportion Interest?

The ATO outlines several situations where apportioning is necessary:

1. Co-ownership of the Property

If you own a rental property with another person, you generally split interest expenses according to your legal ownership share.

• Joint tenants each own an equal share, so deductions are split 50/50.
• Tenants in common may own unequal shares (e.g. 70% / 30%), and interest must be split accordingly. 

Even if one person pays all the loan repayments, the deduction is still based on ownership unless there’s a legally enforceable agreement stating otherwise – and the payments match that agreement.

2. Mixed-Purpose Loans

If your loan was used partly for the rental property and partly for something private – such as buying a car or funding a holiday – you’ll need to work out what proportion relates to the property.

For example:

• Loan amount: $400,000
• $380,000 used for rental purchase, $20,000 for personal expenses
• Total interest for the year: $35,000
  Deductible interest = $35,000 × (380,000 ÷ 400,000) = $33,250
  

The non-deductible portion ($1,750 in this example) can’t be claimed. And if the loan is refinanced or repayments alter the mix, you’ll need to adjust the calculation each year.

3. Private Use of the Property

If you (or friends/family) use the property for any part of the year, you can’t claim interest for that period.

Say you rent the property for 9 months and use it privately for 3 months – only 75% of the interest is deductible. If only part of the property is rented (e.g. you rent out one room via Airbnb), you’ll also need to apportion based on both time and space.

4. Part-Year Rentals

If the property is only genuinely available for rent for part of the year – for example, due to renovations or because you didn’t list it on the market – interest must be apportioned to cover only the rental period.

How to Stay on the Right Side of the ATO

Here are some tips to make sure your claims are correct and easy to substantiate:

• Keep clear records of loan purpose, rental periods, and any private use.
• Separate loans for private and investment purposes wherever possible – it makes apportionment simpler.
• Document co-ownership agreements if your ownership or repayment arrangements differ from the norm.
• Be consistent in how you calculate apportionment from year to year. 

Why Accuracy Matters

Interest deductions can be substantial, and the ATO keeps a close eye on property-related claims. Overstating deductions – even by mistake – can lead to costly adjustments. On the flip side, under-claiming means you could be missing out on legitimate tax savings.

Getting apportionment right ensures:

• You claim the maximum allowed deduction without crossing compliance lines.
• You have the documentation to support your claim in case of a review.
• You avoid unexpected tax bills down the track.

Apportioning rental interest expenses might not be the most exciting part of property investing, but it’s an essential one. If your property isn’t purely rented 100% of the time or your loan isn’t solely for the rental, there’s a strong chance apportionment applies.

If you’re unsure how to calculate your deduction – especially with mixed-purpose loans or complex ownership structures – it’s worth getting tailored advice. 

We can help you work through the numbers so you can claim confidently, compliantly, and in full.