Context and clarity are king: How to get better results from AI prompts

Artificial intelligence tools like ChatGPT are quickly becoming part of everyday business life. From writing emails and analysing numbers to planning content and summarising reports, AI can save small business owners a huge amount of time.

But here’s the catch.

AI is only as good as the instructions you give it.

If you’ve ever typed something like “Help me with my business” and thought the response was a bit… average — you’re not alone. The problem usually isn’t the tool. It’s the prompt.

When it comes to using AI well, context and clarity are king.

Let’s break that down in a simple, practical way.

What does “context” actually mean?

Context is the background information you give the AI so it understands your situation.

Think of it like this:
If you asked a new employee for help, you wouldn’t just say “Do the thing.” You’d explain what business you’re in, who the customer is, what’s already been done, and what the end goal looks like.

AI works the same way.

Context includes things like:

• Your industry (tradie, consultant, retailer, café, professional services)
• Your location (Australia matters — especially for tax, GST and compliance)
• Who the output is for (a customer, your accountant, a staff member, the ATO)
• Your tools (Xero, MYOB, Excel, Outlook, Google Docs)
• The situation (first reminder vs third reminder, good cash flow vs tight cash flow)

Example

Instead of:

“Write a payment reminder”

Try:

“Write a friendly but professional payment reminder for an Australian plumbing business. The invoice is 21 days overdue, the client is a long-term customer, and we use 30-day payment terms.”

Same task. Much better result.

What does “clarity” mean?

Clarity is about being specific and direct about what you want.

AI isn’t a mind reader. If your prompt is vague, the response will be vague too.

Clarity answers questions like:

• What exactly do I want done?
• What format do I want it in?
• How long should it be?
• What tone should it use?
• What’s the purpose of this output?

Example

Instead of:

“Explain cash flow”

Try:

“Explain cash flow in simple terms for a 17-year-old who runs a small online business in Australia. Use an everyday example and keep it under 150 words.”

Clear task. Clear audience. Clear result.

Why context and clarity matter so much for SMEs

Small business owners don’t have time to rewrite things five times.

Good prompts:

• Save time
• Reduce back-and-forth
• Produce more useful, usable outputs
• Lower the risk of mistakes (especially with finance and compliance)

Poor prompts lead to:

• Generic answers
• Missed Australian rules (GST, BAS, PAYG)
• Extra editing
• Frustration

The better your prompt, the less work you have to do afterwards.

A simple formula for better prompts

When in doubt, use this structure:

1. Tell the AI who to be
   “Act as an Australian bookkeeper”
   “Act as a small business finance manager”
2. Explain the task clearly
   “Create a checklist”
   “Draft an email”
   “Summarise this report”
3. Add context
   Industry, situation, audience, tools
4. Define the output
   Bullet points, table, email, short explanation
5. Set boundaries
   Word count, tone, what to include or avoid

You don’t need to overcomplicate it — just don’t under-explain it.

Common prompting mistakes (and how to avoid them)

Mistake 1: Being too vague

“Help me improve my finances”

Fix:
“What are three practical ways a small Australian service business can improve cash flow in the next 90 days?”

Mistake 2: Asking too much at once

One massive prompt with five different questions can confuse the AI.

Fix:
Break big tasks into smaller steps. Think of it like training a junior staff member.

Mistake 3: Forgetting Australia exists

AI tools don’t automatically know you’re dealing with the ATO.

Fix:
Always mention Australia, GST, BAS, or local rules when relevant.

Mistake 4: Treating AI as the final authority

AI sounds confident — even when it’s wrong.

Fix:
Use it to draft, explain, summarise and organise.
Always double-check tax, legal and compliance matters with a professional.

Mistake 5: Sharing sensitive data

Never paste:

• Bank account numbers
• TFNs
• Credit card details
• Client personal information

Fix:
Use placeholders like “Customer A” or round numbers.

Why AI works best as a finance sidekick (not a replacement)

AI is brilliant at:

• Writing emails and reminders
• Summarising reports
• Explaining financial concepts in plain English
• Creating checklists and templates
• Spotting patterns in numbers you provide

It is not a replacement for:

• Your accountant
• Your bookkeeper
• Lodging BAS or tax returns
• Making major financial decisions

The sweet spot is using AI alongside professional advice — not instead of it.

The real mindset shift: Treat AI like a conversation

Your first prompt is rarely the final one.

Good users:

• Ask follow-up questions
• Request changes to tone or format
• Say “make this simpler” or “rewrite for a client”
• Refine as they go

That’s not failure — that’s how you get great results.

Final takeaway

If there’s one thing to remember, it’s this:

Context and clarity are king

The more clearly you explain your situation and what you want, the more useful AI becomes — especially for busy Australian small business owners juggling finance, compliance and growth.

Used well, AI doesn’t replace expertise.
It gives you back time — and that’s something every SME can use.

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

Recently, I read an article in Accountants Daily by journalist Emma Partis that genuinely stopped me in my tracks. Not because it was sensational, but because it highlighted a risk that is quietly accelerating while many business owners believe they are more protected than they actually are.

The article, “‘Stop, check, reject’: CommBank urges small business to avoid deepfake scams” (published 15 January 2026), explored new research from Commonwealth Bank into the growing use of AI-powered deepfakes in business scams. After reading it, I felt a strong responsibility to share the key messages with our clients – not to alarm you, but to ensure you are informed, vigilant, and better protected.

At Indigo Financial, our role goes beyond numbers. It’s about helping you safeguard the business you’ve worked so hard to build.

The confidence gap that scammers are exploiting

One of the most concerning findings from the CommBank research was this: small business owners are overconfident in their ability to detect deepfake scams.

On average, business owners surveyed believed they could recognise a deepfake scam – yet when tested, their accuracy was only 42 per cent.

In simple terms, many people think they would spot a scam, but more than half the time, they wouldn’t.

Only around four in ten small business owners were familiar with deepfake scams at all. At the same time, scammers are now using artificial intelligence to convincingly imitate:

• suppliers
• senior executives
• government officials
• even trusted personal contacts

This isn’t theoretical. It’s happening now, and it’s happening at scale.

How AI is changing the nature of fraud

As highlighted in the article, AI has dramatically increased both the sophistication and believability of scams.

According to David Coote, CommBank’s Queensland general manager of small business banking, businesses are now encountering:

• deepfake invoices
• highly realistic fake emails
• voice clones of senior executives
• payment change requests that appear completely legitimate

These scams are particularly dangerous because they target trust and urgency – two things that are part of everyday business operations.

Jon Soldan, CEO of payment fraud prevention firm Eftsure, reinforced this point in commentary referenced by Accountants Daily, noting that vendor and executive impersonation are among the most common tactics used to extract fraudulent payments, especially from accounts payable teams.

Email, as he pointed out, remains a major weak point. It’s widely used, convenient – and inherently insecure.

Why “busy” businesses are most at risk

One line from the article really stood out to me: even the most vigilant business owners can be caught off guard.

In our experience, this is particularly true for growing businesses. When things are moving fast, invoices are flowing, and teams are stretched, it becomes easier for a well-crafted scam to slip through.

The research found that while 41 per cent of small businesses were familiar with deepfake scams, only 55 per cent had verified supplier payment details in the past six months.

That gap between awareness and action is exactly where scammers operate.

‘Stop, check, reject’ – and go one step further

CommBank’s advice to Stop, Check and Reject is a strong foundation:

• Stop if something looks different or feels unusual
• Check payment changes using a verified phone number (not the one in the email)
• Reject anything that doesn’t feel right

From an Indigo perspective, I’d encourage you to go one step further and treat this as a governance issue, not just an IT issue.

That means:

• having clear internal payment verification processes
• separating duties where possible
• training staff to question urgency and authority
• documenting how supplier changes are approved
• reviewing controls regularly, not “when something goes wrong”

Awareness is one of your strongest defences

As David Coote rightly said in the article, “The most important thing we can do is talk openly about these risks, because awareness is one of our strongest defences.”

That’s exactly why I’m sharing this with you.

AI is not inherently bad. We use it ourselves. But like any powerful tool, it can be misused – and right now, criminals are using it faster than many businesses are adapting.

A final word from us

At Indigo Financial, we are increasingly having conversations with clients about cyber risk, fraud prevention, and financial controls as part of broader business resilience.

If you’re unsure whether your current processes would stand up to a sophisticated impersonation attempt, that’s not a failure – it’s an opportunity to strengthen them.

If this article has raised questions for you, or you’d like help reviewing your payment controls or risk exposure, please reach out to your Indigo adviser. These conversations are far easier to have before a problem occurs.

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.

Source acknowledgement
This article draws on reporting by Emma Partis, journalist at Accountants Daily and Accounting Times, from the article “‘Stop, check, reject’: CommBank urges small business to avoid deepfake scams”, published 15 January 2026. Emma Partis specialises in accounting, business, and financial services reporting.

Division 296 tax (better targeted superannuation concessions): what it is, what changed, and what it could mean for you

Australia’s superannuation system is designed to fund retirement, not to operate as a perpetual low-tax wealth shelter. In February 2023, the Federal Government announced a new measure—commonly called the Division 296 tax—to reduce tax concessions for individuals with very large super balances. Since then, the proposal has been through extensive industry feedback, a lapsed first bill, and a major design reset in October 2025.

This update matters if you (or your clients) have, or are on track to have, multi-million-dollar total superannuation balances (TSB), particularly in SMSFs holding lumpy or illiquid assets such as property, private equity, farms, or business real property.

What Division 296 was originally going to do

The original 2023 proposal worked like this:

• If your TSB exceeded $3 million at 30 June, some of your super “earnings” above that threshold would be taxed at an additional 15%, on top of the usual concessional tax on super earnings.
• Earnings were to be calculated using a movement-in-balance formula that effectively included unrealised gains (paper increases in asset values).
• The $3 million threshold was not indexed, meaning more people would be captured over time through inflation.

Government estimates at the time suggested roughly 80,000 people would be affected at commencement.

Concerns raised during consultation focused mainly on the inclusion of unrealised gains (especially for illiquid SMSF assets), and the absence of indexation. Those concerns drove the 2025 redesign.

October 2025 redesign: what’s changed

On 13 October 2025, Treasury announced a revised approach under the broader Better targeted superannuation concessions (BTSC) package.

The key changes are:

1. Unrealised gains removed
   The revised policy moves to a realised-earnings approach that aligns more closely with standard tax concepts (interest, dividends, and realised capital gains), rather than taxing year-to-year paper revaluations.
2. A second threshold introduced at $10 million
   Treasury proposes a tiered system:
   • balances $3m–$10m are taxed more heavily on earnings, and
   • balances above $10m face a higher rate again.
     Public materials indicate the intended result is an effective 30% tax rate on earnings in the $3m–$10m band and 40% above $10m, compared with the standard 15% tax on super earnings.
3. Both thresholds to be indexed
   The $3m and $10m thresholds will be indexed to inflation, helping prevent bracket-creep from pulling in progressively smaller balances over time.
4. Start date moved to 1 July 2026 (subject to law)
   Treasury and the ATO now state commencement from 1 July 2026, assuming new legislation is introduced and passed.

The 2023 bills are no longer proceeding, so a fresh bill is required to enact the redesigned measure.

How the revised tax is expected to work (in plain English)

Final drafting is still pending, but Treasury and ATO administration work point to the following structure:

• Each year, your TSB at 30 June will be tested.
• If it’s above the indexed thresholds, an additional tax applies to earnings attributable to the excess portion.
• Earnings are expected to be realised earnings, not unrealised movements in asset values.
• The ATO is building new reporting, assessment, and election processes (including for SMSFs and defined benefit interests).

Because legislation isn’t final, some technical areas (for example, defined benefits, insurance proceeds, and certain reserve treatments) may still vary in the final form. Treasury has signalled further consultation.

What this could mean for high-balance members

Liquidity risk is reduced, but not eliminated

Removing unrealised gains is a meaningful improvement for SMSFs with illiquid assets. Under the original design, members could have faced a tax bill without any cash coming in to pay it.

However, realised earnings still require planning. If a fund sells a large asset and realises a significant gain, the extra tax could be triggered in that year.

Indexation makes the policy more stable over time

Indexation keeps the measure targeted at genuinely high balances, rather than gradually pulling in smaller balances through inflation.

The $10m tier creates a new planning “step”

The second tier indicates stronger focus on very large balances. Some families may consider whether super remains the most efficient place for capital once balances approach the higher band, depending on goals, risk profile, and estate outcomes.

Contribution and pension strategies should be re-tested

Once final rules are known, high-wealth clients may need to revisit:

• contribution levels and timing,
• asset-sale timing inside super,
• pension-start sequencing, and
• withdrawal/recontribution and estate strategies.

At this stage, it’s sensible to model scenarios rather than restructure immediately, given the measure is not yet law.

Expect greater ATO reporting focus

ATO co-design work indicates active development of:

• annual balance data matching,
• SMSF annual return alignment, and
• a dedicated Division 296/BTSC assessment framework.

Practically, high-balance members should expect more formal notices, valuation scrutiny for unlisted assets, and tighter reporting expectations.

Where things stand now

As at 27 November 2025:

• The revised settings are policy, not legislation.
• The original 2023 bills have lapsed and are marked not proceeding.
• Treasury and the ATO are co-designing administration and systems for rapid implementation after Royal Assent.
• The Government intends a start from 1 July 2026, dependent on a new bill passing Parliament.

For now, the right approach is to stay informed, model exposures, and avoid premature changes until the final law is settled.

Leaning on official ATO, Treasury and Federal Government sources, this article provides general information only and does not consider your objectives, financial situation, or needs. Before acting, consider whether it is appropriate to your circumstances and seek personal advice.

How Indigo Financial can help

If your total superannuation balance is near or above the $3m indexed threshold, Indigo can help you:

• model your likely exposure under the realised-earnings method,
• plan SMSF liquidity around asset sales,
• review valuation and reporting strength for unlisted/related-party assets, and
• align super, non-super, and estate structures for the post-2026 environment.

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

At Indigo Financial, we go beyond bookkeeping and compliance — we help you build a business that thrives.

Our new Virtual CFO service gives you access to strategic financial expertise without the cost of hiring in-house. From cash flow forecasting and budgeting to actionable financial insights and growth planning, we’ll help you make confident, data-driven decisions that move your business forward. Think of us as your financial growth partner — proactive, invested, and focused on your success.

To read about our NEW Virtual CFO service, download our flyer by clicking HERE.

If you need MORE than a bookkeeper, we can be your financial growth partner.

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

Cybersecurity is no longer just an IT concern — it’s a critical business strategy. Every business holds sensitive information that, if compromised, can cause significant harm to both the organisation and its customers.

The greatest cybersecurity risks often come from external threats exploiting internal weaknesses, such as phishing links, malware downloads, or fraudulent payment requests.

Professional firms and financial service providers are especially attractive targets due to the high-value data they hold. In fact, outside government organisations, the financial services sector was the most targeted industry in Australia in FY2024/25, with cybercrime costs rising by up to 55% for small and medium businesses.

People: the biggest cyber risk

Where should your cybersecurity strategy start? With your people.

Human error is the biggest vulnerability for Australian businesses — responsible for more than 85% of all cybersecurity incidents. The top three incident types rely on staff actions or business decisions to gain access to systems.

That’s why regular staff training is essential. Training should focus on:

• Recognising phishing and social engineering attempts
• Identifying suspicious emails and attachments
• Maintaining strong password and multi-factor authentication practices

Building a culture of cyber awareness is your first line of defence.

Technology and updates: close the gaps before attackers do

Legacy systems pose another major risk. Outdated software, unsupported hardware, and neglected updates create easy entry points for attackers.

It may feel inconvenient to regularly restart devices or update systems, but doing so closes critical security vulnerabilities.

The Australian Signals Directorate’s Essential 8 Framework recommends:

• Applying all critical vendor patches within 48 hours of release
• Applying non-critical patches within two weeks
• Ensuring this applies across networking equipment, third-party software, and device operating systems

Recently, Microsoft announced the end of life for Windows 10, meaning devices running that system will no longer receive security updates — a major opportunity for malicious actors to exploit.

Visibility and monitoring: detect threats early

You can’t protect what you can’t see.

Effective cybersecurity depends on visibility — having the right monitoring, logging, and alert systems in place to detect unusual activity.

For example, in Australia, it takes an average of 288 days for financial services businesses to detect a data breach. That’s nearly 10 months of potential unauthorised access to customer data, contact lists, and internal systems.

Establish automated event logging and alerts so you’re notified when something suspicious occurs — such as a user logging in from two countries within hours, or unauthorised access to key files.

Early detection allows faster response, limiting the scope and cost of an incident.

The importance of a cyber incident response plan

A Cyber Incident Response Plan (CIRP) is not just a compliance document — it’s a roadmap for how your business will act, contain, and recover from a cyber event.

A well-structured CIRP should include:

• Defined incident management team roles
• Detection methods and escalation processes
• Incident categorisation and communication protocols
• Evidence collection and documentation procedures
• Clear containment and resolution plans

Regularly testing your CIRP ensures your business can act swiftly and effectively in a crisis — managing technical recovery, legal obligations, and stakeholder communications.

Protecting your business, clients, and reputation

In today’s digital economy, cybersecurity is essential to business continuity, financial stability, and customer trust.

Your cybersecurity and risk management strategy should incorporate:

• Staff training and awareness
• Up-to-date technology systems
• Data and information handling policies
• A tested cyber incident response plan

Treat cybersecurity as a core business strategy, not just an IT function. By doing so, your organisation can better protect its reputation, finances, and clients — and position itself to thrive in an increasingly connected world.

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

Imagine this: after years of hardship and illness, you’re forced to retire early on a Total and Permanent Disability (TPD) pension from your super fund. It’s your only income stream. Then come the medical bills — tens of thousands of dollars in treatments to manage the very conditions that ended your career.

You might assume those costs are tax deductible because your TPD pension exists due to your disability. Unfortunately, a recent tribunal case shows it’s not that simple.

In Wannberg v Commissioner of Taxation [2025] ARTA 1561, the Administrative Review Tribunal (ART) upheld the ATO’s decision to deny nearly $100,000 in medical deductions. The case is a stark reminder that Australia’s tax law draws a firm line between earning income and managing personal wellbeing.

The story behind the case

The taxpayer, Mr Wannberg, had left the workforce due to severe mental and physical health issues resulting from years of abuse. His TPD pension from his super fund was his only source of income.

In 2024, he applied for an ATO private ruling, asking whether about $98,000 in medical expenses — including psychotherapy, residential treatment, and dental work — could be claimed as tax deductions.

His argument was logical and heartfelt: these treatments were essential to manage his disabilities and sustain his eligibility for the TPD pension. He compared his case to the 2010 High Court decision in Anstis, where a student successfully claimed self-education deductions related to her Youth Allowance.

However, both the ATO and the tribunal disagreed.

Why the deductions failed

The decision turned on a key piece of legislation — section 8-1 of the Income Tax Assessment Act 1997. To be deductible, an expense must be incurred “in gaining or producing your assessable income” and must not be of a private or domestic nature.

The tribunal found no direct link (or “nexus”) between the medical treatments and the pension income. The pension was payable because of his disability — not as a result of any ongoing efforts to maintain it.

As the tribunal explained, the medical expenses helped him manage his condition, but they didn’t generate his pension income. The costs were considered private in nature, similar to most therapy, medical, or dental bills.

In other words: maintaining your health may be essential for your quality of life, but that doesn’t make related medical expenses tax-deductible.

Key lessons from the Wannberg case

This decision highlights several important takeaways for individuals receiving disability pensions, superannuation income streams, or similar payments:

• Understand the “nexus” test: An expense must directly help produce income. Medical costs for managing a condition generally don’t qualify.

• Recognise the private boundary: Even if a treatment relates to your capacity to work, it remains “private” unless it directly supports income production.

• Treatment vs assessment: Costs to obtain medical certificates or assessments required for work (e.g. maintaining a professional licence) may be deductible — but treatment costs usually aren’t.

• Plan for non-deductible expenses: If you rely on a TPD or disability pension, factor medical costs into your financial plan. Explore options such as insurance, offsets, or Medicare-related concessions.

• Seek professional advice early: Before spending large amounts, obtain an ATO private ruling or professional tax advice to confirm deductibility.

What this means for you

The Wannberg decision reinforces that the Australian tax system focuses on how income is earned, not how it’s spent. Medical and personal wellbeing costs, no matter how genuine, usually fall outside deductible boundaries.

If you receive income from a TPD pension or superannuation stream and are unsure whether an expense may be deductible, don’t guess — talk to Indigo Financial first.

We can help you plan ahead, stay compliant, and take advantage of the tax strategies that genuinely work in your favour.

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

If your super balance is comfortably below $3 million, you can probably relax — the proposed changes to super rules shouldn’t affect you (for now). But if your super is approaching or exceeding that level, the Treasurer’s latest announcement could change how you think about superannuation’s generous tax concessions.

The background: Better Targeted Superannuation Concessions

For some time, the Government has planned to reduce tax concessions for individuals with super balances above $3 million — commonly known as the Division 296 tax.

Under the Better Targeted Superannuation Concessions (BTSC) policy, the revised proposal keeps the intent of limiting tax breaks for very large balances but makes the system simpler, fairer, and more practical.

After industry criticism of the 2023 model, the Government has dropped the most problematic features while keeping the focus on higher-balance fairness.

What’s changing — and why it’s simpler

The original 2023 proposal applied an extra 15% tax on “earnings” from balances above $3 million, including unrealised gains — paper profits on assets such as property or shares that hadn’t been sold. This meant taxpayers could owe tax on value increases they hadn’t actually received in cash.

The reworked version removes unrealised gains entirely, taxing only realised earnings — income and capital gains from sold assets. This aligns the policy with ordinary tax principles and eliminates liquidity concerns for investors holding property or unlisted assets.

A fairer, tiered approach

The updated model introduces a two-tier system for high balances:

• Tier 1 ($3 m – $10 m): Extra 15% tax on earnings within this range (30% total).

• Tier 2 (over $10 m): Extra 25% tax on earnings above $10 m (40% total).

Both thresholds will be indexed annually to inflation — $150,000 steps for the $3 million tier and $500,000 steps for the $10 million tier — to help prevent bracket creep.

The new rules are set to start from 1 July 2026, with first assessments expected in 2027–28. Treasury estimates less than 0.5% of Australians will be affected at the $3 million level and fewer than 0.1% above $10 million.

What this means in practice

Example 1 – Megan
Megan has a $4.5 million super balance split between an SMSF and an APRA fund, earning $300,000 in realised income. The portion above $3 million (33.33%) will attract an extra 15% tax = $15,000 Division 296 tax.

Example 2 – Emma
Emma’s SMSF holds $12.9 million and earns $840,000. She pays 15% on the Tier 1 portion and an extra 10% on the Tier 2 portion — roughly $115,000 in additional tax.

The ATO will calculate each individual’s total super balance across all funds and determine the proportionate earnings subject to the new tax.

Why this is still good news (for most)

For most SMSF members, the changes are a relief. By removing unrealised gains, the Government has reduced valuation complexity and liquidity pressure — especially for those holding property or long-term investments.

However, individuals with balances above $10 million will face higher tax rates of up to 40%, which may prompt strategy reviews around asset allocation and withdrawals.

Remember, legislation has not yet been introduced — so the final details could still change before becoming law.

Low Income Superannuation Tax Offset (LISTO) increase

Alongside the Division 296 update, the Government plans to raise the Low Income Superannuation Tax Offset (LISTO) threshold from $37,000 to $45,000 from 1 July 2027.

The maximum LISTO payment will rise to $810, with Treasury estimating an average increase of $410 for affected workers.

What to do now

• Check your total super balance (TSB) now and estimate where it might be by 2026.

• Seek advice early — strategies such as managing liquidity, reviewing asset allocations, and timing asset sales could make a real difference.

• Stay informed — draft legislation is expected during 2026, and Indigo Financial will keep clients updated through our newsletters.

The revised Division 296 model represents a balanced approach: fewer administrative headaches for most Australians, but tighter limits on concessions for the ultra-wealthy.

If your balance is near or above $3 million, now is the time to plan ahead — not panic.

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

Superannuation is one of the largest assets for many Australians and offers significant tax advantages. However, strict rules apply to when it can be accessed.

While super is most commonly accessed at retirement, death, or disability, there are limited circumstances where earlier access may be possible.

When early access may be available

Early access to superannuation is generally available in two key situations:

• Financial hardship – where you are receiving a qualifying Centrelink or Department of Veterans’ Affairs (DVA) payment for a minimum period and cannot meet immediate living expenses.

• Compassionate grounds – where funds are needed for specific reasons such as preventing a mortgage foreclosure, meeting medical expenses for a life-threatening illness or injury, or alleviating severe chronic pain.

Accessing superannuation on compassionate grounds

Accessing super on compassionate grounds requires an application to the Australian Taxation Office (ATO), supported by relevant medical certificates or mortgage information.

If the ATO approves your request, it will instruct your superannuation fund to release an amount sufficient to cover the approved expense.

Typically, you will need to collect all supporting documents and lodge the application yourself through your myGov account.

ATO warning on misuse and third-party involvement

The ATO has raised concerns about medical and dental providers exploiting early super access rules, particularly where super is being used for cosmetic procedures rather than genuine medical needs.

You may have seen advertisements promoting “new smiles” funded by super — but these arrangements can leave people with lower retirement savings and potential legal risks.

The ATO has addressed these issues in its article, Separating fact from fiction on accessing your super early.

Penalties for unlawful access

Superannuation fund members and self-managed super fund (SMSF) trustees should be aware that severe penalties apply when super is accessed outside the legislated conditions of release.

You should never provide another party with access to your myGov login or allow a third party to submit applications on your behalf.

Penalties may also apply if false declarations or misleading information are provided in the process.

What you should do

If you are considering early access to your superannuation, make sure you fully understand the eligibility rules and risks.

At Indigo Financial, we can help you review your situation, confirm whether you meet the conditions for early release, and guide you through the correct process to avoid potential compliance issues.

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