Treasurer announces temporary relief for businesses impacted by fuel crisis

BREAKING NEWS • 1 April 2026

Miranda Brownlee from the great team at Accountants Daily just dropped an article online that is important for all of our Indigo Financial business clients. Read her article here…

The ATO has agreed to provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues and limit compliance action across the worst affected industries.

Treasurer Jim Chalmers has announced a suite of relief measures for small businesses impacted by rising fuel costs including tax relief and improved access to finance.

Chalmers said the ATO has agreed to provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues, including more generous payment plans, remission of interest and penalties and support with various PAYG instalments where there’s been a downturn in taxable income.

The following is a list of some of the common acronyms used in tax and superannuation. This list is designed to be a handy, quick-reference guide, but it is not intended to be exhaustive.

There is nothing worse than having a conversation with someone and they blind you with abbreviations and acronyms. You are constantly asking… Wait. What?

Hopefully this list might shed some light on the commonly used acronyms used when you are talking to your financial advisor, accountant or superannuation guru.

AAT Administrative Appeals Tribunal
ABN Australian Business Number
ABP Account based pension
ACN Australian Company Number
ACR Auditor contravention report
AFSL Australian Financial Services Licence
APES Accounting Professional and Ethical Standard(s)
APRA Australian Prudential Regulation Authority
AR Authorised Representative
ASIC Australian Securities and Investments Commission
ASX Australian Securities Exchange
ATI Adjusted Taxable Income
ATO Australian Taxation Office
ATO ID ATO Interpretative Decision
AUASB Auditing and Assurance Standards Board
AWOTE Average Weekly Ordinary Time Earnings
BA Bankruptcy Act 1966
BDBN Binding death benefit nomination
BFA Binding financial agreement
BRE Base rate entity
BRP Business real property
CA Corporations Act 2001
CGT Capital Gains Tax
DASP Departing Australia Superannuation Payment
DICTO Dependant (Invalid and Carer) Tax Offset
DHS Department of Human Services (including Centrelink)
DIS Decision Impact Statement
DPN Director penalty notice
DTA Double tax agreement
DV Diminishing Value
DVA Department of Veteran Affairs
ECPI Exempt current pension income
ECT Excess contributions tax
ED Exposure Draft
EFLE Entertainment facility leasing expense
EM Explanatory memorandum (to a Bill)
ESS Employee Share Scheme
ETP Employment termination payment
FBT Fringe Benefits Tax
FBT Act Fringe Benefits Tax (Assessment) Act 1986
FC Federal Court (of Australia)
FFC Full Federal Court
FL Act Family Law Act 1975
FLS Regulations Family Law (Superannuation) Regulations 2001
FMDs Farm Management Deposits
FOFA Future of Financial Advice (reforms)
FWA Fair Work Act 2009
GIC General interest charge
GST Goods and Services Tax
GST Act A New Tax System (Goods and Services Tax) Act 1999
GSTD Good and Services Tax Determination
GSTR Goods and Services Tax Ruling
IFBA Individual Fringe Benefits Amount
IGT Inspector-General of Taxation
IHS In-house software
IPP Individual Professional Practitioner
ITAA 1936 Income Tax Assessment Act 1936
ITAA 1997 Income Tax Assessment Act 1997
ITAR 2021 Income Tax Assessment (1997 Act) Regulations 2021
ITC Input tax credit
ITRA Income Tax Rates Act 1986
IT(TP)A 1997 Income Tax (Transitional Provisions) Act 1997
LAFH Living-away-from-home
LITO Low income tax offset
LMITO Low and middle income tax offset
LCG (or LCR) Law Companion Guideline (or Law Companion Ruling)
LPR Legal personal representative
LRBA Limited recourse borrowing arrangement
LVR Loan-to-value ratio
MLP Market linked pension
MSV Margin Scheme Valuation
NALI Non-arm’s length income
NTLG National Tax Liaison Group
PAYGW Pay-as-you-go withholding
PB Preserved benefit
PBI Public Benevolent Institution
PBR Private binding ruling
PCG Practical Compliance Guideline
PDS Product Disclosure Statement
PSB Personal Services Business
PSI Personal Services Income
PSLA Practice Statement Law Administration
RESC Reportable Employer Superannuation Contribution
RFB or RFBA Reportable Fringe Benefits or Reportable Fringe Benefits Amount
RNPB Restricted non-preserved benefit
RSA Retirement savings account
RSE Registrable Superannuation Entity
SAF Small APRA Fund
SAN SMSF Advisers Network
SBCs Small Business Concessions
SBE Small Business Entity
SBR Standard Business Reporting
SCT Superannuation Complaints Tribunal
SG Superannuation guarantee
SGAA Superannuation Guarantee (Administration) Act 1992
SGC Superannuation guarantee charge
SIC Shortfall interest charge
SIRN Superannuation Industry Relationship Network
SIS Act Superannuation Industry (Supervision) Act 1993
SIS Regs Superannuation Industry (Supervision) Regulations 1994
SMSF Self-managed superannuation fund
SMSFD Self-Managed Superannuation Fund Determination
SMSFR Self-Managed Superannuation Fund Ruling
STP Single Touch Payroll
TA Taxpayer Alert
TAA 1953 Taxation Administration Act 1953
TASA Tax Agent Services Act 2009
TASR Tax Agent Services Regulations 2009
TBAR Transfer Balance Account Report
TD Taxation Determination
TFN Tax file number
TMC Terminal medical condition
TPB Tax Practitioners Board
TPD Total and permanent disablement
TR Taxation Ruling
TRIS Transition to retirement income stream
TSB Total Superannuation Balance
UCA Uniform Capital Allowance (depreciation rules)
UNPB Unrestricted non-preserved benefit
UPE Unpaid present entitlement

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

For many Australians, a holiday home does double duty. 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 guidance documents by the Australian Taxation Office (ATO) – TR 2025/D1, PCG 2025/D6 and PCG 2025/D7.

The ATO is looking to significantly tighten the rules around holiday homes that are used to derive some rental income. While the documents are still in draft form, they clearly signal the ATO’s compliance focus going forward.

What is the ATO Concerned About?

In simple terms, the ATO wants to distinguish between properties that are genuinely held to maximise rental income and those that are primarily lifestyle assets with some incidental rental use.

The ATO confirms that all rental income must be declared, even if it is occasional or earned through informal arrangements. However, if the property is really a holiday home and isn’t used mainly to produce rental income during the year then the owner can’t claim any deductions for expenses such as interest, rates, land tax, repairs and maintenance.

That is, the ATO might not allow any of these expenses to be claimed as a deduction, even if the property is used to generate taxable rental income for some of the year at market rates. If the property is classified as a holiday home by the ATO then owners can only claim deductions for limited direct expenses such as cleaning or advertising.

The ATO is particularly focused on properties that:

• Are blocked out for private use during peak periods (for example, school holidays or ski season),
• Are advertised inconsistently or at above-market rates,
• Generate ongoing tax losses year after year.

How Expenses Must be Claimed

Even if the property isn’t classified as a holiday home, it will often still be necessary to apportion expenses if the property is only used partly for income producing purposes. PCG 2025/D6 outlines how expenses should be apportioned. The key principle is that claims must be “fair and reasonable”. Common methods include:

• Time-based apportionment (for example, based on days rented or genuinely available for rent), and
• Area-based apportionment (where only part of a property is rented).

Getting this wrong, or failing to keep evidence, increases audit risk. The ATO has access to booking platform data and can easily compare listings, calendars and reported income.

The Financial Impact can be Significant

Consider a holiday unit that earns $30,000 a year in off-peak rent but is kept for private use during peak holiday periods. Under the new approach, the ATO may conclude the property is really a holiday home and could reduce deductible expenses from tens of thousands of dollars to only a small fraction, resulting in a materially higher tax bill.

Co-ownership also needs care. Income and deductions are generally split according to ownership interests, regardless of who uses the property more. Renting to relatives at discounted rates can further limit deductions.

Practical Steps you Should Take Now

Although the guidance is proposed to apply from 1 July 2026 (with transitional relief for arrangements in place before 12 November 2025), now is the time to review your position:

• Are you holding and using the property to genuinely maximise rental income? Is the property advertised broadly and consistently, including during peak periods?
• Use market pricing: Set rent in line with comparable properties in the same area.
• Keep strong records: Retain booking calendars, advertisements, enquiries, and a diary showing private versus rental use.
• Review ownership and strategy: In some cases, changing how a property is operated can improve its commercial profile and tax outcome, but beware of CGT liabilities, duty and legal fees.
• Document existing arrangements: If you may qualify for transitional relief, evidence is critical.

The Bottom Line

The ATO is not banning deductions for holiday homes, but it is drawing a firmer line between genuine investment properties and lifestyle assets. With the right structure, pricing and record-keeping, many owners can still claim appropriate deductions and improve cash flow.

If you own a holiday property, a proactive review could save you from an unpleasant surprise later. Please contact us if you would like us to assess your current arrangements and help you plan ahead.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

Electric vehicles (EVs) are no longer a niche choice. By late 2025, they accounted for more than 8% of new car sales in Australia, driven in no small part by generous tax incentives. One of the most significant is the Federal Government’s Electric Car Discount, introduced in mid-2022. For many businesses and employees, it has materially reduced the cost of owning or leasing an EV.

That said, the rules are now under review. While no immediate changes are proposed, this is an important moment to understand the benefits, assess whether they suit your circumstances, and consider timing.

How the Electric Car Discount Works (in Plain English)

The discount is not a cash rebate. Instead, it operates through tax concessions that can significantly reduce the real cost of an EV:

1. Fringe Benefits Tax (FBT) exemption

Where an eligible EV is provided to an employee as a fringe benefit, private use is exempt from FBT. This is often the biggest saving. Without the exemption, FBT is effectively charged at up to 47%. For many employees, the exemption can reduce the annual after-tax cost of a vehicle by thousands of dollars.

Important points:

• The exemption applies to battery electric vehicles and hydrogen fuel cell vehicles.
• Plug-in hybrid vehicles lost eligibility for new arrangements from 1 April 2025.
• The car must be first held and used after 1 July 2022 and be below the luxury car tax threshold at first purchase.

2. Higher luxury car tax (LCT) threshold

Fuel-efficient vehicles, including EVs, benefit from a higher LCT threshold ($91,387 for 2025–26, compared to $76,950 for other cars). This can prevent the 33% luxury car tax applying to part of the purchase price.

3. Reduced import costs

Certain EVs are also exempt from the 5% customs duty, reducing upfront acquisition costs.

Commercially, these settings have made EVs very competitive. Lower running costs (electricity versus fuel, fewer servicing requirements) and solid resale values have strengthened the business case, particularly for salary packaging and small fleets.

Why the Government Is Reviewing the Rules

A statutory review of the Electric Car Discount has now commenced. The key reason is cost. Uptake has exceeded expectations, and the projected cost to the budget has increased significantly over the forward estimates.

The review will examine:

• Whether the concession is still required to encourage EV adoption.
• Whether eligibility settings should be tightened (for example, limiting benefits to certain vehicle types or price points).
• How the discount interacts with other policies, such as the National Vehicle Emissions Standard commencing in 2025.

Public consultation is underway, with a final report not due until mid-2027. Importantly, there is no suggestion of immediate changes, and any reforms are more likely to be prospective.

Practical Takeaways for Business Owners and Employees

While uncertainty always creates hesitation, the current rules are clear and legislated. From a practical perspective:

• Now is a good time to review fleet or salary packaging arrangements, particularly if you are considering replacing a vehicle in the next 12–24 months.
• Existing arrangements are expected to be grandfathered, reducing the risk of retrospective changes (although we can’t guarantee this).
• Ensure vehicles are clearly under the LCT threshold at first purchase and meet all eligibility criteria if you want to access the FBT exemption.
• Check the tax treatment of charging infrastructure provided in connection with an eligible EV, this won’t necessarily qualify for an FBT exemption.

Final Thought

The Electric Car Discount remains one of the most valuable concessions available for employee vehicles. While a review introduces longer-term uncertainty, the commercial reality today is that EVs can deliver genuine tax and cash-flow savings when structured correctly.

If you are considering an EV—either personally or through your business—now is the right time to run the numbers.

Please contact our team if you would like tailored advice on whether an electric vehicle strategy makes sense for you under the current rules.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

For many business owners and investors, time is limited. It is becoming increasingly common to use AI tools such as ChatGPT to get quick answers on tax deductions, super contributions or structuring ideas. The responses are fast, sound confident and cost nothing.

It can feel like an easy win.

However, there are some real risks that need to be understood.

Where AI can be useful

AI tools can be helpful when used to explain general concepts. For example, they can break down topics like negative gearing, explain the difference between concessional and non-concessional super contributions, or highlight the importance of keeping good records.

Used in this way, AI can save time and help you ask better questions.

Where the risk begins

Problems arise when AI shifts from explaining concepts to providing advice.

Tax and super outcomes depend heavily on your personal circumstances. Factors such as your income, structure, residency, timing and long-term plans all play a role. AI tools do not properly understand this context, and they are not designed to apply professional judgement or weigh competing risks.

Even if detailed information is entered, there are also privacy concerns to consider when sharing sensitive financial data.

Confident answers are not always correct

One of the key risks with AI is that it can produce answers that sound authoritative but are incorrect, incomplete or out of date.

In practice, this can lead to:

• Claims for deductions that do not apply
• Incorrect capital gains tax calculations
• Super strategies that breach contribution caps or eligibility rules
• References to legislation or cases that are inaccurate or no longer relevant

These errors are often difficult for non-experts to detect but are usually obvious to the ATO and professional advisers.

A recent Administrative Review Tribunal decision highlighted this issue. In Smith and Commissioner of Taxation [2026] ARTA 25, the taxpayer relied on AI-generated case references. Some of those cases did not exist, while others were irrelevant. The Tribunal made it clear that failing to verify this information wastes time and undermines the process.

ATO expectations are clear

The ATO is not opposed to the use of AI, and in fact uses it internally for data analysis and compliance activities. However, they are very clear on one point: taxpayers are responsible for the accuracy of their own returns.

The ATO has specifically warned that AI-generated information may be false, incomplete or outdated, and that it must be independently verified.

You can read more here:
ATO AI transparency statement | Australian Taxation Office
Protect yourself from misinformation and disinformation | Australian Taxation Office

If errors are identified, the ATO may amend your return, apply interest and impose penalties, regardless of whether the mistake came from AI or not.

We are increasingly seeing issues arise in areas such as work-from-home claims, rental property deductions and SMSF compliance.

Superannuation: high risk area

Superannuation is particularly sensitive.

Self-managed super funds operate under strict regulatory rules, and even small errors can result in significant consequences. AI tools often miss critical factors such as eligibility, timing requirements and compliance tests.

The outcome can include penalties, the need to unwind transactions, and long-term damage to retirement savings.

Privacy matters

Another often overlooked risk is data security. Entering personal or financial information into AI platforms can expose that data to storage and usage outside your control. This creates potential privacy and fraud risks that should not be ignored.

A practical approach

AI can be a useful starting point, but it should not be relied on to make financial decisions.

The most effective approach is to use AI to build understanding, then seek advice that takes into account your full situation before acting.

At Indigo Financial, we encourage clients to raise questions early and test ideas before implementation. In most cases, this approach is significantly more cost-effective than correcting mistakes later.

The bottom line

AI can be a helpful tool, but it is not a substitute for professional advice.

When it comes to managing your tax obligations and protecting your long-term financial position, tailored advice remains essential.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

From 1 July 2026, the Federal Government’s Payday Super reforms will change when you must pay Superannuation Guarantee (SG) for employees. In short: super moves from a quarterly obligation to a “pay-cycle” obligation, with significantly tighter timeframes, updated penalties, and more data-matching by the ATO.

Below is what Indigo Financial SME clients need to know to stay compliant, protect cash flow, and avoid avoidable SG charge exposure.

What is changing from 1 July 2026

1) Super must be paid in line with each pay run (not quarterly)

Today, most employers pay SG at least quarterly. Under Payday Super, SG is expected to be paid at the same time you pay wages.

2) Contributions must arrive in the employee’s fund within a tight window

Guidance indicates the payment must reach the employee’s nominated fund within a defined timeframe after payday:

• Fair Work Ombudsman and CSC guidance refers to generally within 7 business days (with some exceptions).

Treasury’s implementation factsheet describes a 7 calendar day due date for contributions to arrive in the fund.

Indigo Financial view: treat this as a “no later than” deadline and build a buffer. In practice, that means aligning payroll, clearing house processing, and bank cut-offs so contributions land well inside the window.

3) “Payday” (and the earnings base) is being formalised

Payday is defined in the legislative materials as the date you make a qualifying/OTE-related payment to an employee, and the reforms introduce a new earnings concept used for SG calculations (including items such as OTE and salary sacrifice).

4) The Small Business Superannuation Clearing House is being retired

If you use the ATO-run Small Business Superannuation Clearing House (SBSCH), plan your replacement now:

• Parliamentary materials state SBSCH will be retired from 1 July 2026 and closed to new users from 1 October 2025.

Treasury’s factsheet also confirms SBSCH retirement from 1 July 2026.

How compliance and penalties will work under Payday Super

A redesigned SG charge framework

Where contributions are not paid in full and on time, employers will be liable for an updated SG charge framework designed for “payday” timing.

Key elements referenced in Government materials include:

• Outstanding SG shortfall calculated on the relevant earnings base
• Notional earnings / daily interest-style component (compounding at the general interest charge rate)
• Administrative uplift (Treasury factsheet references an uplift of up to 60%, with reductions for voluntary disclosure)
• Additional interest and penalties if an assessed liability is not paid by the due date
• More ATO visibility, earlier intervention
• The ATO will have increased visibility by matching Single Touch Payroll (STP) data with super fund reporting, enabling faster detection of missing or late SG.

Treasury also flags an STP uplift in what needs to be reported (including OTE and total super liability per employee).

Practical implications for SME owners and finance teams

Cash flow will change (even if your total SG doesn’t)

Moving from quarterly to each pay cycle typically means:

• fewer “lumpy” quarter-end payments
• less float (the money sits in your bank account for fewer days)
• tighter working capital discipline, particularly for labour-heavy businesses

If you currently rely on the quarterly cadence to manage cash, it is important to reset your forecasting now.

Payroll operations must be engineered for speed and accuracy

Under Payday Super, late payments may be driven by operational friction rather than intent: incorrect fund details, rejected payments, clearing house delays, bank cut-offs, or pay-cycle exceptions. Guidance highlights the need to review payroll systems, clearing house timing and data quality.

What you should do now (Indigo Financial checklist)

1) Map your current process end-to-end

Document:

• pay run date/time
• payroll finalisation cut-off
• clearing house submission time
• bank cut-offs
• typical super fund allocation timing
• exception handling (rejections, failed remittances, employee fund changes)

2) Confirm your payroll software and clearing house readiness

Ask your provider:

• Can we calculate SG per pay cycle automatically (including any salary sacrifice)?
• Can we submit SuperStream files/payment instructions every pay run?
• What are the provider cut-offs to ensure “received by fund” timing is met?
• What reporting changes are required for STP uplift (OTE and super liability)?

3) Replace SBSCH if you use it

If you are currently using SBSCH, you need an alternative well before 1 July 2026, noting SBSCH is closed to new users from 1 October 2025.

4) Rebuild cash flow forecasts for FY2026–27

We recommend:

• moving SG out of “quarterly bills” and into the normal wage cadence
• stress-testing busy periods (seasonal spikes, project ramp-ups, Christmas shutdowns)
• setting an internal buffer so super is always actioned immediately after payroll finalisation

5) Tighten governance and accountability

Given increased visibility and stronger consequences for repeat non-compliance, put ownership on the calendar:

• who signs off payroll
• who submits super
• who monitors acceptance/allocation
• what happens when a contribution is rejected or delayed

Key dates to note

• 1 October 2025: SBSCH closed to new users (per parliamentary materials).
• 1 July 2026: Payday Super reforms commence; SBSCH retired.

How Indigo Financial can help

If you want us to support your Payday Super readiness, we can help you:

• redesign your pay-cycle super workflow (including cut-offs and exception handling)
• update cash flow forecasting for the shift to pay-cycle SG
• assess payroll software and clearing house options if you’re moving off SBSCH
• implement a compliance dashboard so you can evidence “paid and received on time”

If you share your pay frequency (weekly/fortnightly/monthly), payroll platform, and whether you currently use SBSCH, we can provide a tailored transition plan aligned to your operating rhythm.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

73% of adults admit to overthinking every day.

That’s 3 out of 4 people stuck in the same loop:
“What if I fail?”
“What if I said the wrong thing?”
“What if I’m not good enough?”

The truth is – overthinking doesn’t protect you.

It drains you.

Japan has known this for centuries.

They quiet the noise not with hacks or “quick fixes,” but with small daily practices:
→ A pause before speaking.
→ A walk in nature.
→ Creating something with your hands.
→ Letting silence do its work.

Because clarity doesn’t come from thinking harder.

It comes from creating space.

At work and in life, maybe the answer isn’t to push more…

It’s to pause more.

And in that pause, you often find exactly what you were looking for.

Business owners and leaders need to practise creating this space and finding pause so they can introduce these concepts to their employees – together they can find the keys to working better, together for sustained success.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

As we cross the midpoint of the 2025–26 financial year, it’s an ideal time to pause, assess your financial position and make strategic decisions to maximise your tax outcomes before the 30 June year-end.

As you are aware, Australian tax law operates on a July-to-June cycle, and the decisions you make now can materially affect your tax liabilities, compliance obligations and cash flow.

For individuals, sole traders and business entities alike, being proactive — from ensuring your books are up-to-date, planning superannuation contributions, reviewing trust distributions, to understanding upcoming lodgment dates — helps avoid last-minute stress and potential penalties. Speak with your Indigo Financial adviser early about planning opportunities and key compliance obligations that apply to your specific structure and circumstances.

Below is a comprehensive list of what should be happening now, what you should prepare and what key dates you need to be aware of in the second half of the financial year.

Ongoing/Now — Actions to be doing in the second half of the financial year

General ongoing tasks (all clients)

1. keep accounting records accurate and reconciled
   Finalise and reconcile bank accounts, sales, purchases and payroll to date — this makes year-end accounting and tax planning much smoother.
2. review budgets and cash flow projections
   Assess your cash flow forecasts for the remainder of the year, including likely tax liabilities, super payments and BAS or instalment requirements.
3. track deductible expenses throughout the year
   For individuals and businesses, keep supporting documentation for all deductions (receipts, logbooks, diaries). ATO compliance is increasingly data-matched.
4. update your Single Touch Payroll (STP) reporting
   Ensure your payroll data is accurate and up to date — STP finalisation reconciles wages, tax withheld and super.
5. consider tax-planning strategies with your accountant
   Meet with your Indigo Financial adviser to discuss:

• deferring or accelerating income
• prepaying eligible expenses
• asset purchases and depreciation planning
• superannuation contributions (personal and employer)
• Division 7A loans and trust allocation.

Key dates to watch (2025–26 financial year)

July 2025

• 1 July — Start of 2025–26 financial year. Transactions from this date count for FY26.
• 14 July — Deadline to provide PAYG payment summaries to employees (if not using STP).
• 21 July — Lodge/pay June BAS (monthly GST/PayG if registered monthly).
• 28 July — Q4 BAS lodged and paid (Apr–Jun) for quarterly lodgers; Super Guarantee due for Q4 (Apr–Jun).

August 2025

• 14 August — Lodge PAYG withholding annual payment summary report (if required; often replaced by STP Phase 2 reporting).

September 2025

• Regular BAS and payment obligations (e.g. 21 September BAS due for August for monthly lodgers).

October 2025

• 28 October — Q1 BAS due (July–Sept); Super guarantee Q1 due (July–Sept).
• 31 October — Last day for self-prepared individual tax returns for 2024–25.

January 2026

• 28 January — Super guarantee Q2 due (Oct–Dec).

February 2026

• 28 February — Q2 BAS due.

April 2026

• 28 April — Q3 BAS due; Super Q3 due (Jan–Mar).

May 2026

• 15 May — Company and trust income tax returns due if using a registered tax agent (varies by client).
• 21 May — Lodge/pay April BAS; Fringe Benefits Tax (FBT) Return due (paper/electronic).

June 2026 — Year-end focus

• 21 June — Lodge/pay May BAS (monthly lodgers).
• 30 June — End of the financial year — last day to make deductible actions for FY26 (e.g. super contributions must be received by this date; stocktake; asset purchases; trust resolutions; prepayments).

What to prepare ahead of June 30 (year-end)

Business owners & companies

• Wrap up books and close accounts by 30 June
  Ensure all revenue and expenses are recorded in the correct year to accurately determine tax outcomes.
• Super guarantee compliance
  Superannuation contributions for employees must be received by the fund by 30 June to be deductible in FY26.
• Trust distribution resolutions
  For discretionary trusts, resolutions allocating income for FY26 must be made before 30 June.
• Asset purchases and instant asset write-offs
  Consider timing of capital purchases and small business instant write-offs to maximise deductions.
• Payroll and STP finalisation
  Finalise wage reconciliations and confirm correct reporting ahead of year’s end.

Sole proprietors & partnerships

• Confirm all business income and deductions are appropriately captured.
• Review debtors and write off bad debts before year-end if appropriate.
• Prepay eligible expenses to bring forward deductions.

Individuals

• Superannuation planning — consider topping up concessional and non-concessional contributions (subject to caps).
• Review investment property expenses and depreciation reports.
• Working-from-home logbooks and other deduction evidence for personal tax return.

SMSF trustees

• Review investment strategy and performance.
• Ensure compliance documentation is up to date.

Topics to discuss with Indigo Financial now

• Your year-to-date tax position and projections to 30 June.
• Opportunities to maximise deductions or defer assessable income where appropriate.
• Superannuation contribution strategies and caps.
• Trust distribution planning and resolution documentation.
• Division 7A loan compliance (company loans to associates).
• Franking credit and dividend planning for companies.
• What lodgment obligations apply to your entity structure and when.
• Property advisory for investment opportunities and wealth creation.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

How artificial intelligence is exposing disengagement in Australian SMEs – and what leaders should do about it

Executive summary

Artificial intelligence is increasingly being adopted by Australian small and medium enterprises to improve efficiency, reduce costs and support better decision-making. However, many SME leaders are discovering an unintended consequence: AI systems often expose disengaged employees, fragile processes and hidden inefficiencies that were previously tolerated or invisible.

This visibility can be confronting. In small businesses, where roles overlap and relationships are close, AI-generated insights can quickly create tension if they are interpreted as surveillance rather than support. Used poorly, AI can erode trust, damage culture and increase turnover. Used well, it can become a powerful tool for improving systems, coaching performance and restoring accountability—without resorting to micromanagement.

This article explores:

• how AI surfaces disengagement in SME environments
• why this creates friction faster in small teams than in large organisations
• the Australian legal and ethical context leaders need to be aware of
• a practical framework for using AI insights without undermining trust

The central message is simple: AI should be used to diagnose systems first, not to prosecute individuals.

AI doesn’t accuse people – it reveals patterns

Most SMEs don’t adopt AI to monitor staff. They implement tools to solve practical problems:
faster turnaround times, fewer errors, better client communication, cleaner data, or improved forecasting.

But many modern tools—CRM systems, workflow platforms, AI meeting summaries, ticketing systems, time-to-resolution dashboards and GenAI copilots—share one feature: they turn everyday work into data.

Over time, patterns emerge:

• tasks that consistently stall
• work that requires frequent rework
• handovers that create bottlenecks
• response times that vary dramatically between team members
• a small group of people repeatedly stepping in to “fix” issues

This is often where disengagement becomes visible. Not as a label, but as a footprint.

In SMEs, these patterns matter more because inefficiencies don’t disappear into a large corporate structure. They land directly on the business owner, the manager, or the most capable team member. AI doesn’t create disengagement—it simply removes the fog.

Why tension escalates quickly in SME teams

1. Small teams mean personal consequences

In a business with ten or twenty staff, performance conversations are rarely abstract. Everyone knows who is carrying the load. When AI dashboards confirm what some people already feel, long-standing frustrations can surface very quickly.

2. Data changes the tone of leadership conversations

Historically, many SME leaders managed performance informally. AI introduces “receipts”—metrics that can feel objective and final, even when they are incomplete. Without care, discussions shift from coaching to defence.

3. The definition of “good work” changes overnight

When AI automates admin, drafting and analysis, speed alone is no longer the differentiator. Employees who previously looked productive may struggle, while others thrive. That reshuffling can unsettle identity, status and confidence.

The Australian context: visibility comes with responsibility

Even when AI is implemented for operational reasons, Australian SMEs must be mindful of privacy, fairness and transparency.

Key considerations include:

• obligations under the Privacy Act for businesses that are covered
• best-practice guidance from the Fair Work Ombudsman on workplace privacy
• specific state-based rules, such as NSW’s Workplace Surveillance Act, which requires notice and limits covert monitoring
• emerging expectations around responsible and ethical AI use in Australia

The risk is rarely deliberate misuse. It’s accidental drift—using AI-generated data in performance management without clarity on purpose, limits or employee awareness.

Reframing the opportunity: AI as a system mirror

A useful mental shift for SME leaders is this:

Disengagement is often a symptom, not a cause.

AI may be highlighting:

• unclear priorities in a fast-growing business
• poorly designed processes that create friction
• capability gaps that employees are hiding
• burnout masquerading as apathy
• incentives that reward activity rather than outcomes

If AI shows low performance, the most powerful question is not “Who is failing?” but
“What is the system producing, and why?”

Practical checklist: using AI insights without damaging trust

1. Start with process, not people

Analyse workflow delays, rework and bottlenecks at a team or role level before naming individuals. Fix obvious system flaws first.

2. Be explicit about purpose

Clearly communicate why AI tools are being used. Productivity improvement feels very different from surveillance—and employees can tell the difference.

3. Use AI as a coaching aid

Frame insights as a starting point for conversation:

• “Does this reflect your experience?”
• “What’s getting in the way here?”
• “What would make this easier to do well?”

4. Keep human judgment central

AI outputs are indicators, not verdicts. Context still matters, and leaders must own decisions rather than outsourcing them to dashboards.

5. Document light governance

Even a simple internal policy helps:

• what data is collected
• how it will be used
• what it will not be used for
• who can access it
• how employees can query or challenge errors

6. Invest in capability, not just tools

When AI raises expectations, training and support must rise too. Otherwise, disengagement deepens rather than resolves.

Looking at this issue from another angle

Grant Wyatt, head of human resources at Ensign Laboratories, posed this perspective about employees rin a recent article titled “The engagement trap: Becoming irreplaceable in the age of AI”

AI: The ultimate magnifier

We need this conversation now more than ever because a new catalyst has arrived: artificial Intelligence, making the impact of disengagement impossible to hide.

AI now handles the mundane work we’ve long complained about, from repetitive emails to admin churn and producing corporate jargon, and in many cases, it does it better than we can. This forces a confronting question: What’s left for you? What remains is the part that depends on you giving a damn. Engagement is the entry point to the work AI can’t touch: creative problem solving, critical thinking and genuine value creation.

AI is a magnifier. It amplifies whatever you bring. If you’re curious and willing to learn, it’s rocket fuel. If you resist change, it accelerates your irrelevance. AI won’t replace people so much as expose them. The engaged gain leverage. The disengaged get left behind. No company will continue paying someone who is checked out or doing the bare minimum when technology can perform without complaint.

This is a call to move past the fear of being replaced and become someone irreplaceable. That shift requires three capabilities no technology can automate: clarity, capability, and character.

Final thoughts for SME leaders

AI is already changing how work gets done in Australian SMEs. The real question is not whether it will expose disengagement—but how leaders respond when it does.

Handled thoughtfully, AI can:

• reduce friction
• restore accountability
• support fair performance conversations
• free leaders from micromanagement

Handled poorly, it can:

• damage trust
• entrench fear
• accelerate turnover
• create compliance risk

The difference is leadership intent, transparency and system thinking.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

Published by Indigo Financial and Global Business Camps
Supporting smarter systems, better decisions, and confident business owners across Australia