You open your accounts at the end of the month and the report says you made a profit. Then you check the bank, and there is barely enough to cover the next bill. If that sounds familiar, you are not doing anything wrong. This is one of the most common small business cash flow problems in Australia, and it catches out business owners in every industry. Profit and cash are two different things, and once you understand the gap, it becomes much easier to manage. Small Business Ca

Many business owners treat the company bank account like their own wallet. They pay a personal credit card from it, transfer money for a holiday, or borrow funds for a house deposit. It feels harmless, because it is your company. For tax purposes, though, a company is a separate legal entity. When a private company gives money or benefits to a shareholder (or someone connected to them) without the right paperwork, Division 7A can treat that amount as a dividend. That deemed d

Many Perth business owners start out as sole traders. It is simple to set up, low cost and light on paperwork. But as a business grows, the sole trader vs company question comes up, because the structure that worked in the early days may no longer suit your tax position or your level of risk. At a Glance Sole Trader Company Family Trust Separate from you? No Yes, a separate legal entity No, a trustee holds assets for beneficiaries Personal liability Rests with you Generally l

Working Fly-In Fly-Out in Western Australia comes with great financial rewards, but navigating FIFO tax deductions WA can be complex. To ensure your return is ATO-compliant, explore our tax return services tailored for mining workers. To help you legally maximise your tax refund, we’ve broken down exactly what you can and cannot claim, complete with real-world examples and a helpful FAQ. FIFO Tax Deductions WA At a Glance: FIFO Tax Deductions WA Expense Category Tax Deductibl

Do you own a rental property, or are you thinking of buying another? Australian tax law has just changed two things that affect you directly: negative gearing and CGT (capital gains tax). The ATO confirms the changes are now law, and the good news is that if you already owned a rental property before the announcement, your negative gearing is largely unaffected. Negative Gearing and CGT Changes from 1 July 2027 Quick summary Rental properties you owned before 12 May 2026: neg

ATO data matching checklist for Australian businesses The ATO doesn't just take your word for it. Every year, it cross-checks tax returns against data from banks, share registries, vehicle registries, rental platforms and more. Here's what business owners need to know before this year's lodgment. Data matching isn't new, but its scope has expanded significantly. This data is used year-round: to pre-fill tax returns, flag possible under-reporting, and identify individuals or b

Opening your Notice of Assessment expecting a solid refund and getting a number well below what you calculated - is one of the most common frustrations Australian taxpayers face each year. If your 2026 refund came in lower than you anticipated, you're not alone, and in most cases, there's a clear explanation. Here's what's actually driving smaller refunds this year, and what you can do about it. Tax Refund Lower Than Expected? These Common Reasons First, What Determines Your

If you own a holiday home in Australia - a beach house, a country cabin, or a city apartment listed on Airbnb or Stayz - the ATO has finalised new rules that could wipe out your deductions entirely. Holiday home tax deductions are changing What changed The ATO finalised Taxation Ruling TR 2026/1 along with Practical Compliance Guidelines PCG 2026/2 and PCG 2026/3 in May 2026. Together they clarify how holiday homes are taxed, with heightened compliance focus from 1 July 2026.

If your business pays contractors, the Taxable Payments Annual Report (TPAR) might be a compliance obligation you haven't thought about since last August and the ATO is counting on that. This year there's an added twist: for the first time, TPAR data flows directly into contractors' individual tax returns, so getting it right matters more than ever. What Is The TPAR? The TPAR is an annual report that tells the ATO how much your business paid contractors during the financial y

If you invoice through an ABN, a company, or a trust for work you do yourself - think IT contractors, tradies working as subcontractors, consultants, beauty and wellness professionals, or anyone billing for their own time and skill - there's a good chance your income falls under the ATO's Personal Services Income (PSI) rules. And in 2026, the ATO is paying closer attention than ever. Here's a common scenario: a contractor sets up a company, starts invoicing a client for their

Hairdressers, beauty therapists, nail technicians and makeup artists work across salons, spas and mobile services, often under different pay and employment arrangements. Most are employees who receive a payment summary at tax time, though a growing number work as sole traders or contractors. Whichever category you fall into, the ATO has a specific occupation guide for hairdressers and beauty professionals that sets out exactly what you can and can't claim. The rules are more

If part of your job happens at home, you may be entitled to claim a deduction for the extra costs that come with it. But working from home deductions are an area the ATO reviews closely so it pays to understand exactly what you can claim and what records you need to back it up. Who Can Claim a Working From Home Deduction? To be eligible, you generally need to meet three conditions: You're working from home to fulfil your employment duties not just completing minimal tasks suc

A lot of people working in Australia on a 462 (Work and Holiday) visa assume that when tax time comes around, they'll get back a decent chunk of money - a story that circulates a lot within backpacker and working-holiday communities. In reality, because of the special tax rate that applies to this visa category, most people end up with little to no refund and some even owe extra tax. This article breaks down how the rules actually work, so your tax return doesn't come as a su

Many international students don't realise, when lodging their first tax return, that they may be entitled to an exemption from the 2% Medicare Levy - a charge most Australian taxpayers are required to pay. This article explains this entitlement and the correct process for claiming it. What is the Medicare Levy? The Medicare Levy is a compulsory charge, generally 2% of taxable income, that funds Australia's public healthcare system (Medicare) for those entitled to access it. W

If you run a building, contracting, or property business in Perth, GST is one of the most complex tax obligations you'll face. Unlike standard retail or service businesses, property and construction transactions come with their own set of rules and the cost of getting them wrong can be significant. Here are the most common GST mistakes we see in the industry, and how to avoid them. 1. Assuming All Property Sales Are GST-Free One of the most common misconceptions is that all p

With just weeks to go before one of the biggest changes to employer super obligations in Australian history, now is the time to make sure your business is ready. From 1 July 2026, Payday Super comes into effect and if you're still running quarterly super payments, your current approach will no longer be compliant. For many small business owners in Perth, superannuation can already feel like an administrative burden. Here's a plain-language breakdown of what's changing and exa

In Australian business management, purchasing a vehicle through a company structure is often considered a tax-efficient strategy. However, the boundary between a business asset and a private benefit is extremely narrow. Without a clear understanding of Fringe Benefits Tax (FBT), businesses may face unexpected tax exposure, penalties, and adjustments from the Australian Taxation Office (ATO). Many business owners often ask: do I pay FBT on company car in Australia - the answer

In Australia, many small and medium-sized enterprises (SMEs) - particularly in Nails & Beauty, Construction, and Hospitality - prefer hiring workers as independent contractors to reduce payroll costs and administrative burdens. The common model involves: Workers providing an ABN (Australian Business Number) Issuing weekly invoices The business not paying Superannuation No Annual Leave or Sick Leave entitlements Contractor or Employee? The Superannuation Risks of Worker Miscla

Many businesses in Australia are unintentionally misclassifying employees in their payroll systems without even realizing it. A casual employee working fixed roster hours for years, a part-time employee not receiving correct leave entitlements, or incorrect Award rate calculations - all of these can become major financial and compliance risks. Full-Time, Part-Time Or Casual Employee If audited by the Fair Work Ombudsman, businesses may face serious consequences, including: Ba

One of the most common mistakes individuals make when working in Australia is confusing their visa type with their tax residency status. In reality, the Australian Taxation Office (ATO) assesses tax residency independently of your visa. Your tax residency classification directly impacts your tax rates, entitlement to tax-free thresholds, and your end-of-year tax refund eligibility. Understanding where you fall is essential for accurate payroll processing and tax compliance. U