What are the Key Tax Changes in 2020 and What You Need to Do...

 2020 Changes / Key Announcements 

Below is a summary of the changes to be aware of and announcements that will potentially affect you for the year ending 30th June 2020, or will come into effect as of 1st July 2020. 

1. Personal Income Tax Rates 

2019/2020 Financial Year 

Taxable Income                                                        Tax Rate %

$0 - $18,200                                 0%

$18,201 - $37,000                           19%

$37,001 - $90,000                           32.5%

$87,001 – $180,000                          37%

$180,001 plus                               45%

(plus 2% Medicare levy where applicable)

 

2020/2021 Financial Year 

Taxable Income                                                          Tax Rate %

$0 - $18,200                                 0%

$18,201 - $37,000                           19%

$37,001 - $90,000                           32.5%

$90,001 – $180,000                          37%

$180,001 plus                                                          45%

(plus 2% Medicare levy where applicable)

*It is proposed from 1st July 2022 that there will be an increase in the tax thresholds to reduce the tax paid by taxpayers. 

Note: The low income offset is $445. This offset will reduce by 1.5 cents for every $1 of taxable income over $37,000. It phases out when the taxable income is $66,667

2. Medicare Levy – Low Income Threshold 

For the 2019/2020 income year, Medicare Levy will be incurred when the incomes are above:


  • Individuals $27,997
  • Families $47,242


Plus $4,339 for each dependent child.

The Medicare levy will now stay the same at 2.0% from 1st July 2020. 

3. Motor Vehicle – Statutory Formula 

a. FBT for Business

The Statutory Formula method to calculate the taxable value of the private use (Fringe Benefit) of a vehicle is a flat 20% statutory rate of the cost of the car. It is no longer based on kms travelled per year. 

Important Note: Keeping a valid 3 month logbook is extremely important to be able to claim the actual cost method! 

b. Cents per KM for Individuals

The Motor Vehicle Statutory Formula claim for the cents per kilometre for individuals is 68 cents per kilometre for 30th June 2020. There is only one single rate for all engine sizes. Individuals will only be able to claim cents per kilometre method or logbook method. You can no longer claim 12% of original value method or one third of actual expenses method. It is proposed that the rate will increase to 72 cents per km from 1st July 2020.

4. Superannuation Contributions (concessional)

The maximum amount that taxpayers can contribute into superannuation as concessional contributions are: 

Year ending 30th June 2020 is $25,000

Year ending 30th June 2021 is $25,000 


Important Notes:



  • All individuals under the age of 75 can claim an income tax deduction for personal superannuation contributions. There will be no more 10% test to claim a tax deduction for personal contributions. Therefore, partially self-employed and partially employed (wages) and individuals whose employers do not offer salary sacrifice arrangements will benefit from proposed changes. Once you reach 65 years of age, you must satisfy the work test.
  • Individuals with a superannuation balance of less than $500,000 can make additional concessional contributions if they have not used all their cap in the previous 5 years, on a rolling basis on unused amounts accrued from 2018/2019 financial year. So the 30th June 2020 is the 1st year you can use any unused balance from2018/2019.
  • From 1st July 2019, an exemption from the work test for voluntary contributions to superannuation for people aged 65-74 with superannuation balances below $300,000 will be introduced.
  • The superannuation co-contribution is when the government contributes upto $500 into your superfund when you make a $1000 personal contribution into your superfund. You must be under 71 years old, have less than $1.6 million in your superfund and 10% of your income must be from employment or carrying on a business. The income threshold is $38,564 for 30th June 2020 to get the maximum of $500. It then phases out until your income reaches $53,564. 


5. Superannuation Contributions (non-concessional)

The non-concessional contribution cap (contributions for which you do not claim an income tax deduction) is: 

2019 – 2020 Income Year                  $100,000

2020 - 2021 Income Year                  $100,000 

People aged under 65 years may be able to make lump sum non-concessional contributions of up to three times their non-concessional cap over a 3 year period (lump sum $300,000) 

Important Notes:

  • Non-concessional contributions can only be made if your total superannuation balance is under 1.6million.
  • From 1st July 2017, the government has removed the tax exemption on earnings of assets supporting Transition to Retirement income streams, being income streams of individuals over preservation age but not retired. The earnings will be taxed at 15% and the change is proposed to apply irrespective of when the Transition to Retirement commenced.
  • From 1st July 2017, the government has introduced a $1.6million superannuation transfer balance cap on the total amount of accumulated superannuation an individual can transfer into pension phase. Under the proposed changes:
  • Subsequent earnings on this pension balance will not be restricted
  • If an individual accumulates amounts in excess of $1.6million they will be able to maintain this excess amount in accumulation phase account (where earnings will be taxed at the concessional rate of 15%)
  • The low income spouse superannuation tax offset income threshold for low income spouses is $37,000. The offset will phase out when income reaches $40,000. The low income spouse offset provides up to $540 per annum when $3,000 is contributed into your spouse’s superfund.
  • People aged 65 or over can make non-concessional contributions into superannuation of up to $300,000 from proceeds of selling their home. These non-concessional contributions will be in addition to the caps, age tests and the $1.6million balance test.


6. Home Office Deduction

The two methods for claiming a home office deduction for employees on their tax return are:



  1. Fixed Rate per hour method (for 30th June 2020 this is 52 cents per hour if you keep a four week diary)
  2. Actual Method (based on the proportion of additional expenses as a result from working from home)


Important: Due to Covid-19, the ATO will allow you to claim 80 cents per hour for working from home from 1st March 2020 to 30th June 2020. This however covers all expenses for working from home. 


7. Minors (Children under 18 years)


Families distributing money to children from Family Trust’s will need to be aware that they can only distribute $416 tax free for 30th June 2020 year.

8. Additional Tax on Superannuation Contributions – High Income Earners

In the 30th June 2020 year, Individuals with income greater than $250,000 will have their super contributions taxed at 30% and not 15% (this has been in place since 1st July 2012). 

Note:

  • Income is taxable income plus reportable fringe benefits, reportable superannuation contributions and any total net investment loss
  • Super contributions include super guarantee and salary sacrifice
  • The tax is payable by the individual client not the superfund however you can apply to have the money released from your superfund.

9. Superannuation Guarantee

The SG rate will stay at to 9.5 per cent. This will remain until 2021/2022 and then increases will be by 0.5 per cent each financial year until 12 per cent is reached. The proposed future increases each year are: 



Financial Year            Minimum Superannuation Guarantee Rate


2019/20                                  9.50%

2020/21                                  9.50%

2021/22                                  10.00%

2022/23                                  10.50%

2023/24                                  11.00%

2024/25                                  11.50%

2025/26                                  12.00%

 

For individuals to claim a deduction for personal contributions, you must have a valid written notice (deduction notice) advising you intend to claim a tax deduction and a written acknowledgement from the superfund. 


10. Changes To Family Trusts And Income Resolutions



Trustees must ensure that trust income is distributed by an income distribution resolution/minute by the 30th June 2020. These resolutions must show what trust income each beneficiary is entitled to, and the streaming of franked dividends and capital gains if applicable. 

Trusts with older deeds should have these reviewed to ensure the definition of income complies with current legal definitions in the tax act and that the deed allows for streaming of capital gains and franked dividends. The trust deed must also state all required beneficiaries.

11. Changes to Rental Properties



a. Since 1st July 2017, travel expenses will be disallowed for inspecting, maintaining or collecting rent for residential rental properties.

b. Since 9th May 2017, investors who purchase residential investment properties will only be able to claim depreciation on plant and equipment on new acquisitions of plant and equipment

  • Investors who purchase new plant and equipment can still claim depreciation after 9th May 2017
  • From 9th May 2017, investors cannot claim depreciation on any plant and equipment that was purchased with the property or was used previously for private use
  • Existing property investors, before 9th May 2017, can continue to claim depreciation
  • All investors can continue to claim the depreciation on the building costs from 9th May 2017

c. From 1st July 2019, the government will deny deductions for expenses associated with holding vacant residential or commercial land, including interest on finance for the acquisition of the land. Deductions for expenses associated with holding land will be available once a property has been constructed, it has received approval to be occupied and is available for rent. Denied deductions will not be able to be carried forward for use in later income, however, denied deductions can be included in the cost base of the land. 

12. Changes To Private Health Insurance Rebate And Medicare Levy Surcharge 


The private health insurance rebate is now income tested and the Medicare levy surcharge will be increased based on your income if there is no appropriate private hospital cover for the year. The following table summarises the changes to the private health insurance (PHI) rebate and the Medicare levy surcharge (if you do NOT have the required hospital cover)based on the income levels from the 1st April 2020 (the rebate % has decreased from last year):


(For families with more than one dependent child, the relevant threshold is increased by $1,500 for each child after the first)

13. Change To Depreciation for Small Businesses


Small businesses with aggregate annual turnover of less than $50 million can immediately deduct assets they start to use or install ready for use, provided the asset costs less than $30,000 (GST excl). This will apply for assets acquired and installed ready for use at 30 June 2020.

From the 12th March 2020 the instant asset write-off threshold has been increased to $150,000 (from $30,000) It is proposed that this concession is to extend until 31st December 2020. 



Note: this is for small business entities, not employees or rental properties 

14. Higher Education Loan Programme (“HELP”) & Trade Support Loan (TSL) – repayment thresholds 


For 2019/2020 the threshold and repayment rate to pay back debt is:


Repayment Income                                         Repayment Rate



Below $45,881                                               Nil

$45,881 – $52,973                                         1.00%

$52,974 - $56,151                                          2.00%

$56,152 - $59,521                                          2.50%

$59,522 - $63,092                                          3.00%

$63,093 - $66,877                                          3.50%

$66,878 - $70,890                                          4.00%

$70,891 - $75,144                                          4.50%

$75,145 - $79,652                                          5.00%

$79,653 - $84,432                                          5.50%

$84,433 - $89,498                                          6.00%

$89,499 - $94,868                                          6.50%

$94,869 - $100,560                                        7.00%

$100,561 - $106,593                                      7.50%

$106,594 - $112,989                                      8.00%

$112,990 - $119,769                                     8.50%

$119,770- $126,955                                       9.00%

$126,956 - $134,572                                      9.50%

$134,573 and above                                     10.00% 


Australians who have a HELP or TSL and are residing overseas, will be required from 1st July 2017 to make repayments against their debt based on their 2019/2020 worldwide income. Overseas debtors are required to update their contact details via MyGov within 7 days of leaving Australia.

15. Small Business Income Tax Offset (SBITO) 


Individuals will receive a 8% tax discount as a non-refundable tax offset on business income. This includes Sole Traders, Partners in Partnership and Trust Distributions where the entity carries on a business. The entity must be a small business entity with a turnover of under $5million. The tax discount will be capped at $1,000 per individual for each income year.



From 2020/2021 the tax offset increases to 13% and 16% in 2021/2022. However the cap is still $1000.

16. Reducing the Company Tax Rate 


For the 30th June 2020 financial year, the company tax rate is 30%. However companies that are a “base rate entity” must apply the 27.5% company tax rate.


A base rate entity is a company that both:


  • Has an aggregated turnover of less than $25 million 
  • Has 80% or less of their assessable income as passive income (passive income is distributions, rent, interest income, gains on securities, capital gains, and an amount from a partnership or trust to the extent it is traceable to an amount that is passive income) 



Note: the current maximum franking credit rate for distribution will be 27.5% for these Base Rate Companies in 2019/2020.

For 2020/2021 the company tax rate for base rate entities will be 26% and then 25% for 2021/2022 and later income years.


17. Zone Offset Change 


Since 1st July 2015, all FIFO (Fly In, Fly Out) and DIDO (Drive In, Drive Out) workers will not be able to claim the zone rebate for the zone they work in. The zone rebate entitlement will only relate to the zone of their normal place of residence. Taxpayers who actually reside in a zone can continue to claim the zone rebate.

18. Single Touch Payroll 


All Employers from 1st July 2019 must be setup for Single Touch Payroll (STP). With STP you report all employee’s payroll information such as wages, PAYG withholding and superannuation to the Tax Office each time you pay staff through your software.

A concession starting date of 1st July 2021 has been given to closely held employees in businesses were the closely held employees are family members.

19. Low and Middle Income Tax Offset 


If your income is less than $126,000, you will get some of the low and middle income offset. The maximum offset is $1,080. The rebate is based on your taxable income.

If your taxable income:



  • Does not exceed $37,000 the offset is $255
  • Exceeds $37,000 but is no more than $48,000, you will be entitled to $255 plus 7.5% of the excess above $37,000 to a maximum of $1,080
  • Exceeds $48,000 but is no more than $90,000 you will get the maximum offset of $1,080
  • Exceeds $90,000 but is no more than $126,000 you will be entitled to $1,080 less 3% for each $1 above $90,000. Therefore is phases out to $0 offset when your income is $126,000 or more

20. Reducing Claim Period for Family Assistance Lump Sum Claims 


Families that choose to wait until the end of the financial year to claim their FTB entitlement or child care benefit will have a grace period of one year. Therefore, all 2019 tax returns must be lodged by 30th June 2020 and all 2020 tax returns must be lodged by 30th June 2021. 

21. New COVID 19 measure to help business and individuals 


As part of the federal and state government response to COVID 19 the following help is available:

  • New home office set rate per hour for employees work deduction from 1st March 2020 of 80 cents per hour
  • JobKeeper payments for eligible businesses where their business turnover has decreased by 30% for the test period for the period 1st April 2020 to 27th September 2020. The amount is $1,500 per fortnight for eligible employees.


Important: Remember you must complete and lodge the monthly jobkeeper declaration within 7 days at the end of each month.


  • Cashflow Boost: Employers will receive a tax free cashflow boost payment comprised of two parts:


1. First Cashflow Boost payment is based on your PAYGW on March 2020 BAS for Quarterly lodges and the March 2020 BAS and April and May 2020 IAS’s for monthly lodgers. It is a minimum of $10,000 and a maximum of $50,000


2. The second boost payments for eligible employers are equal to the amount received in the first cashflow boost. Again a minimum of $10,000 and max of $50,000. It will be paid in two instalments for quarterly lodgers on the March and September 2020 BAS lodgements. For monthly lodgers it will be paid in 4 instalments on the March 2020 BAS, the July and August IAS and finally on the September 2020 BAS



  • Early access to superannuation for the unemployed, or since 1st January 2020 their work hours have been reduced by 20% or more, or sole traders where their turnover has been decreased by 20% or more. If you are eligible you can access $10,000 upto 30th June 2020 and $10,000 from 1st July to 24th September 2020.
  • The minimum pension payment for pension payments to members can be reduced by 50% for the 30th June 2020 and 30th June 2021 financial years. The minimum pension rate is based on your age so you need to check what your minimum rate is.
  • Increase in the immediate write-off threshold to $150,000 GST exclusive of a depreciating asset for small businesses from 12th March 2020
  • ATO lodgement and payment deferrals for 2019 tax returns
  • Ability to vary PAYGI down to $0
  • WA Payroll tax will be waived for businesses from March to June 2020
  • Small Businesses will receive a once-off $2500 credit on their current and future electricity bills
  • Wage subsidy of 50% of an apprentice or trainees wage
  • $10,000 business grant for eligible small businesses
  • Centrelink will pay an extra $550 per fortnight supplement to new and existing jobseeker, youth allowance and parenting payments. There will be no asset in determining entitlements for 6 months and the spouse income test has been increased from $48,000 to $79,762 before the entitlement reduces to Nil 

Reminder of Things to Consider Before 30th June 



  • Consider making the $1,000 personal contribution to qualify for the super co-contribution before the 30th June if your taxable income will be below the thresholds.
  • Consider making a spouse contribution into superannuation if you qualify for the rebate.
  • Ensure your 3 month logbooks have been kept on vehicles.
  • Make sure you have receipts for your tax deductions.
  • Review the need to sell capital assets to obtain any capital losses if you have made any capital gains during the year.
  • Obtain/prepare a summary of child support paid during the year if you are paying child support or child support you may have received, if you are receiving.
  • Businesses:
  • Make sure you have odometer readings for all work vehicles.
  • Super must be paid for staff by the 28th However to get the deduction in the 2019/2020 year it must be paid to the super clearing house before the 21st June (or received by Superfund if paid by transfer).
  • After the final pay has been processed using the Single Touch Payroll you need to do final reconciliation
  • Trust Resolutions/Minutes for all trusts must be prepared and signed before 30th June 2020.
  • Businesses in the various required industries must lodge their payment annual reports for payments made to contractors during the year by 28th August 2020.
  • Individuals:
  • Home office claim – ensure you have a 4 week diary recording hours worked from home for work. Must be kept to claim home office deduction.
  • Internet claim – ensure you have kept a 4 week diary recording internet usage (hours used for work/hours used personally) to support your work internet claim. This must be kept to claim home internet as a work deduction.
  • Motor Vehicle deduction – ensure you keep a 4 week diary of vehicle kilometres used for work to support the tax deduction.

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The Power of the Cash Offer.

March 13, 2026
At Ascent Property Co and Ascent Accountants, we know that in a competitive real estate market, how you structure your offer is just as important as the price you're willing to pay. While "cash is king" is an old adage, in property, it’s all about the certainty it provides. Here is everything you need to know about navigating cash offers to secure your next home or investment. How a "cash offer" actually works. There is a common misconception that a cash offer requires a literal suitcase of money. In reality, a cash sale simply describes an offer where the finance clause is removed from the contract. By signing a contract stating the finance clause is not applicable, you are making an unconditional offer. It doesn't necessarily mean the money is sitting in a transaction account today; it means you are waiving the right to walk away if a bank denies a loan. You are declaring you have guaranteed access to the funds required for settlement. The legal process of selling for cash is identical to a standard sale, minus the 21–28 day waiting period usually required for finance approval. Why sellers prioritise cash offers. Sellers are often motivated by more than just the highest number. Many will accept a lower purchase price if the offer is cash. Sellers love cash offers because they remove the "finance fallback". There’s no anxiety over whether a buyer’s bank valuation will come in short or if their loan will be rejected. Plus, without a finance clause, the sale process is hastened. Buyers can often move in sooner, which is a major draw for sellers looking for a quick transition. In a multi-offer situation, a cash unconditional offer acts as a point of difference, making your bid significantly stronger than those subject to finance. Preparing your cash offer. Because a cash offer removes your safety net, being organised is non-negotiable. Experienced purchasers—such as repeat buyers and savvy investors—often use this strategy because they have prepared their financial position in advance. Verify your liquidity . Before waiving the clause, ensure your funds (whether from a previous sale, equity, or private wealth) are ready for settlement. Assess the risks . The risks of a cash offer are the same as a financed offer after approval—the primary danger is defaulting on the contract. Build agent trust . Agents cannot legally demand to see your bank statements, so they rely on professional judgment to determine if an offer is genuine. Presenting yourself as a serious, organised buyer is key. Ready to make your move? Whether you need to review your tax structures for an investment or want to discuss the logistics of an unconditional offer, Ascent Property Co and Ascent Accountants are here to help succeed.

When Do You Need a Vehicle Logbook?

March 13, 2026
If you claim work-related car expenses using the logbook method, keeping an accurate and up-to-date logbook is essential. Many taxpayers assume a logbook automatically lasts five years but that’s not always the case. Changes in your work, travel patterns, or vehicle can mean it’s time to complete a new 12-week logbook sooner than expected. Here’s what you need to know. How long does a vehicle logbook last? Under guidance from the Australian Taxation Office (ATO), a valid logbook can generally be used for up to five years. During that period, the logbook establishes your work-related percentage of vehicle use, which is then applied to your total car expenses when calculating your deduction. However, that five-year period only applies if your work-related driving patterns remain substantially the same. If your circumstances change, you may need to complete a new 12-week logbook earlier. When you need to start a new logbook. A new logbook should be kept if your current one no longer accurately represents how you use your vehicle for work. Common situations where this happens include: Changing jobs . If you move to a different role or employer and your driving habits change. Moving house or workplace . A new home or work location can significantly alter your work travel patterns. Changes to work duties . For example, if your role now requires more (or less) travel than before. If these changes affect the way you use your car for work, your existing logbook may no longer be valid. New car, same logbook (maybe). If you purchase a new vehicle, you may still be able to rely on the logbook from your previous car, but there are conditions. You must make a written nomination before lodging your tax return stating: You are replacing your original vehicle with a new one. The date the new car replaces the old one. This allows you to apply the same business-use percentage to the new vehicle without completing another 12-week logbook. Records you need to keep. When using the logbook method, it’s not just the logbook itself that matters. The ATO requires you to keep records for all car expenses, including: Odometer readings at the start and end of the financial year. Purchase documents or lease agreements. Fuel or charging costs. Registration and insurance. Servicing, repairs and tyres. These records support your claim and ensure your deduction can be substantiated if required. One logbook per car. If you use more than one vehicle for work, each car must have its own logbook, and the logbook periods should cover the same timeframe. This helps ensure your work-use percentage is calculated correctly for each vehicle. A note on employer-provided vehicles. If your employer provides you with a car, or you salary-sacrifice a vehicle through a novated lease, you generally cannot claim car expenses using either the logbook or cents-per-kilometre method. This is because the vehicle is not considered to be owned or leased by you personally for tax purposes. Instead of claiming deductions personally, the tax treatment typically happens through Fringe Benefits Tax (FBT) and your salary package. Because these arrangements can vary significantly, it’s worth getting advice to make sure your vehicle setup is tax-effective and compliant. Need help with car expense claims? Keeping proper records and understanding when to update your logbook can make a significant difference at tax time. Claiming the right amount (with the documentation to support it) helps avoid problems later. If you’re unsure whether your current logbook is still valid, it may be worth reviewing your circumstances before lodging your next return. The team at Ascent Accountants can help you ensure your car expense claims are accurate, compliant, and working in your favour. Talk to us today.

Sole Trader, Company or Trust: What’s the Difference for Small Business Owners?

March 13, 2026
Choosing the right business structure is one of the first and most important decisions a small business owner will make. The structure you choose affects how your business is taxed, how much paperwork you deal with, your level of personal risk, and even how easily you can grow in the future. In Australia, the most commonly used business structures are: Sole traders. Partnerships. Companies. Unit trusts. Family trusts. Each structure works differently and has its own advantages and responsibilities. Understanding the differences can help you choose the structure that best suits your business goals. 1. Sole trader A sole trader is the simplest and most common structure for small businesses. As a sole trader, you operate and control the business yourself, even if you employ staff. The business and the owner are legally the same entity. This means the business income is treated as your personal income for tax purposes. Simple and inexpensive to set up. Minimal legal and tax formalities. Full control over decision-making. You keep all profits after tax. Straightforward reporting through your personal tax return. Things to consider. You are personally responsible for all business debts. Personal assets (such as your home or vehicle) may be at risk if the business cannot pay its debts. Access to finance can be more limited. Tax is paid at your personal marginal tax rate, which may become higher as profits grow. There are fewer tax planning opportunities compared to other structures. Tax & reporting Sole traders report business income and expenses in their individual tax return and pay tax at individual tax rates. 2. Partnerships A partnership is when two or more people or entities operate a business together and share income, responsibilities, and decision-making. Partners run the business together and share profits or losses according to the partnership agreement. The partnership itself does not pay tax, but it must lodge an annual partnership tax return. Relatively simple and inexpensive to establish. Combines the skills, resources, and capital of multiple people. Shared workload and responsibility. Flexible profit-sharing arrangements. Things to consider. Each partner is personally liable for the debts of the partnership Partners can be responsible for debts incurred by other partners Personal disagreements can impact the business Partners cannot transfer ownership without agreement from the others Income is taxed at each partner’s personal tax rate Tax & reporting. The partnership lodges a tax return showing the business income and each partner’s share. Each partner then reports their share in their personal tax return. 3. Companies A company is a separate legal entity that operates independently of its owners (shareholders). Companies are regulated by the Australian Securities and Investments Commission. The company earns income, pays expenses, and pays tax in its own name. Directors manage the company, while shareholders own it. Limited liability—shareholders are generally not personally responsible for company debts. A company can continue even if ownership changes. Greater access to finance and investment opportunities. A flat company tax rate (currently 25% for eligible small businesses). A more professional structure for larger operations. Things to consider. Higher setup and ongoing administrative costs. More complex compliance requirements. Directors must meet legal obligations. Money earned by the company belongs to the company, not the owners personally. Tax & reporting. Companies lodge an annual company tax return and pay tax on profits at the company tax rate. Owners can access company profits through wages, director fees, or dividends. 4. Trusts A trust is a structure where a trustee manages assets or a business for the benefit of beneficiaries. The trustee can be an individual or a company. Two common types used by small businesses are family (discretionary) trusts and unit trusts. The trustee runs the business and distributes income to beneficiaries. In discretionary trusts, the trustee decides how profits are distributed each year. Strong asset protection compared to sole traders and partnerships. Flexibility in distributing income to beneficiaries. Potential tax planning opportunities. Beneficiaries are generally not liable for trust debts. Things to consider. More complex to establish and manage. Higher setup and administration costs. The trust must operate according to the trust deed. Losses cannot be distributed to beneficiaries. Undistributed income may be taxed at very high rates. Tax & reporting. Most discretionary trusts do not pay tax themselves. Instead, income is distributed to beneficiaries, who pay tax at their own marginal tax rates. Risk, administration & growth considerations. When comparing structures, three major factors usually matter most for small business owners. Risk & asset protection. Sole traders and partnerships expose personal assets to business debts. Companies and trusts can provide greater separation between personal and business assets. Administration & compliance. Sole traders and partnerships have minimal reporting requirements. Companies and trusts require more documentation, annual returns, and ongoing compliance. Growth & tax planning. Companies and trusts often provide more flexibility for tax planning, investment, and expansion. They can also make it easier to bring in partners or investors. Need help deciding which structure is right for your business? Many businesses start as sole traders and later transition to a company or trust structure as they grow. However, there is no single “best” structure—it depends on your business goals, risk tolerance, expected profits, and future plans. Getting professional advice from Ascent Accountants early can help you choose the structure that saves you tax, protects your assets, and supports your long-term plans. Get in touch with the Ascent team today.

What Registrations Do I Actually Need When Starting a Business?

February 13, 2026
Starting a business is an exciting milestone, but the paperwork can quickly become overwhelming. At Ascent Accountants, we often see new business owners get caught in the "registration trap"—either registering for everything at once (and creating unnecessary admin) or missing critical deadlines that lead to penalties. Knowing which registrations are mandatory and which are optional depends on your business structure, turnover, and whether you have a team. Here is our high-level guide to the essential registrations you need to consider. 1. The Foundations ABN & TFN. Australian Business Number (ABN): Your ABN is your business’s unique 11-digit identifier. While not strictly compulsory for everyone , you almost certainly need one. Without an ABN, other businesses must withhold 47% of any payments they make to you. Tax File Number (TFN): Sole Traders: You use your personal TFN. Companies, Partnerships, and Trusts: You must apply for a separate business TFN. 2. Tax Registrations (ATO) Goods and Services Tax (GST): You must register for GST if your business has a GST turnover of $75,000 or more ($150,000 for non-profits). If you drive a taxi or provide ride-sourcing services (like Uber), you must register regardless of your turnover. Fuel Tax Credits: If your business uses fuel in heavy vehicles, machinery, or for other eligible activities, you can claim a credit for the excise or customs duty included in the price. Note: You must be registered for GST before you can register for Fuel Tax Credits. 3. Employer obligations when hiring a team. If you’re moving from a "solo-preneur" to an employer, your registration requirements change significantly: PAYG withholding: You must register for Pay As You Go (PAYG) withholding before you make your first payment to employees or certain contractors. This allows you to withhold tax from their wages and send it to the ATO. Superannuation: You don't "register" for super in the traditional sense, but you have a legal obligation to pay the Superannuation Guarantee (currently 12% on July 1, 2025) for eligible employees. We recommend setting up a Superannuation Clearing House to streamline these payments. On 1st July 2026, super will be required to be paid each payday. Workers’ compensation insurance: This is a mandatory insurance policy for almost all employers in Australia. It protects you and your employees in the event of a work-related injury. Each state has different rules; for example, in WA, you must have a policy if you employ anyone defined as a "worker." 4. Business Identity: ASIC If you want to trade under anything other than your own legal name (e.g., "John Smith" vs. "Smith’s Landscaping"), you must register the name with the Australian Securities and Investments Commission (ASIC). Our advice? Don’t over-register too early. We often see clients register for GST before they reach the $75k threshold. While this allows you to claim GST credits on your setup costs, it also means you must lodge regular Business Activity Statements (BAS). Speak with us before you hit "submit" on your registrations. We can help you determine the most tax-effective timing for your specific situation. Contact the team today.

Protecting Your Property Investment With Title Insurance.

February 13, 2026
When you find your dream home, the process often feels like a whirlwind of inspections, mortgage documents, and packing boxes. Most buyers are diligent about checking for termites or structural cracks, but there is one significant risk that a physical inspection can’t uncover: legal defects in the property’s title. When it comes to real estate, one of the most effective ways to safeguard your equity is through Title Insurance. What is title insurance? Unlike standard home and contents insurance—which covers future events like fires, storms, or theft—Title Insurance is a specialised policy that protects you against existing but unknown legal risks that occurred before you bought the property. It is a one-off premium paid at the time of settlement that provides cover for as long as you own the home. Despite its value, statistics suggest only about 50% of buyers currently opt-in. How it works: real-world scenarios. Title insurance steps in when "discrepancies" surface after you’ve already moved in. Here are the most common ways it protects you: Illegal building work & conversions: It’s common to find a garage that was converted into a bedroom or a deck built without council approval. If the local council discovers this later and demands you bring it up to code or demolish it, Title Insurance can cover the legal and construction costs. Boundary & encroachment issues: Imagine discovering your fence, garage, or driveway is actually sitting on your neighbour’s land or Crown land. The cost of surveys, new building plans, and reconstruction can be staggering. Title insurance handles these expenses. Unpaid rates or taxes: If the previous owner left behind land tax or council rate debts that weren't discovered during settlement, the policy can cover these outstanding costs. Planning & zoning violations: Protection against loss if you cannot live in the house because it doesn't comply with local zoning laws. Is it worth It? These problems often stay hidden for years. You might buy a house that looks perfect, only to find out it has issues when you apply for your own renovation permits. For a relatively low, one-time fee, Title Insurance offers "peace of mind for your purchase." However, it is not a substitute for due diligence. Before you sign: Consult your conveyancer: They can help you finalise the policy during the settlement process. Research the provider: Ensure the company has a strong history of payouts and longevity in the market. Review the coverage: Understand what is specific to your property type (e.g., strata vs. green title). The Ascent perspective. From a financial planning standpoint, an unexpected $20,000 council-ordered demolition or a boundary dispute can derail your investment strategy. Title insurance is a small price to pay to ensure your property remains a secure asset rather than a legal liability. Are you planning a property purchase? Talk to the team at Ascent Property Co and Ascent Accountants to ensure your tax and financial structures are as solid as the roof over your head.

Understanding the New Payday Superannuation Requirements (1 July 2026).

February 13, 2026
From 1 July 2026, the way employers make superannuation guarantee (SG) contributions will change. The Australian Taxation Office (ATO) has introduced Payday Super . This reform requires employers to pay super at the same time they pay employees’ wages. This is a significant update to the timing of super payments, and it’s important that your payroll processes and software are prepared well before the new rules commence. For full details, including eligibility and exceptions, see the ATO’s information on Payday Super. Key changes. Current requirements. Under the existing system, employers can make Super Guarantee payments to an employee’s fund up to 28 days after the end of the quarter. SG can be paid quarterly or more frequently (for example, monthly), and the current quarterly due dates are 28 October, 28 January, 28 April, 28 July. From 1 July 2026 Under the new Payday Super regime, Super Guarantee payments must be paid to an employee’s super fund at the same time as paying qualifying earnings (QE) — that is, on the employee’s payday . The payment must be received by the super fund within 7 business days of payday. There are limited exceptions to this 7-day deadline, such as for new employees. What you should do now. To ensure compliance with the new requirements, we recommend the following steps: 1. Review your payroll software and processes Confirm that your current systems can support on-payday super payments. If updates or changes are required, plan for implementation well in advance of July 2026. 2. Adjust internal procedures Update payroll calendars and workflows to align with the new payment timing, and ensure responsibilities and deadlines within your team are clear. 3. Seek advice if needed If you are unsure how the changes affect your business, or if your current setup requires modification, please contact us! We are here to help. 4. Review business cashflow. Ensure that the business cashflow will allow you to pay the superannuation on time, each payday. If not, you’ll need to put plans in place. We’re here to support you. These changes will affect all employers with staff and will require planning and preparation. If you have any questions or need assistance reviewing your systems and processes, please get in touch with the Ascent team.
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