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While the government is yet to formally respond to the report, released 17 March 2026, the report is clear in its diagnosis: Australia’s R&D system is underperforming, fragmented and not delivering the level of economic impact required for long-term growth.

For businesses accessing (or considering) the R&D Tax Incentive (RDTI), this is not just policy commentary. It signals a likely shift in how innovation is assessed, supported and rewarded in Australia. Read on for the key themes from the report’s 20 detailed recommendations.

A fundamental shift: from activity to impact

One of the most important insights in the report is a change in philosophy. Historically, the RDTI has operated as a broad-based incentive, supporting a wide range of companies undertaking eligible R&D activities.

This review challenges this model. It argues that Australia has focused too heavily on inputs like spend, activity and eligibility and not enough on outputs such as commercialisation, productivity and economic impact. In response, the panel recommends a greater focus on high-growth companies, emerging industries, and technologies with national strategic importance.

If implemented, this could gradually shift the RDTI from a broadly accessible incentive toward one that more strongly prioritises:

• R&D that leads to scalable outcomes
• Supporting companies with clear growth trajectories
• Linking innovation support more closely to economic contribution developing globally competitive technologies

Why this matters: The strength of an R&D claim may increasingly be judged not just on technical eligibility, but on the commercial context and trajectory of the business. If your R&D isn’t clearly driving growth, scaling your operations or leading to a commercial product, your future claims might face much tougher scrutiny.

The emerging ‘two-tier’ innovation system

A subtle but important theme in the report is the likely emergence of a two-tier system of innovation support:

1. Growth-focused companies (RDTI-led support)
   1. Startups, scaleups, and high-growth SMEs
   2. Businesses reinvesting in R&D
   3. Companies with global or export ambition

These are the businesses the report clearly wants to prioritise through the RDTI.

2. Broader SME innovation (grant-led support)
   1. Smaller or lower-growth businesses
   2. Companies experimenting but not scaling
   3. Early-stage or opportunistic innovation

The report suggests that these businesses may be better supported through targeted grants or collaboration programs, rather than through the tax system.

For high-growth SMEs, this could mean more targeted support and improved access; however, smaller innovators may face reduced eligibility and a shift toward more competitive, discretionary grant funding.

Startups move to the centre of policy

The report places significant emphasis on startups as the engine of future economic growth. The proposed premium RDTI stream for startups, including simplified access and improved cashflow support, reflects a clear intent to:

• Reduce friction in early-stage innovation
• Accelerate commercialisation pathways
• Strengthen Australia’s startup ecosystem

Why this matters: This aligns Australia more closely with global innovation policy trends, where governments are increasingly competing to attract and retain high-growth technology companies. In practice, this may mean less red tape and better cashflow support for early-stage startups when they need it most to survive and scale.

A more selective RDTI – and what that means in practice

Perhaps the most commercially relevant, and sensitive, implication is the potential tightening of eligibility over time. The report is explicit that ‘some low-growth SMEs may become ineligible under a more focused system’.

This does not necessarily mean immediate exclusion – but it does suggest a gradual shift toward:

• Higher expectations around innovation intensity
• Stronger focus on reinvestment in R&D
• Greater scrutiny of business growth and ambition

Why this matters: Businesses may need to move beyond simply demonstrating that activities meet the legislative definition of R&D – and instead clearly articulate:

• Why the R&D matters commercially
• How it contributes to growth or competitive advantage
• What the pathway to market or scale look like

A new governance model: the National Innovation Council

Beyond changes to incentives, the report recommends a significant shift in how Australia’s innovation system is governed.

At the centre of this is the proposed National Innovation Council, which would oversee research, development and innovation (RD&I) funding, set national priorities and coordinate efforts across government, industry and research institutions.

The intention is to move away from a fragmented system with multiple overlapping programs, toward a more coordinated, outcomes-driven approach aligned to a small number of national innovation priorities.

Why this matters: Over time, this could lead to:

• Greater alignment between RDTI claims and national priority sectors
• More coordinated funding pathways across tax incentives, grants and investment programs
• Increased focus on large-scale, high-impact initiatives

Increased focus on attracting global R&D investment

Another important theme is the desire to position Australia as a globally competitive destination for R&D investment. The report recommends stronger incentives for Multinational R&D activity, local collaboration and procurement and industry-linked research like PhDs in specific fields.

Why this matters: We may see a policy environment that increasingly favours:

• Companies embedding R&D in Australia
• Businesses contributing to local innovation ecosystems
• Organisations building long-term capability, not just undertaking isolated projects

The broader shift: innovation as economic policy

Stepping back, the most important takeaway is this: the R&D Tax Incentive is being repositioned – not just as a tax concession, but as a lever of national economic strategy.

The report links innovation directly to:

• Productivity growth
• Economic complexity
• Global competitiveness
• Long-term living standards

This reframing is significant, as it suggests that future policy settings may increasingly prioritise where R&D takes the economy, not just whether R&D is being undertaken.

What businesses can consider now

While no changes have been legislated and likely won’t be for a while yet, businesses investing in R&D should be proactively considering how they position their innovation activities.Key questions for consideration include:

The R&D Tax Incentive remains a critical part of Australia’s innovation framework. However, the review signals that over time, the system may become more targeted, more strategic and more outcomes-focused.

For businesses genuinely investing in innovation, this direction should ultimately be positive. But it does reinforce an important shift: innovation is no longer just about doing R&D, it is about what that R&D enables.

For more information on how this might affect your business, please contact your local William Buck R&D advisor.

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This divergence in policy creates a challenging environment for investors and property developers operating across borders. The tension between fiscal consolidation and the urgent need to unlock housing stock is driving reforms ranging from strict compliance crackdowns in New South Wales to structural overhauls of lease variation charges in the ACT. Meanwhile, the debate over replacing transaction-based stamp duties with broad-based land taxes continues to gain momentum in the west. As holding costs rise and feasibility tightens, understanding these state-specific nuances is critical for effective project planning. The following analysis outlines the key tax developments and reform agendas currently shaping the property sector across Victoria, New South Wales, the ACT, Western Australia and Tasmania.

Victoria

Victoria is currently grappling with a complex layering of property levies, including land tax, windfall gains tax and the recently introduced commercial and industrial property tax. This cumulative burden has quietly expanded the tax net, capturing businesses and investors that were likely never intended to be primary targets of such measures. The rising annual holding costs are now discouraging boutique to mid-size developers from pursuing new projects, creating a feasibility crunch that is particularly acute in regional areas where housing is needed most.

Industry sentiment suggests that a bipartisan approach to tax simplification is essential to restoring economic confidence and stimulating construction activity. To attract new investment and meet housing demands, there are strong calls for the Treasury to reconsider the form and role of the absentee owner surcharge for both stamp duty and land tax. A more proportionate and predictable regime would materially improve Victoria’s competitive position and provide the certainty developers need to undertake concurrent projects.

New South Wales

Revenue NSW has intensified its scrutiny of the primary production exemption, effectively making the holding of landbanks more expensive for developers who rely on agricultural concessions. While land tax is generally charged at 1.6% above the unimproved value threshold, exemptions exist for land where the dominant use is agriculture. However, the recent High Court decision in Godolphin Australia Pty Ltd v CCSR [2024] has strictly defined terms such as ‘dominant use’, empowering authorities to rigorously review claims involving activities ranging from horse racing to bee keeping.

This crackdown forces landholders to provide significant documentation to prove their agricultural activities are not merely incidental but the primary purpose of the land. For property developers attempting to mitigate holding costs through minimal farming operations, the bar has been raised significantly. To successfully claim the exemption moving forward, investors must ensure their operations are substantial enough to meet the strict legal definition of dominant use and are supported by robust evidence.

Australian Capital Territory

The ACT government has announced a reform of the lease variation charge (LVC) framework to better support housing delivery, affordability and precinct renewal. The anticipated changes include remissions for affordable and social housing, a new framework offering lower LVC rates for projects delivering public assets or infrastructure upgrades and time-limited incentives to accelerate medium-density housing in priority locations. These measures address a local economy where housing supply has been a vexed issue, exacerbated by significant tax costs and lengthy approval processing times.

This announcement represents a positive step toward a more transparent system that removes friction and increases the appetite for local and external capital investment. By allowing developers to better predict their liability and move projects through the planning process more efficiently, the reforms aim to support the delivery of more homes in town centres and local precincts. A simplified LVC with sensible targeting is expected to provide the certainty required for developers to progress projects that might otherwise stall.

Queensland

Queensland’s property market is facing unique challenges through significant demand pressure, a tight labour market and declining productivity.

The state’s unprecedented record pipeline of public infrastructure works of $127.5 billion, driven by transport, mining, heavy industries and the 2032 Olympic Games has absorbed significant workforce capacity and resulted in a tight labour market in the residential sector. This has impacted the residential construction sector through higher construction costs and extended build times, creating a risk profile for developers that is just as significant as the tax layering seen in southern states.

The Queensland Governments through the Residential Activation Fund have completed the first round of a $2 billion fund to accelerate the delivery of trunk and essential infrastructure aimed at getting the infrastructure in place so more homes can be built. They have also introduced the Land Activation Program which identifies, unlocks, then releases to market underutilised Government land for housing.

Western Australia

Stamp duty has returned to the policy spotlight in Western Australia as affordability pressures and tight supply force a re-evaluation of property taxation. The state government’s March 2025 changes delivered modest relief, including lifting first-home buyer exemption thresholds to $500,000 and expanding off-the-plan concessions to include townhouses and single-tier strata homes. While these measures are expected to benefit over 22,000 households and provide some uplift in pre-sales momentum for medium-density projects, analysts warn that incremental duty relief does not address the broader structural inefficiencies in the market.

Industry groups such as REIWA are intensifying calls for a switch to a broad-based, recurring land tax to replace stamp duty entirely. They argue that transaction taxes act as a drag on mobility and suppress market turnover, limiting the ability of developers to recycle redevelopment sites and dampening project financing certainty. A move toward a land-based tax would spread the burden more evenly, encouraging productive land use and creating a more flexible housing system capable of supporting long-term supply and sustainable economic growth.

Tasmania

Tasmania is actively positioning itself for legislative change designed to stimulate local economic activity and investment. The state is moving toward a framework that offers increased incentives specifically targeted at southern businesses to encourage expansion and capital allocation within the region. These reforms acknowledge the need to remain competitive against mainland jurisdictions by creating a more favourable environment for commercial growth.

Beyond business investment, the emerging policy direction focuses on attracting new homeowners into the state to bolster population growth and housing demand.

South Australia

South Australia is experiencing an unprecedented rise in home values driven by strong interstate investor demand and an acute housing shortage exacerbated by a lack of skilled labour. With Adelaide’s median house price jumping to $925,000 in the December 2025 quarter, government plans to increase land supply face substantial delivery risks due to these ongoing workforce constraints.

On the taxation front, land tax changes implemented by the previous government require urgent review after a mandatory assessment found them unclear and skewed toward commercial rather than residential benefits. Furthermore, while the opposition has proposed eliminating residential stamp duty as an election promise, there are widespread industry concerns regarding the actual impact such a measure would have on stimulating new housing supply.

Northern Territory

The Northern Territory is offering substantial incentives to stimulate its housing market, including a $50,000 grant for first-home buyers and a $30,000 grant for eligible existing homeowners who build or purchase a new home. Both of these key property initiatives have been extended until 30 September 2027 to provide ongoing support for prospective buyers and construction pipelines.

To further boost supply, the territory is providing reduced and accelerated deductions for capital works alongside specific land tax exemptions for projects that deliver at least 50 dwellings and include a 10 per cent affordable housing component, with these measures ending on 30 June 2026. Beyond these temporary incentives, the Northern Territory remains completely unique in not levying a general land tax, which serves as a major structural factor in its overall property taxation environment.

If you’d like help understanding the property tax changes in your state, please contact your local William Buck Advisor.

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Perceptions of the national economy may be coloured by conditions across the border. Many South Australian businesses operate in or trade with Victoria, and negative experiences around costs, regulation and barriers to doing business, influence their national outlook.

A couple of years ago, many businesses were in recruitment mode. Today the focus is firmly on retention, and keeping the right people, with the resilience, engagement and motivation of the team being crucial. The survey backs that up, with retention now rated as a more important HR focus than recruitment, especially while more than half of businesses struggle to find suitably qualified and experienced candidates.

Engagement matters in a tight labour market. The businesses that seem most confident are those investing time with their teams, explaining the plan, listening to concerns and making sure people can see how their role contributes to the bigger picture. “Skilled labour” now means more than tickets and qualifications; business owners talk as much about reliability, resilience and staying power. The open question is whether enough is being invested in upskilling, career paths and workplace culture to build that capability and commitment from within to retain the right team for the long-term.

In the face of staff shortages, artificial intelligence as an efficiency tool is part of the conversation. Many businesses use AI tools to assist with personal productivity such as to generate ideas, draft documents or speed up research. However for now, most owners still see AI as “useful support” rather than a fundamental shift in how their business works.

New compliance regimes and additional red tape are continually created to address small pockets of non-compliance, imposing an added burden on everyone. We must remember that compliance comes with a cost. At the same time, businesses are concerned about the scale of government spending, and the inflationary pressures this creates in terms of competition for labour and the impact on interest rates.  On that note, it is disappointing for businesses that both state and federal governments will not address the high level of wastage and conduct a logical process to simplify and reform business taxation.

As we near the end of the first quarter of 2026, there has been a clear shift in tone. Conversations are now more about making the most of the year ahead, focusing on not just developing strategic plans but putting them into action. The businesses that keep moving forward will be those that stick to a clear strategy, invest in and support their people and stay deliberate about technology and compliance. After all, it’s important to remember that people are the foundation of every successful business.

The post Costs bite and talent is tight: why retention is the new growth strategy appeared first on William Buck Australia.

The 3-step approach 

In determining whether Division 296 tax applies to you, and if so, how much, there are three broad steps to consider.

Click the drop-down arrow to explore more for each step.

Step 1: are you above the relevant thresholds?

One of the key changes to the original draft legislation is the introduction of two different thresholds – a ‘large’ threshold and a ‘very large’ threshold – each of which is subject to increasing tax rates. 

What are the thresholds? 

The Division 296 tax applies a two-tiered approach:  

Large superannuation balance threshold – a 15% tax will apply to earnings attributable to the proportion of an individual’s superannuation balance that exceeds the ‘large superannuation balance threshold’ currently set at $3 million.

Very large superannuation balance threshold – a further 10% tax will apply to earnings related to the proportion of the individual’s superannuation balance that exceeds the ‘very large superannuation balance threshold’ currently set at $10 million.

Both the large and very large superannuation balance thresholds will be indexed, ensuring they keep pace with inflation.  

If you’re below the $3 million threshold, you won’t have to pay any Division 296 tax at this point in time – however as we highlight below, as your superannuation balance continues to grow and accumulate, you may be exposed to the tax in the future.  

When are the thresholds applied? 

Determining whether Division 296 tax applies from 1 July 2026 is now more straightforward: if your total superannuation balance exceeds the relevant threshold at either the beginning or end of the financial year, you will be subject to the tax.   

There are however a couple of exceptions to highlight:   

• Transitional year approach – for the first year that Division 296 tax applies, your total superannuation balance is only assessed at 30 June 2027 (in other words, the opening balance will be disregarded). In subsequent years, the assessment would use the higher of the beginning or ending balance for each financial year.
• Year of an individual’s death – the total superannuation balance is deemed to be nil at the end of the financial year of an individual’s death. This means that the default balance used for Division 296 tax purposes will be 1 July in the year of passing, resulting in a potential tax liability managed by the deceased’s estate.

Specific exclusions apply to the total superannuation balance such as structured settlements, child pensions and special rules for defined benefit funds. Capital Gains Tax (CGT) adjustments are available in certain circumstances – such as those for larger superannuation funds, members who are in pension phase or where a self-managed superannuation fund (SMSF) makes a CGT uplift election, something we look at later in this article.  

Step 2: determine your earnings

Once you have concluded that you exceed the $3 million threshold, the next step is to calculate your ‘taxable superannuation earnings’. Broadly, this starts with each superannuation fund of which you are a member calculating your portion of Division 296 fund earnings (relevant superannuation earnings) and reporting this to the ATO – the aggregated amount collected by the ATO is known as your ‘total superannuation earnings’.   

Earnings calculation and reporting requirements  

Division 296 tax will apply to actual earnings and excludes unrealised capital gains. This is an important change from early announcements regarding Division 296. 

Division 296 fund earnings is calculated by each superannuation fund of which you are a member using the following formula:  

Each of these elements are defined – but in summary:  

• Relevant taxable income or loss – this starts with taxable income and may be subject to certain adjustments.As an example, when a superannuation account is in Retirement Phase, certain capital gains that would normally be disregarded are adjusted and added back in this calculation. If you are a member of an Self Managed Super Fund (SMSF), an important once-off choice may be made in the context of unrealised capital gains (as discussed further below).  

• Assessable contributions – this includes concessional contributions, such as superannuation guarantee payments.  

• Net exempt current pension income – this relates to income not ordinarily subject to tax in the superannuation fund as it supports Retirement Phase interests.  

• Non arm’s length component – this relates to non-arm’s length amounts received by a superannuation fund that are already taxed at the highest marginal tax rate.  

• Pooled superannuation trust component – only relevant where a superannuation fund invests in units of a pooled superannuation trust.  

The superannuation fund is expected to apply a ‘fair and reasonable’ approach to determine the proportion of Division 296 fund earnings that is attributable to your superannuation balance, which is then reported to the ATO. If you have multiple superannuation funds, these amounts will be aggregated by the ATO to determine your total superannuation earnings on which Division 296 tax is calculated. Actuarial certification may be required to determine this apportionment in particular circumstances, based on yet to be released regulations.   

Once-off CGT election for SMSFs  

A welcome transitional measure is the introduction of a once-off CGT election for a SMSF for Division 296 purposes only. Impacted SMSF members may request the SMSF trustee to make an irrevocable election to adjust the value (cost base) of all directly held assets in the SMSF to market value at 30 June 2026 for Division 296 purposes. The CGT election only affects Division 296 tax calculations for the individual (there will be no changes to the existing taxation of earnings in the superannuation fund – i.e. the cost base of the asset is only adjusted for Division 296 purposes, not for calculating tax on the regular earnings or gains of the fund).  

This cost base adjustment will impact future CGT calculations attributable to the individual’s total superannuation earnings, subject to Division 296 tax.   

Special transitional CGT adjustment provisions apply for other superannuation funds (non-SMSFs).  

Step 3: calculate the Division 296 Tax

The rate of Division 296 tax is applied on the proportion of earnings that relate to a member’s total superannuation balance above the respective large or very large superannuation thresholds.  

The table below illustrates how the Division 296 tax will apply based on the size of a member’s total superannuation balance. Importantly, earnings within the superannuation fund continue to be subject to ordinary tax rates of between nil and 15%, depending on personal circumstances (whether in Accumulation and/or Retirement Phase).

*Total Superannuation Balance is the higher of balance at the start or end of the financial year, except for the transitional year ending 30 June 2027 and year of death.  

These calculations are illustrated in the following examples adapted from Treasury’s explanatory material.  

Example 1
		Jordan has a Total Superannuation Balance of $4 million on 30 June 2027. As Jordan’s total superannuation balance exceeds the large superannuation balance threshold of $3 million in the first year (2026-27), Division 296 tax provisions will apply.
		In the 2026-27 financial year, Jordan had total superannuation earnings of $100,000.
		The proportion of his $4 million balance above the $3 million threshold is 25%. The proportion above $10 million is nil.
		Jordan’s Division 296 tax liability is therefore $3,750 (being 15% x 25% x $100,000).

 

Example 2
		Kelly has a Total Superannuation Balance of $12 million on 30 June 2027 and $11 million on 30 June 2028. Division 296 tax only utilises the higher of these two balances, being the $12 million.
		In the 2027-28 financial year, Kelly had total superannuation earnings of $500,000.
		The proportion of her balance above the $3 million threshold is 75% and the proportion of her balance above the $10 million threshold is 16.67%.
		Kelly’s Division 296 tax liability is therefore $64,585 (being [15% x 75% x $500,000] + [an extra 10% x 16.67% x $500,000]).

 

Who will pay the tax?  

The Division 296 tax can be paid either personally by the individual or released from superannuation where a valid election is made.   

The Division 296 tax will be due 84 days from the date the assessment is issued by the ATO.   

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While the Court found that former Star Entertainment MD & CEO Matthias Bekier and former Chief Legal & Risk Officer Paula Martin breached their duties under section 180 of the Corporations Act 2001 (Cth), the seven former non-executive directors were not found to have breached theirs.

Prior to this judgement, the former Chief Financial Officer, Harry Theodore, and its former Chief Casino Officer, Gregory Hawkins, admitted breaches of their duties as officers of Star Entertainment before the trial. Previously the Court imposed financial penalties against Mr Theodore and Mr Hawkins and disqualified them from managing a public company for 18 months and nine months respectively.

At first glance, some may read that as a narrow legal result: executives liable, non-executive directors not liable. But that is far too comfortable a reading.

The real significance of the judgment is what it says about where responsibility sits when serious risk information is known inside an organisation. ASIC’s case centred on Star’s handling of anti-money laundering (AML)and counter-terrorism financing (CTF) risk, criminal risk linked to the Suncity VIP gambling room known as Salon 95 within its Sydney operations and issues involving the use of China UnionPay cards by casino customers. ASIC’s summary of the decision makes clear that the Court found failures by senior executives in properly managing and escalating those matters.

That point should land with every executive team. If you are the person holding the critical information or the person expected to interpret, frame or elevate it, governance is not happening somewhere above you. You are part of it. And if serious legal, regulatory or reputational issues are not properly surfaced to the board, personal exposure can follow.

ASIC Chair Joe Longo distilled that neatly when he said the Court found that senior executives have a critical responsibility to identify serious risks, ensure they are properly managed and escalate them to the board.

But the decision is not exactly flattering to boards either.

Justice Lee said the evidence did not present ‘a portrait of directors actively pressing management with difficult questions’ about whether the business was being conducted ethically, lawfully and to the highest available standard. That is a striking line because it captures a governance problem many organisations recognise instantly: the board is technically informed, but not always meaningfully engaged.

The other line that will be quoted often, and should be, is this: ‘directors cannot rely upon an inability to cope with the volume of information they receive.’ That comment goes to the heart of a modern governance challenge.

Board packs are bigger than ever. Dashboards are denser. Appendices multiply. The result is often more reporting, but not necessarily more insight. The judgment is a reminder that information overload is not an excuse. Boards must control the information they receive, and directors must take reasonable steps to understand and engage with it.

Practical implications for business leaders

• For boards, this is a prompt to ask whether reporting really helps directors see the issues that matter most.
• For executives and control functions, it is a reminder that escalation must be timely, candid and usable, not buried in process or softened in tone.
• For organisations generally, it reinforces that governance is not just about frameworks and committee structures. It is about whether the right people get the right information, clearly enough and early enough, to act on it.

The decision made in the case against Start Entertainment does not say that every governance weakness will produce liability for every director. However, it does say something equally important: if senior leaders sit too close to serious risks and fail to act with sufficient care, diligence and transparency, the law may look to them first.

That is why board members and executives everywhere should take notice of the judgment in this case.

It highlights a governance reality that applies almost everywhere: risk becomes dangerous when it is normalised, diluted or left sitting in the wrong part of the organisation for too long.

How we can help

Understanding your obligations under the Corporations Act is essential for protecting both your business and your personal standing as a director or executive. If you would like to discuss how to strengthen your internal reporting frameworks or review your governance structures, please reach out to your local William Buck advisor.

The post A landmark Federal Court judgement raises the bar for board reporting and decision making appeared first on William Buck Australia.

For many business owners, finance and administration functions are the silent engine room, vital to smooth operations, but often resource-hungry and time-consuming. Artificial intelligence is no longer an emerging concept. It is now embedded in many of the systems SMEs already use, from accounting platforms to payroll software and document management tools. The opportunity is not simply automation, it is improving visibility, accuracy and decision-making without increasing headcount. The challenge remains knowing where to focus first.

The challenge is knowing where to start. Below are five practical steps you can take to identify and implement AI and automation opportunities in your business.

Map out your repetitive tasks

The best place to start is by examining the activities your team performs daily or weekly. Accounts payable, payroll processing, expense approvals and reconciliations are common culprits. Other time sinks we regularly see in SMEs include manually entering supplier invoices into accounting systems, chasing overdue debtors and re-keying employee expense claims from spreadsheets into payroll.

Some examples of where we are seeing AI used in SME’s include:

• AI-assisted month-end close checklists
• Automated variance commentary in management reports
• AI-generated board pack summaries
• Predictive cashflow alerts based on debtor behaviour

Today’s platforms can automatically extract and code invoices, generate intelligent payment reminders, flag unusual transactions and even produce draft commentary for management reports. Some tools can also predict cashflow pressure before it becomes visible in traditional reports.

Simply asking staff what tasks they find most repetitive or least valuable will quickly highlight where AI and automation can create an immediate impact.

Ensure your data foundations are sound

AI is only as effective as the data it relies on. Before implementing automation, review the quality and structure of your underlying financial and non-financial data. Inconsistent coding, duplicated suppliers or incomplete payroll records will limit the value of any AI tool.

A short data clean-up exercise can dramatically improve the accuracy of automated insights and forecasting outputs.

Plan early and get the right advisors

With a growing number of AI vendors and consultants entering the market, due diligence is essential. Ask how their solution integrates with your existing systems, how data is stored and protected and whether there are comparable SME case studies demonstrating measurable results.

This is new territory for everyone, so working with trusted advisors who bring both technical knowledge and practical business insight will save you from costly mistakes and false starts.

Prioritise by impact, not complexity

Not every AI or automation project will deliver the same value. Focus on the quick wins that deliver real productivity gains with minimal disruption. Examples include switching on automated invoice reminders in Xero, using AI-powered bank feeds for faster reconciliations or linking payroll directly to time-sheeting apps.

Focus on initiatives that deliver visible improvements within 30–60 days. This may include reducing debtor days, shortening month-end close, lowering processing errors or freeing up administrative hours that can be redirected to higher-value work.

Choose tools that grow with you

The marketplace is full of apps, plug-ins and ‘AI solutions,’ but more isn’t always better. Before buying new software, check what’s already available in your existing systems. Many cloud platforms now include AI-driven features, such as cashflow forecasting or expense recognition, that businesses simply haven’t activated.

Where you do need additional tools, select ones that integrate seamlessly with your current systems and can scale as your business grows. This avoids the cost and disruption of frequent system changes while ensuring you can take advantage of new AI capabilities as they mature.

Put people at the centre of the process

AI and automation will only deliver productivity gains if your people adopt them. Engage staff early, explain how the technology will reduce low-value tasks and appoint someone to act as a process champion to oversee rollout and training. By framing AI as an enabler, not a replacement, you’ll build support and ensure new systems actually get used.

Transparent communication is critical. Staff should understand that AI is intended to enhance roles, not eliminate them. In many SMEs, the goal is not headcount reduction but capacity creation, enabling growth without proportionate increases in overhead.

Where to next?

AI and automation are no longer optional considerations for growing SMEs. They are becoming core operational tools that support scalability, resilience and informed decision-making.

By mapping processes, strengthening data foundations, prioritising high-impact initiatives and engaging your people, you can generate immediate efficiencies while building a platform for long-term growth.

Three questions to ask before implementing AI

At William Buck, we help SMEs identify and implement AI and automation strategies that deliver practical results. If you’d like to explore where technology could create more time and capacity in your business, your local William Buck advisor can guide you through the first steps.

The post How SMEs can use AI to unlock efficiencies appeared first on William Buck Australia.

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Audits are up. Documentation demands are higher. And for some companies, millions of dollars in tax offsets are being held up for years, creating serious financial strain.

Since the 2020–21 Budget reforms and the COVID-19 Recovery Bill, the RDTI landscape has shifted dramatically, with new anti-avoidance rules, tighter transparency requirements and an increase in taxpayer alerts. More businesses are now turning to expert advisors to prepare robust claims, respond to audits and defend their innovation work under review by the Department of Industry, Science and Resources (DISR) or the Australian Taxation Office (ATO).

How to stay ahead

Documentation matters. Keep detailed records of your experiments, challenges, employee timesheets and project outcomes. Missing or incomplete evidence is one of the most common (and costly) reasons claims are rejected.

Detail counts in audits. Regulators want to see how you tackled the unknown – not just what you built. Clear, technical explanations of the uncertainties, hypotheses and experiments are essential to proving eligibility.

Expert guidance makes the difference. Software development claims in particular are under the microscope. Experienced advisors can help frame your activities correctly and align your documentation with the legislation.

Client story: Protecting a $4m R&D tax offset under audit

They thought their R&D claim was safe – until the audit letter arrived.

An Australian fintech company we worked with had self-prepared R&D claims for several years. But when DISR questioned $4 million in tax offsets received over several years, everything changed. The regulator challenged whether the outcomes of the R&D activities were truly “unknown” at the outset – a core test under RDTI legislation.

When DISR escalated the case and issued a notice to withdraw the activities and amend the tax return, $9 million of R&D expenditure was suddenly in jeopardy. Repaying $4 million in tax offsets would have been a major operational setback.

Our approach

From the outset, it was clear the problem wasn’t the R&D work itself – it was how it had been described.

Rather than withdrawing, we proposed a reframed claim supported by detailed evidence and a strong technical narrative. Working closely with the client’s software engineers and finance team, we:

• Held 11 technical workshops to capture and document the innovation process
• Compiled 175+ supporting documents, linking every piece of evidence to RDTI criteria
• Rebuilt the claim narrative to highlight genuine experimentation and technical unknowns
• Engaged collaboratively with DISR, removing non-qualifying activities and reinforcing our position with clarity and confidence

The outcome

Twelve months later, DISR confirmed the reframed R&D claim as eligible, resulting in:

• $4 million in tax offsets retained – protecting financial stability
• Stronger documentation processes – ensuring future compliance
• Renewed confidence – enabling the business to focus on innovation, not audit stress

The takeaway

The RDTI remains one of the most generous innovation programs in the world, but success now depends on rigorous documentation and strategic guidance.

If your R&D claim is under review, or if you simply want to strengthen your position for the future, our R&D specialists can help you protect your entitlements and navigate the process with confidence.

The post Turning R&D tax complexity into confidence appeared first on William Buck Australia.

There’s a lesser-known strategy that can help reduce taxes, increase flexibility and provide you with access to funds before retirement. It’s not a replacement for super, but a complementary strategy that works alongside it. Here’s how it works.

Rethinking how investment income is managed

If you have a family trust, you might be distributing dividend income (profits paid out by companies you invest in) to family members or beneficiaries.

When those dividends come with franking credits (which represent the tax already paid by the company – usually 30%) they help reduce your personal tax bill.

However, if any beneficiaries are in the top tax bracket (47%), they may be hit with a 17% ‘top-up tax’ because the franking credits attached to the dividend don’t fully offset the 47% marginal tax rate.

For high-income earners, this can mean a significant tax bill, especially if you’ve already exhausted your options for distributing income to lower-taxed beneficiaries.

A more efficient way to manage surplus income

Instead of distributing excess income from a family trust to individuals, this strategy involves directing it to a company that acts as a beneficiary of the trust.

Here’s what happens:

• At the end of the financial year, the trust distributes income (and transfer the cash) to the company.
• The company pays tax at the corporate rate—typically 25% for base rate entities or 30% for investment income.
• When the investment company later pays out this income as a dividend, it includes franking credits for the tax already paid.

This structure effectively eliminates the 17% top-up tax for high-income earners. It also allows the funds to be retained in the company and reinvested in a tax-efficient environment.

What to invest in

Once the funds have been distributed to the company it can use those funds to make investments.  As companies don’t receive the 50% capital gains tax discount, this strategy isn’t ideal for property or growth-focused investments. Instead, it works best with income-producing investments like fully franked Australian shares – think bank stocks or other dividend-paying companies.

These investments generate regular income and franking credits, which can be used to offset tax when dividends are paid out to shareholders. Income received as fully franked dividends can also be reinvested within the investment company without any further income tax payable and if this is regularly repeated over time, it has a compounding effect.

Keeping access to the funds

Unlike super, which locks away your savings until retirement, this approach offers greater flexibility.

It is important to note that once the funds are withdrawn from the company a dividend must be paid to account for this otherwise additional tax may apply. Avoidable common Div 7A errors medical professionals make – William Buck Australia

If the company is owned by a family trust you can keep the funds invested or distribute income to family members when needed -either during retirement or earlier.

Additional super contributions

This structure can also help you to top up your super in a tax-effective way.

If someone over 67 is employed as a director of the investment company, they can:

• Withdraw those funds tax-free between the ages of 67 and 75, creating another layer of flexibility and tax efficiency.

Why it matters

This strategy isn’t for everyone-but for high-income earners and business owners with a family trust and surplus income they want to invest efficiently it can be a powerful way to:

• Reduce or eliminate top-up tax
• Make full use of franking credits
• Reinvest income in a tax-effective environment
• Retain control over how and when funds are accessed
• Boost retirement savings through additional super contributions

As always, it’s important to seek tailored advice before implementing any structure. However, for those in the right position, this approach can deliver significant long-term tax and investment benefits.

Want to explore if this strategy could work for you?

Speak to your William Buck advisor or contact our Wealth Advisory team to discuss whether this structure suits your situation.

The post Structuring your investments beyond super appeared first on William Buck Australia.

While local transactions have grown, there’s also been a flurry of inbound activity for quality Australian businesses, driven by a weaker Australian dollar, a stable investing environment and a strong developed economy.

The data shows that foreign buyers accounted for 30% of transactions within Australia, the highest share in ten years. Foreign acquirers continue to pay premium multiples for Australian assets, particularly where there is earnings visibility, strong governance and reporting and exposure to long-term growth.

With interest from foreign firms making Australian businesses more lucrative for a sale, there’s still big opportunity for businesses to consider adopting their acquisitive growth strategy to gain a competitive edge.

When assessing a business acquisition target, it should be value accretive and increase the value of the business, whether directly, in the case of increased earnings, or indirectly, in the case of achieving economies of scale. The choice of vehicle and post-deal structure also matters — see Trusts 101 to learn more and discuss with your advisor.

However, when pursuing growth for growth’s sake, few businesses succeed. An effective business acquisition should be tied to the buyers’ strategic objectives. Some of the more common characteristics sought when selecting a potential acquisition target are discussed below.

Financial performance

Targets may be profitable or unprofitable, but in each case, the acquirer must be confident the acquisition will add value (including earnings) post-completion.

Some acquirers may purposefully seek targets that are in financial distress in order to obtain a bargain, with the belief they have the ability to turn around the target’s performance. It is essential, however, to gain an understanding of the underlying reasons contributing to the poor performance and the subsequent implications. These factors must then be carefully assessed to ensure they do not permanently prohibit the target’s ability to generate profits and growth in the future. However, the latest data shows companies are taking an alternate route to acquisition, preferring to invest in quality companies which are profitable.

Target size

Determining the size of the acquisition target will depend largely on the experience and resources of the acquiring entity. Our analysis found that mid-market transactions continued to dominate the volume of M&A deals, with the largest segment being deals with a value of up to $100m making up almost 75% of all deals in 2025).

The attractiveness of an acquisition should not solely depend on the size of the potential target. Ensuring the target or buyer reflects the objectives of the acquisition strategy will be of greater importance and subsequently, factors such as market share or synergies may be more significant than size.

Management and key staff

When reviewing a potential acquisition target, it is important to assess the capabilities of management and key staff and look at ways in which their skills can be used to fill gaps in the current business’ capabilities.

It is vital that the management and key staff required to ensure the future success of the business are willing to remain with the company subsequent to the acquisition (and can be locked in for a period of time post-acquisition). Conversely, it is important to look at functions or job roles that may overlap post-acquisition and have a redundancy strategy in place if required.

Cultural compatibilities

Differences in corporate culture is one of the major factors contributing to the failure of mergers and acquisitions. As such, cultural issues should be carefully considered prior to entering into any transaction.

Depending on the level of integration proposed, cultural compatibility may, or may not, be essential to the success of the transaction. Where there is a low level of integration required, the transaction is unlikely to cause any significant culture shock to employees and synergistic cultures may not be essential to the success of the transaction.

Where there is a high level of integration, culture shock can be a big problem that may eventually lead to key employees feeling unsatisfied and leaving the organisation.

Achievability of forecasts

Careful consideration must be paid to any forecasts (financial or otherwise) that may be relied upon in making decisions regarding the transaction, particularly where they are prepared by the target or on behalf of the target.

Financial forecasts may be based on unrealistic assumptions and can fail to take into account the distraction on a target during the acquisition process (which can stretch over a 12 month period).

Intellectual property

Mergers and acquisitions can be useful strategies for obtaining intellectual property, such as trade secrets and patents, complementary to existing assets.

The significant increase in transactions in the technology sector demonstrates the interest by buyers in harnessing these capabilities rather than building their own capabilities.

It is important that sufficient due diligence is carried out to ensure intellectual property is protected, the target holds full title to these assets, and they are not subject to any restrictions that may inhibit the intended benefits of the transaction.

Price and terms

Where the acquisition target is highly attractive, it can be easy for the acquirer to get carried away in the negotiation process. A transaction should not be completed at any cost to the acquirer. It is important to maintain an objective perspective and ensure that a fair price and suitable terms can be agreed upon with the potential target’s owners. Plan how you will begin financing a business acquisition, whether through model debt covenants, working capital, or integration costs. If cash flow pressure arises, practical options are outlined for managing and clearing your debts with the ATO.

Each acquisition will have its own individual characteristics and requirements. When selecting a potential acquisition target, it is essential to refer back to the unique objectives sought in the acquisition strategy and pay close attention to the acquisition profile established. Health-sector buyers considering starting in private practice may also value operational tips.

If you would like any further information on acquisitions, contact your local William Buck advisor.

The post How to maximise the value of an acquisition appeared first on William Buck Australia.

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The annual award highlights accounting firms that consistently deliver exceptional client experiences, with winners selected solely based on independently validated client feedback.

Greg Travers, Chair of the William Buck Group, said the recognition reflects the firm’s strong commitment to delivering high‑quality advice and service across the mid‑market.

“We’re pleased to receive this recognition, which reflects the strength of the relationships we’ve built with our clients,” said Mr Travers.

“Their feedback reinforces the trust they place in our people and the work we do to support businesses, families and investors across Australia and New Zealand. While it’s encouraging to be acknowledged, our focus remains on continually improving the experience we deliver and helping our clients succeed.”

In the 2025 survey period, clients of Best of Accounting winners were 70% more likely to be satisfied with their service provider as compared with clients engaging other firms. William Buck achieved a Net Promoter Score of 71.3, more than 1.8 times the industry average of 39.

“Personalised service along with depth of expertise are the key differentiators our clients say they receive from our advisors”, said Mr Travers. “Specialising in the mid-market, we aim to provide the highest standard of technical advice while acting as genuine long term partners for our clients – the perfect mix of big-firm expertise and small-firm personal service.”

The Best of Accounting program provides objective benchmarks for service quality across the industry, helping clients identify firms that demonstrate a clear commitment to delivering exceptional client experiences.

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These appointments feature Ben Manera’s internal promotion to Partner, Business Advisory in Queensland and Lara Zhang’s promotion to Principal, Tax Services in New Zealand. They are joined by three strategic senior hires: Jannie Van Deventer, Partner, Business Advisory in New South Wales; Angus Mann, Principal, Wealth Advisory in New South Wales; and Todd Evans, Principal, Audit & Assurance in South Australia.

Greg Travers, Chair of the William Buck Group, said the appointments reflect the firm’s focus on enhancing its service delivery and specialist capability across the mid-market.

“We’re passionate about nurturing internal talent and attracting leading experts to strengthen our capabilities in key areas. Ben and Lara’s promotions from within our Queensland and New Zealand offices demonstrate our continued focus on internal career progression, while the additions of Jannie, Angus and Todd bring significant expertise and strategic depth to the William Buck Group,” said Mr Travers.

“Spanning multiple divisions and regions, these leadership additions further solidify William Buck’s position as a leading, full-service advisory firm for the middle market.”

The firm’s growth in these key markets is fuelled by a desire to continue to provide clients with access to top-tier expertise and deliver sophisticated, relationship-driven results. As one of Australia’s Top 10 accounting firms, William Buck recorded 14.7% growth, reinforcing the market confidence that underpins its expansion.

Greg noted that these leadership additions highlight a deliberate strategy of identifying and hiring leaders who offer both high-level technical proficiency and a strong alignment with the firm’s core values.

“Ben and Jannie’s extensive backgrounds in commercial advisory, combined with Ben’s 15 years of technical expertise and Jannie’s experience in navigating complex business growth, significantly bolster our Business Advisory capabilities. Likewise, Angus’ sophisticated investment approach for high-net-worth families, Lara’s proven track record in complex cross-border tax requirements, and Todd’s audit experience across the public and private sectors ensure we remain at the forefront of meeting our clients’ evolving needs across Australia and New Zealand,” Mr Travers added.

William Buck continues its upward growth trajectory and focus on being the leading accounting and advisory firm to the middle market in Australia and New Zealand. The firm’s emphasis on providing exceptional development opportunities for its people is reflected in its recognition through numerous workplace awards.

We are excited to welcome our new leaders on this journey and look forward to their significant contributions.

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The general rule regarding international transactions is that Australia can assess its own residents on worldwide income. However, Australia’s ability to tax the income of non-residents will generally depend on the income having some physical connection with Australia. This is the starting point for Australian taxation on e-businesses.

So, for example:

• Capital gains are assessable to non-residents if the asset has the relevant connection with Australia (such as real estate).
• Withholding tax applies to dividends, royalties and interest flowing from Australia, and
• Other income is assessable if it has a source in Australia.

The tax position will therefore largely depend on questions of tax residency and source of income. These issues are discussed below, and for practical reasons, concentrate on e-commerce businesses structured as companies.

See also how the ATO focuses on private company tax issues for related compliance themes.

Residence of a company

A company is resident in Australia if:

• It is incorporated in Australia, or
• It carries on business in Australia and has either its central management and control in Australia or its voting power controlled by shareholders who are residents.

Central management and control of a business is part of carrying on a business. Accordingly, a business is carried on in the place of central management and control. It is not necessary that any of the trading or investment activities from which the business endeavours to profit occur in a place for it to be carrying on a business in that place.

The ATO considers that “central management and control” involves the high-level decision-making processes that set general operating and transactional policies. The ATO acknowledges the power to control and direct a company’s operations (such as by a majority shareholder) is not determinative of actual control and it is a question of “facts and degree”.

It is also important to note that the ATO considers that:

• A company may be “carrying on business” even if its main activity is the management of its investment assets, and
• The place of business of a large industrial concern is wherever its offices or production facilities are located.

Some guidance exists to assist with ascertaining residency in relation to foreign incorporated companies.

Source of trading or business income

The source of business income is typically where the business trades or renders services.

This is determined according to the practical realities of the situation. In general, the following rules apply:

• If the business consists substantially of the making of contracts, the place where the contracts are made may be the most significant factor in determining the source of the business income.
• If the business consists of first making contracts then carrying them out, so that both elements are significant factors, an apportionment must be made.
• If the making of the contract is an insignificant factor, and the only substantial element is its performance, the place of performance is the source.

Generally, where operations in one place have neither produced a merchantable commodity, nor given or added value to things marketed in another place, then that place is not a source of profit.

Other factors may include the place of payment and the place where the contract was negotiated.

In the case of personal services, the place of performance will generally be decisive. However, if there is a large creative element to the services, it may be that the customer is more concerned with obtaining the benefit of the person’s knowledge or expertise, and the place where that is provided is relatively unimportant. This may apply in the case of services which are delivered electronically. In such cases, the place where the contract was negotiated or the remuneration paid, may assume more importance.

These rules are subject to applicable transfer pricing rules and double tax agreements which operate between the relevant jurisdictions.

Permanent establishments – the theory

Under its Double Tax Agreements, Australia can generally tax business profits made by non-residents who carry on business through a “permanent establishment” in Australia. Those profits can only be taxed to the extent that they are attributable to the permanent establishment. Obviously, reciprocal arrangements apply to Australian residents doing business overseas with Double Tax Agreement countries.

Typically, a permanent establishment (PE) is defined to mean a fixed place of business through which the business of an enterprise is wholly or partly carried on. This would include, for example, a place of management, a branch, an office, a factory or a workshop.  A typical example of a permanent establishment is a subsidiary or foreign branch.

However, activities which are only preparatory and auxiliary do not constitute a permanent establishment. These include:

• The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise.
• The maintenance of a stock of goods or merchandise solely for the purpose of storage, display or delivery, or for processing by another enterprise.
• The maintenance of a fixed place of business solely for the purpose of purchasing merchandise, for collecting information for the enterprise or for the purpose of activities with a preparatory or auxiliary character (such as advertising or scientific research).

Permanent establishments and internet trading

The ATO considers that a non-resident does not have a permanent establishment in Australia solely as a result of selling trading stock through an internet website hosted by an Australian resident internet service provider.

It also makes a distinction between computer equipment and the data and software used or stored on that equipment. It considers that “the server on which a website is stored is a piece of equipment with a physical location and may constitute a ‘fixed place of business’ of an enterprise which has that server at its disposal.

However, the fact that an enterprise has a certain amount of space on the server of an internet service provider allocated for it to use to store software and data does not result in the server being at the disposal of the enterprise. The enterprise is not considered to have acquired a place of business by virtue of the hosting arrangements. It is also important to note that the mere fact that a taxpayer maintains a relatively small computer system overseas that is used to trade in securities would not mean that it had an overseas permanent establishment.

Whether a supply is made “through” a permanent establishment will depend on the facts. It appears that if software is sold and transmitted directly from an overseas supplier to an Australian customer, there will be sufficient connection if the sale was negotiated and promoted by an employee of the permanent establishment in Australia.

Conclusion

A relative jurisdiction’s tax obligations for e-commerce business largely depend on questions of tax residency and source. This article covered the basic principles of tax residency for companies and the important concept of permanent establishment to determine whether tax profits are taxable in a relevant jurisdiction and the removal of double or non-taxation via Double Tax Agreements.

The advent of the Internet and proliferation of e-commerce has led many to question the OECD’s (and ATO’s) use of permanent establishment as the defining nexus by which a country may tax the business profits of a non-resident entity. These arguments are based on the idea that while permanent establishment was an effective criterion in the pre-digital age when cross-border commerce required a physical presence to conduct business, this criterion is no longer viable in an age where technology allows buyers and sellers to conduct cross-border business without ever establishing a physical presence in a non-resident state

If an e-commerce business faces uncertainty about whether any arrangements could trigger “permanent establishment” issues, then it should engage qualified advisors and consider approaching the ATO and/or other jurisdictions’ tax regulatory bodies for guidance as early as possible.

Contact a William Buck advisor for more information.

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As industries across Australia embrace digital transformation, from smart infrastructure to advanced manufacturing, the pressure to innovate, scale and adapt is intensifying. Whether you’re launching a startup, expanding operations or preparing for succession, now is the time to critically assess your business structure.

In this article, we’ll explore five essential structural pillars every business should evaluate.

1.  Entity structure – What’s best?

The challenge with entity structures is that they really need to be customised to the business. They need to fall in line with the objectives of the business owner(s). This may involve choosing either a company or trust structure or combination of both. It may make sense to put company owned assets into a trust for protection and capital gains tax benefits. Sometimes it makes sense for a trust to own a company. There are a number of variables to be taken into account, but it is a good idea to get this right from the start.

If you have the wrong structure, it is possible to change into one that will optimise growth potential, but it will incur costs. The amount may depend on the stage of the business.

2.  Organisational structure – defining roles

In the startup phase, many business owners don’t differentiate between being the owner and manager but rather consider themselves as the business owner that manages the running of the business. When you define yourself with just one role, all management tasks sit underneath that role. That makes it difficult to create structure because you can’t easily divide the duties and create separate roles.

As your company grows, you can continue to be the business owner but employ someone to take over the management aspect of your business. Once you have segregated your responsibilities into two distinct sections, it’s easier to hand one over to someone else. You can handle more customers and projects and gain higher profits because you have someone assisting you. You can continue to scale the business up by defining the manager role and responsibilities.

Defining roles is often critical in a family business, particularly where responsibilities and tasks can cross over and accountability may become confused. The right organisational structure should provide clarity over who does what and allows teams to flourish with increasing levels of self-reliance. It also has a significant impact on culture for attracting and keeping skilled employees that play a major role in growth.

3.  Assets and funding structure – protect yourself and manage cash flow

As the old saying goes, ‘you have to spend money to make money.’ A growing business may need more space, staff and equipment. Often this is required before the business has actually grown so it can be stressful when increased costs and/or a big outlay is seen as a risk.

If you have to buy more land to build a factory, a trust could own the property and lease it to the company. If anything happens to the company, the property is still owned by the trust and can’t be touched to fund company debts. If you have a reasonable super fund, you may be able to purchase new premises through the personal super fund and lease it to the company.

Possibly the biggest challenge is how to manage cash flow when you are trying to grow. A growth plan with milestones can help build the business incrementally, aligning costs with stages of growth to make sure you don’t over capitalise.

If you think applying for grants or making a claim for R&D is in the too hard basket, you could be missing out on much needed funds that could get you through a growth phase. Many startups rely heavily on the R&D rebate to keep going. If you are developing new technology, designs and processes to improve products and services you may qualify and open a new revenue stream.

4.  Reporting structure – know what’s happening

Visibility on how the business is doing in real time is invaluable for any business, having access to the right reports for your business will help evaluate progress and allow you to respond accordingly.

Financial reports are mandatory for all businesses. Banks, investors and regulators use these reports to approve loans, lines of credits and to make sure you are following GAAP (Generally Accepted Accounting Principles).

With Management Reporting you will be able to dive deeper by focusing on segments of the business to analyse the drivers of your business. An example would be analysing how the marketing department is performing for a certain time period or how much profit one sales employee had in a certain month.

If you don’t receive management reporting each month you could be missing out on information that can help your company grow or prevent you from implementing costly programs that don’t provide an ROI.

5.   Exit structure – what does your next chapter look like?

With baby boomers looking at retiring in the next 5-10 years, over 50% of small businesses will be on the market. Finding a buyer can be a challenge particularly where value is the business owner’s knowledge, relationships and/or aging equipment. Buyers will be looking for a business that has growth potential so identifying and transferring value is a process that needs to be implemented before finding a buyer and may take a number of years before it’s ready to sell.

Focusing on factors that may increase the value of a business is the first step. A formal valuation will help determine options which may be different to what you envisaged such as a merger, competitor acquisition or an Initial Public Offering.

If you’d like help implementing these pillars, contact your local William Buck manufacturing specialist.

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With the release of fresh guidelines for the Vacant Residential Land Tax (VRLT) in Victoria and a tighter stance from the Australian Taxation Office (ATO) on holiday home deductions, property owners must now navigate a more complex compliance landscape.

Federal – holiday homes in the crosshairs

From 1 July 2026, the ATO is set to tighten its treatment of deductions associated with holiday homes, releasing its guidance in TR 2025/D1 and how it will administer the law in PCG 2025/D6.

Even though this is a draft position, the ATO is seeking to clarify the limit of deductions available to claim against holiday homes, particularly those in seasonal locations such as coastal areas or the alpine regions.

The guidance outlines the Australian Taxation Office’s (ATO) current stance regarding the requirements for making a property available for rent and its primary use, reflecting a shift from previous practical approaches. The ATO has identified several indicators that a property may be considered a holiday home rather than a rental property, including:

• Not making a property available for rent during peak season
• Setting rent unreasonably high
• Restricting guest access (i.e. for kids or pets) or
• Renting it mostly to related parties or friends at below-market rates

If a property is classified as a holiday home under these criteria, it will result in significant limitations on allowable deductions.

Victoria’s VRLT

New VRLT provisions take effect from 1 January 2026 and apply to undeveloped residential land in the following areas of Metropolitan Melbourne. Such properties will attract a 1% tax in addition to any existing land taxes payable from 1 January.

The 1% rate increases by a further 1% for each consecutive year it triggers VRLT (up until a cap of 3%)

What is Metropolitan Melbourne?

Source: Understanding vacant residential land tax | State Revenue Office

What is undeveloped residential land?

Undeveloped residential land is land that is capable of residential development, and:

• Was in one of the above council areas and
• As of 31 December, of the proceeding tax year, was undeveloped and
• As of 31 December, was undeveloped for a continuous period of 5 years of more.

There are exclusions for certain undeveloped land where the relevant zoning under the council’s planning scheme lists that land for non-residential use, or if it is being developed for a non-residential use. In these circumstances, the land is not suitable for residential development or utilisation as residential property.

If the land is sold by the landholder, the buyer refreshes the 5 year period, with the policy intent being to allow the new owner sufficient time to commence any construction activity.

Notably, the Commissioner of State Revenue has a discretion to not classify land as undeveloped (i.e., vacant) for a particular year if the Commissioner determines that both conditions are met:

• A residence is to be constructed on the land and
• There is an acceptable reason for the construction not having been commenced.

One of the requirements of the discretion is that the Treasurer must publish guidance on the relevant considerations that the Commissioner will look at in determining acceptable reasons for any delays in construction. We summarise these considerations for you below.

What is the new guidance?

Treasury guidance in Victorian Government Gazette No. S634 explains how the Commissioner assesses delays in developing vacant residential land. In simple terms, the key question is whether the delay was caused by something unexpected and outside the owner or developer’s control.

Examples include unforeseen cultural heritage, archaeological or environmental issues (such as the discovery of endangered flora or fauna), extreme weather that prevents construction from starting, or the lack of essential infrastructure or utility connections that the owner cannot control.

Lengthy planning or approval processes, regulatory disputes or appeals, the unexpected loss or unavailability of critical specialist personnel and other exceptional events such as pandemics, the death of key personnel or sudden regulatory change may also be considered.

By contrast, delays caused by normal commercial or market conditions are generally not accepted. This includes rising or uncertain construction costs, waiting for better market conditions, general labour shortages and common supply chain delays. Changes to designs or specifications made for commercial reasons, as well as difficulties obtaining finance or complying with loan covenants, are treated as risks that sit with the owner or developer and are therefore unlikely to support an exemption or relief from vacant residential land tax on undeveloped land.

What should you do?

For property developers

If you are currently evaluating potential developments or have developments experiencing delays that may result in land being undeveloped for 5 years as of December 2025, we recommend you seek advice to understand the implications for you and project cash flows.

Understanding your obligations and building a pathway from planning to execution will become more critical now than ever before.

For other landholders

For individuals and entities with rental properties that include holiday homes, we recommend seeking advice as to the impact of this draft guidance ahead of it being finalised.

As we head into 2026, we recommend clients review their holiday homes or rental properties that could fall foul of the draft guidance.

Get in touch with William Buck’s property team now to understand how the above could impact you.

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For someone with a large overall asset pool, the opportunities in retirement are considerable, but navigating tax rules and optimising retirement income streams requires careful planning.

Preferably, most of this nest egg should be held in superannuation, where possible, as this structure typically results in the lowest tax liability. However, it’s likely that other structures will also be utilised for the overall strategy.

Why do I need a retirement plan?

A retirement plan is essential to ensure you can transition into retirement with confidence. It helps define your income goals and the actions required to achieve them. A strong retirement plan should include:

• Identifying the amount that can be transferred into a tax-free pension account
• Strategically managing the funds that remain in the accumulation phase to minimise tax while maximising returns
• Establishing a sustainable drawdown strategy that meets your lifestyle needs
• Utilising investment structures outside of superannuation, such as Family Trusts or Companies, to hold assets and manage tax distribution to beneficiaries
• Planning for long-term financial security, including succession planning and wealth preservation

A retirement plan helps you address key lifestyle questions, such as when you want to retire or whether you’ll ease into part-time work, how you envision spending your time and the funds required for those activities. It also helps you determine what a comfortable retirement looks like based on your preferences and expected expenses. This may include engaging in leisure activities, owning a luxury car, enjoying domestic and international travel with business class flights, maintaining lifestyle costs with access to quality goods and services or even assisting children in purchasing their first home.

How much of your super can be converted to a tax-free pension?

If you retire at 60, you may be able to commence a pension from your superannuation balance. Should you remain employed, you can commence this pension after turning 65 or start a Transition to Retirement Pension in the interim.

The superannuation Transfer Balance Cap is the total amount that can be transferred into a tax-free pension account. Currently, the cap is set at $2 million (as of 1 July 2025).

For someone with a $4 million super balance:

• $2 million can go into a tax-free retirement phase pension account
• The remaining $2 million must stay in the accumulation phase, where earnings are taxed at 15%

This setup allows you to maximise your tax-free income stream while keeping the remaining funds invested in a concessionally tax environment.

Please note that there is pending Division 296 legislation that may result in a higher tax rate for those with more $3 million held in superannuation. For those impacted by this, there may be further strategies to consider, such as whether to maintain all of the balance over $3 million in superannuation or a trust or personally or give to children/charity. Managing this strategy will depend on your overall personal circumstances and personal tax position.

How much income can you draw from your pension?

Once in the pension phase, retirees must draw a minimum percentage of their account balance annually.

This percentage increases with age and is 4% of the account balance from age 60 and 5% from age 65.

For a $2 million pension account, at age 60, this equates to $80,000 of income per annum, tax-free.

While it is possible to draw a larger pension, we would generally recommend that further income requirements are taken from funds outside of super in the first instance, from the accumulation phase in the second instance and then from the pension phase.

You should carefully plan before starting a pension and weigh the pros and cons of commencing it. If you already pay the top tax rate outside of super and do not need to access your funds, you may benefit more by not starting a pension, as this will allow you to keep your funds within the superannuation environment without mandatory withdrawals. Make sure you seek appropriate advice and guidance to manage this tax effectively.

Can I make further contributions to my superannuation?

Provided your taxable income warrants it, you may be able to make a concessional contribution to super of up to $30,000 p.a. From age 67-74, you must meet a work test to contribute.

You can also make non-concessional contributions (which do not provide a tax deduction) of $120,000 p.a. up to the age of 74, even if you are not working, but only whilst your total super balance is below $2 million.

You might still be able to make a downsizer contribution even if you’re over 74 and your super balance exceeds $2 million. This contribution is linked to selling your residential home, allowing each person to contribute up to $300,000 into their super. To qualify, you must be over 55, have owned the property for at least 10 years, it must have been your primary residence at some point and you must make the contribution within 90 days of settlement.

What if I cannot contribute any more to superannuation?

In cases where you are unable to contribute further to superannuation, a family trust may be a good alternative for the taxation benefits it provides and to assist you in growing and managing wealth. Essentially, taxable earnings within the trust can be distributed to a number of beneficiaries within your family, in line with the provisions of the trust deed.

It may also be beneficial to establish a company as a beneficiary of the trust to take advantage of company tax rates at 30% compared with the highest marginal tax rate of 47%. Utilising this strategy should be carefully planned with an accountant, as when funds are withdrawn from the company, top-up tax will likely be payable by the individual depending on their tax rate at the time.

Investing within a trust may provide flexibility for taxation purposes as well as flexibility when considering wealth succession.

How can I manage succession of wealth to the next generation?

When retiring with a high net worth position, it’s likely you will have a sizeable estate.

It is therefore important to consider appropriate wealth succession with the correct estate planning documentation, superannuation beneficiary nominations and consideration of future trustees for various trusts.

Seeking legal and tax advice here is imperative to ensure your wealth is distributed in accordance with your wishes and in the most tax-effective way.

You should consider and navigate conversations with the next generation carefully. Help them understand how to manage wealth if you pass away. This education takes time, as responsibilities may eventually shift to them, so engaging in these discussions early can provide significant benefits.

If you have any questions about managing your wealth as you approach retirement, please contact a member of the William Buck Wealth Advisory team.

The post Strategic wealth planning to help you retire in style appeared first on William Buck Australia.

Since the beginning of the 2024 calendar year, the ATO has changed its’ COVID-era’ stance on debt recovery to a more active and direct approach with businesses of all sizes. This approach covers recovery actions, remission of interest and penalties (or lack thereof), and Director Penalty Notices. (For broader structuring context, see Trusts 101.)

If you have outstanding amounts due, it is essential to understand how the ATO deals with overdue debts, including its approach to debt and the payment plans available to manage your obligations effectively. A well-structured Australian Taxation Office payment plan can stabilise cash flow while you return to compliance.

As of December 2023, the ATO’s collectable debt amounted to approximately $52.4B, up almost $7B from June 2022. Small businesses accounted for approximately two-thirds of this debt, with 96% of it being for values below $100,000. The ATO currently has around 400,000 active payment plans, with approximately 300,000 belonging to small businesses.

The ATO’s approach to debt

1. Prevention: The ATO employs SMS reminders and engagement programs to prevent debt accumulation.
2. Early intervention: Self-service payment plans are offered as an initial intervention measure.
3. Firmer action: Awareness letters are sent to encourage prompt payment and resolution.
4. Stronger action: In cases of non-engagement, the ATO may resort to stronger measures, such as director penalty notices (DPNs), garnishee notices, winding-up applications and disclosing tax debts to credit bureaus.

Repayment options

If you do find yourself in a position where you have a debt owed to the ATO and you are unable to settle it all at once, the ATO has several types of repayment options available.

Self-service payment plan: For tax debts under $100,000, the ATO provides a self-service payment plan option. This online service has a standard 28-day processing time. To be eligible, individuals, sole traders, or businesses must not already have an active payment plan for the same debt. The proposed plan should cover a period of two years or less, with the first payment scheduled within seven calendar days of the request, or 14 days if using direct debit. The ATO considers compliance history and other financial information to assess the likelihood of compliance.

Proposing a payment plan: When proposing a payment plan, you should consider using the ATO Payment Plan Estimator. This tool helps estimate payment plan arrangements and is also used by ATO staff. Assessing the capacity to pay is crucial, and you can use the Business Viability Assessment Tool for this purpose. Tailoring the proposal based on compliance history, risk mitigation and the size and age of the debt is also recommended.

If strategic transactions are on your roadmap, ensure that debt covenants and cash flows are modelled – see ‘How to Maximise the value of an acquisition‘. It is also important to note that if you enter into a payment plan with the ATO, you must lodge and pay all future obligations, such as tax and BAS etc, on time. Failing to do so will cause the payment plan to automatically default, reverting the debt back to overdue.

Assessing the capacity to pay: To assess your capacity to pay, the ATO requires specific information depending on what type of taxpayer you are.

Individual taxpayers will need to provide income sources, including employment, interest, rent, royalties and dividends and provide an estimate of expenses.

Business taxpayers will need to provide, at a minimum, the business’s income and expenses over the last three months and other cash flow information, including the seasonal nature of the business and a reflection of ongoing activity statements. Clinicians moving into contracting should also review setup considerations in ‘Are you considering starting in private practice?’

Payment plan status

Payment plans fall into three categories:

1. Active: Payments are made on time.
2. Arrears: There is a small shortfall between the expected balance and the actual payment. The payment plan remains active, and the client is given an opportunity to get back on track.
3. Defaulted: Conditions are not met, and ongoing obligations become problematic. The ATO may consider a new payment plan.

Interest on Debts

For the December 2024 quarter, General Interest Charges (GIC) are calculated at 11.38% per annum. This is applied from the tax return’s due date, not the day you lodge it.

In December 2023, the Government announced that it would amend the tax law to deny a tax deduction for GIC amounts. This means that the actual cost of GIC will increase significantly for taxpayers. Assuming a taxpayer is on the highest marginal tax rate, this will, in effect, mean that a taxpayer will have to earn $1.88 in pre-taxed income in order to pay $1 of GIC, or $1,887 to pay $1,000 of GIC.

Other ATO Strategies

The ATO uses several other strategies to encourage taxpayers to repay their outstanding obligations:

1. Garnishee notices: If a taxpayer is not engaging appropriately with the Tax Office or is refusing to pay, the ATO can issue a garnishee notice on the taxpayer’s bank accounts. This notice compels the bank or financial institution to send funds from that account to the ATO to satisfy the debts.
2. Director Penalty Notices (DPN): DPNs can be issued to make business debts relating to GST, PAYG withholding and Superannuation Guarantee Charge (SGC) a personal liability of a Director of the business. This could mean that your house and other personal assets could be at risk of forfeiture to the ATO to satisfy these types of debts.

Like with any creditor, you need to proactively communicate with them if there are any issues with repayments. If the ATO doesn’t receive engagement or response, they may resort to firmer and stronger actions, including Director Penalty Notices, garnishee notices, winding-up applications and disclosing tax debts to credit bureaus. We have seen the ATO become more assertive in this area in recent times.

It’s worth noting that the ATO prioritises Superannuation Guarantee (SG) debts over other categories, regardless of their value. SG debts are the most likely ATO debts to result in DPNs, so extra caution should be taken regarding them.

If you currently owe the ATO money and aren’t sure what to do next, contact your local William Buck advisor to discuss how best to resolve and plan for the future. For fast, practical ATO debt help, our team can negotiate payment terms, review GIC exposure and reset lodgement compliance.

The post How to manage and clear your debts appeared first on William Buck Australia.

For medical and allied health professionals operating through companies, trusts or partnerships, this PCG further clarifies the ATO’s position on the treatment of personal services income. While we have frequently discussed the potential for the ATO to tighten its view on income retention and splitting, this guideline formalises those concerns. It specifically targets arrangements where a practitioner claims Personal Services Business (PSB) status but directs income in a way that the ATO considers tax avoidance.  If you’d like to know how Personal Services Income might affect your business, read our piece on Personal Services Income (PSI) – Does it apply to your structure?

The gap between PSB status and Part IVA

A common misunderstanding within the health sector is that satisfying the Personal Services Business tests (such as the results test or unrelated clients test) allows a practitioner’s income to be treated as business income.

PCG 2025/5 clarifies a critical distinction: qualifying as a PSB exempts you from the specific attribution rules under Division 86, but it does not protect you from Part IVA of the Income Tax Assessment Act 1936.

Part IVA is the general anti-avoidance provision. The ATO uses it where a scheme’s ‘dominant purpose’ is to obtain a tax benefit. The new guideline signals that even if you are a legitimate PSB, the ATO will intervene if your structure is used primarily to retain profits at a lower corporate tax rate or to divert income to associates/family members.

Assessing your risk profile

The guideline introduces a risk assessment framework, categorising arrangements into low and higher risk. For health practices, understanding where your current structure sits is essential. Importantly this is not a safe harbour regime.

Low-risk indicators

The ATO is less likely to apply compliance resources where:

• The net PSI is paid directly to the practitioner who performed the services (as salary or wages)
• The remuneration aligns with the commercial value of the services provided
• There is no artificial deferral of income within the entity

Higher-risk indicators

Arrangements face a higher likelihood of review if:

• Income is retained in the entity (company) without a clear commercial justification
• Income is diverted to associates (such as a spouse or family member) who are in lower tax brackets
• Payments are made to related parties for administrative support that exceed commercial market rates
• There is a significant disconnect between the income generated by the practitioner and the income distributed to them

The importance of commercial rationale

The ATO’s focus is on the ’dominant purpose’ of the arrangement. To remain compliant, individuals must demonstrate that their structure exists for commercial reasons, not solely for tax minimisation.

Documentation is your primary evidence. If your entity retains profits, for example, to fund future practice expansion, purchase medical equipment or manage cash flow fluctuations, this intent must be evidenced by actions.

We recommend a review of:

• Service agreements: Ensuring they clearly define the relationship between the practitioner and the entity.
• Invoices: Ensuring they reflect the reality of services rendered.
• governance documents: Including trustee resolutions and board minutes that explicitly state the commercial reasons for financial decisions.

Transitional arrangements

The ATO has established a transition period ending 30 June 2027.

This window allows practitioners to review their current structures and, if necessary, restructure their arrangements to align with low-risk indicators. The ATO has indicated that businesses proactively correcting their affairs during this period are unlikely to face Part IVA scrutiny for prior years. This favours voluntary compliance over audit activity.

Next steps

Tax planning for health professionals requires a balance between asset protection, commercial growth and strict compliance.

We advise all medical and health clients who have concerns around their current structures to:

1. Review current remuneration models to ensuring they align with the services performed.
2. Assess the practice structure against the new risk zones outlined in PCG 2025/5.
3. Ensure all documentation regarding profit retention or distribution is up to date and reflects commercial intent.

For further information on personal services income for health practitioners see this article

• Personal Services Income: the fact from the fiction – William Buck Australia
• Does your practice structure still serve you?
• Practical Compliance Guideline 2021/D2 – the allocation of professional firm profits – William Buck Australia

If you are unsure how these guidelines impact your structure, please contact your local William Buck health specialist.

The post Understanding the ATO’s Personal Services Income guidelines for medical professionals appeared first on William Buck Australia.

The good news: you may still be able to claim the R&D Tax Incentive – if you apply for an Advance Overseas Finding (AOF).

What is an Advance Overseas Finding?

Normally, the R&D Tax Incentive (RDTI) only covers activities carried out in Australia. However, an AOF allows eligible businesses to include certain overseas R&D costs when specific conditions are met.

An AOF is a binding decision issued by the Department of Industry, Science and Resources (DISR) confirming that nominated overseas activities are eligible for the RDTI. Importantly, you must apply before the end of the income year in which the overseas activities are (or will be) conducted – not after year-end like a standard R&D registration.

When are overseas activities eligible?

To qualify, overseas activities must meet four key criteria:

1. Eligible R&D activity – The work must be an eligible core or supporting R&D activity under the RDTI rules.
2. Connection to Australian R&D – The overseas activity must be directly connected to, and essential for, your Australian-based R&D activity.
3. Not possible in Australia – You must demonstrate that the activity cannot reasonably be conducted in Australia due to one of the following:
   • Requires facilities, expertise, or equipment unavailable in Australia.
   • Quarantine laws prevent it.
   • A specific population (of living things) is not available in Australia.
   • Certain geographical or geological features are not available in Australia.
4. Australian expenditure exceeds overseas spend – across the life of the project, more R&D spend must occur in Australia than overseas. A three-year project budget is typically required to demonstrate this.

Lessons from the T.D.S Biz case

The Federal Court decision in T.D.S Biz Pty Ltd v Commissioner of Taxation, underscored why timing and documentation matter.

TDS Biz sourced bespoke components manufactured overseas purely because it was cheaper – but without an AOF, the Court ruled these expenses ineligible. Cost savings alone do not justify conducting R&D overseas, and an AOF must be in place before claiming any offshore R&D costs.

The case reinforces that custom or experimental work conducted offshore needs an AOF, whereas routine purchases generally do not.

Getting the documentation right

A successful AOF application requires detailed supporting evidence – more than a standard R&D registration. Strong applications typically include:

• Contracts or statements of work detailing where and when activities occur.
• Research documentation proving that outcomes couldn’t be determined in advance.
• Expert opinion letters confirming why the work can’t be done in Australia.
• Cost estimates comparing Australian and overseas components.

Depending on the reason for conducting work overseas, you may also need:

• Lack of expertise – Job ads, recruiter briefs, candidate summaries and interview notes showing a genuine Australia-wide search.
• Lack of facilities – Written confirmations from Australian providers about capability or capacity limits.
• Population or geography-based limitations – Analyses demonstrating why required populations or features are unavailable in Australia.

Our insights and tips

From helping clients navigate the AOF process, we’ve found that:

• Timing matters – The AOF must be lodged before financial year-end. While average processing time is around 72 days, delays are common if documentation is incomplete.
• Budgets must balance – If overseas expenditure exceeds related Australian R&D spend, none of the overseas activities will be eligible. Robust project budgeting and evidence are critical.
• Findings have long-term value – Once approved, an AOF remains valid for the duration of the project, provided the activities don’t significantly change.

The bottom line

An AOF can substantially increase the value of your R&D claim, but only if you plan ahead, gather the right evidence and meet the strict eligibility rules.

By aligning your Australian and international efforts and preparing a strong application you can turn a complex compliance process into a strategic opportunity.

If you’d like to explore whether an AOF applies to your R&D activities, contact your local William Buck R&D Advisor for tailored guidance.

The post Beyond borders: Maximising your R&D Tax Incentive for global projects appeared first on William Buck Australia.

The big issues haven’t gone away. Cost of doing business remains the stand-out concern, especially wages, materials and energy. There’s also a growing trend of higher lease outgoings, with rising council and statutory costs from increased property values being passed through to tenants.

Many businesses are finding it difficult to fully pass increased costs on to customers, particularly when selling to households already facing cost-of-living challenges. The result is pressure on margins at the same time as confidence is tentatively improving.

The December quarter may be a window for businesses with stronger demand to consolidate by reviewing pricing, checking margins and making the most of any sales uplift, while staying alert to customer sensitivity. It’s all about making the most of favourable conditions after weathering a difficult period for many businesses.

One of the most striking findings this quarter is around AI. Over 70% of businesses say they’re using AI, yet 79% still report having no policy around AI use inside their business. In our conversations, it’s often employees who are leading the adoption, rather than owners or leaders driving it strategically. It is critical that businesses consider confidentiality and data security when utilising AI.

With huge sums being invested into AI infrastructure and data centres globally, today’s subscription prices are unlikely to be the end point. We’re encouraging businesses to think about the long-term economics to ensure that, if AI becomes central to their model, the productivity and revenue gains will offset the risk of materially higher platform costs into the future.

On the trade side, almost half of the respondents trade interstate and around 28% export globally, with most saying recent US tariff changes haven’t had a major impact. Only a minority of traders hedge their foreign exchange, typically where currency flows are large or prices are fixed. Others deliberately “ride the wave”, accepting wins and losses on exchange rates, but doing so with a clear understanding of the exposure rather than by accident.

For many South Australian businesses, the first step in expanding to new markets is to trade nationally. From there, New Zealand is often seen as a logical extension of the domestic market, with similar systems but its own nuances. Beyond that, the options multiply: selling directly to overseas customers, using distributors or third-party logistics providers, setting up branches or subsidiaries, or establishing joint ventures and partnerships.

Across those models, people and trust are the common thread. Local commercial, banking and regulatory advice, clarity about roles in the supply chain and a careful choice of in-market partners or representatives all matter. In an era of virtual meetings, there’s still no substitute for getting on a plane and spending time in a new market when the stakes are high. It is all about investing time and energy to maximise the chances of being successful when looking at new markets.

Taken together, the September 2025 Survey of Business Expectations results and what we’re hearing on the ground give reasons for cautious optimism. The challenge and the opportunity, over the coming months will be to use this period of better sentiment to protect margins, invest in productivity and people and best position businesses to deliver strong outcomes for South Australia.

The post From a low base to cautious optimism: SA business confidence lifts but pressures remain appeared first on William Buck Australia.

Fans of HBO’s Silicon Valley may remember this moment in Season One, when Jared Dunn tries to motivate the Pied Piper team ahead of a TechCrunch Disrupt. At the time, it felt like comedy. Today, for many early-stage and mid-market businesses, if feels uncomfortably close to reality.

The cash burn reality check

In the current global economic climate businesses, especially those in the pre-revenue or early growth phases, need to be laser-focused on their cash burn and cash flow forecasting. Capital that once felt abundant is now far more difficult to secure. The IPO market has struggled to rebound to pre-pandemic highs. Just five IPOs were recorded in the first half of 2025, according to S&P Capital IQ and total deal value decreased to $770m of which Virgin Australia’s listing contributed $685m. This contrasts with the 76 listings and $4.935b raised in 2020.

Even listed entities have turned to alternative funding arrangements, including convertible notes more typically seen in pre-IPO stages. Going Concern – the financial reporting principle that assesses whether a business can continue operating and meet its obligations for the foreseeable future – has become increasing critical. For Directors, whether of a listed or private business, Going Concern is no longer a once-a-year audit consideration. It is a daily strategic focus.

The questions Directors should be asking

Management and Boards need to continuously evaluate:

• How accurate is our cash flow forecasting?
• What contingencies are in place if revenue targets are missed?
• What alternative funding options can we pursue if a capital raise underperforms?
• How would an Emphasis of Matter for a Material Uncertainty, related to Going Concern, be perceived by shareholders in my audit or review report?
• Are we monitoring debt covenants monthly for compliance and early communication where any potential breaches are forecast?

These questions become even more pressing when cost-cutting decisions are required:

• How quickly can development spending or overhead costs be reduced?
• Is there potential for sale and lease-back arrangements on key valuable assets?
• Is divestment of non-core business activities a viable and worthwhile consideration?
• Can Directors defer or forgo salary, or accept equity instead of cash?
• Are Directors willing and able to temporarily inject their own money to help keep things afloat?
• Is the realistic exit pathway a business and IP sale?

Acting early matters

Many businesses fail not because they lacked potential, but because they did not make the right decisions or did not make them early enough. Spending is easy when optimism is high. Reaching cash-flow breakeven is far harder when product development must continue, but the revenue is lagging expectations and isn’t supporting the costs and optimism has evaporated.

And while burning $10,000 on artwork for the office may be a comedic subplot on TV, similar decisions in the real world can be the difference between survival and administration.

Why Going Concern should stay top of mind

In uncertain markets, robust Going Concern assessment isn’t just an audit requirement – it’s a strategic discipline. Directors and management must keep a clear, forward-looking view of cash runway, funding options and financial resilience. The ‘good times’ won’t always roll and the businesses that survive and thrive are those that plan for when they don’t. As they say, at the end of the day, cash is still king.

Take control of your cash flow and Going Concern strategy today. Our advisory team can help you clarify your cash position and plan your next steps.

The post Are you burning through cash too quickly? appeared first on William Buck Australia.

Forecasting isn’t just a process of putting numbers in a spreadsheet hoping they’ll predict the future. It’s an opportunity for business owners to work alongside their finance departments and advisors to take a deep dive into the drivers of a business and really understand the cause and effect of change that can move the dial.

Why cashflow management matters

Cash flow, the movement of money in and out of a business, is the lifeblood of any manufacturing operation. Unlike profitability, which is often measured on paper, cash flow reflects the real-time ability of a business to meet its obligations, pay suppliers, invest in equipment and fund expansion.

Key reasons why cash flow management is vital in manufacturing:

• Capital intensive operations: Manufacturing businesses often require significant upfront investment in machinery, raw materials and labour. Without careful cash flow planning, these costs can quickly outpace incoming revenue.
• Seasonal and cyclical demand: Many manufacturers experience peaks and troughs in demand. Cash flow forecasting helps ensure liquidity during slower periods and prepares the business for ramp-up during busy seasons.
• Supply chain volatility: Delays in receiving materials or changes in vendor pricing can disrupt production and cash cycles. A strong cash flow strategy cushions these shocks.
• Credit and financing: Lenders and investors scrutinize cash flow statements to assess risk. A healthy cash flow profile improves access to funding and better terms.

In short, cash flow management enables manufacturers to stay agile, avoid insolvency and seize opportunities when they arise.

The power of three-way forecasting modelling

Three-way forecasting integrates three core financial statements; Profit & Loss (P&L), Balance Sheet, and Cash Flow, into a single, dynamic model. This holistic approach allows manufacturers to simulate financial outcomes under various scenarios and make data-driven decisions.

What makes it so effective?

• Comprehensive financial visibility: By linking revenue, expenses, assets, liabilities and cash movements, manufacturers gain a 360-degree view of their financial health.
• Scenario planning: Want to know how a new product line, price change, or shift in labour strategy will impact your bottom line? Three-way forecasting lets you test assumptions and model outcomes before committing.
• Risk mitigation: Forecasting helps identify potential cash shortfalls, enabling proactive measures such as renegotiating supplier terms or adjusting production schedules.
• Strategic decision-making: Whether expanding operations, investing in automation or applying for grants, manufacturers can present robust financial projections to stakeholders.
• Compliance and reporting: Australian businesses face strict financial reporting standards. A three-way forecast ensures accurate, up-to-date data for audits and regulatory filings.

Impact in Australian manufacturing

Australian manufacturers, from food processors to advanced engineering firms, are increasingly adopting three-way forecasting to navigate economic uncertainty and global competition. For example, a Melbourne-based beverage packaging manufacturer used three-way modelling to assess the impact of acquiring a competitor. The forecast revealed that while there would be a requirement to increase the entity’s debt profile and manage the integration of synergies across two locations, long-term margins and cash flow would improve significantly.

Similarly, a therapeutics startup in the manufacturing space has leveraged three-way forecasts to secure capital and scale operations. These forecasts didn’t just predict financial outcomes, they shaped strategic narratives that resonated with investors.

Implementing these tools effectively

To harness the full potential of cash flow management and three-way forecasting, manufacturers should:

• Invest in financial software: Tools like Xero, MYOB or custom ERP systems can automate data collection and forecasting.
• Engage financial experts: Accountants or consultants with manufacturing experience can tailor models to your business needs.
• Review regularly: Forecasts should be updated monthly or quarterly to reflect changing market conditions.
• Train internal teams: Empower operations and finance teams to understand and use forecasts in daily decision-making.

Conclusion

In a sector where precision, planning and adaptability are paramount, cash flow management and three-way forecasting are not optional, they’re foundational. For Australian manufacturers, these tools offer clarity amid complexity, enabling smarter decisions, stronger resilience and sustainable growth.

By embedding financial foresight into the core of operations, manufacturers can transform uncertainty into opportunity and build a future that’s not just profitable, but predictable.

For more information, please contact your local William Buck advisor.

The post The power of cash flow and three-way forecasting in Manufacturing appeared first on William Buck Australia.

Structures established at the start of your career may not fit your current objectives, especially if your practice or partnerships have evolved.

Here’s how to re-evaluate your structure and some key tips for getting your practice on the right track.

Sole Practitioners

Starting out or practicing as a sole trader with an Australian Business Number (ABN) remains a favoured structure for many in private practice. Operating under your ABN allows you to claim GST credits on eligible business expenses like equipment, service fees and other outgoings, though you may only be required to register for GST if your turnover exceeds $75,000.

A common misconception is that setting up a Trust or Company offers greater asset protection or tax benefits.

Unfortunately, these structures generally do not add extra protection, as regardless of the structure, you remain responsible for your professional actions.

For tax purposes, income earned through personal exertion is subject to Personal Services Income (PSI) tax legislation. PSI rules require that income attributed to you for your work is taxed as your personal income, regardless of the structure used. Essentially, ‘you do the work, you pay the tax.’

Our article on personal services income delves deeper into this issue.

Group Practices: building for growth and partnerships

If you’re an established sole practitioner or already running a medical practice, transitioning to a structure that accommodates potential future business partners and other ownership changes, can unlock growth potential and tax benefits.

A popular initial structure is often a sole trader practitioner, where you may or may not pay a service fee into a discretionary trust. This structure is great if your vision is to continue on your own. However, if you’re considering bringing on a partner or wanting to pass on a legacy, a discretionary trust may not be the right fit, as it lacks fixed entitlements to income and decision-making.

This structure limits flexibility since new owners cannot be added to this structure unless they are family members.

To bring in partners, consider transitioning to a Unit Trust or Company. These structures allow for proportional ownership, fixed income entitlements and voting rights. New partners can join the practice, or current owners can sell down their shares or units creating a foundation for sustainable growth.

Restructuring considerations

Transitioning from a discretionary trust to a structure better suited for growth requires careful planning. Engaging with your tax advisors and legal team ensures compliance with tax obligations, capital gains concessions and transfer duties. Their expertise allows for a smooth transition that is both legally compliant and tax efficient.

Trading through a Unit Trust

A Unit Trust offers fixed entitlements based on unitholder percentages and benefits from the 50% Capital Gains Tax (CGT) discount. However, it has specific requirements and limitations. For instance, unit trusts must distribute all net profits to unitholders annually, with taxes assessed based on distributions even if cash payouts aren’t made. Additionally, losses remain within the trust to offset future profits and transfer duties may apply when new members are admitted.

Trading through a company structure

Company structures are attractive for several reasons: they provide clear income entitlements based on ownership and allow for retained earnings. A company’s profits can remain in the business and be taxed at the corporate tax rate, which is currently at 25%. This can be a significant tax advantage over other structures, as shareholders receive dividends with attached franking credits.

It is important to note, unlike unit trusts, companies don’t have access to the 50% CGT discount, so consider your long-term goals.

How do I choose the right structure?

Choosing the right structure ultimately depends on your goals, the practice’s growth trajectory and how you envision your role within the practice.

There is no one-size-fits-all solution and the best outcomes often come from consulting with someone knowledgeable about the nuances of your profession. Discussing your goals with an advisor will give you clarity on the structure that best supports your current and future plans.

Taking the time to review and, if necessary, restructure your practice can have lasting financial and operational benefits. As you review your structure, consider whether your current setup truly supports your goals—and make any changes needed to ensure you are well-positioned for growth and success.

If you would like to review your current business structure, contact your local William Buck Advisor.

The post Does your practice structure still serve you? appeared first on William Buck Australia.

In the lead up to the 2025 Federal Election and in the most recent Federal Budget, the Government announced a $7.9 billion investment to expand the eligibility for bulk billing incentives to all Australians and establish the Bulk Billing Practice Incentive Program (BBPIP).

The BBPIP has raised much discussion amongst the profession in the last six months, with the Government only recently confirming some of the final details.

What is BBPIP?

The intent of the Bulk Billing Practice Incentive Program is to support general practices to bulk bill all their patients, a practice known commonly as universal bulk billing. From 1 November 2025, practices that have registered for the program will receive an additional 12.5% incentive payment on the Medicare Benefits Schedule (MBS) benefits paid for eligible services, provided that all GPs in their practice bulk bill all patients. The 12.5% payment will be split evenly between the GP and the practice. The practice must advertise that it is a bulk billing clinic in addition to registering for the program. Payment will be made to the bank accounts nominated by the practice and the GP.

What to consider before switching to 100% bulk billing?

There are many factors to consider whether universal bulk billing is financially suitable for your practice including:

• Current bulk billing practices (high vs low)
• Patient profile
• Billing behaviour of individual GPs
• Personal earnings of individual GPs

Case Study – Doctor’s perspective

Dr Tip is a GP at Highside Medical Centre and is required to pay a service fee of 35% to the practice. Dr Tip sees 32 patients in an 8-hour day and bills a standard consultation (Item 23) for each of these patients. Dr Tip bulk bills 26 of these patients (81.25%), and charges a gap of $61.10 to 6 patients, which, along with the MBS rebate of $43.90, brings their total private fee to $105.  Let’s compare Dr Tip’s take-home pay per day under her current billing practices and if her practice were to bulk bill 100% of its patients.

Case study – Practice’s perspective

The Practice Manager of Highside Medical Centre and the accountant have analysed the practice costs and determined that the cost for each consulting room is $90 per hour. These costs include rent, overheads, wages for the administration and nursing staff and other operational expenses. Using Dr Tip’s daily billing from Case Study 1, let’s see the impact of universal bulk billing on the practice’s bottom line:

On the face of it, the practice is financially better off under universal bulk billing; however this example does not consider:

• Whether the MBS rebate will be increased in line with rising costs of the practice.
• Most GPs will bill a number of different items in their consulting day, not just Item 23 as in the examples above.

Any practice aiming for 100% bulk billing should consider potential changes to the MBS. For instance, from 1 November, mental health consultation (Item 2713) and review of treatment plan (Item 2712) will be removed, requiring GPs to use time-based general attendance items (23, 36, 44, 123).

Before you decide

Ask yourself:

• Have we met the full eligibility test – registration, advertising, and 100% bulk billing?
  To qualify for the 12.5% combined BBPIP, practices must register for the program, promote themselves as a 100% bulk billing practice, and ensure every patient is bulk billed.
• Do we understand exactly what the 12.5% applies to?
  The incentive is calculated only on the Medicare Benefits Schedule (MBS) benefits component – it excludes the Bulk Billing Incentive.
• Are we comfortable with how the payment is distributed?
  The 12.5% payment is shared equally between the GP and the practice, meaning both share in the reward (and any resulting financial adjustments).
• Have we considered how universal bulk billing could affect our practice model?
  Practices should weigh a range of factors – from the impact on individual GP earnings and behaviour to future changes in the MBS that could alter financial outcomes over time.

If you’d like support in determining whether to become a universal bulk billing practice or assistance with the best billing model suited to your practice, contact your local William Buck Health Team Advisor.

The post Choosing your GP billing model – Part 2: Universal Bulk Billing & BBPIP appeared first on William Buck Australia.

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“We are optimistic about South Australia’s economic outlook,” Ms Deda said.

“The State has an opportunity to carve out future growth in advanced industries which are currently under the national and global spotlight.

“The local economy has emerged from the challenges of recent years in reasonably strong shape and has demonstrated relative resilience to external shocks. As we navigate ongoing geopolitical and global economic uncertainty, maintaining this resilience will be important.”

Ms Deda, in Adelaide this week to present at William Buck SA’s annual flagship event, said that while local business prospects heading into 2026 are encouraging, the State’s levels of private sector investment, housing affordability and net interstate migration outflows could hamper future growth.

Diversity delivers

“South Australia is a diverse economy, which holds it in good stead,” she said.

“There are innovative businesses excelling on the global stage wherever you look.

“The State is benefitting from strong public sector investment in key infrastructure alongside a rebound in consumer spending.

“With defence budgets globally on the rise and the Government’s commitment to net zero, SA is strategically positioned to leverage its advanced manufacturing capabilities, particularly in defence and renewable energy. This creates pipeline opportunities for sustained employment growth in high-skilled, high-wage industries.

“The agriculture sector outlook is mixed but improving, critical minerals are in the global spotlight and new international flight routes into Adelaide are a welcomed boost for inbound tourism.”

Clouds on the horizon

The fragmentation of globalisation and breakdown of traditional global trade arrangements poses risks for all economies around the world and SA is not immune, according to Ms Deda.

Ms Deda also pointed to domestic economic challenges.

“Private business investment remains sluggish and needs to pick up if the State is to improve productivity and output,” she said.

“Housing affordability was once a key drawcard for SA, but the State has now fallen to third-worst nationally, with only NSW and QLD less affordable.

“Population growth was the State’s Achilles’ heel for many years, though that improved during and after COVID. However, since 2023, SA has returned to net interstate migration outflows. While net overseas migration remains solid, losing people to other states may undermine the State’s economic growth potential.”

The post SA economic resilience on show amid global uncertainty appeared first on William Buck Australia.

For hospitality businesses, particularly those that operate across states or as part of a broader group, payroll tax can carry hidden risks and compliance costs when not properly understood.

Each jurisdiction has its own rules, although many of the rules are now harmonised. Below we summarise some of the current thresholds, rates and annual due dates across Australia.

* ACT Payroll Tax Rate changes to 8.75% from 1 January 2026 where annual Australian wages exceed $150 million. Surcharge rates between 0.5% to 1% apply for annual Australian wages between $50 million and $100 million.

Where things can go wrong for hospitality businesses

The definition of ‘Australian taxable wages’

One of the common things we come across in hospitality businesses is payroll teams not fully understanding what is captured as ‘wages’ for payroll tax purposes. Rather than just salaries and wages, it is broad enough to include things such as:

• Super contributions
• Allowances and bonuses
• Fringe benefits
• Certain contractor payments
• Certain termination payments

Therefore, hospitality businesses need to properly understand their structure and remuneration strategy, as this also impacts taxable Australian wages and implications for any grouping when dealing with employees across different states.

For example, a bar in Melbourne operated in Victoria by itself may not reach the Victorian threshold, but if its owners also operate a café in Brisbane and a restaurant in Sydney, the combined wages could trigger payroll tax across all three states. This means the business may not be able to apply the full threshold in each jurisdiction, even if on a stand-alone basis the thresholds in each state are not breached. Instead, each state’s deductible threshold is reduced proportionately, often leading to a payroll tax liability in more than one state.

Given the hospitality industry is seasonal and largely reliant on transient or casual staff, we have seen unexpected or unforecasted payroll spikes cause unplanned liabilities for businesses operated across Australia.

Grouping

Many hospitality businesses operate through family groups, shared ownership structures or separate legal entities for different locations. While this setup often makes sense commercially, it can unintentionally trigger payroll tax grouping rules, adding complexity to staying compliant.

From our experience working with hospitality businesses, some common signs that grouping rules might apply include:

• Shared directors or ownership across entities
• Centralised payroll or HR management for multiple venues
• Using the same branding or marketing across locations
• Inter-entity loans or shared financial resources
• Staff working across multiple venues (e.g., a chef splitting time between restaurants)

Under payroll tax grouping rules, state revenue authorities can treat related entities as a single employer. This has two key implications:

• The payroll tax threshold is shared across the group, not calculated separately for each entity.
• Each entity in the group is jointly responsible for the group’s total payroll tax liability.

State revenue offices often target group compliance during audits and the consequences can be significant. If payroll tax liabilities are backdated, penalties can quickly add up.

The interaction between tax-free thresholds and Australian wages

From 1 July 2025, in Victoria, the tax-free payroll tax threshold is $1 million ($83,333 for monthly lodgers). Where Australian taxable wages are between $3 million and $5 million, the tax-free threshold is reduced under a phase out model by 50%, as illustrated below.

Example 1: Full-year employment with Victorian wages only

A commonly owned chain of Melbourne restaurants operates in Victoria for the entire 2026 financial year and pay $4.2 million in wages. Since the payroll tax threshold phases out for wages over $3 million, the tax-free threshold is reduced.

Full threshold amount	Phase-out cap	Phase-out reduction	Tax-free threshold
$1 million (as the employer operated for the full year and paid all wages in Victoria).	$3 million (the point at which the threshold begins to phase out).	($4.2 million – $3 million) x 50% = $600,000	$1 million – $600,000 = $400,000

This means the hospitality business is entitled to a reduced payroll tax-free threshold of $400,000 for the year, instead of $1 million.

Example 2: Full-year employment with Victorian and interstate wages

Now, let’s consider the same business, but this time it paid $1.5 million in Victorian wages and $2 million in interstate wages (totalling $3.5 million in taxable Australian wages). Since the business has interstate wages, the payroll tax-free threshold is adjusted proportionally based on the share of Victorian wages.

Full threshold amount	Phase-out cap	Phase-out reduction	Tax-free threshold
$1 million × ($1.5 million ÷ $3.5 million) = $428,571	$3 million × ($1.5 million ÷ $3.5 million) = $1,285,714	($1.5 million – $1,285,714) × 50% = $96,429	$428,571 – $96,429 = $332,142

In this case, the hospitality business is entitled to a reduced payroll tax-free threshold of $332,142 for the year due to the inclusion of interstate wages, when previously it would have been $428,571.

We have come across many businesses that do not understand their expected payroll tax bill, including how it can impact their monthly and year-end cash flow. If you’re unsure how payroll tax could affect you, seek professional advice to avoid unexpected liabilities.

What should hospitality business do?

If you operate multiple venues, share staff, or run your business through multiple legal entities, there is no better time to review your position and model the implications appropriately.

Understanding your obligations, including opportunities for exemptions or grouping exclusions, can make a material difference to your payroll bill at the end of the financial year.

Get in touch with William Buck’s hospitality team for a tailored payroll tax risk review of your business.

The post Payroll tax compliance tips for hospitality businesses appeared first on William Buck Australia.

In today’s economy, where innovation and customer loyalty are key competitive advantages, understanding how to recognise and manage intangible assets can provide a clearer picture of your business’s worth – and help you make better strategic decisions.

What are intangible assets?

Intangible assets are non-physical, non-monetary assets that deliver economic value or strategic advantage over time. Unlike tangible items such as machinery or property, they don’t take physical form – but they can be among the most valuable assets a business owns.

Common examples include:

• Patents, trademarks and trade secrets
• Customer lists and licences
• Brand recognition and goodwill
• Developed software or proprietary systems

Every successful business is building intangible value every day, through customer experience, innovation, or reputation, but the rules for recognising these assets on the balance sheet are strict. A key question many of my clients ask is: What can actually be capitalised?

The answer depends on whether the intangible asset was acquired or internally generated, as outlined in AASB 138 Intangible Assets – the accounting standard governing recognition, measurement and amortisation.

Acquired intangible assets: Valuing what you buy

When acquiring a business, intangible assets are generally easier to recognise. Because their cost can be reliably measured, assets such as customer contracts, patents or brand names can often be valued and capitalised.

In a typical business purchase, the difference between the purchase price and the fair value of identifiable net assets gives rise to goodwill – itself an intangible asset.

However, we recommend going a step further. As part of any acquisition, have all intangible assets valued and allocated to specific categories. This approach provides a clearer picture of the assets acquired, supports more accurate amortisation and ensures that not everything is simply grouped under goodwill.

Internally generated intangible assets: From idea to recognised value

For assets developed within your business, AASB 138 sets out strict criteria for capitalisation. These activities are divided into two key stages:

1. The research phase – This is where ideas are explored and early investigations take place – brainstorming, market testing or experimenting with unproven concepts. Because outcomes are uncertain, research costs must be expensed rather than capitalised.
2. The development phase – Once an idea moves into structured, goal-oriented development – such as designing prototypes, refining products, or testing systems – costs can potentially be capitalised, provided your business can demonstrate:

• Technical feasibility of completing the asset
• Intention and ability to use or sell it
• Probable future economic benefits
• Availability of necessary resources
• Reliable measurement of expenditure

If these criteria are met, directly attributable costs such as materials, testing, employee wages, external services and legal fees can be capitalised.

Costs that cannot be capitalised include general overheads, marketing expenses, training costs and any failed development efforts.

Amortisation and ongoing accounting

Once recognised, intangible assets are amortised over their useful lives – usually on a straight-line basis. Assets with indefinite lives, such as goodwill, are subject to annual impairment testing rather than amortisation, to ensure they’re not overstated.

Why this matters for mid-sized businesses

In practice, we often see a significant gap between what a business records on its balance sheet and what a purchaser ultimately pays. That difference often reflects the market’s recognition of intangible value – brand strength, customer loyalty, proprietary know-how and more.

By properly identifying and valuing intangible assets, businesses can:

• Present a more accurate picture of enterprise value
• Strengthen financial reporting and investor confidence
• Ensure compliance with accounting standards
• Unlock new insights into what truly drives performance

Reflecting the real value of your business

As the modern economy becomes increasingly knowledge-based, intangible assets are no longer just accounting footnotes, they’re central to understanding and communicating your business’s value.

By distinguishing between research and development and by capturing eligible costs at the right time, you can ensure your business’s balance sheet reflects not just what you own, but what you’ve built.

If you’d like to explore the real value of your business, your local William Buck Audit advisor can guide you every step of the way.

The post Unlocking hidden value: Understanding and capitalising intangible assets appeared first on William Buck Australia.

What is the proposed Division 296 tax and how has it changed?

The original draft Division 296 tax legislation was proposed to commence 1 July 2025, imposing an additional 15% tax on the proportion of ‘earnings’ on superannuation balances over $3 million. The ‘earnings’ definition was a deemed calculation that captured most types of earnings, including unrealised capital gains – causing much angst for impacted superannuation fund members. It was also proposed that the $3 million threshold would not be indexed.

The 13 October changes announced by the Treasurer make the following four major adjustments to the proposed measures:

• Defer the start date of the measures to 1 July 2026.
• Redefine what is to be included as ‘earnings’ for the purpose of the new tax, limiting it to realised earnings based on taxable income from 1 July 2026 – that is, removing unrealised gains from the calculation.
• In addition to the $3 million threshold for Division 296, introduce an even higher Division 296 tax rate for those individuals with balances above $10 million:
• Index the $3 million and $10 million thresholds in accordance with CPI, increasing the relevant thresholds in $150,000 and $500,000 increments, respectively.

The Government have released a brief fact sheet broadly outlining how the revamped Division 296 tax will operate. However, updated draft legislation is not expected to be introduced until 2026 and will be subject to public consultation before it is implemented.

How will the Division 296 tax be calculated?

Similar to the original proposal, the Division 296 tax will be calculated on the proportion of earnings relating to an individual’s Total Superannuation Balance exceeding the relevant threshold. An individual’s Total Superannuation Balance is the combined value of their member balances across all their superannuation funds.

The table below sets out the formula that would apply under the revised proposal to calculate the Division 296 tax for a member, depending on the size of their Total Superannuation Balance.

*Note: if an individual is in Retirement Phase (pension phase), the standard concessional tax rate on superannuation earnings should be nil for some or all of the earnings, meaning the standard tax rate on all earnings is likely to be between nil to 15%, rather than merely 15%, depending on personal circumstances.

The earnings will be based on the individual’s portion of a superannuation fund’s taxable income, with certain adjustments such as for contributions and pension withdrawals. While the actual calculation of earnings will be defined following stakeholder consultation, the current proposal will require changes to the way realised earnings are reported to the ATO per individual member.

As set out in the table above, the Division 296 tax is calculated as an additional amount on the proportion of earnings that exceed the relevant tier. This means that an individual who is in Retirement Phase with a large superannuation balance may be subject to a lower average total tax rate than 40% given parts of their earnings will be taxed at the lower rates.

The following examples, adapted from the Treasury’s fact sheet, explain how the calculation operates:

Example 1

• Megan is 58 and has a Total Superannuation Balance of $4.5 million on 30 June 2027.
• In the 2026-27 financial year, Megan had $500,000 in realised earnings in her superannuation fund.
• The proportion of her $4.5 million balance above the $3 million threshold is 33.33%. The proportion above $10 million is nil.
• Megan’s Division 296 tax liability is therefore $25,000 (being 15% x 33.33% x $500,000).

Example 2

• Emma is 55 and has a Total Superannuation Balance of $12.9 million on 30 June 2027.
• In the 2026-27 financial year, Emma had $840,000 in realised earnings in her superannuation fund.
• The proportion of her balance above the $3 million threshold is 76.74% and the proportion of her balance above the $10 million threshold is 22.48%.
• Emma’s Division 296 tax liability is therefore $115,581 (being [15% x 76.74% x $840,000] + [an extra 10% x 22.48% x $840,000]).

When will Division 296 apply?

If legislated, the proposed changes are to take effect from 1 July 2026 – meaning the first tax assessments will not be issued until the 2027-28 financial year. The first time the Total Superannuation Balance is measured for this tax will be 30 June 2027.

What do you need to do now?

With limited commentary from the Treasurer and a brief Treasury Fact Sheet at this time, it is prudent for impacted individuals to await legislation before taking definitive actions. However, for most individuals, considering whether they are likely to be impacted by the proposed Division 296 (and if so, by how much) is something they should action now.

If you may be subject to Division 296, it is important to consider several aspects regarding your superannuation and retirement strategy – taking into account your personal circumstances, investment horizon and broader financial goals:

• Pre-30 June 2026 actions: With Division 296 proposed to apply to realised earnings from 1 July 2026, it will be important to consider the nature and timing of when earnings are derived and when gains on particular assets are made. Depending on the details in the actual legislation, it may be more tax advantageous to sell certain assets before the Division 296 measures kick in on 1 July 2026, compared to after the changes apply. While it may be too early to act now until we get more clarity on what the actual legislation will say, be prepared to act swiftly.
• Review your overall structure: With the proposed introduction of a higher 40% tax rate for very significant superannuation member balances and a 30% rate for those with balances above $3 million, it is crucial that you have the right structures in place for holding your wealth. Now’s the time to review and seek advice on your overall investment structures and to consider which investments are most tax-effective within different entities such as superannuation, companies or discretionary family trusts. These alternative structures may offer greater flexibility in managing tax outcomes and distributing wealth.
• Age considerations: The impact of Division 296 can differ significantly based on your age and proximity to retirement:

• Estate planning implications:It’s important to understand how any changes you make in response to any tax or legislative updates could impact your estate and succession plans. Regular review and monitoring are key to ensuring your arrangements remain aligned with your estate planning objectives.
• Asset protection: While you may maximise tax effectiveness using particular structures, it’s important to balance this with protecting assets (whether in superannuation or alternative entities).
• Valuation requirements: The evidence supporting superannuation asset valuations are likely to come under increased scrutiny for the financial year ending 30 June 2027 onwards, should this tax be introduced, particularly for self-managed superannuation fund (SMSF) trustees. Although the proposed Division 296 tax doesn’t apply to unrealised gains, the member’s Total Superannuation Balance remains impacted by the total value of your assets (that is, it would include unrealised gains or losses on your assets). Consider the administrative implications and potential costs associated with obtaining suitable valuation evidence to meet these ongoing requirements, weighing them against the benefits of the investment choices.
• Asset types: Is it optimal to house certain types of assets within superannuation or could alternative structures be more effective? Any review must be holistic, weighing not just superannuation or tax but also your broader financial circumstances. The nature of your assets and level of liquidity within superannuation requires careful planning. Holding illiquid or ‘lumpy’ assets could pose challenges if this tax is introduced as proposed.

The announced changes to the proposed Division 296 were introduced together with proposed increases to the Low Income Superannuation Tax Offset (LISTO) and LISTO eligibility thresholds. These also follow legislation which is currently before Parliament to voluntarily allow the splitting of an individual’s superannuation balance to top-up their spouse’s balance. These three superannuation measures together present an opportune time for individuals to reconsider how their superannuation holdings fit in with their overall tax and retirement planning to ensure it is fit for the future.

To read more about our commentary for previous iterations of the bill, read our articles here and here.

To discuss how the proposed changes may impact you, contact your local William Buck advisor.

The post Revamped Division 296 tax pushed back to 1 July 2026 appeared first on William Buck Australia.

John Marsden and Matt Darling have joined the now 10-strong William Buck Corporate Finance team led by Samantha Nicholls.

Mr Marsden, who takes on the role of Partner, is a highly experienced corporate finance professional and proven deal advisory leader.

Mr Darling joins William Buck in the role of Principal, having worked as a corporate finance advisor specialising in mergers and acquisitions.

Ms Nicholls has been promoted to Head of the new look Corporate Finance team having been with William Buck since 2007 and appointed a Partner in 2021.

The new appointments come as William Buck Corporate Finance in Adelaide reported an almost doubling in the value of transactions completed over the past financial year on which it had advised.

Over the 2025 financial year, William Buck SA advised on 10 transactions valued at over $200 million, up from more than $100 million (8 transactions) the previous year. The FY2025 deals included MyVenue’s partnership with Greater Sum Ventures and Yumbah Aquaculture’s merger with Clean Seas Seafood.

This brings the total value of transactions William Buck SA has advised on to more than $620 million since its Corporate Finance division was established in July 2013.

Ms Nicholls said William Buck Corporate Finance was well positioned for future growth.

“John and Matt are valuable additions to our team as we set a growth path for the years ahead,” she said.

“In the past few months, we have received a strong amount of transaction-related inquiry from buyers and sellers.”

“On the buy side, there is a lot of dry powder in the SA market right now, particularly from private equity funds seeking to invest in quality businesses.”

“At the same time, we’re also noticing a pick-up in interest from private syndicates, particularly well networked high net worth individuals looking to spread their investment exposure.”

“On the sell-side, there’s a large number of local baby boomers preparing to exit or retire.”

“With interest rates still relatively low, the outlook for the local M&A market into next year and beyond is positive.”

• About Samantha Nicholls

Samantha began her career with William Buck in 2007 as a graduate and has risen through the ranks to become the Head of Corporate Finance. Samantha combines her experience in business advisory and corporate finance to navigate diverse matters effectively including M&A transactions, banking restructures and business turnarounds.

• About John Marsden

With more than 20 years’ experience of in-house and external corporate advisory in Australia and overseas, John provides high level practical advice and solutions. Prior to joining William Buck, John was Corporate Finance Principal at a large mining and metals company as well as holding Director positions at Big Four and specialist corporate advisory / restructuring accounting firms.

• About Matt Darling

Matt has a proven track record in both the sell-side and buy-side of commercial transactions with experience spanning industry sectors from healthcare, technology and industrial to manufacturing, consumer and retail. Prior to joining William Buck, Matt worked at a specialist M&A firm and with a Big Four accounting firm.

The post William Buck boosts capability as Corporate Finance grows appeared first on William Buck Australia.

Understanding these distinctions is paramount for effective equity plan design, ensuring alignment with your company’s growth trajectory, future fundraising aspirations and the desired tax outcomes for both the business and its employees.

Understanding ZEPOs (zero exercise price options)

ZEPOs are structured as a form of option with a nominal, typically $0, exercise price. This design offers distinct advantages, particularly concerning tax treatment under Australian employee share scheme (ESS) rules.

Key characteristics of ZEPOs:

• Structure: Legally defined as options with a $0 exercise price.
• Tax deferral potential: Can qualify for tax deferral, allowing taxation to align with a liquidity event or sale of shares, rather than at the point of vesting.
• ESS start-up concession: May qualify for the ESS start-up concession, offering more favourable capital gains tax (CGT) treatment.
• Legal complexity: Generally involve slightly more legal complexity due to their option structure.
• Strategic fit: Ideal for companies anticipating future liquidity events, such as an IPO or trade sale, or those planning significant capital raises.

Understanding Performance rights

Performance rights grant an employee the right to receive a share once specified vesting conditions are met. They are often perceived as a simpler and more flexible equity incentive.

Key characteristics of Performance rights:

• Structure: A contractual right to receive a share upon satisfying vesting criteria.
• Tax deferral potential: Can qualify for tax deferral or the ESS start-up concession, provided they are meticulously structured to incorporate robust vesting criteria and a clear conversion mechanism to ordinary shares, similar to options.
• Administrative simplicity: Generally more flexible and simpler to administer, making them appealing for streamlined implementation.
• Employee understanding: Often better understood by employees due to their straightforward nature.
• Strategic fit: Commonly employed by early-stage or private companies seeking a more straightforward approach to equity compensation.

Which is better for your business?

There is no universal answer to whether ZEPOs or performance rights are superior; the optimal choice depends entirely on your specific business context, strategic objectives and long-term financial planning.

• For certainty on tax treatment and future fundraising: If your priority is greater certainty regarding tax outcomes and you are strategically preparing for future fundraising rounds or liquidity events, ZEPOs often emerge as the preferred choice. Their structured nature can provide clearer tax timing and align well with exit strategies.
• For a cleaner, faster rollout: If administrative simplicity, flexibility and rapid implementation are key drivers, performance rights may be more suitable. Their ease of understanding can also facilitate quicker employee adoption.

Making an informed decision

The decision between ZEPOs and performance rights requires careful consideration of legal, tax and administrative implications tailored to your unique circumstances. Engaging with expert advisors can help you navigate these complexities, ensuring your chosen equity plan effectively incentivises talent while optimising for tax efficiency and future growth.

For further insights into equity plan strategies and their implications, contact your local William Buck advisor.

The post ZEPOS vs Performance rights: what’s the smarter choice for your equity plan? appeared first on William Buck Australia.

Limited visibility of the ‘final product’

Many preparers still lack a clear view of what compliant disclosure will look like. Without visibility of a ‘final product’, it is difficult to understand the relevance of the requirements for their organisation and to plan effectively. Early engagement with draft examples, industry guidance or pilot reports can help demystify the end goal and build confidence.

Competing priorities for finance teams

Business-as-usual reporting pressures are leaving little bandwidth for implementing sustainability frameworks and preparing climate disclosure. In some organisations, responsibility is drifting across functions without anyone truly taking ownership. Increasingly, CFOs themselves are stepping forward to champion the process, recognising that climate reporting is not a side project but a core extension of financial reporting and ensuring that it should be embedded into the finance function rather than siloed as a separate sustainability project.

Unclear ownership

Where we see progress, it is often because ownership has been assigned. Either an internal sustainability specialist has been tasked with leading the effort, or a Director or key management figure has stepped up to drive engagement and allocate resources. Without this leadership, climate reporting risks becoming another compliance ‘to-do’ task with no momentum. Organisations need to nominate a clear owner within the executive or finance team and ensure active cross-functional involvement, supported by board-level engagement.

Being ‘Assurance ready’

Although initial assurance requirements are limited to certain disclosures only, the full suite of disclosures is still required to be reported from year one. Many organisations are underestimating the time and effort needed to ensure that the end-to-end process, including data and information, is ‘assurance-ready’. Make sure to start the conversation early with your auditors and align expectations so that your processes, data collection, internal controls, governance framework and supporting documentation will meet the assurance requirements.

Timing considerations

One recurring issue in conversations with preparers is uncertainty over when the first disclosures are actually due. For example, some entities are only assessing their current size and status against the legislative thresholds, without taking a forward-looking view that factors in projected end-of-financial-year results. For instance, a private group on the cusp of crossing the employee or revenue thresholds may assume it will not be captured until later phases. But when growth plans, acquisitions or forecast earnings are factored in, the group could in fact fall into Group 1 or Group 2 for reporting purposes much earlier than expected.

We’ve already seen cases where entities assumed they were in Group 2 based on prior-year or early-year financial results, only to re-assess and discover they were in Group 1 once projected revenue growth was included in the assessment. That realisation is forcing them to accelerate preparations under significant time pressure. CFOs should assess their group classification now, not only by reference to current thresholds but also considering forward-looking growth plans. This assessment should be refreshed periodically as the business evolves. From there, it is essential to develop a detailed implementation roadmap well ahead of the statutory deadline, encompassing data collection, internal review, board sign-off and external assurance.

Board and Investor expectations

Another lesson from the past year is that boards and investors are approaching climate reporting from different starting points. Many directors are highly engaged but lack technical familiarity with the standards, while others are only just beginning to appreciate that climate reporting will sit alongside the financial statements in terms of visibility and assurance. At the same time, investors are expected to benchmark disclosures quickly across peer groups, focusing not only on compliance but also on comparability, credibility and evidence of a clear strategy. For preparers, this creates a dual challenge, meeting technical requirements while also meeting the market’s expectations for decision-useful information.

Directors must be aware of their statutory duties, as incomplete, misleading or misstated reporting can have serious consequences. They and other responsible officers may face regulatory scrutiny, personal liability and reputational damage if disclosures are found to be non-compliant or misleading. CFOs should take a proactive role in educating boards on the legislative requirements, reporting timelines and directors’ responsibilities in approving climate disclosures. Training sessions and regular briefings can help directors feel equipped to oversee climate reporting in the same way they oversee financial reporting. On the investor side, disclosures should be framed as part of broader corporate communication and governance, not as a compliance exercise.

Resourcing and costs

Many CFOs are uncertain how to budget for climate reporting. Costs can arise across systems implementation, staff training, governance processes and external advisory support. Under-resourcing carries real risks; inadequate systems or limited staff capability can result in poor-quality disclosures, assurance challenges and reputational impact. Climate reporting should be treated as a governance investment, not merely a compliance cost. Organisations should plan for incremental spending over several years, prioritising areas that directly affect reporting quality, including emissions data systems, risk management frameworks, internal controls, staff capability and external advisory support.

A growing challenge is the limited supply of skilled sustainability professionals and consultants. Demand for expertise in emissions measurement, scenario analysis and disclosure frameworks is outpacing supply, particularly among Australia’s first wave of reporting entities. To bridge this gap, CFOs should prioritise upskilling their finance and risk teams through targeted training, knowledge sharing and support from external advisors.

One year on, it’s clear that CFOs and their teams are at the front line of climate reporting. The challenges are significant, but the themes are becoming clear: ownership matters, data quality is critical and early preparation will ease the path to assurance readiness.

Now is the time to act to clarify responsibilities, engage boards and auditors and develop an implementation roadmap. By doing so, CFOs can move beyond compliance, embed climate reporting into governance and build trust with stakeholders and regulators from day one. Early preparation will set the tone for future reporting and position the organisation for long-term credibility and resilience.

If you’d like support with your climate reporting obligations or want to understand how the new sustainability reporting framework applies to your organisation, contact your local William Buck advisor.

The post Mandatory climate reporting one year on: top challenges for CFOs appeared first on William Buck Australia.

The primary goal of the GloBE rules is to prevent the practice of base erosion and profit shifting (BEPS), where multinational companies shift profits to low-tax jurisdictions. By enforcing a minimum tax rate, the rules aim to ensure large multinationals pay a fair amount of tax in the countries where they operate.  For Australian businesses with operations in New Zealand, understanding these changes is critical to ensure compliance and manage potential tax liabilities.

Who do these rules apply to?

The GloBE rules specifically target large multinational enterprise (MNE) groups that operate across multiple jurisdictions, including those with a corporate presence in New Zealand.  The rules would apply to MNE groups that have recorded global annual revenues of €750 million or more (approximately NZD 1.3 billion) in at least two of the four preceding income years.

Certain entities are generally not subject to these rules, such as government bodies and agencies or specific investment and pension funds. If your MNE group meets the revenue threshold and has a constituent entity in New Zealand, you will need to prepare for these new obligations.

What do affected businesses need to do?

Compliance with the GloBE rules is a multi-step process that requires careful assessment and preparation.  Key actions for affected businesses in New Zealand include:

Registration: The first step is to comply with the necessary registration requirements in New Zealand.

Assess Safe Harbours: Businesses should assess if they meet the thresholds for any available safe harbours, which may allow for simplified calculations.

Calculate the Effective Tax Rate (ETR): A core requirement is to determine the ETR for the MNE group in each jurisdiction in which it operates. If the ETR is below the 15% minimum, a ‘top-up tax’ may be payable.

Prepare Information Returns: Affected MNEs must assess if a GloBE Information Return (GIR) needs to be filed with Inland Revenue. A New Zealand-headquartered MNE will be required to file a GIR with Inland Revenue. A foreign-headquartered MNE may need to file a GIR in New Zealand if its parent jurisdiction does not have an information exchange agreement with New Zealand.

File Top-up Tax Returns: Businesses must prepare and file a Multinational Top-up Tax Return (MTTR) for each New Zealand constituent entity to determine if any top-up tax is payable.

Review Financial Reporting: It is crucial to assess the impact these rules will have on the group’s financial reporting disclosures and tax effect accounting.

Key deadlines are approaching

The deadlines for compliance are strict and depend on the MNE’s balance date. For the first fiscal year, the GIR must be filed within 18 months of the year-end and the MTTR within 20 months. For subsequent years, these timeframes shorten to 15 and 16 months, respectively.

Filing and notification deadlines based on balance date (for illustrative purposes)

Failure to comply can result in significant penalties, including a NZD 100,000 penalty for non−compliance and a NZD500 penalty for a late or incomplete MTTR filing.

How to prepare

The first step is to confirm whether your MNE group meets the €750 million revenue threshold. If so, you will need to prepare for the annual reporting obligations by implementing policies and procedures to collect the necessary data for the GIR and MTTR filings.

Given the complexity of the GloBE rules, especially for businesses with intricate group structures or operations in low-tax jurisdictions, seeking specialist advice is essential.

The introduction of Pillar 2 rules in New Zealand marks a fundamental shift in international tax. Proactive preparation will be key to navigating this new environment successfully. If you require assistance in understanding your obligations under these new rules, please reach out to your William Buck advisor.

The post Navigating New Zealand’s OECD Pillar Two rules appeared first on William Buck Australia.

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Commercial banks have started to pass these reductions through, but the real opportunity for business owners isn’t simply cheaper debt. It’s the chance to use a lower-rate environment to reshape funding strategies, strengthen resilience and position businesses for growth.

Beyond lower cost: why refinancing matters now

Lower rates provide tailwinds, but the businesses that create real value go further than just trimming basis points.

• Enhancing lender competition – in a falling rate environment, lenders are under pressure to deploy capital. Businesses that run a structured refinancing process can capture not only pricing but also better terms, headroom and flexibility.
• Releasing capacity for growth – freeing cash flow today allows businesses to invest in innovation, talent and acquisitions tomorrow.
• Creating balance sheet resilience – locking in term funding now protects against future volatility in both interest rates and credit availability.
• Supporting valuation and succession – lower debt service improves reported profitability and cash flow, both of which directly impact business valuations for owners considering succession or exit.
• Building optionality – a well-structured facility mix (term loans, revolvers, trade finance) gives management the agility to pursue opportunities without being constrained by legacy structures.

Case study: using the cycle to reset

We recently advised a mid-sized manufacturing business carrying a patchwork of term loans, overdrafts and supplier finance, established when rates were higher. Rising costs and restrictive covenants were constraining growth.

Our approach:

1. Reviewed facilities to identify cost, covenant and tenor improvements.
2. Ran a competitive process with banks and non-bank lenders to introduce genuine choice.
3. Restructured the mix to balance day-to-day working capital with longer-term investment capacity.

The outcome:

• Average interest rate reduced by over 100bps.
• Liquidity released to fund equipment upgrades.
• A stronger balance sheet with greater flexibility to withstand volatility.

The key takeaway is that refinancing is not just a “defensive” exercise. Done strategically, it resets the funding platform to support growth, resilience and value creation.

What we’re seeing in the market

Across sectors, proactive businesses are:

• Diversifying lender relationships to reduce reliance on a single bank.
• Extending maturities to lock in certainty through the rate cycle.
• Embedding flexibility into covenants to allow for growth or M&A.
• Exploring alternative lenders (working capital lenders, private credit, non-bank institutions) who are often more flexible on structure and speed.

These are the kinds of moves that separate businesses that benefit from a rate cycle from those that capitalise on it.

How we help

Our Corporate Finance team helps mid-sized businesses translate falling rates into lasting advantages through:

• Debt advisory & structuring – aligning debt with strategy and risk appetite.
• Refinancing & repricing negotiations – leading lender discussions to capture pricing, terms and flexibility.
• Capital raising & arranging – securing new facilities from banks and alternative lenders for growth, acquisitions, or capital projects.
• Working capital optimisation – tailoring revolving lines, invoice finance and trade facilities for day-to-day agility.
• Independent lender engagement – managing a competitive process so management stays focused on running the business.

Our role is to help your business navigate the optimisation of your capital structure – from strategy through to execution – so you can focus on running your business while your funding is working for you in the background.

Take advantage of this window

Lower rates are a catalyst, but the real question is whether your current funding structure positions you for growth, resilience and optionality.

Our team can review your debt portfolio, benchmark it against current market conditions and run a refinancing process that puts you on the front foot.

Contact your local William Buck advisor for a no-obligation refinancing health check – and see how smarter capital management can work harder for your business.

The post RBA rate cuts: a chance to reshape your debt to unlock cashflow and growth appeared first on William Buck Australia.

Going global is often seen as a rite of passage for many Australian scaleups as it can provide the company with access to new overseas markets, a broader pool of investors or the ability to attract and retain key talent from around the world.

During this period of growth, founders often focus on product-market fit, customer acquisition and operational challenges. While these priorities are vital, one area that too often sits in the ‘deal with it later’ basket is international taxation.

This oversight can be costly, both financially and strategically, even for loss-making tech companies. This is due to 2 key reasons:

1. Foreign laws will often ‘force’ your overseas operations to make a profit, usually resulting in a tax liability and
2. What you do now will have a long-term impact on the structure of the business when it is profitable down the track

In this article, we will cover some of the key tax considerations at a high level in order to help you begin a more tailored conversation with a qualified tax advisor.

Structuring

A fundamental decision to make before going global is the appropriate corporate structure. In the vast majority of instances, this will involve setting up either:

• A new overseas subsidiary that is owned by the existing Australian company; or
• A new overseas holding company that becomes the owner of the existing Australian company, often referred to as a ‘flip-up’.

Which of these structures suits you depends on your circumstances. If you’d like to know about the structuring and flip-up process in further detail, read our article on Going global.

Export Market Development Grant

If one of the reasons for going global is to expand into new overseas markets, you may be eligible for the Export Market Development Grant.

The EMDG is the Federal Government’s key grant supporting Australian businesses to market and promote their goods and services globally. The program provides matched funding, currently up to $80k per year, for costs relating to overseas travel, trade shows, engaging market consultants and other marketing-related activities.

Applications are open for a specific period each year. If you’d like to know more about the EMDG application process, including eligibility, read our article on changes to the Export Market Development Grant.

International Taxation – what is it and why does it matter to startups and scaleups?

Once a business is operating across multiple jurisdictions, there will be transactions between the Australian company and the overseas company. For example, there may be licensing fees for use of existing IP, management fees for use of assets and staff, interest on loans to fund business operations, service fees for R&D and development of new IP or revenue-sharing for new customer acquisitions.

These intercompany transactions will then be subject to the tax rules of Australia and the overseas jurisdiction, which usually have a direct impact on your bottom line, even for loss-making companies.

There are 3 international tax issues that commonly affect scaleups from day one of their global expansion journey.

1. Transfer pricing

Transfer pricing is the expectation from tax authorities that the related party dealings mentioned above must resemble normal commercial dealings between unrelated parties. This means that your overseas company is often expected to make a profit from their dealings with the Australian company, even if the overall business is loss-making and vice-versa. How much tax is paid on these related party dealings is something that is affected by your decisions on how the business is structured.

2. Withholding tax

Withholding tax automatically applies to some transactions between different jurisdictions. Common examples include fees for use of software and IP and interest on intercompany loans, which are common business dealings for scaleups. If these exist within your group, then there could be a withholding tax liability that you don’t know about.

3. R&D tax incentive

The location of your IP and how it is being built affects your eligibility for the R&D tax incentive. Should the IP be migrated overseas, that may jeopardise the company’s ability to claim the 43.5% refundable tax offset for costs related to R&D activities in Australia if things are not structured properly.

In addition to these 3 most common tax issues, there are others:

• How to tax-effectively bring profits of subsidiaries back from overseas.
• Double taxation and the impact of any double tax agreement between Australia and the other country.
• Overseas indirect taxes, like U.S. State-based sales tax or Value Added Tax (VAT).
• Thin capitalisation rules to limit the tax deduction on interest expenses for heavily geared businesses.
• ‘Controlled foreign company’ and tax residency rules can treat an overseas company’s income and profits as taxable in Australia.

Other considerations

Besides taxes, there are various other considerations that founders should understand when looking to go global:

• Go-to-market strategy becomes crucial – founders should not expect success from using a ’copy paste’ model of what worked for them in Australia.
• Whether the Landing Pads program is available to support scaleup founders’ access to investor networks and coworking spaces in certain overseas markets (currently San Francisco, London, Singapore, Ho Chi Minh City, Jakarta or Bengaluru).
• The difficulty of preserving the company’s values across different locations, time zones and cultures.
• Whether any existing Employee Share Scheme is still fit-for-purpose or a new scheme is required to cater for overseas employees.

Practical steps for Australian tech companies

First, map your expansion path. Consider where revenue will come from, where staff will be located, where IP will be held and where your exit event will likely take place.

Then, engage experienced advisors early. Tax is often a key factor for how businesses structure their affairs and expanding internationally is no exception. Having the right advisors in both jurisdictions is crucial, so if you have questions about expanding internationally, contact your William Buck Advisor.

The post Tax issues Australian scaleups must know when going global appeared first on William Buck Australia.

While dealmaking activity in Australia has slowed to its lowest in more than a decade, there’s still strong appetite for well-run mid-sized businesses. If you’re thinking about retirement, succession or growth, the trends we’re seeing in the market today will matter to you.

Why the slow down?

Many factors have contributed to the slow M&A market activity in the first part of 2025, including higher-interest rates, geo-political tensions such as US tariffs and broken trade deals, a weaker economy and general global uncertainty. This has caused businesses to delay big decisions or adopt a more cautious approach, although the tides are starting to turn as interest rates come down and people adjust to geo-political noise as the new-normal.

Buyers want mid-sized businesses

Almost three-quarters of all completed deals so far this year involved businesses worth under $50 million. This is where demand is strongest and if your business sits in that range, you are in the buyer sweet spot. Corporates and private equity firms are looking for businesses that they can acquire more easily and ‘bolt-on’ to their existing businesses to expand their portfolios or achieve quick growth.

Timing is key

Australia’s Reserve Bank is expected to continue to cut interest rates this year and into 2026. That will make financing acquisitions cheaper and could push deal activity and valuations higher. This means that now is the time to start preparing. If you wait until you’re ready to sell, you may miss the wave of activity that could reward the businesses who plan ahead.

Private equity is hungry for opportunities

Private equity deal values have surged this half of 2025, with investors sitting on roughly $30 billion in Australia that they still need to put to work. I’m seeing this play out in conversations where PE firms are actively seeking partnerships with quality businesses. If you’re preparing to sell, PE buyers could offer a competitive price. If growth is your goal, they can also provide capital and expertise to help scale your business.

Deals are more complex – preparation pays off

Buyers at the moment are taking longer to complete deals and are increasingly relying on performance-based earn-outs. To many clients this can feel daunting, but in my experience, a well-prepared business not only navigates these hurdles more easily, they also secure better terms. I recommend having your financials, governance and succession plans in order, which can make a huge difference to your outcome.

If you’re considering a sale or capital raise in the next few years, my strongest recommendation is to start planning now. Review your options, which could be a trade sale, private equity partnership or capital raise.

The next step is to get the right people around you early – advisors will guide you through structuring, timing and negotiation. And most importantly, don’t underestimate the time it takes to get your business’s books in order – waiting until you’re “ready to exit” often reduces your flexibility.

While the headlines say deal activity is down, the reality for mid-market businesses is far more encouraging. Buyers are still active, private equity has capital to deploy and conditions are shifting in your favour.

If retirement, succession or growth is on your horizon our Corporate Finance team can help you get organised and identify your best options. Whether it’s selling a non-core business or tiding up your corporate structure to improve your business’s valuation, raising capital through PE, or having the right succession plan in place, we provide a full range of specialist services within one fully integrated firm to help you achieve your goals.

The post Thinking about retiring, selling your business or raising capital? What you need to know about today’s M&A trends. appeared first on William Buck Australia.

To help you prepare, this article covers the key changes and areas of ATO focus for the new financial year. We will explore significant shifts in superannuation, asset write-offs, trust compliance and more, equipping you with the essential knowledge to make informed decisions for your business.

Here is what you and your business need to know.

Manage your cash flow and payroll

1. Prepare for Payday Super

A significant operational change is on the horizon for all employers. From 1 July 2026, you will be required to pay employee superannuation at the same time as their wages rather than quarterly. This ‘Payday Super’ regime will have a direct and immediate impact on your business’s cash flow, as these contributions must be managed and paid with every pay cycle instead of in a lump sum each quarter. To prepare for this shift, it is critical to review your payroll processes now to ensure you have the systems and cash flow arrangements in place to remain compliant when this change comes into effect.

2. Meet your superannuation deadlines

The ATO’s use of Single Touch Payroll (STP) reporting gives it greater clarity than ever before on the amount and timing of your superannuation payments. As a result, the ATO is actively issuing notices to businesses that do not remit super payments by the quarterly deadlines.

It is vital to remember that the superannuation rules indicate that contributions must be in the employee’s fund by 28 days after the end of the quarter, not just paid by you on that date. Most payroll systems use clearing houses, which can take between five to ten days to complete the transfer to employee super funds. You must consider this processing time when making payments to remain compliant. We strongly recommend you pay your end-of-quarter superannuation by the 15th day of the month following the quarter’s end to allow ample processing time. For the current financial year, the superannuation guarantee charge will remain at 12%.

Review your asset purchases and deductions

1. Instant asset write-off threshold

On 4 September 2025, the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 (the Bill) was introduced into the House of Representatives.

Relevantly, Schedule 7 to the Bill proposes to amend section 328-180 of the Income Tax (Transitional Provisions) Act 1997 to extend the $20,000 instant asset write-off by 12 months until 30 June 2026.

The measure proposes to allow small businesses with an aggregated annual turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use for a taxable purpose on or before 30 June 2026.

2. Interest charges are no longer deductible

In a move that will affect taxpayers who are late with payments, from 1 July 2025 General Interest Charges (GIC) and Shortfall Interest Charges (SIC) imposed by the ATO will no longer be tax-deductible. Previously your business could claim these deductions to help offset the financial burden of late tax payments or amended assessments.

Any GIC or SIC incurred on or after this date will not be deductible even if the underlying tax debt relates to an earlier income year. This change applies to all taxpayers including those with a Substituted Accounting Period (SAP). The interest is considered incurred when the ATO issues the notice of assessment or amended assessment.

Understand your obligations if you are growing

If your company’s turnover is moving from under $50 million to over $50 million you need to be aware of the significant implications for your compliance obligations. This includes a change of tax rate from 25% to 30% and a possible ASIC audit if you meet two out of three specified tests for large proprietary companies relating to revenue assets and employees.

For businesses with material transactions with international related parties the ATO continues to focus on transfer pricing arrangements. Once your business has over $2 million in international related party transaction you are required to prepare an International Dealings Schedule with your tax return.

Transfer pricing refers to the rules for pricing transactions between related entities to ensure they are conducted at arm’s length. You must have comprehensive and ATO-compliant transfer pricing documentation in place before lodging your tax return.

Navigate trust compliance and property sales

1. Section 100A

The ATO is still targeting Section 100A of the Income Tax Assessment Act 1936, which is an anti-avoidance provision relating to trust arrangements known as ‘reimbursement agreements’. This occurs, for example, where parents benefit from distributions made to an adult child from a family trust and the child does not receive their distribution in cash. Section 100A is designed to ensure the distributed funds pass to the nominated beneficiary for their ultimate use.

2. The Bendel case

The Bendel case, which involves unpaid present entitlements (UPEs) from trusts to corporate beneficiaries, remains a key issue. Historically, the ATO has treated UPEs as loans under Division 7A, meaning they could trigger deemed dividends and tax liabilities. While the Full Federal Court ruled on 19 February 2025 that UPEs do not constitute loans under Division 7A, the ATO disagrees with this ruling. The ATO was granted special leave to appeal to the High Court on 12 June 2025 and will continue to apply its existing guidance in TD2022/11 until the appeal is resolved.

3. Changes to foreign resident capital gains withholding

From 1 January 2025, the foreign resident capital gains withholding rate increased to 15% and the threshold has been removed. Anyone selling a property must obtain a clearance certificate. If you are a non-resident 15% of the total sale price will be withheld unless you apply for a variation. A variation can be beneficial, for example, if the taxpayer has capital losses carried forward, which can be considered in determining the withholding percentage to apply to a property sale.

Plan for personal superannuation opportunities

The concessional contributions cap for 30 June 2026 will remain at $30,000 and the non-concessional contributions cap will remain at $120,000 or $360,000 as a 3-year brought forward lump sum.

From 1 July 2025, the Transfer Balance Cap is now $2,000,000, giving taxpayers greater planning opportunities when starting a pension. If you are thinking of retiring in the next few years, you should speak to your William Buck Wealth Advisor to plan for these opportunities and implement critical strategies sooner rather than later.

Be aware of ATO compliance hotspots

The ATO continues to focus on incorrect claims from individuals in several areas:

• Home office expenses, especially when using the set rate and also claiming mobile phone expenses. It should be noted that you need specific records to support your working from home hours.
• Car expenses where the car cost limit for 2026 is $69,674, which is the maximum you can claim for depreciation on a car claimed under the logbook method.
• Rental properties to ensure deductions can be supported and are correctly allocated between repairs and capital items. Also ensuring any private use is taken into account with respect to deduction claimed.
• Cryptocurrency where proper reporting and substantiation of digital asset holdings are essential.

The ATO is also continuing to review GST registrations and auditing businesses to ensure they have genuine GST claims. Ensuring you have compliant tax invoices is a must particularly if you are making a large GST refund claim.

Finally, if your business is engaged in R&D activity you should consult your tax adviser to see if you are entitled to any incentive. The deadline for applying is 30 April 2026 but you need to get documentation in place long before the cut-off date especially if your company tax return is due before this date.

Navigating these diverse and detailed changes requires careful and proactive planning. To understand how these updates will specifically impact your business and to implement critical strategies contact your William Buck advisor today.

The post Is your business ready for the latest tax and compliance changes? appeared first on William Buck Australia.

Is phoenixing illegal?

It’s important to note that there is a difference between illegal and legal phoenixing. The term comes from the mythical fire bird that rises from the ashes. Phoenix activity is when a legitimate and newly created company is registered to take over an insolvent or unsuccessful company.

So, what is illegal phoenix activity? Phoenixing becomes illegal when the activity involves deliberately transferring assets from an indebted company to a new one, leaving the former to face insolvency.

What is the impact of illegal phoenix activity?

Illegal phoenix trading carves a trail of destruction through entire industries, costing the Australian economy up to $5.1 billion annually.

Operators use sophisticated tactics that take advantage of loopholes in laws—such as shirking director responsibilities through false identification, or confusing creditors by invoicing and paying through different company names and bank accounts. They also prey on generous credit terms offered by the ATO to continue operating, meaning it is often years before they’re reported.

The question is then, how can business owners identify and start to resolve issues associated with phoenix activity? We’ve outlined the seven red flags of illegal phoenixing and how to protect yourself if you’re caught up with an illegal phoenix operator.

7 red flags to identify illegal phoenix activity

How to protect yourself from illegal phoenix activity

To protect against the negative impact of illegal phoenix trading, in addition to being aware of the 7 red flags of phoenixing, businesses can take a few simple steps when getting into business with a new, unfamiliar partner.

Make sure you get paid on time

Get paid on time and upfront and don’t over-extend credit to any one business. Getting guarantees from individuals associated with the company and from head companies of groups for any credit advanced. This helps to ensure the controlling minds behind the company are more invested and provides additional surety in case business goes bad and the company can’t afford to pay.

Cross-collateralising

Cross-collateralisation is when an asset, already used as collateral for an initial loan, serves as collateral for another loan, offering an additional layer of security for the lender. Should the debtor fail to meet scheduled repayments for either loan, the lender can initiate the liquidation of the asset, applying the proceeds towards loan repayment.

It’s essential for creditors to strengthen their position further by perfecting security registrations across any relevant entities using the Personal Properties Securities Register (PPSR). The PPSR is pivotal as it guarantees a creditor’s priority right to be paid during liquidation, ensuring enforceability if a liquidator comes into play.
Cross-collateralisation is when you use one asset that has been provided as collateral for an initial loan as collateral for a second loan. This adds an extra layer of security. If the debtor is not able to make scheduled repayments on either loan, then the lender can force the liquidation of the asset and use those proceeds as repayment instead.

Get the right advice

External advisors and proper due diligence reviews can provide valuable information on who businesses are actually dealing with. Banks always conduct pre-lending reviews when advancing significant sums of money to businesses. So there is no reason why other businesses can’t do the same with their credit.

What to do if you are impacted by an illegal phoenix operator

If you suspect that you’re in business with a company that is phoenixing or has been phoenixed, there are a number of precautions to take and remedies still available:

• Don’t rely solely on government intervention to dismantle the phoenix and protect the creditors.
• Limit any further credit advances and begin collecting out.
• Amend credit terms to provide more surety for existing debts.
• Stop doing business with them and pursue any outstanding debts.

If a business has been impacted by an illegal phoenix operation then the company should immediately:

• Get a good liquidator involved to provide advice or replace the incumbent liquidator. It pays to shop around for a good liquidator.
• Whilst registered liquidators are heavily regulated by Australian Securities and Investments Commission (ASIC), there are a small portion that skirt the thin blue line of the law and can charge significant sums of money to creditors without delivering their promised outcomes.
• Get a respected advisor for insolvency-related matters on board. An example of a respected advisor is a member of the Australian Restructuring Insolvency and Turnaround Association (ARITA) or the Turnaround Management Association. ARITA members adhere to a comprehensive code of conduct and will not facilitate illegal phoenix operations but work diligently to put a stop to illegal phoenix operators.

An impacted company can then direct the liquidator to recover any assets and unwind any uncommercial transactions. Anti-phoenixing legislation provides liquidators, creditors and ASIC significant new powers to tackle phoenix trading and unwind unlawful transactions the company has entered into.

A good liquidator will seek funding via regulators or creditors. Funding is regularly provided to liquidators to further their investigations through:

• Australian Securities and Investments Commission
• Australian Taxation Office
• Department of Employment
• Commercial litigation funders
• Creditors

To get the best outcome for creditors from a phoenixed business, the liquidator should explore all opportunities to fund further investigations and report all offences identified against the company and its directors to ASIC.

For advice regarding illegal phoenxing, please contact your local William Buck Restructuring and Insolvency practitioner.

The post What is phoenixing? appeared first on William Buck Australia.

Structuring your investment property purchase

Unfortunately, there is no ‘one structure suits all’ approach to owning an investment. You should consider several factors when making any investment decision, including the following:

• Asset protection
• Income tax efficiency
• Ability to borrow within the structure
• Tax efficiencies on disposal of the asset
• Succession planning

Popular structures for holding investment properties include:

• Ownership in an individual name
• Ownership in a family discretionary trust
• Ownership in a self-managed super fund

Investment properties are commonly held within these structures as they are entitled to the general discount on any potential capital gain generated where the asset is held for more than 12 months. A company structure does not enjoy such a concession. For individuals and trusts for example this may result in any capital gain being discounted by 50% and you only pay tax on half of the gain.

These structures should be reviewed in light of your long-term goals if you are planning on purchasing an investment property or similar asset.

Protecting your assets in an investment property purchase

For example, a young doctor starting their journey in the medical field will see their circumstances change both professionally and personally. They may start out employed as a registrar in a practice and continue in this position for some years before moving into a role where they operate as a sole trader. If they do start operating as a sole trader, they may expose their investment assets to risk if litigation is brought against them personally. Their investment property could be exposed as a personal asset. If they have a spouse, who may have a lower risk profile or generate lower assessable income each year, that may support the notion of acquiring the property in their name.

Alternatively, they could consider holding any investments in a protected entity such as a family trust, which also gives the flexibility to potentially direct income to various family members. Each year, the trustee can resolve to distribute the income and any capital gain on the potential disposal of the property to beneficiaries as they see fit. As an extra level of asset protection, a company could act as a corporate trustee of the trust.

This can also assist with potential succession planning, as individuals such as adult children can be added as directors of the company, allowing them to take effective control over the trust. This is unlikely to result in transfer duty, whereas if you held the property in your own name and transferred it, they would likely incur transfer duty on the transaction.

Positive or negative gearing? 

Another consideration when making an investment property purchase is whether it is positively or negatively geared. Positive gearing refers to the situation where the income received from the assets (the rent collected) is greater than the costs of owning that property. Conversely, negative gearing occurs when the income is not sufficient to cover the costs of maintaining the property. Depreciation for tax purposes can also result in an even larger loss.

As an individual, negative rental losses can be offset against your employee, business or other income, which can help reduce your tax. There may therefore be a benefit in holding the property under your name as an individual if asset protection issues and other factors are not a concern. If you are generating a higher income than your spouse, you will likely see better tax savings each year, holding it in just your own name or if you hold the greater percentage. However, there is no flexibility to divert any capital gain; rather, most of the gain will be taxable in your name, where you may be paying the top marginal tax.

In a trust structure, any tax losses incurred due to the negative gearing are not able to be distributed to beneficiaries. The benefits of negative gearing would not be realised each year and rather carried forward to offset future income in the trust. If your trust also invested in other investments that were positively geared, such as shares and dividend income, then the rental losses could be offset against this.

Purchasing investment property through your SMSF

Self-managed superannuation funds can also be utilised to purchase properties. There are additional complexities and regulations around holding properties in self-managed superfunds, and borrowing within this structure can be challenging. This structure is often used to take advantage of the lower tax rates and concessions once you meet the pension phase. You should seek financial advice on whether a self-managed super fund would be appropriate in your circumstances.

As mentioned above, the best way to purchase investment property will depend on your personal circumstances, income, risk exposure, and long-term plans. There are a lot of different details that need to be assessed to make the most out of your investment.

Whether you’re starting to explore how to purchase investment property or are ready to do so, your structure will play a critical role in outcomes. If you are considering purchasing an investment property, contact a William Buck advisor to determine an appropriate structure for you.

The post How to structure the purchase of investment property appeared first on William Buck Australia.

Basic Tax Provisions for ESS and ESOP

Broadly, an employee is taxed up front on the discount to market value they receive on options or shares issued to them under an employee share option plan. For example, if an employee is given options with a market value of $100k for no consideration, that employee will usually be required to include that $100k in their assessable income. In Australia, the highest individual marginal tax rate is currently 47% (inclusive of all levies).

Employees who receive shares in a listed company can usually fund their tax liability by selling a portion of those shares. However, this is much more difficult in unlisted company settings, as there is usually no tradeable market for those securities, which means that being taxed upfront on an illiquid asset is generally quite undesirable. In these situations, tax should be a key consideration when setting up the employee stock option plan in order to defer the taxing point until a later point in time, such as a liquidity event.

Importantly, from an Australian income tax perspective, where options are issued to employees with an exercise price or strike price equal to the market value of the underlying share on the grant date (e.g., as used in many 409A valuations), this can still constitute a discount to market value and be subject to Australia’s income tax provisions.

Startup concession

The ‘startup concession’ was introduced in 2015 to overcome the hurdle of the taxing point not being aligned with a liquidity event. Under the concession, Australian employees are only taxed on the options or shares they receive under an employee share option plan upon a sale or disposal of those options or shares.

Further, any gain on sale of those options or shares would be on capital account, meaning that provided the employee held the options or shares for more than 12 months, the 50% Capital Gains Tax discount would generally be available to halve the amount of the taxable gain.

There are various conditions that must be satisfied for the options or shares to qualify for the startup concession and a discussion of these is outside the scope of this article. However, one condition multinationals should keep in mind is that the Australian staff must be employed by an Australian company (i.e., those individuals cannot be employed or contracted directly by the overseas company).

Tax deferral

Where the startup concession is not available, in many cases the business would look at setting up an ESOP that qualifies for ‘tax deferral’. Broadly, this means that instead of the employee being taxed on the issue of the options or shares upfront, taxing is deferred until a later point in time, which is usually one of the following times:

• when the options or shares vest,
• when the employee exercises the options to acquire shares, or
• when the employee sells the options or shares.

Importantly, under a tax deferral employee stock option plan, the employee would include in their assessable income the discount to market value of the options or shares at the deferred taxing point, not the discount to market value at grant date.

Further, the tax deferral provisions are broad in their application and it is crucial that businesses obtain the proper tax advice to ensure the ESOP is not set up in a way that inadvertently ‘crystallises’ a taxing point for their employees. For example, the following could result in a taxing point:

• An employee transfers their options or shares to a related party, such as a spouse or family trust.
• An employee exercises their options and acquires shares.
• A trading window that allows employees to dispose of their options or shares.

The mere existence of any of the above provisions could result in a taxing point for the employee, even if the employee does not actually take any of these actions to dispose of their shares.

Other types of employee share schemes

We have touched on two of the more common types of employee share schemes – the startup concession and tax deferred – but there are various other types of arrangements that could be implemented, including loan-funded shares, zero exercise price options (ZEPOs) and premium-priced options. Each of these schemes has its own merits and the most suitable arrangement will depend on the key drivers for your business. Please contact William Buck or your tax advisor for more information on the other types of ESS or employee share option plans.

Commercial drivers impacting an ESOP structure

At the outset, it was noted that tax is often a key driver in setting up an effective ESOP due to the potential cashflow burden on employees arising from the mismatch in timing between a liquidity event and the taxing point.

Besides tax, there are various commercial drivers that will impact how the ESOP is structured. For example, business owners should consider:

• How much of the company’s capital table should be set aside for the ESOP?
• Which employees should participate in the employee share option plan?
• How many shares should each employee receive?
• What about contractors and other advisors to the business?
• What are the vesting conditions and exercise periods for options?
• What rights should be attached to the shares?
• When can employees sell their options or shares?
• What happens in an exit event?
• What happens to the options or shares if an employee leaves the business?

The answers to these questions will be different for each business and so implementing an ESOP is generally a three-way conversation between the company board, the tax advisor and the lawyer. The company will communicate its ideal parameters, the tax advisor will structure the scheme with regard to the key commercial and tax considerations, and the lawyer will prepare the documents and advise on any Corporations Act disclosures and reporting obligations.

Other considerations when implementing an employee share scheme

Finally, businesses should be aware that there are various other issues that require consideration before implementing an employee share scheme, for example:

• Choosing an appropriate valuation methodology (e.g., professional valuation, recent capital raise, Black-Scholes model)
• Annual reporting requirements with the Australian Taxation Office
• Payroll tax reporting requirements
• Workers’ Compensation reporting requirements
• Accounting implications, especially if preparing General Purpose Financial Statements
• Deductibility of intercompany charges and management fees in relation to the ESOP and
• Corporations Act disclosures and reporting obligations.

There is no one-size-fits-all approach to setting up an employee stock option plan. Each business has its own unique requirements and commercial drivers and an ESOP needs to cater for those. Tax implications should be considered when establishing any ESOP that is effective and aligns the company and employee interests.

Contact your local William Buck tax advisor to find out more about how to establish a tax-effective employee share scheme in Australia that aligns with your business.

The post Establishing a tax-effective employee share scheme (ESS) or employee stock option plan (ESOP) in Australia appeared first on William Buck Australia.

There are multiple key takeaways, with the primary takeaway being that you cannot capitalise costs incurred in the prospecting phase or before you have legal rights to an area of interest.

Exploration and evaluation assets conditions

For exploration and evaluation assets to be recognised and measured at cost, certain conditions must be satisfied.

First, you need to have current legal rights to tenure of the area of interest.

Then, you must either:

• expect the exploration and evaluation costs to be recouped through successful development and exploitation, or by sale; or
• if exploration and evaluation activities in the area of interest have not yet reached a state of assessment that is reasonable enough to determine the recoverable reserves, then active operations must be continuing.

It’s important to note here that an area of interest refers to a geological area where the presence of mining deposits or equivalent is considered either favourable or has been proved to exist.

Exploration and evaluation assets examples​

Some exploration and evaluation assets examples of expenditures that might be included in the initial measurement of exploration and evaluation assets include: exploratory drilling; sampling; trenching; topographical, geographical and geophysical studies; and other activities specific to evaluating the technical feasibility and commercial viability of extraction. Examples of exploration and evaluation assets also include directly attributable general costs, provided they are clearly linked to your evaluation activities.

Typical examples of expenditures that might be included in the initial measurement of exploration and evaluation assets include: exploratory drilling; sampling; trenching; topographical, geographical and geophysical studies; and other activities specific to evaluating the technical feasibility and commercial viability of extraction. General costs can also be allocated however they need to be linked directly to your evaluation activities.

How to measure exploration and evaluation assets

Exploration and evaluation assets are generally measured at cost at recognition. However, after initial recognition, an entity can then choose to apply the cost model or revaluation model.

Under the cost model, the assets will be stated at cost less depreciation. Whereas, under the revaluation model, the assets will be stated at fair value less depreciation and need to be revalued regularly at a certain interval (possibly three to five years).

When applying the revaluation model, tangible assets (vehicles, drilling rigs, etc.) will be applied under AASB 116 Property, Plant and Equipment, but intangible assets (drilling rights, etc.) will apply the revaluation model under AASB 138 Intangible Assets instead.

Regardless of whether the asset is measured at cost or fair value, it needs to be assessed for impairment.

Contact your William Buck advisor for assistance with exploration and evaluation assets.

The post What are ‘exploration and evaluation assets’ and how are they measured? appeared first on William Buck Australia.

Unfortunately, entirely avoidable errors can lead to significant and unexpected tax liabilities. Knowing the common pitfalls is the first step to staying compliant and protecting your practice’s finances.

What is Division 7A?

Division 7A is an ‘anti-avoidance’ measure designed to prevent private companies from making tax-free distributions of profits to shareholders (or their associates) through disguised payments, loans or forgiven debts. Importantly, the definition of a ‘loan’ under Division 7A has a broader meaning than most people expect.

A loan includes:

• An advance of money
• Any form of credit or financial accommodation (providing money or a financial benefit)
• Payments made on behalf of a shareholder or associate with an obligation to repay
• Any transaction that in substance is the same as a loan

This means informal arrangements that seem harmless can easily trigger Division 7A issues if not handled correctly.

Common Division 7A errors for practice owners

1. No complying loan agreement

If you borrow funds from your practice and the loan is not fully repaid by the time the practice’s tax return is lodged, it must be placed under a ‘complying loan agreement’. This agreement must be in writing; charge at least the ATO’s benchmark rate; have a maximum term of 7 years (unsecured) or 25 years (secured over real property).

Without this agreement, the ATO can classify the entire loan as an unfranked dividend for that year and that means a personal tax bill.

2. Repayments don’t qualify as genuine

Complying loans require minimum yearly repayments. However, not all repayments count.

A common error is ‘round-tripping’ – transferring funds to the practice account just before year-end and then withdrawing them again shortly after. The ATO won’t accept this as genuine. A repayment must be a real transfer of funds that reduces the loan balance.

3. Personal expenses paid from the practice

It can be tempting to use the practice bank account to pay for significant personal expenses. However, these are treated as loans under Division 7A.

To avoid compliance issues, these amounts must be repaid in full before the company’s tax return is lodged. Be cautious, lodging the return early reduces the repayment window.

The consequences of getting it wrong

We sometimes encounter clients where Division 7A issues have been overlooked by their former accountant or dealt with inadequately. When these rules are breached, the loan or payment is treated as a ‘deemed dividend’. This amount is added to the shareholder’s assessable income as an unfranked dividend, which can result in a significant personal tax liability. These dividends are generally not frankable.

Where an honest mistake or inadvertent omission has been made, it may be possible to apply to the ATO for relief.

Protect your practice’s financial health

Withdrawing funds from your practice is a common and necessary activity, but it can lead to unintended Division 7A consequences. For busy medical professionals focused on patient care, having an accountant who understands and proactively manages Division 7A is essential. By addressing these risks early, you can protect both your practice’s financial stability and your personal financial well-being.

Contact your William Buck advisor to safeguard your practice and avoid unnecessary ATO attention.

The post Avoidable common Div 7A errors medical professionals make appeared first on William Buck Australia.

When inflation was running hotter, price rises were easier to justify. Now inflation has cooled and customers are pushing back. The result is a tight squeeze on margins and a sharper look at costs and productivity.

Across many sectors, particularly those selling to households feeling the cost-of-living strain, firms report that straightforward price increases aren’t sticking. Business-to-business suppliers can sometimes adjust more easily, but even there, buyers are taking a harder line. The playbook is shifting from pricing to productivity.

Too many small to mid-sized firms live off the P&L and cash balance and often only glance at what creates those dollars. It’s important to focus on the drivers, not just the dollars. Pick one output metric that truly drives revenue and track it, pairing it with a controllable input to show cause and effect.

That discipline underpins a focus on productivity. It also helps owners decide which customers and jobs deserve priority. Selectivity matters. If a customer consistently absorbs admin, squeezes your timeline and leaves no margin, that’s a signal.

One data point that stood out in this quarter’s survey was a fall in overtime. This is conscious cost control rather than a simple easing in labour shortages.

Overtime is expensive and it brings risks around safety, quality and burnout. We’ve seen our clients set hard guard rails: minimise overtime, even if that means walking away from marginal jobs. Better to forego low-return revenue than carry extra cost and risk for very little gain.

That shift ties to a broader change in mindset. When prices were increasing, maintaining throughput at all costs made more sense. Today, with demand more variable and customers cost-sensitive, businesses are pruning unprofitable work and focusing on repeatable margin.

On tax, the message from this quarter’s responses is consistent with the conversations William Buck is having daily: before talk of raising or reshaping taxes, businesses want government to demonstrate better spending discipline.

Payroll tax remains the most disliked impost in the SME space — on cost, complexity and principle. It feels counter-intuitive to tax employment. Thresholds, rates and definitions differ by state; indexation lags create de facto bracket creep; and the admin burden is real. Uniform settings and sensible thresholds would remove a lot of friction.

The post Confidence is creeping back: now it’s about margins, discipline and doing more with less appeared first on William Buck Australia.

While the money may feel like a private matter between you and the sender, how the Australian Taxation Office (ATO) views it is another question entirely. The ATO is increasingly scrutinising these transactions to ensure they are not being used to disguise undeclared foreign income.

This raises a critical question for any recipient: how do you prove the funds are a genuine gift or loan? Understanding the ATO’s requirements for documentation and substantiation is essential to avoid significant penalties and ensure you remain compliant.

Defining a genuine gift or loan

For a transaction to be considered a genuine gift or loan in the eyes of the ATO, it must satisfy three key criteria:

1. Proper documentation: There must be comprehensive documentation that clearly supports the nature of the transaction as either a gift or a loan.
2. Consistent behaviour: Your actions and the actions of the other party must align with the characterisation of the transaction.
3. Independent source of funds: The funds must originate from a source that is genuinely independent of you as the recipient.

For gifts, this means having more than just a simple declaration. Acceptable documentation includes a formal deed of gift, clear identification of the donor, the donor’s bank statements showing the transfer and evidence of the donor’s financial capacity to make such a gift.

For loans, formal loan agreement is essential. This agreement should detail all critical terms including the principal amount, the applicable interest rate, a clear repayment schedule and the consequences of default. This must be supported by financial records from both the lender and borrower.

It is vital that you are aware that even a genuine gift or loan can have Australian tax consequences. For instance, a loan made by a private foreign company to you or a related entity can have Division 7A implications, potentially resulting in an unfranked dividend being assessable to you. Gifts from foreign trusts may also be treated as assessable income. In all cases, a clear understanding of the source of the gift is needed to understand if it has any Australian tax.

Why robust documentation is critical

The ATO does not simply accept a deed of gift or a statutory declaration as conclusive evidence of a transaction’s nature. Instead, it undertakes a comprehensive review, assessing the totality of the evidence available. This includes a deep dive into financial records, correspondence between the parties and any available third-party documentation.

In its assessment, the ATO gives significantly more weight to objective evidence. For example, records from financial institutions that explicitly list the transaction as a loan are considered more reliable than declarations made between family members. This emphasis on objective proof means that maintaining meticulous, arm’s-length records is not just good practice it is a fundamental requirement for mitigating your risk.

The ATO’s warning against misuse

The ATO’s concerns are formally outlined in Taxpayer Alert TA 2021/2. This alert specifically targets arrangements where Australian residents attempt to avoid tax by disguising foreign-sourced income or capital gains as gifts or loans from related overseas entities.

These schemes often share common characteristics including:

• Repatriating foreign income to Australia through related overseas entities.
• Preparing documentation that intentionally misrepresents the true nature of the funds.
• Claiming interest deductions on loans where no genuine interest or principal repayments are ever made.

The ATO is particularly concerned when these funds are used to acquire income-producing assets or to fund business operations in Australia. Arrangements deemed to be a sham can attract severe consequences including the application of anti-avoidance provisions, significant financial penalties and in some cases even criminal sanctions for tax evasion.

What you need to do

Receiving funds from an overseas party is not inherently problematic for you but mischaracterising those funds can lead to serious and costly tax consequences. By ensuring you have sufficient and appropriate documentation and by behaving in a manner consistent with that documentation, you can effectively mitigate risk and maintain compliance, including ensuring accuracy in tax return disclosures.

If you have received or expect to receive funds from an overseas party, it is crucial to ensure your arrangements are structured correctly from the outset. To navigate these complexities and ensure you meet your obligations under Australian tax law, please contact your William Buck advisor.

The post How does the ATO view an overseas gift or loan? appeared first on William Buck Australia.

If you are not asking yourself these questions, here is why you should.

Normally, the interest you pay on your home is not tax deductible. In some cases, where your home is used for income producing purposes, a portion of the interest on your home loan may be deductible. However, there may also be capital gain tax on a portion of the gain from the sale of your home in this case. For simplicity, this article will assume your home is not used in any way for income producing purposes.

For most medical practitioners, their marginal tax rate is 47% (including Medicare levy). This means that when paying non-deductible interest on your home loan, their actual pre-tax cost is almost double. For example, for every $1 after-tax you pay for your non-deductible home loan, you need to earn $1.89 (pre-tax amount assuming a 47% marginal rate).

Another way to look at it is using the interest rate you are paying on your loan. If your non-deductible home loan interest rate is 5.5% p.a., your investment will need to generate a return of 10.38% p.a. pre-tax to cover your home loan after tax and the return on your investment isn’t guaranteed. The bottom line is non-deductible debt is expensive.

Debt recycling is essentially a strategy that focuses on converting non-deductible (home) debt to tax deductible (investment) debt while building wealth.

Some of the key fundamentals of such a strategy are:

1. The overall level of debt is not necessarily reduced but converted from a non-deductible (home) loan to a tax deductible (investment) loan.
2. For interest to be tax deductible, there must be a direct link between the purpose of the loan and an income producing asset.
3. There needs to be a clear separation between the non-deductible loan and the tax-deductible loan to ensure the purpose of the loan is not tainted for tax purposes.
4. Use time to your advantage –the sooner you start, the more impact this strategy may have on your personal wealth.

Consider the following case study:

• Your home is valued at $1,250,000
• Your non-deductible home loan is: $1,000,000
• The interest rate is 5.5% p.a.
• Your loan term is 10 years paying principal and interest
• Your monthly repayment is $10,852.63

After the first 12 months

• Your total repayments were just over $130,000
• You paid just over $53k in non-deductible interest
• Your home loan balance is roughly $923,000 and your equity increased by $77,000

Using a debt recycling strategy, you could then use the equity to borrow $77,000 and invest that amount in income producing assets to ensure the interest on that new loan is tax deductible. Assuming you repeat this strategy over the 10 years of your loan and you also use the income from your investment portfolio (after tax) to accelerate the repayments of your home loan.

This is a key point, as the portion of non-deductible interest payment in the first few years of your home loan is very high. The quicker your home loan balance is reduced, the less non-deductible interest you will have to fund. Furthermore, additional repayments towards your non-deductible home loan mean you will pay off your home loan quicker.

There are, however, a few things to consider

• You will have to liaise with your bank to ensure appropriate facilities are available. Movement of available funds from an offset account does not qualify as a new investment loan for tax purposes. It is advised to establish a separate new loan facility that is dedicated to income producing purposes for the interest to be tax deductible.
• Appropriate documentation must be kept supporting the deductibility of interest.
• Your investment portfolio may be subject to market movement.
• This strategy works better when the investment is income producing rather than investment in capital growth assets.
• Changes in interest rates can impact the results of this strategy.
• Be aware that the ATO may be critical of arrangements where you artificially create deductible debt in your practice while diverting practice income to reduce your non-deductible debt.

We highly recommend that you speak to your accountant and wealth advisor before implementing such a strategy so that you are aware of all aspects that can affect you.

There are also other scenarios where your existing structure may present an opportunity for debt recycling. If you previously funded your practice and lent money to it in its initial stages, there may be an opportunity for the practice to introduce external debt to repay you for such a loan. Subject to your individual circumstances, the repayment of the loan to you may not be subject to tax and you could use the funds to reduce your non-deductible debt.

Other opportunities may exist as part of an overall succession planning for your practice if a restructure is needed to facilitate the introduction of new business owners to your practice. Careful consideration is needed in such cases, as many taxation aspects are involved and the results may vary based on your individual circumstances. Subject to the availability of specific tax concessions, you may be able to introduce tax deductible debt to your practice while allowing you to reduce your non-deductible debt outside of your business structure.

If you’d like help and if debt recycling as a strategy might be suited for you, contact your local William Buck advisor.

The post Recycling non-deductible debt to build wealth appeared first on William Buck Australia.

In our work with practitioners across Australia, we’ve seen first-hand the challenges faced when planning is delayed. This article outlines a structured approach to help you exit confidently, protect your wealth and ensure your family’s long-term security.

Step 1: Align business and personal objectives

Succession planning starts with clarity. What does retirement look like for you? Are you exiting entirely or transitioning gradually? Do you want to maintain ownership of your business premises? Without clearly defined goals, it’s difficult to make financial decisions that support your ideal future.

By aligning your business exit strategy with your personal objectives, you create a roadmap that supports both wealth accumulation and lifestyle sustainability.

Step 2: Don’t underestimate risk

Personal and business risk protection is essential in the lead-up to retirement. Many practitioners are underinsured or have outdated buy/sell agreements that are not properly funded. In the event of disability or death, this can leave families and business partners exposed.

Ensure you maintain and regularly review your personal insurance such as Life, TPD, Trauma and Income Protection, through to retirement. On the business side, buy/sell agreements should be reviewed and fully funded, typically through insurance.

Step 3: Diversify and structure your wealth

A common challenge for practice owners is having too much of their wealth concentrated in the practice itself or tied up in the premises. While these assets may have served you well during your career, they can limit flexibility when it comes to generating income after you exit.

The goal should be to progressively diversify your investments so you’re not reliant on a single asset or income source. This might involve:

• Using existing structures such as trusts, SMSFs and companies more effectively
• Building liquidity by transferring surplus cash into diversified investments
• Taking advantage of contribution strategies to boost superannuation, including catch-up concessional and non-concessional contributions
• Accessing small business CGT concessions to minimise tax on sale proceeds
• Structuring investments to create sustainable, tax-effective income streams that support your desired lifestyle
• Reviewing debt structures and considering debt recycling strategies to enhance tax efficiency while building wealth

By acting early, you can smooth the transition from a business-dependent income to one supported by multiple, well-structured investment sources.

Step 4: Retirement planning – living from wealth

Once the practice is sold or your ownership is reduced, the focus shifts to ensuring your wealth works for you. This means creating a clear drawdown strategy that balances lifestyle needs with long-term sustainability.

An effective approach often involves:

• Establishing ‘investment buckets’ to segment funds for short, medium and long-term use
• Building and maintaining a sufficient cash buffer to fund near-term expenses and avoid selling investments in volatile markets
• Maintaining flexibility in investment allocation to adapt to changing markets and personal circumstances
• Using rental income from premises or other assets to supplement pension withdrawals in a tax-efficient way
• Managing sequencing risk — the risk that market downturns early in retirement could impact your long-term position
• Structuring pension drawdowns strategically to optimise tax outcomes and preserve capital

Having a well-defined strategy provides the confidence to spend in retirement without the fear of outliving your savings.

Step 5: Estate and legacy planning

Even with a solid retirement plan, it’s important to consider what happens to your wealth in the longer term. Estate and legacy planning ensures that the assets you’ve worked hard to build are protected, transferred according to your wishes and structured for the benefit of future generations.

Key strategies include:

• Updating wills and powers of attorney to reflect your current circumstances
• Using testamentary trusts to provide asset protection and potential tax benefits for beneficiaries
• Reviewing and updating superannuation death benefit nominations
• Formalising family loans and documenting gifting arrangements
• Considering Binding Financial Agreements (BFAs) to safeguard family assets in the event of relationship breakdowns among beneficiaries
• Reviewing ownership structures of key assets (e.g., family home, investments) for tax and estate planning efficiency
• Discussing estate plans with beneficiaries to manage expectations and minimise potential disputes

A well-considered legacy plan not only protects your family’s financial future but also provides peace of mind knowing your intentions are clearly documented and legally supported.

So what should you be doing?

Whether you’re 10 years or 2 years away from retirement, it’s never too early to start planning. Here are the key takeaways for medical practice owners:

• Start now. Early planning offers more flexibility and better outcomes.
• Align your business and personal goals. These decisions are deeply interconnected.
• Structure your wealth. Use SMSFs, trusts, and companies to your advantage.
• Protect your risks. Insurance and legal agreements should be reviewed regularly.
• Exit with confidence. A complete plan ensures you retire on your terms.

If you’re thinking about retirement, or even just exploring your options, now is the time to act. Strategic advice can help you maximise your wealth, minimise risk and ensure a smooth transition for you, your family, and your practice.

For more information or to discuss your personal situation, contact your local William Buck Advisor.

The post How to successfully retire from your medical practice appeared first on William Buck Australia.

According to a 25‑year study by US wealth consultancy Williams Group, 70% of wealthy families lose their wealth by the second generation and 90% by the third.

The causes of this are not because families lack access to good investment advice. The breakdown usually comes from within — poor communication, unprepared heirs or a lack of shared purpose across generations.

As families grow and evolve, so too do the dynamics, responsibilities and potential risks. That’s why wealth transition planning has become one of the most important and complex, challenges facing successful families today.

The case for planning

Many families start thinking about intergenerational wealth transfer when a major life event prompts reflection — the sale of a family business, the prospect of retirement or the arrival of grandchildren. Others are navigating more delicate issues: divorce, blended families or uncertainty about how younger generations will handle the responsibility that comes with wealth.

Sometimes the realisation is more sobering: what would happen if a key decision maker were to pass away unexpectedly? Are others in the family informed, engaged and equipped to step in? Has there been open discussion about succession or have assumptions taken the place of planning?

These questions can be uncomfortable — but they’re essential. Without a clear plan, families risk not only financial fragmentation, but personal strain. When expectations aren’t aligned, even close-knit families can find themselves in conflict.

The real risks

One of the most surprising insights from studies into failed wealth transitions is that money itself is rarely the problem. Rather, the issues lie beneath the surface: breakdowns in trust and communication account for 60% of failures. A further 25% result from inadequate preparation of the next generation. In other words, the technical structures might be in place — but the people and the relationships, are not ready. Families can end up pulling in different directions, eroding both capital and connection over time.

A holistic approach to family wealth

Intergenerational planning isn’t just about tax efficiency or legal documents — though both are important. It’s about creating a framework that supports good decision-making, strong relationships and continuity over time.

That might include family meetings to explore what legacy means to you and how you want to see it carried forward. It may involve formalising roles and responsibilities or developing a family charter that outlines how key decisions will be made. For some families, it includes forming a family council or investing in financial education for younger members, so they feel confident participating in discussions.

Traditional structures such as family trusts, self-managed superannuation funds, investment companies and insurance bonds all play a role. So too do more personal decisions — like helping children buy a first home, paying for education, or supporting a start-up business idea. These can all be part of a broader, pre-death wealth transfer strategy that aligns with your values and objectives.

Is a family office the right fit?

For families with significant or complex wealth, a family office model may be worth considering. At William Buck we provide a tailored service that brings together financial, legal, investment and philanthropic advice under one roof, coordinated by a trusted adviser who understands the full picture.

Clients typically considering a family office tend to have multiple financial structures, cross-generational needs and a desire for long-term continuity. They may also be navigating sensitive family dynamics, have charitable ambitions, or want to ensure the next generation is not only financially secure, but also well-prepared to manage and grow the wealth.

Ultimately, a successful family office does more than just preserve wealth. It fosters alignment, strengthens relationships and provides reassurance that the family’s legacy is in capable hands.

Building a lasting legacy

The process of planning for intergenerational wealth transfer is as much about people as it is about assets. At William Buck we help families by facilitating honest conversations, presenting thoughtful strategies and developing clear documentation and governance.

This might involve succession planning, estate planning, shareholder agreements and binding financial arrangements — but also includes an understanding of what the family values most. Heritage, reputation, contribution to the community, mentoring and education are also forms of wealth and deserve to be preserved.

The goal is simple: to ensure that what you’ve built continues to serve your family — not divide it. With the right approach, families emerge from the process not only with a more secure financial future, but with stronger relationships and greater clarity about the road ahead.

Get in touch with a William Buck Wealth advisor today to learn how we can help you and your family plan for a future of prosperity and a legacy that stands the test of time.

The post From riches to rags? Why family wealth disappears without a plan appeared first on William Buck Australia.

However, this is just the beginning. One of the most important decisions that follows is choosing the right investment advice: advice that’s deeply informed, conflict-free and shaped around your family’s specific goals and values.

Why investment advice matters more than ever

As families accumulate significant capital, the nature of investment shifts. It becomes less about short-term returns and more about strategic allocation, protection against inflation, long-term growth and intergenerational transfer. Poor investment decisions or even misaligned advice can erode wealth and sow discord.

High-quality investment advice must therefore balance a range of considerations:

• Your family’s values and long-term vision: An effective adviser starts by codifying what ‘success’ truly means to the family— whether that is funding philanthropic causes, maintaining a lifestyle or stewarding an operating business. These guiding principles then shape every allocation decision, ensuring the portfolio becomes a financial expression of the family’s shared purpose rather than a collection of disconnected investments.

• Multi-generational timelines: Wealth intended to last 30, 50 or 100 years demands different risk, liquidity and asset-class choices from a portfolio designed for a single retiree. A robust strategy layers time horizons, matching near-term cash-flow needs with highly liquid instruments while channelling longer-dated capital into growth assets that compound over multiple market cycles, thereby increasing the probability that future generations inherit an increase of real purchasing power.

• Unique tax positions and estate plans: Families often hold assets across multiple jurisdictions and ownership structures — including trusts, companies and personal holdings. This complexity requires close coordination between your tax advisers, who optimise structuring and reporting; estate planning lawyers, who ensure wealth is transferred efficiently and according to your wishes; trust specialists, who manage fiduciary obligations and governance; and investment advisers, who align portfolio decisions with these structures. When these advisers work in unison, integrating strategies around asset location, timing of realisations and the use of estate-planning vehicles, it can significantly reduce tax and fee leakage. Done well, this alignment can generate incremental returns without taking on additional market risk.

• A desire for control and transparency: Large families typically prefer to understand exactly where their money is invested, why and on what terms. A best-practice advice model delivers granular reporting— look-through exposure analysis, performance attribution and risk dashboards— while giving family decision-makers clear levers to adjust strategy as circumstances evolve.

• A growing interest in and impact investing: Many modern families seek to ensure their capital aligns with environmental, social and governance priorities — not as a trade-off to returns, but as an integrated part of a disciplined investment strategy. Sophisticated advisory frameworks go beyond simple exclusions, incorporating robust ESG risk screening, active engagement with companies and rigorous measurement of real-world impact. These frameworks also identify thematic opportunities such as renewable energy infrastructure, social and affordable housing, sustainable agriculture and circular economy solutions. By evaluating these opportunities alongside traditional measures of return, volatility and diversification, families can pursue both positive societal outcomes and competitive long-term performance.

The right advice brings all this together, forming a robust strategy that simplifies complexity, drives performance and protects the family’s legacy.

Institutional grade capabilities, tailored for families

Families today require the same level of investment sophistication as major institutional investors—but with a bespoke application. A well-equipped investment advisor should offer:

• Expertise across all major asset classes, such as Listed equities (domestic and global), fixed income, property (private and listed), infrastructure (private and listed) and alternatives such as private equity, venture capital, private credit and exotic asset classes.
• Access to direct private deals, often through in-house corporate finance teams or strategic partnerships with other Family Offices, supported by the capability to conduct rigorous due diligence on bespoke and often complex opportunities.
• Truly professionally governed advice, delivered through a transparent, fee-for-service model that migrates conflicts of interest and puts the family’s interests first. Unlike most wealth managers; who are often tied to product manufacturers and/or influenced by commissions, this model ensures objective advice focused solely on long-term outcomes.

Building a bespoke investment framework

No two families are alike so their investment strategies shouldn’t be either. A thoughtful advisory relationship starts with a genuine understanding of your family’s story, emotional and financial priorities and ambitions. From there, a personalised framework can be built that might include:

This process typically includes:

• Holistic discovery: Not just balance sheets and investment preferences, but your philanthropic aims, family dynamics and long-term objectives.
• Whole-of-wealth structuring: Ensuring all financial and lifestyle assets, such as property, private investments and business interests, are considered in the portfolio construction.
• Rigorous asset allocation: Diversifying across time horizons, jurisdictions, currencies and liquidity profiles to reduce risk and optimise opportunity.
• Consolidated reporting: The ability to see quickly and simply understand the full picture, with clarity and confidence.

The outcome is not only a personalised investment strategy—it’s a governance framework that supports confident decision-making, now and in the future.

Integrated, not isolated

The best investment advice is never just about investments. It’s part of a broader ecosystem that includes tax, estate planning, philanthropy, insurance and governance. This is especially true for families operating across borders or using complex structures such as family trusts, SMSFs or corporate entities.

A well-integrated Family Office should offer coordination across all of these areas, eliminating silos and ensuring that everything is working in sync. When investment strategy is connected to your broader goals—whether that’s intergenerational transfer, lifestyle planning or charitable giving—it becomes more powerful and more effective.

The role of relationships and governance

Beyond technical skill, successful investment outcomes in Family Offices depend heavily on trust and communication. Investment advisers should engage not just with the principal decision-makers, but also with rising generation family members, spouses and external stakeholders when appropriate.

Having clear governance frameworks—such as Investment Committees, Family Councils or formalised roles for decision-making—helps ensure alignment, reduce emotion-driven choices and encourage participation across generations.

Many families also choose to embed education programs within their Family Office, helping the next generation gain confidence in investment, finance and stewardship so they can contribute meaningfully when the time comes.

In the end, sophisticated wealth deserves sophisticated advice. The right Family Office investment solution provides more than access to good investments—it delivers clarity, control and alignment. It reflects the family’s values, supports long-term objectives and allows each generation to contribute with purpose.

The investment environment is constantly evolving, but the right advice ensures families are always a step ahead—building resilience, seizing opportunity and navigating change with confidence.

Is your Family Office receiving the investment advice it needs and deserves? If you’re ready to explore how a bespoke, integrated solution can work for your family, speak to your William Buck adviser today.

The post How to ensure your family has the right investment advice appeared first on William Buck Australia.

Unaddressed issues

The primary issues that remain unaddressed in the current payroll tax legislation and guidelines include:

1. The exemptions provided in various states only apply to General Practice in line with bulk billing proportions (varies for each state) and as such all other practice owners are still caught within the ruling released in each state.
2. Flow of patient fees process: The Thomas and Naaz case highlighted the importance of how patient fees are handled. Practitioners who received patient fees directly to their personal accounts were not included in payroll tax assessments. This suggests that practice owners should consider implementing a process where all patient fees are paid directly to practitioners, with service fees collected separately. Queensland is the only state that has provided clarity around this process.
3. Influencing bulk billing percentages: Another critical issue is the ability to influence bulk billing percentages without exercising administrative control over practitioners. Victoria, NSW, and SA have introduced legislation for payroll tax depending on practices’ bulk billing percentages. Achieving a certain bulk billing percentage or influencing it could demonstrate administrative control by the practice over the practitioner, potentially classifying payments to practitioners as relevant contracts for payroll tax purposes.
4. Bulk billing dilemma: Many GP practices moved away from bulk billing prior to last year’s long-awaited increase in Medicare rates, largely because they needed to ensure their practices were financially viable. With the Federal Government’s push to bulk billing and the exemptions applying in key States, practices need to consider which way they will go to maintain financial viability.

Where do state governments stand?

Read our full state-by-state analysis for further detail.

Other implications

There has been much comment in the medical media regarding the potential claim for superannuation and other Commonwealth taxes to apply if payroll tax applies. This is unlikely to occur where arrangements have been properly documented.

Practice owners are advised to review and update their service agreements, patient forms, invoices and websites to reflect arrangements that comply with the latest rulings if that is the true nature of the arrangement. Trading as individuals rather than under a company or trust structure may also help mitigate payroll tax liabilities for practitioners.

The impact of the Uber case

The most recent case causing waves is the Chief Commissioner of State Revenue v Uber Australia Pty Ltd. The recent appeal overturned the original finding and deemed that Uber was liable for payroll tax on the payments made to drivers. The key elements to note in this case is around the agreements, the payment of drivers (net payment to drivers after deducting a fee) and the over performance of services. While there are similarities to medical practices the facts are different and it cannot be applied as such all medical practices. Given the amounts at stake for both parties this may not be the final decision.

Compliance by State Revenue Offices

If your practice is selected for an audit by the State Revenue Office it is important to seek advice before you reply to any request for information as once you provide information it is difficult to retract or change once it has been provided.

As part of any compliance/audit as the taxpayer you are entitled to provide a voluntary disclosure, these are treated more favourably and reduce any penalties that may be applied. It should be noted that a voluntary disclosure can be done at any time and not just at the time of an audit.

All the State Revenue Offices utilise data matching which means they access information from various sources, in relation to payroll tax the most relevant information comes from the Australian Taxation Office, Workcover authorities and banks. This is where the majority of compliance activity is generated from as well as tipoffs from the general public. While the offices don’t publish the statistics on the source of the audits, they regularly confirm that they do not target industries and rely on data matching, tip off’s etc.

If you are not satisfied with the outcome of the investigation you can always consider lodging an objection, as there are specific requirements around lodging an objection it is recommended this is done under advice from an accountant and/or lawyer experienced in this area.

What should you do next?

It is important to ensure you understand the relationship your practice has with any doctors using the facilities and that there are appropriate service agreements in place that reflect that relationship. You should also seek advice relevant to the state you are located in, if you work across multiple states this should also be factored into your advice. Ensure that your processes and internal workings are consistent with the agreements you have in place.

To ensure that your exposure is minimised and your contracts are reflective of what’s necessary, please contact your local William Buck health advisor.

The post Unresolved payroll tax issues and implications for practice owners appeared first on William Buck Australia.

The rulings were originally identical across all four states, Queensland, New South Wales, Victoria and South Australia (QLD, NSW, VIC & SA), in line with the Payroll Tax Harmonisation Agreement. However, each state then implemented different amnesties and subsequent amendments. These rulings establish the circumstances under which each state would deem a contract to be ‘relevant’ and provide examples showcasing some exemptions and how they might apply. Queensland has modified its ruling twice since its first release, so it now differs from other states and later provided a full exemption to GPs. After much lobbying by various industry groups, Victoria, New South Wales, and South Australia have introduced legislation providing exemptions for bulk billing services, which differ for each state. This has led to significant discussion around payroll tax and medical practices.

As each state has different thresholds, rates of tax, amnesties and audit activity, we have provided a state-by-state (or territory) analysis of current positions below. This update reflects the most recent developments in payroll tax across Australia.

Australian Capital Territory

The ACT Government had provided an amnesty for GP practices that bulk bill 65% of their patients for two years to 30 June 2025, practices had needed to register with ACT Revenue and MyMedicare to qualify… The ACT Revenue Office has provided examples of when they believe relevant contracts will apply. In July 2025, the ACT Government waived the requirement for a 65% target. This is a great boost for ACT practices and their financial viability. Although ACT is one of the lowest in bulk billing, this still contributes to broader developments in payroll tax for medical practices.

New South Wales (NSW)

The NSW Revenue Office released a Payroll Tax Ruling on 11 August 2023 in line with the other states. After consultation with peak bodies, a 12-month pause on audits was announced from 4 September 2023 to 3 September 2024, to allow practices to work through issues. During the pause, interest or penalty tax was not applied to any unpaid payroll tax. Following the completion of the pause, legislation was introduced to provide a rebate for practices where GP services are bulk billed. The ‘relevant proportion’ in metro Sydney is at least 80% and in regional areas at least 70%.

The rebate applies to the amount that is considered a relevant contract amount. When a medical centre has both contractor and employee GPs, the ‘relevant proportion’ used to assess rebate eligibility must consider all GP services provided by both groups. However, if the eligibility threshold is met, the rebate will only apply to the amounts paid to contractor GPs under a relevant contract.  The ‘Contractor’ section of the payroll tax return contains the disclosures required for GP medical practices to claim the rebate.

Northern Territory

The Northern Territory has provided no details in relation to GP practices; however, the threshold for when payroll tax applies increased on 1 July 2025 to $2,500,000. However, any future changes to the policies for payroll tax in the Northern Territory could mirror broader national reforms.

Queensland

Queensland has provided a full exemption for wages paid by a GP practice to GPs via an amendment to the Payroll Tax Act.

The Queensland position is very clear in that payments made by patients directly to individual practitioners will not be considered liable for payroll tax. The latest Ruling expands on comments made about third-party arrangements, explaining that patient fees cannot be made to practitioners via entities, including trusts or companies. It also excludes from the exemption arrangements where funds may be held by major banks or institutions before being paid to the practitioner. This is a key example of how the QLD state revenue payroll tax policy differs significantly from other states.

South Australia

General practices in South Australia were able to register for a payroll tax amnesty that covered the period from 1 July 2018 to 30 June 2024. The majority of practices that applied for the amnesty have been advised that the arrangements they have with their general practitioners are considered by Revenue SA to be ‘relevant contracts’ for the purposes of payroll tax. These practices were expected to report and pay payroll tax from 1 July 2024.

From 1 July 2024, an exemption is now available for payments relating to bulk-billed consultations.

The additional expense for payroll tax in SA will significantly affect most general practices, with many expected to increase patient fees to cover the cost.

Tasmania

There have been no concessions or amnesty announcements from Tasmania. Both sides of Government confirmed during the 2024 election campaign that if elected, the payroll tax would not apply to contracted GPs, which is a notable position in the conversation of payroll tax in Tasmania.

While the state has not released a ruling, they are part of the Harmonisation Agreement, which means any legislation, if implemented, is likely to be similar to other states across Australia, as the Tasmanian payroll tax legislation includes a ‘relevant contract’ definition. Payroll tax does not seem to be high on the agenda for the Tasmanian Government.

Victoria

On 11 August 2023, the State Revenue Office of Victoria released the ruling PTA-041 Relevant contracts – medical centres. In May 2024, the Government announced that all GP practices would receive relief from prior assessments on payments to contractor GPs, and this would continue up until 30 June 2025 with the Treasurer utilising their ex-gratia powers..

Further to this, the Victorian Government announced an exemption from payroll tax payments to contractor and employee GPs from 1 July 2025 for GP services that are fully funded (bulk billed). The legislation around this exemption was introduced in October 2024 and includes a formula for calculating the exemption. The formula is based on the total proportion of income received that is fully funded (bulk billed) and this is applied to GP wages.

As part of the 2025 annual reconciliation, medical centres are requested to provide a figure for Exempt GP wages. It is recommended you seek advice before providing this figure.

Victoria has the lowest tax-free threshold for payroll tax ($1,000,000 from 1 July 2025, previously $900,000) of all the states. This means that Victorian practices are more likely to be subject to tax. Understanding the new medical practice payroll tax ruling is vital for GPs operating in the state.

Western Australia (WA)

Payroll tax legislation in WA is different from other States, particularly around the treatment of contractors.

Under WA payroll tax legislation, the totality of the relationship between the contractor and the party they are providing services to needs to be examined. This means it is more of a ‘common law’ test, which has been established in the courts.

WA GP practices, hence, need to have service agreements in place with their doctors, which accurately reflect the way they interact, to ensure that the relationship between doctor and practice is a genuine contractor relationship and not subject to payroll tax. Of course, several other factors need to be considered, including work hours, rosters, and leave, as well as the collection of patient fees, invoicing, advertising, and financial records.

The WA Government has said the $1 million tax-free threshold means that a majority of GPs are not subject to payroll tax, and it does not intend to change provisions. Nonetheless, practitioners must be cautious in interpreting the payroll tax WA rules, as they differ from the harmonised states.

Below is a summary of the current thresholds and rates in each State/Territory effective 2025/2026.

Keeping up to date with changes in payroll tax for medical practices is essential to remain compliant as payroll tax in Australia evolves. To ensure that your exposure is minimised and your contracts are reflective of what’s necessary, please contact your local William Buck health advisor.

The post Payroll tax for medical practices: a state-by-state analysis appeared first on William Buck Australia.

Let’s say the company has wound down its operations and is no longer trading, or a group of entities has been restructured, rendering one or a number of entities in that group redundant. Where there are no outstanding liabilities or the liabilities do not exceed the company’s assets, this presents the opportunity for a solvent wind up. There are a few options available depending on the circumstances of the company. These include:

• Members voluntary liquidation
• Voluntary deregistration
• ASIC-initiated company deregistration

Members Voluntary Liquidation

This type of liquidation is only possible to undertake if the company is solvent. Solvency is the ability of a company to pay its debts as and when they fall due. This is not always a straightforward assessment and may require expert advice in situations where contingent liabilities exist.

To commence a member’s voluntary liquidation (MVL), a resolution must be passed at a directors meeting declaring the company is solvent. A shareholders meeting must then be held, and a special resolution passed, which involves 75% of shareholders in attendance voting in favour, to wind up the company.

There are tax benefits with distributing a company’s assets through an MVL, allowing shareholders to access tax concessions through small business CGT concessions and the distribution of pre-CGT reserves. It can also be seen as a more thorough solution to deregistering a solvent entity, as reinstatement requires an application to the Court.

Voluntary Deregistration

This requires directors to make an application to the Australian Securities and Investments Commission (ASIC) to deregister the company subject to the following criteria voluntarily:

All shareholders of the company must agree to the deregistration

• The company must not be carrying on a business at the time of the application
• The company assets must be worth less than $1,000
• The company has no outstanding liabilities (e.g., unpaid employee entitlements)
• The company is not involved in any legal proceedings, and
• The company has paid all fees and penalties payable to ASIC.

The application to ASIC requires directors to declare that the company has met the above criteria formally. If it is found that the company did not meet the necessary criteria, this may be considered a false or misleading statement to ASIC which carries a maximum penalty of five years imprisonment.

ASIC-initiated Company Deregistration

If a company remains dormant for a long period of time, ASIC may take action to deregister it if it meets the following criteria:

• The company has not paid its annual review fee within 12 months of the due date
• The company has not responded to a company compliance notice, has not lodged any documents in 18 months, and ASIC thinks it’s not in business, or
• The company is being wound up, and there is no liquidator.

ASIC has the ability to reinstate the company, and if this occurs, all ASIC annual review fees from the years that the company was deregistered will become payable.

Winding up an insolvent company

In situations of corporate insolvency, where a company is unable to meet its financial obligations, there are different types of insolvency appointments that can be initiated. These often depend on the outcome sought by a director or a creditor and who is initiating the process. These include:

• Creditors Voluntary Liquidation
• Voluntary Administration
• Court Liquidation

Creditors Voluntary Liquidation

Despite what the name suggests, a Creditors Voluntary Liquidation (CVL) is not initiated by a creditor. Commencing this type of appointment requires the directors to pass a resolution that the company is insolvent. It also requires a general meeting of the company’s shareholders to pass a special resolution in favour of winding up the company. Obtaining advice from a qualified insolvency practitioner, such as a member of the Australian Restructuring Insolvency and Turnaround Association (ARITA), is critical to ensure the correct process is being followed and that the stakeholders involved understand the potential implications of initiating the winding up process.

We touched on the meaning of solvency and what it takes to pass a special resolution earlier.

You may be asking, in what scenarios would a CVL be the right option for me?

In the current economic climate, many businesses are experiencing financial hardship. Rising interest rates are putting pressure on the company’s reserves. The rising cost of materials, particularly in the construction industry, has resulted in large players exiting.

Following a moratorium on debt recovery action during the pandemic, 2024 has seen the ATO recommence recovery of outstanding tax dollars. This has resulted in thousands of director penalty notices (DPNs) being issued to directors in respect to outstanding tax liabilities. If a DPN is not acted on within 21 days of the issue date, this gives the ATO an opportunity to pierce the corporate veil and make a director personally liable for the company’s tax debts.

Depending on the type of DPN issued, directors may avoid personal liability for the company’s tax debt if they appoint a liquidator or voluntary administrator within 21 days of the date of issue. This is where a CVL can offer directors in this situation some peace of mind.

Voluntary Administration

This appointment can commence by directors passing a resolution once they have determined that the company is insolvent or likely to become insolvent. Less commonly, a secured creditor may also appoint a voluntary administrator.

The benefit of a Voluntary Administration (VA) is that it doesn’t necessarily lead to the cessation of the company. A VA allows for a Deed of Company Arrangement (DOCA) to be proposed, which may involve the sale of a company’s business and/or assets. A DOCA typically involves debt restructuring to allow the company to settle its obligations in a manageable way. This type of appointment can afford the company some breathing space and delay having to pay creditors while directors consider the best course of action moving forward.

Appointing a voluntary administrator also relieves directors from incurring further company debts whilst insolvent, which would otherwise increase any insolvent trading claim made against them were the company to be liquidated.

Once a voluntary administrator is appointed, they will assess any DOCA that is proposed and recommend the best option for both the business and its creditors, being either of the three following options:

• Give control of the company back to the directors
• Execute a DOCA, or
• Place the company into liquidation.

Ultimately, creditors will decide on the outcome during a meeting and will consider the voluntary administrator’s recommendation in forming their decision.

Court Liquidation

A creditor can apply to the court to wind up a company of the company, a contributory, a director, a liquidator, ASIC, a ’prescribed agency’ or the company itself. A creditor usually applies to wind up a company if other debt recovery options have failed. Before taking this step, it is helpful for the creditor to consider the commercial benefit as it can be a costly process. An insolvency practitioner may be able to assist you in piecing together various sources of financial information to give you an idea of what the outcome may be for creditors should the winding up application succeed.

To initiate a court liquidation process, a creditor will serve a Statutory Demand on the company and may need to complete the necessary bankruptcy form before proceeding to court. If the company fails to pay the sum demanded within 21 days of the making of a statutory demand, the creditor may proceed to make a winding up application via court. Following a winding up hearing the court may order the appointment of a liquidator, often referred to as a bankruptcy trustee in this context, to oversee the dissolution of the company.

Winding up a solvent company

Winding up a solvent company through a Members’ Voluntary Liquidation (MVL) provides a dignified exit strategy for businesses that can still meet all financial obligations within 12 months of ceasing operations. The process should be undertaken with guidance from a financial advisor to ensure full comprehension of potential financial and tax implications.

It begins with the company’s directors making a Declaration of Solvency, affirming the company’s ability to settle its debts in the stipulated timeframe fully. An inaccurate declaration can lead to severe penalties.

Following the Declaration of Solvency, the company’s shareholders must pass a special resolution with at least a 75% majority to initiate the winding up. A liquidator is then appointed to manage the dissolution process, overseeing the sale of assets and ensuring all creditors, secured and unsecured, are compensated.

An MVL not only facilitates the orderly closure of the company but often results in a distribution of surplus assets to shareholders, ensuring all legal and financial responsibilities are handled efficiently while preserving the company’s reputation and integrity.

A Proactive Approach

Allowing a company to continue to exist when it is no longer trading or no longer solvent exposes both the company and its directors to ongoing administration costs and also to potential creditor and legal claims.

In some circumstances, creditor action might put a company in a position where it is unable to continue to trade solvently and directors must seriously consider whether they need to appoint a liquidator or external administrator to avoid personal exposure to insolvent trading recovery proceedings.

In recent times the ATO has been issuing credit default notices against companies’ public credit agency ratings which can have significant implications on a company’s lines of credit with lenders and suppliers. A default notice can trigger a covenant breach which could give a creditor the right to cancel contracts and potentially initiate wind up proceedings.

Garnishee notices issued by the ATO against company’s bank accounts and directly to debtors is becoming more common. These legitimate recovery actions can have immediate impact on a company’s ability to access sufficient working capital to continue to trade.

Getting ahead of the impact on a company’s solvency by obtaining advice from an insolvency practitioner in these situations is often key to the company’s chances of survival or to it’s orderly wind down. Often, the directors’ personal protection from insolvent trading claims relies on the timely appointment of a liquidator or voluntary administrator.

If you would like to have a confidential discussion on what options might be suitable for you, please contact your local William Buck Restructuring and Insolvency expert.

The post Options available to wind up your company appeared first on William Buck Australia.

In 2023, the Australian Securities and Investments Commission (ASIC) reported that 41% of SME failures were linked to poor financial control. Manufacturing businesses made up 13% of all insolvencies — evidence that better financial governance is required.

The failures of Australian manufacturing businesses Qenos (2023), Tritium (2023) and Highline Caravans (2024) illustrate that operational strength alone is not enough. These businesses were crippled by high labor costs, volatile and increasing energy costs, under-capitalisation, the need for investment in new plants, excessive debt and weak financial controls.

Today, with new tariffs and rising protectionism reshaping global trade, Australian manufacturers face new pressures and opportunities. Businesses with resilient governance structures, clear escalation protocols, transparent financial reporting, diversified supply chains and proactive risk management are adapting faster and more successfully.

Governance must be flexible enough to adjust as business conditions evolve. Frameworks that anticipate change and enable responsive decision-making are a critical advantage.

Good governance is about implementing and monitoring practical systems:

• Internal control systems which minimise the potential for errors or fraud
• Accountability structures that support sound decisions
• Board oversight that challenges assumptions and
• Risk management analysis and decision making that addresses challenges beyond immediate threats.

For smaller manufacturers, the discipline of governance is equally essential. Even a modestly sized board can drive accountability, improve lender confidence and strengthen supplier and customer relationships. Appointing independent non-executive directors or external advisors can provide valuable complementary perspectives, sharpen oversight and encourage rigorous decision-making. Financial institutions also assess governance quality when reviewing credit applications, particularly in sectors exposed to cost volatility or offshore supply dependencies.

Governance practices directly strengthen operational resilience

Manufacturers with formal risk registers, escalation policies and contingency plans have navigated workforce disruptions, supply chain bottlenecks and shifting customer demands far more effectively since the COVID-19 pandemic.

Research by the Australian Institute of Company Directors (AICD) in 2023 found that businesses with structured governance frameworks were 25% more likely to survive over the long term. Similarly, a 2023 Australian Industry Group survey found that manufacturers with formal governance arrangements achieved higher productivity and faster recovery after economic disruptions.

Manufacturers working with the Advanced Manufacturing Growth Centre (AMGC) demonstrated stronger performance during supply chain crises, using governance frameworks to diversify markets, drive innovation and secure new investments. Formal governance structures provided the foundation for these businesses to expand into new export markets, negotiate better financing terms and strengthen customer loyalty.

Some practical steps manufacturers can implement immediately to enhance resilience and address opportunities are scenario planning, stress-testing financial assumptions, maintaining liquidity buffers and involving the board and management in risk discussions.

Good governance is essential for Australian manufacturers to successfully navigate solvency and grow operations. In an industry exposed to supply chain disruptions, rising costs and geopolitical tensions, good governance can be the difference between resilience and collapse.

If you are interested in good governance could help your manufacturing business, contact your local William Buck advisor.

The post How governance has become a strategic edge for manufacturing businesses appeared first on William Buck Australia.

Adelaide accounting and advisory firm William Buck is now accepting expressions of interest for the second year of its Regional Scholarship program, following the successful launch that saw Loxton student Tyler Hobby become the inaugural recipient in 2024.

The scholarship, which provides $15,000 over three years plus mentorship and work experience opportunities, was created to address the unique challenges faced by regional students pursuing
commerce-related tertiary education.

Adrian Chugg, Managing Partner, William Buck South Australia said this scholarship would further strengthen the firm’s ties with regional South Australia.

“The scholarship reflects William Buck’s deep regional roots, with one-third of the Adelaide office’s partners originating from regional South Australia. Regional communities have been fundamental to our growth and success. This scholarship is one tangible way we can invest back into these communities and help talented young people build careers in finance and accounting,” said Mr Chugg.

“Tyler’s journey this year has validated everything we hoped to achieve with this program. Watching him transition into his university studies, while starting to build meaningful connections with our team,
demonstrates the real impact this scholarship can have.” The comprehensive support package extends well beyond financial assistance. Recipients receive dedicated mentorship from William Buck professionals who understand the regional experience firsthand, having made similar transitions themselves. The program also includes four weeks of paid work experience during the student’s second year and potential employment pathways upon graduation.

Tyler Hobby, currently studying Bachelor of Accounting and Finance at Flinders University, discovered the opportunity through his school’s social media just one day before applications closed. His success story
highlights the program’s accessibility and the untapped talent in regional communities.

“The financial support helps with the practical challenges of studying away from home, but the mentorship and industry connections will be invaluable. Having mentors like Ben Trengove and Ben Davies, who both come from regional backgrounds, means they truly understand the journey,” said Tyler.

With regional students often facing additional barriers, including relocation costs, limited local opportunities, and distance from professional networks, the scholarship addresses these specific challenges while nurturing the next generation of finance professionals. The timing proves particularly relevant as the accounting industry faces ongoing talent shortages. William Buck’s investment in regional talent represents a strategic approach to building a sustainable workforce while maintaining strong community connections.

Expression of interest are open for students beginning their first undergraduate degree in and Accounting, Finance, Commerce, Business, or related fields at a South Australian university in 2026.

Full application details, eligibility criteria, and application forms are available at: https://williambuck.com/lp/regional-scholarship/

The post William Buck opens applications for their 2026 Regional Scholarship program appeared first on William Buck Australia.

Entities required to prepare a sustainability report

Entities fall within the scope of the legislation (s292A of the Act) if they have an obligation to prepare and lodge financial reports under Chapter 2M of the Act and meet any of the following three criteria, assessed at financial year-end:

• Satisfy two out of three financial size thresholds outlined in the table below;
• Are registered under the NGER Act or required to register under the NGER Act; or
• Being an asset owner such as a registered scheme, registerable superannuation entity or retail corporate collective investment vehicle (CCIV) with consolidated assets exceeding the specified threshold.

A phased approach to the first year of reporting will apply to entities in scope. It will commence for financial years beginning on or after 1 January 2025 for Group 1 entities, 1 July 2026 for Group 2 entities, and 1 July 2027 for Group 3 entities, as shown below.

Once an entity is subject to these reporting requirements, it must submit a sustainability report annually unless it no longer meets the criteria. Entities should carefully assess their legal reporting obligations to ensure compliance. If uncertain about their reporting requirements, they should seek legal advice.

A common misconception is that Australian small businesses that do not meet the size thresholds for annual sustainability reporting will be unaffected by the new requirements. However, they may still be impacted if they are part of the value chain of a larger entity with reporting obligations. Larger businesses subject to the legislation may require their suppliers and partners to provide climate-related information to meet their compliance requirements. As a result, entities outside the scope of the legislation may still need to collect and disclose certain climate-related data, such as greenhouse gas emissions, when engaging with their customers or suppliers.

What are the sustainability reporting standards?

The AASB issued the first sustainability reporting standards in September 2024, which are:

• AASB S1: General Requirements for Disclosure of Sustainability-related Financial Information – a voluntary Standard
• AASB S2: Climate-related Disclosures – a mandatory  Standard.

As a starting point when applying AASB S2, entities are required to identify all climate-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term.

The Australian Government has adopted a ‘climate first, not only’ approach to sustainable finance, which prioritises climate-related disclosures. While AASB S1 remains voluntary, its broader framework for sustainability-related disclosures could be used in the future as we move towards a more comprehensive sustainability reporting regime under evolving Australian sustainability standards.

Challenges Mandatory Sustainability Reporting Poses

While the new sustainability reporting framework presents opportunities for value creation, entities will need to navigate several challenges, including:

• • Data Availability and quality – Ensuring access to high-quality, comparable and verifiable data, often requiring investment in new systems and processes.
  • Integration with Financial Reporting – Aligning climate-related financial disclosures with financial reporting, incorporating forward-looking estimates and scenario analysis.
  • Compliance costs and resource allocation – Balancing the financial and operational burden of meeting evolving regulatory requirements while ensuring long-term strategic benefits.
  • Evolving regulatory landscape – Keeping up with frequent changes in sustainability reporting standards and frameworks to ensure ongoing compliance and best practices.
  • Assurance and transparency – Strengthening governance and controls to support reliable disclosures that meet stakeholder expectations.

Practical steps to address the challenges of the new Australian Sustainability Standards

Entities impacted cannot afford to wait. Immediate action to establish the governance, strategy, risk management and data requirements is critical for ensuring compliance with the new legislation and positioning for long-term success.

To begin your journey, here are some key immediate action items that you could implement to deal with these challenges:

1. Educate and align leadership
   Familiarise yourself with the new sustainability reporting framework, which includes gaining an understanding of the disclosure requirements under AASB S2 Climate-related Disclosures, a mandatory disclosure standard for prescribed entities. Ensure that boards and executives are fully informed about the requirements and implications of the new regulations. Establish accountability for climate-related reporting at senior levels, identifying who is responsible and taking the lead, as well as the entity’s resource needs to meet and manage ongoing reporting requirements.
2. Conduct a gap analysis under the four key pillars prescribed under the disclosure requirements
   Assess current practices against the four key pillars— governance, strategy, risk assessment, metrics, and targets —under the new climate-related financial disclosure requirements. This will help identify specific areas where governance, processes and data availability fall short of the disclosure requirements. Prioritise areas needing immediate attention, such as data collection systems, governance structures, strategic and risk management approaches and the appropriateness of applicable metrics and targets.
3. Develop an implementation roadmap
   Consider the internal capacity, resources and expertise required for managing reporting obligations. Outline clear steps, timelines and resource allocations for meeting compliance deadlines and incorporate flexibility to adapt to evolving requirements or emerging guidance.
4. Data and technology
   Based on the outcomes of the gap analysis, consider whether investment is needed to enhance systems for collecting, verifying and reporting climate-related financial information. This includes the potential need to invest in tools to support accurate, complete and consistent reporting.
5. Pilot testing and pre-assurance readiness
   Prepare a trial sustainability report to test data collection and reporting processes. Identify and address issues before formal reporting and consider conducting a dry run to assess assurance readiness and obtain feedback on reporting processes.

Our expert audit and assurance advisors understand the opportunities and challenges businesses face in adapting to Australia’s new sustainability reporting framework. We can help you navigate these opportunities and challenges and stay ahead by explaining the reporting and assurance requirements and how your business is impacted. Sustainability reporting is a journey of continuous improvement, and if you’d like support during your implementation journey across your assurance needs as you prepare for formal reporting under the new legislation requirements, contact your local William Buck Audit and Assurance advisor.

The post Mandatory sustainability reporting has arrived in Australia appeared first on William Buck Australia.

A VCFO provides the strategic financial leadership a scaling tech company needs, but on a flexible and cost-effective basis. This allows founders to concentrate on building their product and acquiring customers, secure in the knowledge that their financial foundation is solid. By engaging a VCFO, startups gain access to senior financial expertise that would typically be out of reach, ensuring strategic financial decisions are made from day one.

Budgeting and cashflow forecasting

One of the most pressing questions for any startup founder is when will we need to raise more capital?

A VCFO directly addresses this by establishing robust budgeting and forecasting processes.

By setting a detailed annual budget, the business can manage its spending, effectively track performance against key milestones and achieve greater visibility over its financial position. Even during the pre-revenue stage where there are only outgoings, understanding precisely where funds are being spent is crucial. Investors will demand transparency, financial discipline and accountability and a well-structured budget is the primary tool for demonstrating this.

A detailed budget is the foundation for an accurate cashflow forecast. This forecast is essential for managing burn rate and identifying potential funding gaps well in advance, allowing founders to be proactive rather than reactive in their capital raising efforts. It provides a clear runway and empowers the leadership team to make informed decisions about burn rate and strategic investments.

Financial strategy and planning

Beyond the day-to-day financial management, a VCFO plays a pivotal role in shaping a startup’s overarching financial strategy. This involves setting clear short, medium and long-term objectives, and aligning the company’s financial plan with its ambitious growth targets.

A VCFO’s strategic contributions include:

• Developing sophisticated financial models to support funding rounds and present a compelling case to potential investors.
• Clearly communicating financial performance and projections to the board and external stakeholders, ensuring the narrative is consistent and credible.
• Assisting in strategic resource planning to ensure capital is allocated efficiently across product development, hiring, marketing and operations.

They act as a critical partner during key growth phases from seed funding through to series A and beyond. Their guidance helps the company scale with clarity and confidence, avoiding common financial pitfalls that can derail a promising tech venture.

Compliance and board reporting

While often seen as the less exciting side of financial management, compliance is absolutely essential. Startups that overlook their regulatory obligations risk significant penalties and reputational damage. Further, these matters will be scrutinised during a due diligence process and will often impact the company’s ultimate valuation, A VCFO can help ensure the company stays on top of its commitments to governing bodies and stakeholders.

This includes managing compliance related to:

• Australian Taxation Office (ATO) obligations such as tax returns, Business Activity Statement (BAS) lodgements and payroll compliance.
• Australian Securities and Investments Commission (ASIC) requirements.
• Other relevant regulatory bodies specific to the tech industry.

While a VCFO may not personally handle every lodgement, they generally help oversee the entire process. They ensure compliance is managed correctly, implement systems to track deadlines and connect the company with the right accountants, tax advisors or legal professionals when specialised advice is needed.

Furthermore, a VCFO elevates the quality of financial communication. They prepare professional board-ready financial reports and investor packs that go beyond raw data. These reports provide actionable insights, key performance metrics and a clear narrative that contextualises the numbers. This supports effective governance and strengthens investor relations by maintaining a high standard of transparency and clarity.

A VCFO delivers the financial rigour and strategic foresight your tech company needs to succeed. They provide the framework for sustainable growth, allowing you to focus on innovation.

If your tech company is ready to build a strong financial foundation, talk to a William Buck specialist today.

The post Why your tech startup needs a virtual CFO appeared first on William Buck Australia.

The firm continues to grow to meet increasing demand for the firm’s services. Four of the five new partners have been promoted from within, a result of its investment in developing people to drive internal career progression.  

One partner joins as part of a merger with Dot Advisory as William Buck expands operations in the ACT to service the vibrant private businesses of the region and support the government’s desire to work with firms that do not pose a conflict of interest with consulting divisions. 

These promotions and appointments span Tax, Business Advisory, Wealth Advisory, Superannuation and Audit & Assurance, strengthening William Buck’s accounting and financial advisory offering to mid-market clients. 

More broadly, over 160 employees across the firm have received career progressions or promotions effective 1 July, reflecting the high-performance culture and talent at William Buck.  

Greg Travers, Chair of William Buck Australia and New Zealand, said the firm’s growth allows them to expand the services and expertise they offer while staying true to their values of building strong client relationships and having a genuine positive impact on clients, people and the community.   

“We are promoting our younger leaders throughout the practice and strengthening our services to clients. Our goal is to be an employer of choice and we are committed to creating an environment where people can do and be their best. This is evident in our employee engagement scores, which have led us to win a Best Workplace award for the third consecutive year,” said Mr Travers. 

“Brandon See, Chartered Accountant, joined William Buck straight out of university in 2012. He followed the firm’s clear progression journey from Graduate to Accountant, Senior Accountant to Manager and then Principal to become Partner at 34. His success is a credit to his ability to understand his clients’ needs and to our leaders who have mentored him and provided career-defining opportunities,” said Mr Travers. 

“Kuan Yin Lau joined in 2020 as an Assistant Manager and progressed through the roles of Manager, Principal and now Partner in Audit & Assurance. Our firm recognises her management skills and industry insight, while supporting her personal and professional growth with a nurturing and consultative leadership culture. We appreciate her passion for workplace equity and social inclusion and support her involvement in business organisations and not-for-profits that empower girls and young women to develop leadership skills.” 

“Lloyd McGeary joined William Buck in 2017 and thrives in the mid-tier model where the size of the firm allows for meaningful relationships with clients and real work-life balance. He has a strong sense of purpose in earning the trust and loyalty of his clients and is great at solving their complex problems. Lloyd’s success also reflects the contribution of the people around him, whose support, guidance and knowledge shaped his professional journey,” said Mr Travers. 

Partner promotions and appointments effective 1 July: 

• Brandon See, Business Advisory (WA) 

• Kuan Yin Lau, Audit & Assurance (WA) 

• Lloyd McGeary, Business Advisory (VIC) 

• Peter Andreassen, Superannuation (QLD) 

• Ross Corcoran, Business Advisory (ACT) 

Principal promotions effective 1 July:

• Alessandra Forero, Wealth Advisory (SA) 

• Amanda Simmons, Business Advisory (VIC) 

• Annalise Curran, Business Advisory (VIC) 

• Antony Delo, Tax (SA) 

• Belinda Trimble, Business Advisory (NSW) 

• Chris Franco, Wealth Advisory (SA) 

• Deepthi Narula, Audit & Assurance (NSW) 

• Derek Le, Business Advisory (QLD) 

• Jessica Marshall, Wealth Advisory (VIC) 

• Michael Marin, Audit & Assurance (ACT) 

• Nick Brown, Business Advisory (NSW) 

• Rhiannan Canto, Business Advisory (NSW) 

• Skye Totham, Business Advisory (NSW)  

• Zac Irvin, Audit & Assurance (VIC) 

• Zi Liu, Audit & Assurance (VIC) 

The post William Buck grows to over 150 partners with new appointments appeared first on William Buck Australia.

With a proposed start date of 1 July 2025, individuals who may be affected should now consider the nuances of this tax and how it interacts with their broader financial objectives.

A major source of concern is the proposal to include unrealised capital gains in the definition of ‘earnings’ for Division 296 purposes. Simply put, this means an individual’s superannuation could be taxed on the growth in the underlying asset values, even if those assets haven’t been sold and the cash realised. While this presents a new dynamic, particularly for assets prone to valuation swings, it’s important to assess the implications strategically.

As the Senate is scheduled to convene well after the proposed 1 July 2025 start date, this draft legislation leaves impacted superannuation fund members in a challenging position. Careful planning is paramount before making any hasty decisions – such as withdrawing funds or altering investment strategies – without fully understanding the potential consequences.

Key considerations for your superannuation

In the face of ongoing uncertainty surrounding how the draft legislation will take shape, it’s more important than ever to revisit the key considerations regarding your superannuation strategy – taking into account your personal circumstances, investment horizon and broader financial goals.

Asset allocation: Consider where to hold high-growth or potentially volatile assets. Is it optimal to house them within superannuation or could alternative structures be more effective? Any review must be holistic, weighing not just superannuation or tax, but also your broader financial circumstances.

Asset types: The nature of your assets and level of liquidity within superannuation requires careful planning. Holding illiquid or ‘lumpy’ assets, such as direct property, could pose challenges if this tax is introduced as drafted.

Review your overall structure: Take the opportunity to review and seek advice on your overall investment structures and to consider which investments are most tax-effective within different entities such as superannuation, companies or discretionary family trusts. These alternative structures may offer greater flexibility in managing tax outcomes and distributing wealth.

Age considerations: The impact of Division 296 can differ significantly based on your age and proximity to retirement:

• • Members who are nearing or are in retirement should consider various strategies such as managing drawdowns to potentially influence their Total Superannuation Balance, alongside careful review of their superannuation investment strategy.
  • Younger members will need to closely monitor their superannuation balances if they already have (or anticipate having) substantial amounts accumulated. This requires careful modelling and consideration of long-term asset allocations.

Estate planning implications: It’s important to understand how any changes you make in response to any tax or legislative updates could impact your estate and succession plans. Regular review and monitoring are key to ensure your arrangements remain aligned with your estate planning objectives.

Asset protection: While you may maximise tax effectiveness using particular structures, it’s important to balance this with protecting assets (whether in superannuation, or alternative entities).

Valuation requirements: The evidence supporting superannuation asset valuations are likely to come under increased scrutiny should this tax be introduced, particularly for self-managed superannuation fund (SMSF) trustees. Consider the administrative implications and potential costs associated with obtaining suitable valuation evidence to meet these ongoing requirements, weighing them against the benefits of their investment choices.

How will the tax work?

Consider the following scenario:

Emily has a superannuation balance of $2.9 million at 30 June 2025, which has grown rapidly due to a focus on high-growth international technology shares. Her balance reaches $3.5 million as at 30 June 2026. However, due to the volatility of the market, her Total Superannuation Balance drops back to $2.8 million by 30 June 2027.

Under the currently proposed measures, Emily will be subject to Division 296 Tax in respect of the 2026 year.  Assuming no contributions or withdrawals during the 2026 year, the calculation of the tax payable may be as follows:

For the 2027 year, assuming no contributions or withdrawals, there would be no Division 296 tax payable, nor refundable, given her balance went down.  However, Emily will have ‘transferrable negative superannuation earnings’ which she can carry forward to reduce the Division 296 tax that would otherwise be payable in future years.

Some things for Emily to consider:

• How does she feel about paying the Division 296 tax on the unrealised gains in one financial year, only to see those gains reduce if the market corrects the next?
• Is there liquidity within superannuation to pay the Division 296 tax, or will she need to use personal funds elsewhere?
• If Emily is many years away from retirement, should she consider revisiting her superannuation investment strategy? What about the impact on her overall financial objectives?

While these case studies are simplified, they show that the key considerations will depend on your specific circumstances, objectives and risk tolerance.

Consider another scenario:

David and Sarah, both aged 60, run a successful family business. Their SMSF owns commercial property from which their business operates, valued at $7 million at 30 June 2026. The SMSF also holds some cash. Due to the property’s significant unrealised capital gain, a portion of this gain could be subject to Division 296 tax assuming each individual’s Total Superannuation Balance exceeds $3 million at 30 June 2026.

Things for David & Sarah to consider: 

• Could they fund the Division 296 tax bill using their SMSF despite the ‘lumpy’ property asset?
• Should they instead fund the tax bill using personal funds? What if they don’t have the cash to do so?
• Are they prepared to obtain independent and supportable valuation data each year to value the property in the SMSF?
• Should they consider alternatives with the property? What if they sell it, what are the capital gains tax and other costs to consider?

When do they plan to retire? Should they consider restructuring their overall business affairs and how the property is held? And what about the impact on their overall estate plans?

Who needs to prioritise this review?

While anyone with a substantial superannuation balance should be aware of these proposed changes, certain individuals should engage in discussions with their adviser sooner rather than later:

• Those with a current Total Superannuation Balance approaching or exceeding $2.5 million;
• Individuals whose superannuation funds hold significant unrealised capital gains;
• Those with substantial illiquid assets (e.g. property) within their SMSF;
• Anyone concerned about the interaction of this tax with their estate planning or overall financial structuring.

The proposed Division 296 tax introduces new complexities into the superannuation landscape. With proactive advice and strategic planning, its impact can be effectively managed. The key is to avoid reactive decisions and instead develop a clear, holistic plan that considers your entire financial situation and long-term objectives.

To discuss how the proposed changes may impact you, contact your local William Buck advisor.

The post Navigating Division 296: strategic considerations for the $3m superannuation tax appeared first on William Buck Australia.

We have provided a comprehensive overview of Division 296 Tax: the proposed $3m super tax. This update will focus on the unique implications for Super SA schemes.

A key characteristic of the Super SA Triple S fund is its tax treatment. Unlike other superannuation funds, tax on the benefit is generally deferred and paid only upon withdrawal or rollover. If a person has less than $1.865 million in Super SA (this being the lifetime limit from 1 July 2025), they will generally pay 15% tax on that balance when they withdraw or roll to another fund, and 47% tax on the excess over $1.865 million.

By deferring when the tax is paid, Super SA Triple S balances will always be overstated, as the tax has yet to be deducted. Therefore, a person with $1,000,000 in Super SA Triple S may only really have $850,000 (15% less) when they access their super, and a member with $3,000,000 in Super SA Triple S may only have $2,186,000 (15% less on first $1.865 million and 47% less on next $1.135 million). While this can be a good thing as it allows people to have investment earnings on a larger account balance, it also makes an individual’s account balance appear larger in respect to other superannuation caps, including Division 296’s $3 million limit.

Division 296 and Super SA Triple S

Given Super SA Triple S overstates member balances by 15% (and potentially 47% on balances over $1.865m), members are more likely to be subject to Division 296 tax as their balances appear artificially higher.

For example, Susan has $1.5m (pre-tax) in Super SA and $1.6m in her SMSF, thus $3.1m total. She would be subject to Division 296 tax. If Susan rolled her $1.5m to her SMSF and paid the 15% exit tax (which is unavoidable), she would have $2,875,000 total and not be subject to Division 296 tax (unless her balance subsequently rose above $3 million).

Therefore, members of Super SA Triple S should consider whether they should roll their balances to other superannuation funds to lower their balance and potentially avoid or reduce Division 296 tax. This step should not be taken lightly. Professional advice should be sought to understand the positive and negative taxation consequences of such a change, as well as the investment options and performance of the alternative superannuation fund.

Furthermore, in the case that a Super SA Triple S member has more than $1.865 million, they could already be paying 47% tax on earnings. Therefore, if their total super balance across all funds is over $3 million and they pay Division 296 tax, they would theoretically be paying 62% tax on earnings.

Implications for Super SA Defined Benefit Scheme

Super SA has several Defined Benefit Schemes such as the Super SA Pension Scheme and Judges’ Scheme. If these are not granted an exemption, these Schemes could also potentially be faced with a higher Division 296 tax burden.

A defined benefit is normally an income for life, for example $100,000 per annum, and is normally indexed, thus potentially growing to $104,000 next year and so on.

From a Division 296 perspective, the $100,000 pa pension is likely to be capitalised using a formula by multiplying the pension by 16 and thus $100,000 per annum is the equivalent of $1.6 million of super.

The disadvantage is that when a pension rises from say $100,000 to $104,000 pa due to indexation, the $104,000 is now representing $1.664 million in super (16 x $104,000) of the $3 million super balance and thus potentially making the individual subject to more Division 296 tax if their combined super funds exceed $3 million.

Furthermore, as a defined benefit is generally a fixed income, the member has no ability to convert this to a lump sum to withdraw from super to help manage Division 296 tax.

Planning Considerations for Super SA Members

It is important to note again that Division 296 has not been legislated yet and the exact details could change. Therefore, members should be very careful before making changes to their superannuation strategy in the interim.

However, given the unique way the proposed $3m superannuation tax threshold may interact with Super SA funds, proactive understanding is prudent.

If you might be impacted by Division 296 generally and would like to understand the potential strategies available to you, please contact your William Buck advisor.

The post Navigating the $3m Super tax’s impact on your Super SA fund appeared first on William Buck Australia.

In the current economic environment, marked by increased regulatory scrutiny and a renewed global focus on base erosion and profit shifting (BEPS), cross-border related party financing remains a key area of compliance risk.

The Australian Taxation Office (ATO) has now finalised its position on interest-free loans between related parties through the release of Schedule 3 to Practical Compliance Guideline PCG 2017/4, which came into effect on 1 January 2024. This finalised guidance sets out the ATO’s compliance approach and risk assessment framework for outbound interest-free loans by Australian taxpayers to international related parties.

This long-awaited clarification replaces reliance on outdated materials and draft guidance and significantly shifts the compliance landscape. People with existing outbound interest-free loans must promptly assess their arrangements under the PCG framework, particularly given the high-risk categorisation that generally applies to such structures.

Now that the ATO’s updated views in respect of interest free loans have been published (even if in draft form), any existing interest free loan arrangements that do not fall within the lower risk zone in the schedule should be revisited as a matter of urgency as they present a high risk from a tax and transfer pricing perspective.

What is the ATO targeting?

The ATO’s transfer pricing rules aim to prevent profit shifting through non-arm’s-length financing arrangements. Interest-free outbound loans present a particularly high risk, as they can facilitate the artificial deferral or avoidance of Australian tax. Schedule 3 of their PCG targets this risk directly, particularly where loans are made to related parties in low-tax or no-tax jurisdictions, or to entities with limited repayment capacity.

Risk assessment framework – PCG 2017/4 Schedule 3

The PCG applies a risk-based approach to related party financing arrangements, assigning risk ratings from green (low) to red (very high). In the case of outbound interest-free loans, the ATO starts from the presumption that these arrangements fall within the amber (high risk) zone.

Key factors that may elevate the risk rating to red include:

• The borrower being located in a low-tax jurisdiction
• Weak or non-existent documentation
• Loans denominated in foreign currencies
• No clear intention or capacity for repayment

Once flagged, these arrangements are more likely to be selected for audit or review, particularly given mandatory disclosures in the International Dealings Schedule (IDS) and the Reportable Tax Position (RTP) Schedule.

How to mitigate transfer pricing risk

The finalised Schedule 3 outlines circumstances where an outbound interest-free loan may qualify for a lower risk rating – typically the blue zone (moderate risk). Factors supporting a lower risk classification include:

1. Where no formal agreement is in place but the loan is accounted for:

• The arrangement is more appropriately characterised as quasi-equity
• The parties had no commercial expectation of repayment
• Repayment is contingent on the borrower’s future financial capacity

Note: Recharacterising amounts as equity has broader tax implications, including treatment under thin capitalisation, dividend withholding tax and controlled foreign company rules.

2. Where a legally documented loan exists:

• The non-charging of interest can be supported as an arm’s length condition
• The borrower could not secure external funding on commercial terms
• The arrangement aligns with group treasury policy and industry norms

In all cases, robust documentation is critical – including loan agreements, group funding policies, board minutes and evidence of decision-making processes.

Next steps for businesses

With Schedule 3 now finalised, businesses must take urgent steps to:

1. Review all outbound interest-free loan arrangements currently in place
2. Assess each arrangement against the PCG risk framework
3. Document supporting evidence to justify the structure and terms
4. Consider restructuring arrangements to reduce tax risk (e.g., by introducing commercial interest or formalising terms)

For taxpayers with high or very high-risk ratings, early engagement with the ATO may be advisable.

In an era of heightened transparency, economic substance requirements, and real-time compliance monitoring, interest-free related party loans are squarely in the ATO’s sights.

If you’d like help with the ATO’s guidance on Interest-Free Related Party Loans, contact your local William Buck Advisor.

The post Interest-free related party loans under ATO scrutiny appeared first on William Buck Australia.

The do’s of small business tax planning

There are many things you ‘should’ be doing, or strategies to adopt, to make your end-of-financial-year tax planning as seamless as possible. They can be things such as:

• year-round recordkeeping
• investing in software training
• writing off expenses and business tax deductions
• year-end planning.

Ensure year-round recordkeeping

Recordkeeping is not just our biggest ‘do’, it’s an activity that should be performed throughout the year, which can make all the difference come tax time. From submitting each transaction into your accounting system and separating personal from business items — the more you keep on top of things throughout the year, the less effort you’ll need to spend preparing for EOFY. Similarly, if you’re practising optimal recordkeeping, you’ll find it becomes easier each year. This is due to familiarisation as well as tech improvements.

Using intuitive accounting software like Xero and cloud folders like Fileshare will increase operational and workflow efficiencies, freeing up time to improve your product or service, consulting with customers and strategising.

These programs also enable document sharing with your accountants and other parties so that changes can be made in real-time and document control is maintained.
Which introduces our next tip…

Invest in software training

Time constraints can pose an issue, preventing owners from fully understanding the capacity of their accounting package. This is where the assistance of a tax advisor for small business owners can help greatly.

While the constant evolution of accounting software has simplified the bookkeeping for small business owners, not learning how to execute their various functions can be just as inefficient as manual processing. Set some time aside each year for training, ensuring everyone involved in the tax process understands the new features. You can also use this time to assess whether your accounting package is right for you.

Write off expenses to maximise tax deductions

Business tax deductions are an integral part of the tax process for small businesses. Continuous recordkeeping makes you less likely to miss any deductions that could reduce your tax liability. Start by reviewing your debtors, inventories and fixed assets accordingly to write-off any:

• debts that are not recoverable
• stocks that have become obsolete, and
• assets no longer able to generate revenue.

Many expenses can be written off if they have a legitimate purpose within the business. Costs such as commercial rent, equipment and business travel are all able to be written off to maximise your small business tax returns.

There is also the small business $20,000 instant asset write-off to consider for 2025. To be eligible, your business must have an aggregated turnover of less than $10 million.

Year-end planning

Make sure you take the time to forecast your likely profits and taxes applicable for the year ending. Ensure that you put aside cash to pay any remaining taxes and consider any additional deductions you can incur prior to year-end to keep the income down where possible.

The don’ts of small business tax planning

While there are many things you are encouraged to do either before the end of the financial year or when planning the upcoming one, there are certain things you shouldn’t do. You can avoid common tax mistakes by making sure you:

• don’t overlook key tax due dates
• don’t forget to maintain your financial records
• don’t ignore the importance of business advisory for tax planning
• never overdraw.

Don’t overlook key tax due dates

Due to heavy workloads, competing priorities, or confusion from working across various tax jurisdictions, small business owners sometimes struggle to prioritise their tax obligations. However, it’s highly important they’re prioritised, or you could be hit with ATO penalties and interest. Non-compliance can also flag you with the ATO for a more detailed review or audit.

One of the approaches the ATO is taking in the current year is to significantly reduce the ability to get an extension of time to lodge. They have also made it far more difficult to have interest remitted, and from 1 July 2025, any interest paid will now be non-deductible.

Contact a William Buck advisor or your chartered accountant to understand your tax obligations and prioritise key due dates. Advisers may be able to assist with entering an instalment arrangement with the ATO (if required).

Don’t exercise inadequate maintenance of financial records

As already noted, it’s important to keep up with your recordkeeping year-round. But it’s also important to do so correctly. Proper recordkeeping provides an accurate and reliable account of the financial position of a business, enabling the business owner to determine how it’s performing and identify opportunities to improve. Consider the following:

• lock all accounts relating to the financial year so that date remains accurate, ensuring easy transition into the new financial year, and
• create a separate copy of the accounts and back it up (print key reports like P&L, Balance Sheet and general ledger listing for the financial year and store them securely).

Don’t ignore the importance of investing in expert assistance

With cost-of-living pressure and high interest rates, we’re all looking for ways to minimise our expenses. But cutting costs on advisory services is highly inadvisable. Moreover, you shouldn’t make an important business decision without consulting a professional. Doing so could result in missed opportunities, non-compliance, a surprise high tax bill or increased commercial risk.

Don’t overdraw!

Finally, and this is a big one, if you have a company and you take money out of the business, make sure the net position of funds introduced, less any funds you withdrew, is not overdrawn.

If you have taken money out of the company, work with your advisors prior to year-end to determine whether the amount represents the following:

• salary and wages (report this on your Business Activity Statement)
• dividend (Dividend resolutions and statements to be prepared)
• formal loan agreement in place to meet the Division 7A requirements including the required term and ATO interest rates.

If you do not get the treatment correct, you may end up with a deemed dividend that will usually be a poor outcome for the company and yourself.

Final checks

Using a tax time checklist for business owners is one of the best ways to ensure your EOFY preparations are conducted correctly. Here’s a quick one for you to use:

Do	Don’t
Keep records year-round	Miss deadlines
Invest in software training	Neglect proper recordkeeping
Write off eligible expenses	Skip expert advice
Plan ahead	Overdraw company funds

For more information on any of the above or assistance preparing your tax, contact your local William Buck advisor.  

The post Small business tax planning tips: the do’s and don’ts appeared first on William Buck Australia.

The new ‘Investment Boost’ permits businesses a 20% upfront deduction for new eligible assets, supplementing normal depreciation.

Jayesh Kumar, Head of Tax at William Buck NZ, said that while this initiative and other budget measures would help small businesses, more was needed.

“’The ‘Investment Boost’ is a positive development. It will offer tangible support for New Zealand businesses, particularly SMEs, looking to invest in their capital base and enhance productivity, which is certainly valuable,” said Mr Kumar.

“While this specific initiative is certainly beneficial, we believe the Budget overlooked opportunities for more impactful direct assistance to SMEs and meaningful regulatory simplification. There was scope, we believe, to do more to ease the day-to-day pressures on these businesses and foster greater resilience across the small and medium-sized business sector.”

Along with the ‘Investment Boost’ initiative, SMEs did benefit from other measures in the budget, such as the $150 million extension for the Apprenticeship Boost scheme, the new $5,000 digital adoption grants for qualifying businesses, access to a $200 million Regional Development Fund for innovation projects and $50 million for a new programme to help small businesses improve energy efficiency.

Mr Kumar emphasised that while they offer valuable short-term assistance, the creation of a truly conducive and sustainable environment for long-term business growth requires ongoing and more fundamental policy attention.

“For SMEs to truly flourish and drive sustainable national growth, they require a consistently supportive environment that looks beyond individual incentives to address their broader operational needs and growth aspirations. We hope future fiscal measures will continue to build towards creating these optimal conditions for our vital SME community,’ added Mr Kumar.

The post Investment boost a step in the right direction but SMEs need more support appeared first on William Buck Australia.

Tyler, a former Loxton High School student, has commenced a Bachelor of Accounting and Finance at Flinders University. He was officially presented with his award during a recent visit to William Buck’s Adelaide office, where he met with his dedicated mentors: William Buck Partner Ben Trengove and team member Ben Davies. Both mentors also originate from regional South Australia and will provide ongoing career guidance and personal support to Tyler throughout the three-year scholarship.

The scholarship, valued at $15,000 will help alleviate the financial pressures associated with relocating for study, while also offering valuable industry mentorship.

Tyler discovered the scholarship opportunity through a post on his high school’s Facebook page just one day before applications closed. “I saw the post on the Loxton High Facebook page and thought, ‘why not give it a go?’,” said Tyler. “It’s great to receive financial support to help with living away from home, but I’m most excited about building relationships and learning from the William Buck team.”

Tyler has a keen interest in wealth management and superannuation—particularly self-managed super funds (SMSF) and SMSF audit—sparked by conversations with his mother, who works in finance. He’s eager to learn more about these areas during his time at William Buck.

Long-term, Tyler hopes to give back to regional communities, either by returning to Loxton or settling in the Adelaide Hills—places where the countryside and strong sense of community continue to inspire him.

With one-third of William Buck’s Adelaide partners originating from country South Australia, and many clients based in regional areas, the scholarship reflects the firm’s commitment to supporting the communities that have supported them.

“This initiative allows us to assist talented individuals with a passion for finance while reinforcing our commitment to the long-term sustainability of Australia’s accounting industry,” said Adrian Chugg, Managing Partner of William Buck South Australia.

The post Loxton Student Awarded Inaugural William Buck Regional Scholarship appeared first on William Buck Australia.

With the recent buzz in artificial intelligence (AI) and machine learning (ML), companies must be careful not to assume that activities around AI are automatically eligible under the R&DTI. To assist companies with this, the Department of Industry, Science and Resources (DISR) has released a ‘Hypothetical Machine Learning case study’ which outlines how R&D claimants using ML techniques can assess their eligibility for the R&DTI.

The case study focuses on a company developing an irrigation decision support system (IDSS) to predict crop water needs based on weather and soil conditions, when customer reports indicated the system was inaccurate the company decided to enhance it by incorporating satellite images. Their development journey involved key R&D hallmarks such as:

Identifying a gap: Before incorporating satellite imagery, the company conducted online research to learn more about its use for predicting soil moisture. This research found that weather variables were often considered unimportant in previous studies and that ML models frequently produced false negatives because the model couldn’t identify the importance of the weather variables in predicting soil moisture.

Formulating a hypothesis: Based on this research, the company set its hypothesis as: ‘Applying a variable relevance framework to the dataset will create a machine learning model which accurately identifies which satellite imagery data and weather variables correlate to predict soil moisture’.

Experimentation: The company developed a new framework to identify key weather variables for soil moisture prediction, avoiding predefined assumptions. They trained and tested their ML model using this framework along with a dataset of weather variables and satellite imagery. After training, the company tuned the hyperparameters for the machine learning algorithm used to develop the IDSS by employing a basic dataset to establish benchmarks for both the experiment and the trained model.

They conducted experiments with the framework by training the IDSS algorithm on various datasets with different variables and subsequently testing the resulting model for accuracy. These results were captured and evaluated to understand how certain variables were relevant to predicting soil moisture.

Activity eligibility

Based on the case study, the core R&D activity demonstrated the following key eligibility criteria:

• The outcome could only be determined by applying a systematic progression of work. This work was based on principles of computer science and proceeded from hypothesis to experiment, observation, and evaluation and lead to logical conclusions.
• Crucially, the outcomes of this core R&D activity could not have been known or determined in advance by a competent professional based on current knowledge. This was evidenced by the company’s thorough background research undertaken before starting experimentation.
• The core R&D activity was also conducted for the purpose of generating new knowledge. This was in the form of a new or improved product (i.e. the IDSS system) and a deeper understanding of the variables involved in ranking weather and soil moisture levels.

Common Errors
Often, we see companies self-assessing all of their ML/AI software development as R&D, when some aspects may be routine in nature. If companies apply known processes, such as known software development, AI and ML processes, to their parameters, they are unlikely to qualify for the R&D Tax Incentive. In this scenario, the company is not generating new knowledge in the form of a new product or process, rather, they are applying existing knowledge to their business operations.

Some examples of routine processes that would not qualify as a core R&D activity may be:

• Bug, beta and user acceptance testing
• Data mapping and data migration
• Testing the efficiency of different algorithms that are already known to work
• Routine computer and software maintenance.

Contemporaneous documentation

In the event of an ATO or DISR audit, companies are required to provide documentation that substantiates their claims regarding both activities and related expenditure. There is no prescribed set of documentation that a claimant must keep, as it all depends on the nature of the company, the industry it operates in, the R&D activities undertaken and what records make sense for the company to keep.

However, specific types of documentation/evidence that could be kept include:

• Original experimental hypotheses and design conceptions/project plans
• Correspondence with professionals or experts (emails, reports, meeting notes)
• Payslips, timesheets and invoices
• Internet/google searches and screenshots of information found
• Review of scientific, technical or professional literature
• Technology reviews and patent searches.

All documentation should be dated, clearly demonstrate the current industry knowledge and how the knowledge you intend to generate is considered ‘new’. Significant additional requirements exist to be able to substantiate the R&D tax incentive expenditure claim for the ATO. Guidance on the ATO’s expectations can be found here.

What does this mean for you?

This case study strengthens the importance of assessing each element of an ML/AI project to ensure that the claimant is correctly identifying core and supporting activities.

In addition, DISR’s guidance highlights its expectations that you:

• Compile contemporaneous documentation before commencing any experimentation
• Work to and can document a specific hypothesis or hypotheses
• Can describe how you intend to validate a technical or scientific challenge.

If you’d like help with identifying eligible ML/AI R&D activities and improving your current record keeping practices, contact your local William Buck Advisor.

The post Are machine learning and artificial intelligence activities eligible for the R&D Tax Incentive? appeared first on William Buck Australia.

So, what does a VCFO do at EOFY, and how does this differ from your usual accounting activities?

Key EOFY functions a VCFO typically undertakes

A VCFO isn’t usually involved in the day-to-day bookkeeping instead, a VCFO provides a higher level of financial oversight and strategic direction. At EOFY, their input often focuses on these areas:

1. Strategic input into year-end tax planning

As EOFY approaches, businesses consider their tax position. A VCFO can work with your business by:

• Reviewing the full-year financial data to identify key trends and assess the overall tax position.
• Discussing potential tax planning strategies that align with the business’s long-term goals and current tax laws.
• Ensuring that any implemented strategies are properly documented and understood from a financial management perspective.

The aim is to provide a strategic financial viewpoint on the tax planning process.

2. Oversight of financial reporting for strategic review

Reviewing the YTD performance is crucial as the EOFY approaches. A VCFO contributes by:

• Assisting in the interpretation of year-to-date financial reports to provide business owners with a clear understanding of performance.
• Helping to identify the key drivers behind the financial results, looking beyond the surface-level numbers.
• Ensuring that management reports are useful for strategic decision-making, not just compliance.

3. Guiding the budget development for the new financial year

The EOFY naturally leads to planning for the next 12 months. A VCFO assists in making the budgeting process more strategic by:

• Facilitating discussions around business goals and how they translate into financial targets.
• Helping to develop a comprehensive budget that is realistic and aligned with the company’s strategic objectives.
• Advising on key assumptions and performance indicators to track against the new budget.

4. Developing and analysing cash flow forecasts

Understanding and managing cash flow is crucial. At EOFY, a VCFO will often:

• Work with the business to create detailed cash flow forecasts for the upcoming year.
• Analyse these forecasts to identify potential risks (like future cash shortfalls) or opportunities (such as efficiently using surplus cash).
• Help the business understand the cash impact of planned activities or investments.

How VCFO involvement can assist your business at EOFY

For a business that may not have a full-time Chief Financial Officer, a VCFO provides access to senior financial expertise when it’s needed. During the busy EOFY period, this can mean:

• Greater clarity on financial performance: Moving beyond just the numbers to understand what they mean for the business.
• More strategic planning: Ensuring that the EOFY process is used as an opportunity to plan effectively for the future, rather than just a compliance exercise.
• Improved financial preparedness: Heading into the new financial year with robust budgets and a clearer understanding of potential cash flow scenarios.
• Informed decision-making: Using the insights gained from EOFY reviews and forward planning to make better strategic choices.

Essentially, a VCFO aims to ensure that the financial activities undertaken around EOFY provide genuine value to the business, supporting its stability and long-term objectives.

If you are considering how to enhance your financial management processes around the end of financial year, understanding the potential contributions of a VCFO can be a useful starting point.

The post How can a Virtual CFO help your business at EOFY? appeared first on William Buck Australia.

This initiative is a fresh approach to insolvency, allowing company directors to maintain control while working with creditors to develop a plan for settling existing creditor debts and ensuring the continuity of the business operations.

In circumstances where financial pressures might typically signal the end of a business, SBR can provide a lifeline for eligible businesses, enabling them to restructure their debts and operations under the expert guidance of a Restructuring Practitioner.

However, any debts incurred from trading after the appointment of the Restructuring Practitioner must be paid in the normal course of business operations and are not covered by the restructure.

Circumstances that may lead to an SBR appointment

The circumstances that may give rise to an SBR appointment can include a loss of key customers, significant bad debt exposure, and other unexpected, out-of-the-ordinary events affecting the company’s profitability and cashflow.

To qualify for the SBR program, businesses must meet certain criteria:

• Total debts must be under $1 million.
• There must be sufficient compliance with taxation lodgement obligations, with payment of all tax debts not a requirement.
• Employee entitlements, including superannuation guarantee amounts, must be up to date.
• Current or recent company directors must not have participated in an SBR within the past seven years.

The inclusion of up-to-date employee entitlements as a measure indicates that if a company cannot meet its obligations to staff, it is likely to be insolvent, leaving liquidation or administration as the only options.

Working with a Restructuring Practitioner

While working with a qualified Restructuring Practitioner to devise a plan for the company and its creditors, the directors retain control of the business operations.

Directors may also need to implement specific strategies before an SBR appointment to ensure the company meets the eligibility criteria. This could include settling superannuation debts, preparing and filing outstanding income tax returns and converting related party debt into equity.

It is important to note that appointing a Restructuring Practitioner is a valid response to a non-lockdown director penalty notice by the ATO. This action allows directors to avoid personal liability for tax debts.

How does Small Business Restructuring work?

The SBR process is quick, taking 35 business days from the date of appointment of the Restructuring Practitioner to the final date for approval of the restructuring plan by creditors. If needed, this period can be extended by an additional 10 business days.

The proposed plan for a business restructure could be designed in various ways, such as through future trade contributions, debt or equity contributions. However upfront cash payments to creditors with a clear timeframe for payment are often the most appealing, as they provide a quick resolution and reduce the risk associated with longer term proposals.

In our experience in this process, the Australian Taxation Office (ATO) is often one of the largest creditors. So, they have issued guidelines around the information they require and they will actively engage the Restructuring Practitioner early in the process to discuss the draft restructure proposal and provide feedback, which also helps build confidence in the SBR process.

A major advantage of utilising this form of restructuring is the official and permanent elimination of any tax liabilities that are outlined in an approved restructuring plan.

While SBR was off to a slow start, it is gaining traction and emerging as a viable commercial alternative to liquidation or administration as it enables company directors to retain control of the business throughout the process. This rising trend is reflected in the increasing number of restructuring appointments has increased since implementation, from 70 appointments in the 2022 financial year to 1,424 last financial year.

Contact your local William Buck Restructuring and Insolvency advisor if you need any further assistance with this transition.

The post Do you need to restructure your business in the new financial year? appeared first on William Buck Australia.

A VCFO provides specialised CFO services to your business on a flexible, part-time or as-required basis. This model is particularly beneficial for small to medium-sized enterprises (SMEs), startups and businesses at a pivotal growth stage that require strategic financial oversight beyond their existing finance team’s capacity, without incurring the expense of a full-time executive.

What does a VCFO do?

The best part about hiring a VCFO is that you can tailor the role to meet your specific business needs, which may change over time. They can help you identify and engage other advisors when needed – e.g. banks, lawyers, valuers, other specialist advice.

The true advantage of a VCFO lies in their adaptability. You can choose how often they work for you and this may change depending on current projects and focuses. Their role will evolve depending on your business’s needs. The broad spectrum of tasks VCFOs help with includes:

Deciding if engaging a VCFO is the right step for your organisation involves considering your current circumstances and future ambitions. A partnership with a VCFO often proves most impactful when your business is:

• Experiencing or planning for significant growth or the scaling of operations.
• In need of more sophisticated financial reporting and analysis than your current team can provide.
• Lacking dedicated strategic financial leadership internally but is not yet in a position to hire a full-time CFO.
• Preparing for major transactions such as capital raising, mergers, acquisitions or formal audits.
• Seeking an objective, external perspective to challenge current assumptions and help guide financial strategy.

When looking for potential VCFO’s, it can be beneficial to look for a demonstrated understanding of your industry, a flexible and scalable service model that can adapt to your evolving requirements, strong communication practices and a clear articulation of how they will support you in achieving your business goals.

Ultimately, the right VCFO relationship will function as a collaborative partnership, focused on helping you navigate your financial journey and make well-informed strategic decisions.

If you would like more information on William Buck’s Virtual CFO service and how it can help you achieve your business’s goals, please contact your local William Buck advisor.

The post What is a Virtual CFO and when does your business need one? appeared first on William Buck Australia.

But what is the best way for GPs to bill patients?

Here are some questions we are often asked about the financial aspects of a GP’s billing model.

What is the difference in my take home pay?

This will depend on several factors, including the fee you set, the service or facility fee you pay to the practice and the impact of government incentives like the proposed triple bulk billing incentive.

Case study 1

Dr Den is a GP at Glen Medical Centre and is required to pay a service fee of 35% to the practice. Dr Den sees four patients per hour and bills a standard consultation (Item 23) for each patient plus a mental health consultation (Item 2713) for one of those patients. Let’s compare Dr Den’s take-home pay under different scenarios:

Scenario A: Private Billing

• • Dr Den charges a private fee for all consultations.

Scenario B: Bulk Billing (Without Triple Incentive)

• • Dr Den bulk bills all consultations, receiving only the standard Medicare rebate.

Scenario C: Bulk Billing (With Triple Incentive)

• • Dr Den bulk bills all consultations and receives the standard Medicare rebate plus the tripled bulk billing incentive for eligible standard consultations (Item 23 in this case). Note: Item 2713 is assumed not eligible for the triple incentive in this example and is scheduled for removal Nov 2025.

Here’s how the hourly earnings compare:

As shown, private billing yields the highest take-home pay for the GP. While the triple bulk billing incentive significantly increases the bulk billing take-home pay compared to no incentive, it still falls considerably short of the private billing scenario in this example.

Detailed breakdown for Scenario C:

Patient 1 (Item 23): $42.85 rebate + $21.35 incentive = $64.20
Patient 2 (Item 23 + 2713): ($42.85 rebate + $21.35 incentive) + $88.85 rebate = $153.05
Patient 3 (Item 23): $42.85 rebate + $21.35 incentive = $64.20
Patient 4 (Item 23): $42.85 rebate + $21.35 incentive = $64.20 Total Bulk Billed with Incentive = $345.65

Private fees and gaps: When private fees are charged, patients receive a Medicare benefit back, but there is usually an out-of-pocket cost, known as the ‘Gap’. Typical private fees and gaps might look like this:

Can practices afford for GPs to bulk bill?
The sustainability of a practice often depends heavily on the billing model adopted by its GPs. In our experience, the costs to run a practice may not be covered if doctors predominantly bulk bill, even with incentives.

Case study 2

The Practice Manager of Glen Medical Centre and the accountant have analysed the practice costs and determined that the cost for each consulting room is $110 per hour. These costs include rent, overheads, wages for the administration and nursing staff and other operational expenses. Using Dr Den’s hourly billing from Case Study 1, let’s see the impact on the practice’s bottom line:

The difference for the practice is stark: a $98 profit per hour when Dr Den private bills compared to a significant loss ($21.41) when bulk billing without incentives. The triple bulk billing incentive turns the loss into a small profit ($10.98) in this specific scenario. This analysis highlights that even with tripled incentives, the service fee generated from bulk billing ($120.98) may still be below the level required ($140 in the original example) for the practice to achieve its desired sustainability or profitability targets.

If we assume Dr Den works 8 sessions a week for 46 weeks of the year, the annual difference in practice income between private billing and bulk billing (even with the triple incentive) could still be substantial (approx. $160,000 difference between scenario A and C profit per hour over the year).

Some practices operate as dedicated bulk-billing clinics. Their viability often relies on high patient volume, long working hours for doctors and minimal overheads, which some practitioners feel could potentially compromise patient care.

How should I decide on my billing model?

Choosing your billing model requires careful consideration beyond just ‘winging it’. Key factors include:

• Take home pay: Ensure you are compensated fairly for your expertise and the significant investment made in your qualifications. As Case Study 1 illustrates, private billing generally offers higher personal income compared to bulk billing, even with incentives.
• Practice sustainability and profits: Consider the financial health of the practice. As shown in Case Study 2, widespread bulk billing can make it difficult for practices to cover costs, let alone invest in facilities or staff. Practices may need a certain level of private billing to remain profitable and may factor this into agreements.
• Patient situation: Many GPs consider their patients’ financial circumstances and may choose to bulk bill individuals facing hardship, offering a mixed billing approach.
• Government incentives: Factor in available incentives. The triple bulk billing incentive improves the financial return on bulk billing for eligible consultations. Additionally, other incentives exist, such as potential quarterly payments for practices where all doctors bulk bill every patient (though this requires universal bulk billing across the entire practice).

If you’d like support choosing the best billing model suited to your practice, contact your local William Buck Health Team Advisor.

The post Choosing your GP billing model appeared first on William Buck Australia.

Why medical professionals use trusts

• Trusts provide medical professionals with flexibility and control over income distribution, particularly when:
• Running a service entity to support their medical practice
• Structuring income tax efficiently across family members or corporate beneficiaries
• Protecting assets from potential litigation or creditors
• Managing intergenerational wealth and succession planning

These benefits remain unchanged. However, how income entitlements—especially UPEs—are managed within these trusts is where recent developments have sharpened focus. For more details on the benefits of trusts, read our article: How medical practitioners can benefit from discretionary family trusts.

Understanding UPEs and the ATO’s concerns

A UPE arises when a beneficiary becomes entitled to income from a trust, but that entitlement remains unpaid. This is common in medical service structures where income may be allocated to a corporate beneficiary (colloquially called a ‘bucket company’ or ‘dump company’) for tax efficiency, but the cash is retained in the trust.

The ATO is particularly concerned when UPEs owed to corporate beneficiaries effectively allow trusts to retain access to those funds, potentially blurring the line between entitlement and financial accommodation. The ATO positions that all UPEs must be treated as Division 7A loans, which do not fall under the specified rules, resulting in deemed dividends that are unfranked and additional tax consequences.

What the Bendel case clarified

In Bendel v Commissioner of Taxation [2023] AATA 3074, the Tribunal determined that a UPE owed to a corporate beneficiary did not automatically constitute a loan under Division 7A simply by being unpaid. The key point was the absence of a positive act by the corporate beneficiary to provide financial accommodation or access to funds.

This was a taxpayer-friendly decision that pushed back on the ATO’s broader interpretation. However, the ATO has indicated it disagrees with the outcome and may not apply it more broadly, particularly where trust funds are reinvested or accessed in ways resembling a loan. Read more about our analysis of this ruling: Landmark ruling on Division 7A and unpaid trust distributions.

ATO’s ongoing administrative position

Despite the ruling in the Bendel case, the ATO has stated they intend to continue treating UPEs to private companies as loans under Division 7A unless managed properly, such as via sub-trusts or complying loan agreements. They have released an interim decision impact statement confirming this treatment.

The ATO have sought special leave to appeal the Tribunal decision which means potentially the High Court will further determine the outcome.

What this means for medical professionals

While the regulatory environment has shifted, this does not diminish the utility of trusts—it simply requires a more disciplined and transparent approach. Here’s what medical clients should do:

1. Continue using trusts strategically
   Trusts still offer medical professionals tax efficiency, asset protection and flexibility that are unmatched by other structures. The key is ensuring they’re set up and managed in line with ATO expectations.
2. Review existing UPEs to corporate beneficiaries
   If a corporate beneficiary is owed money from prior years, trustees should ensure either:
   – A compliant Division 7A loan agreement is in place or
   – The funds are held in a sub-trust structure with proper documentation and investment management.
3. Avoid leaving UPEs unresolved
   The ATO is particularly concerned where UPEs are left unpaid with no plan or structure. This could expose the trust to the risk of reassessment and penalty.
4. Align with a strong advisory team
   Medical clients should work closely with accountants and legal advisers to ensure:
   – Annual trust resolutions are clear and aligned with actual cash movements
   – Sub-trusts and Division 7A strategies are executed and documented correctly
   – Ongoing compliance is built into the practice’s financial processes

With sound advice, clear documentation, and proactive planning, medical professionals can continue to enjoy the benefits of trusts without falling foul of the ATO’s evolving expectations.

For further advice on the implications of trusts and the Bendel case, please contact your local Health team advisor.

The post How medical professionals can navigate trusts following recent landmark rulings appeared first on William Buck Australia.

Besa brings a wealth of experience in Australian and international economic policy and market strategy, with over 15 years of experience as a Chief Economist. She was the first female Chief Economist of an Australian bank when she joined St. George Bank in 2008, and following the merger with Westpac, her remit was broadened to include Westpac Business Bank, Bank of Melbourne, BankSA and BT as well as St George Bank.

In addition to being an experienced media commentator, Besa is the Chair of Australian Business Economists, an organisation that fosters debate on key economic issues and policy and she is a member of The Australian National University’s Centre for Applied Macroeconomic Analysis (CAMA) Reserve Bank Shadow Board.

Greg Travers, Chair of William Buck, emphasised the transformative impact of this appointment, with Besa’s broad expertise set to help William Buck strengthen its leadership in the mid-market.

“We are thrilled to have Besa join the William Buck team as our first ever Chief Economist. Her expertise will be a key contributor to our continued growth, enhancing our ability to anticipate market trends and provide tailored solutions for our clients’ success,” said Mr Travers.

“Besa’s expertise and focus on the mid-market adds a new dimension of value we can offer to our clients. The mid-market is hugely important to Australia, but it has unique drivers that not many experts analyse and provide comment on. Besa’s economic perspective, coupled with our technical expertise, will enable us to provide clients with a holistic view that differentiate us from other firms.”

Besa said small and medium enterprises (SMEs) are the backbone of the Australian economy and her passion for the mid-market aligns perfectly with William Buck’s commitment to serving clients in this segment. 

“The policy and regulation landscape can be overwhelming for large organisations, let alone SMEs. My economic commentary will make sense of what’s important to mid-market clients. Together with the integrated advice from other specialisations across William Buck, it will help SMEs, which are the powerhouse of the Australian economy, grow through all stages of the business lifecycle,” said Ms Deda. 

“I’m excited about joining William Buck as Chief Economist, and I look forward to giving mid-market clients concise guidance on the economic landscape, allowing them to make informed business decisions.”  

The post William Buck appoints Besa Deda as its first Chief Economist, strengthening mid-market expertise appeared first on William Buck Australia.

This outcome coincides with the costs of materials and the cost of overheads rising for more than three quarters of businesses surveyed. With interest rates being relatively high, and disposable income of consumers proving tight, the ability for businesses to pass through those cost increases is minimal, squeezing margins further.

Again, we have seen the prominence of government policies, legislation and compliance increasing. Now it is the second most commonly cited issue facing SA businesses, up from third and fourth in recent surveys. So many of our clients cite the complexity of the award system and payroll complications as a major contributor to time wasted dealing with compliance. Awards covering staff in retail, aged care and the NDIS sectors are especially complex. A more simplified industrial relations landscape should be a priority for lawmakers to improve business conditions going forward.

The survey results also indicate that the jury is out on environmental, social and governance procedures (ESG) in SA businesses. 31.3% of businesses have not implemented any ESG requirements into their operations and a further 17.2% are unsure of their obligations. This is despite mandatory climate reporting coming into effect for many large businesses in recent months. Additionally, just 9.5% of businesses feel that ESG factors play a role in staff retention or recruitment.

The ripple effects of trade uncertainty are making many South Australian businesses apprehensive about their future growth plans, as well as looking to decrease their foreign exchange exposure. 11.8% of businesses said that US tariffs will change their export strategy, and a further 22.8% were unsure. If the risk side of the risk–reward equation increases, many South Australian businesses looking to trade or expand overseas are likely to think twice.

However, there are opportunities for businesses to thrive in uncertainty, especially close to home. Despite cost and profitability pressures, just 11.1% of surveyed businesses said they were not seeking to grow. Businesses’ most common growth strategies involve reaching new customers locally. As well as bringing new products and services to their existing customers in SA and nationally. Large infrastructure projects like AUKUS and T2D will likely create some positive spillover effects for many businesses.

Challenging times can be useful times for many businesses to focus on building the foundations that can help them succeed. Adaptive businesses, from our experience, are guided by a clear, concise strategy that all staff aspire to implement. They have a robust budget that enables them to spot problems early. They’re consciously diversifying into new products, services and markets. Being proactive towards how a business can capitalise on turbulent times can make a significant improvement to business resilience and growth. With those fundamentals in place, now could be a good time to explore new ideas or use challenging conditions as motivation to improve.

The post Business struggles continue, but local growth can shine through appeared first on William Buck Australia.

This update outlines the changes to the CbC reporting landscape and the key steps that MNEs in Australia should take to stay compliant.

Revised ATO exemption guidance – What’s changed?

The default position is that an Australian entity that is part of a CbC reporting group must lodge a local file, master file and CbC report with the ATO. However, if the ultimate parent entity (UPE) lodges the CbC report in a foreign jurisdiction that has a tax-sharing arrangement in place with Australia, the ATO will not require the Australian entity to also file a CbC report.

Previously, it was possible for an Australian entity to obtain an ATO exemption from filing a CbC report despite the report not being prepared by the UPE. Also, Australian entities with no international related party dealings did not need to lodge a local file under an administrative concession provided by the ATO.

Under the ATO’s new CbC reporting rules, exemptions are strictly limited to the following 3 categories:

The ATO has also withdrawn its administrative concession in respect of the local file, meaning that all Australian CbC reporting entities must file a local file, even if they have no international related party dealings. Practically, they will need to file the SFLF at a minimum.

Lodging an exemption request

The ATO emphasises that exemptions outside the above specified categories will be rare and granted in exceptional circumstances only. MNE’s seeking an exemption will need to provide comprehensive documentation to ensure that their application adheres to the ATO’s criteria. Consistency between information provided in the exemption application and disclosures in associated tax returns and financial statements is critical – any inconsistencies could lead to rejections.

The exemption report must set out all required details to be considered and address the following key elements:

• An analysis of why the entity making the request is subject to Australian CbC reporting rules.
• An explanation of how the taxpayer meets the circumstances of the exemption category for which they are applying and set out all the relevant facts or circumstances.
• For exceptional cases falling outside the three above categories, additional information must be provided to substantiate why an exemption should be provided.
• Source materials to support the taxpayer’s analysis and conclusions must be provided to the ATO, such as:

• • A breakdown of the shareholders of the UPE to demonstrate that it is the UPE (and not controlled by any other entity).
  • The financial statements of the UPE group (to show that there are no other income items in the P&L that may result in the group exceeding their local reporting threshold)
  • Details regarding acquisitions and divestments,
  • Calculations of Australian equivalent amount of global turnover.

Applicability of the revised guidance

These changes apply to all CbC exemption requests submitted to the ATO after 1 January 2025, regardless of the income year they relate to.

Removal of the administrative relief from the local file is applies to reporting periods starting after 1 January 2024 i.e. first applying to financial years ending 31 December 2024 and 30 June 2025.

What’s next?

To navigate the revised CbC reporting landscape MNE’s should consider the following:

• If your Australian entity is a CbC reporting entity that has not prepared a local file as it had no international related party dealings, it will need to start filing a local file. You should ascertain which year this will first impact you. The local file can be lodged at the same time as your income tax return, or one year after the relevant year end.
• If your UPE has not lodged or will not lodge a CbC report in its foreign jurisdiction, then enquiries will need to be made to understand why.
• If an exemption for a CbC report is required, engagement with the ATO must occur early, as the exemption process can take some time to be completed.

Significant changes to the SFLF

Local File changes

The ATO released a new detailed design for the Australian local file (including instructions) that must be applied to all reporting periods beginning on or after 1 January 2024.

Historically, taxpayers were required to provide a SFLF in free-text form. Now, the SFLF must be prepared in the standardised message structure table (MST) format which will be converted to an XML format (similar to existing Local File Part A and B) designed by the ATO.

This means that disclosures are mandatory and in many instances rigid.

The information that needs to be included in the SFLF has also been broadened. One of the substantial changes relates to the disclosure of restructures. Under the new rules, the ambit of a restructure has been defined, with various arrangements being deemed to constitute a restructure. If there is a disclosable restructure, then disclosures will be required in respect of identified Australian tax risk, attachment of any transaction step plans obtained by the group in respect of the restructure, and provision of commentary on the global tax impact, Australian tax impact, and commercial impact.

The SFLF instructions explicitly indicate that disclosures regarding “restructures” are not related just to transfer pricing risk but will also include other Australian tax risks such as Part IVA (anti-avoidance rules), withholding tax impact, Division 832 (hybrid mismatches), Division 855 (capital gains and losses for foreign residents), Division 974 (debt/equity rules) and tax deductibility.

What’s next

MNEs should familiarise themselves with the new requirements and investigate whether there have been any disclosable business restructures in the group. Given the broadened scope and changed format, our recommendation is to start preparing the local file early to avoid late lodgements.

At William Buck, we understand that these revised CbC reporting requirements introduce additional paperwork and compliance burdens for multinational enterprises. However, failure to meet these new obligations can result in significant ATO penalties, making it crucial to ensure your tax reporting is accurate and compliant.

Our team of experienced tax professionals is equipped to guide you through these complexities, helping you prepare and submit the necessary documentation with confidence. Please get in touch with one of our tax experts to see how we can assist you.

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Fundamentally, there has been no change in the AGM landscape. Directors and senior management dread these meetings, where their performance – and remuneration in the case of listed companies – is on display for robust discussion among the members. Most people feel awkward at these meetings, not knowing exactly what to say or do, and of course they always seem to go on for longer than necessary.

Traditionally, members have shied away from these meetings as they feel disempowered to affect change, even if they voice their concerns at the AGM. Moreover, the time commitment for all participants in preparation, attendance and travel can be quite a burden for busy executives. Given that Chairs are normally well briefed on the potential issues of concern and ready to respond to each and every question, AGMs can seem like a zero-sum game, to be endured, conducted, with results collated, before everyone moves on.

And then COVID (along with improvements in communication technologies) changed everything.

The scramble to implement virtual and hybrid physical/virtual AGMs which are safe for all and comply with the requirements of company constitutions and legislation, including statutes such as the Australian Corporations Act 2001. While government authorities have normally provided relief (in the form of guidance that they will “take no action” against non-compliance) from various legislative requirements to hold physical AGMs, the concerns of corporate lawyers and company secretaries has been that this “relief” does not necessarily dissolve Boards of the statutory obligations as prima facie they are in breach of these respective obligations.

On one hand, Boards are obligated to hold AGMs (and indeed want to so they can raise capital, approve transactions, and get on with the business of running their companies) and on the other hand, in many cases, we had lockdowns preventing people from physically attending their work and/or meetings like AGMs. A unique set of circumstances indeed. Let’s call it unprecedented!

With virtual AGMs “The true creator is necessity, who is the mother of invention.” And with that necessity, virtual AGMs are very real indeed. And for the better.

At this point, I’ll refer you to related articles where we have addressed navigating the AGM with planning for success and running the meeting. The key messages in these articles remain even more valid today with the move to virtual and hybrid AGMs: careful planning for success and treating people and processes with all due respect will maximise the outcomes and experience for all stakeholders in the AGM.

Virtual and hybrid AGMs are a fabulous way for all stakeholders in an organisation to connect and achieve the objectives of the meeting. The ability of people to attend these meetings is ideal for multinational organisations with directors, management and members situated in various parts of the world. So, we can expect more people attending, especially directors based overseas who in my experience would rarely attend, unless a physical Board meeting, strategy retreat had been arranged to coincide with the AGM.

Considerations when planning and hosting a virtual AGM

The costs of running these meetings and indeed the consideration of whether you have the appropriate venue are now issues of the past as the digital meeting will cater for as many people as possible. Given the complexities in respect of controlling the meeting, speakers, polling, etc, having an experienced and quality platform provider of digital meetings is a key to the success of the meeting. Most share registry services have connected with these providers to enable a seamless meeting performance. With the savings from electronic distribution of notices, annual reports and supporting materials, suggest that investing in quality digital platforms and providers to assist in running the meeting would be best practice to follow.

Rehearsal for AGMs is perhaps even more important now than before to minimise the potential for technical difficulties, to test the polling, speaking and comment functions for the meeting. Hold rehearsals preferably on the same day of the week and at the same time of day as the AGM to test whether internet speeds will be adequate for the meeting. Be aware that due to AGMs being held at similar times of year (April, May, October & November) there is high demand for meeting technology providers’ services, and it would be prudent to secure bookings early as possible. Also, consider whether the AGM process and event should be on the Risk Register of the company?

The key matters to be addressed for running virtual and hybrid meetings are:

• Oral questions through digital platforms: be clear in your notice of meeting on the extent to whether oral questions will be allowed and practically, how questions (and answers) will be conducted.
• Reasonable opportunity to participate: where technology is used to hold a meeting, the technology should give ‘the persons entitled to attend the meeting a reasonable opportunity to participate without being physically present in the same place’. This includes giving members a reasonable opportunity to exercise a right to speak, including a right to ask questions, orally rather than only in writing. Members should also have an opportunity to vote in real time, even if they had an opportunity to vote before the meeting. Be aware that in 2025, ASIC updated their guidance on members being able to participate at AGMs held virtually or on a hybrid basis, noting for instance that webcast technology is not acceptable where members cannot exercise their rights to ask questions and voice their views at the meeting. Refer to FAQs: Virtual meetings for companies and registered schemes.
• Notices of Meeting: confirm these can be sent electronically and/or consider whether a physical ‘postcard’ should be sent to members providing them with ‘notice of access’. Also, the notice should set out the place, date and time and, if the meeting is to be held in two places, the technology that will be used to facilitate the meeting. It should also specify a physical place to send proxies or enable members to provide proxy documents by electronic means.
• Establish a dedicated AGM page or hub on the company website: this area can include the details of arrangements for the meeting, links for web-streaming and can be updated to reflect changes to the situation such as changes following public health announcements. You should also consider including a short video demonstrating how to use the meeting platform and tips for boosting shareholder and member engagement online, including through the company’s website. The page could be password protected so that only those invited to the AGM will have access.
• Ensure your Constitution allows for the holding of virtual only meetings of members and that ASIC has been notified when constitutions have been amended: noting also that the Corporations Act allows for the holding of hybrid meetings even if their Constitutions do not contain provisions specifically facilitating them.

A whole new layer of complexities has been added to the requirements of holding AGMs given the popularity of hybrid and virtual only formats, but you should take up the challenge of responding to these complexities by implementing best practice policies, procedures, technology and above all, planning. Having the determination to produce a high-quality AGM which provides the company with an ideal platform for demonstrating its performance and achievements, it’s future outlook, and the ability to thank its stakeholders will be the real dividends to be received by members when they experience an interactive, high quality and smooth-running AGM.

Please read our other articles in the series:

Article 1: Planning a successful AGM

Article 2: Navigating the AGM – running the meeting

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Darius Lee, Partner, Audit and Assurance (Melbourne)

Maria Ravese, Partner, Tax Services (Adelaide)

Paul Tucker, Partner, Business Advisory (Melbourne)

Shiv Goundar, Partner, Audit and Assurance (Canberra)

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The outcome of the election will play a crucial role in determining whether proposed legislative measures are reintroduced to the next sitting parliament or merely remain as proposed measures from the previous government.

While we await clarity, it is important to focus on key areas that can impact your tax planning now. To help you and your business set up for success, we’ve compiled a list of what we know and what we don’t yet know, along with critical actions for you to consider. This includes impending changes and ATO focus areas.

To ensure you’re fully prepared for whatever comes next, look out for our upcoming comprehensive year-end guide and checklist, which will be released shortly after the Federal Election results are known.

a. Confirmed tax measures

Instant Asset Write-Off

The instant asset write-off for depreciating assets costing less than $20,000 was extended to 30 June 2025. This measure was passed into law on 26 March 2025, just before the election was called and applies to small businesses with an aggregated turnover of less than $10 million.

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use. This applies to multiple assets, provided each individual asset is under the threshold and includes both new and second-hand assets. For example, if you purchase a new piece of machinery for $15,000 and a second-hand vehicle for $18,000, both can be written off immediately.

Action: If you qualify, consider purchasing assets before 30 June 2025 to take advantage of this instant deduction. This can significantly improve your cash flow by reducing your taxable income for the year.

Non-deductibility of General Interest Charges

From 1 July 2025, General Interest Charges (GIC) and Shortfall Interest Charges (SIC) imposed by the ATO will no longer be tax-deductible. This change means that any interest charges incurred on overdue tax debts will fully impact your finances without the benefit of a tax deduction. The current GIC rate is 11.17% per annum, making it a costly form of debt!

Action: Lodgement and payment extensions are now less frequently granted and GIC or SIC remissions are more difficult to negotiate with the ATO. If you have ATO debts, plan to address them promptly, as interest will not be deductible from 1 July 2025. Consider setting up a payment plan with the ATO to manage your liabilities effectively (noting that demonstrated compliance can assist in securing such plans).

Tax cuts

On 25 March 2025, Parliament passed tax cuts for individuals, effective from 1 July 2026, being:

• From 1 July 2026, the tax rate for income between $18,201 and $45,000 will be reduced from 16% to 15%.
• From 1 July 2027, this tax rate will be further reduced to 14%.

No action: These cuts don’t kick in until 2026 but keep an eye on potential changes if a Coalition government comes into power, as they have proposed providing cost of living relief sooner than 1 July 2026 by implementing cuts to fuel excise rather than the individual tax rate cuts.

b. Unpassed tax measures

Superannuation – $3M Cap (Division 296)

The draft legislation, known as Division 296, aims to reduce the tax concessions for individuals with total superannuation balances exceeding $3 million, with effect from 1 July 2025. If enacted, the measures will apply an additional tax rate of 15% on earnings relating to the proportion of an individual’s superannuation balance over $3 million. Importantly, this would include both actual and unrealised capital gains. Earnings on balances below $3 million would continue to be taxed at the concessional rate of 15% or less. Read our article for further detail on this legislation.

The 2025-26 Budget papers were silent on the Government’s stance regarding the future of this measure, causing uncertainty for impacted taxpayers with more than $3 million in superannuation.

Action: If you are close to the $3 million threshold, consider whether to hold off making additional contributions for now until after the election. If you are over the $3 million threshold, hold off on withdrawing funds until more details are confirmed. This measure could significantly impact estate planning and retirement strategies, so consult with your advisor.

Payday Super

Draft legislation released on 14 March 2025 proposed major reforms to the Superannuation Guarantee regime, set to take effect from 1 July 2026. These changes would require employers to pay Superannuation Guarantee contributions within 7 calendar days of paying their employees’ salary and/or wages.

If reintroduced into the next Parliament, the measures would replace the current quarterly due dates with a 7 day payment window from the date of salary payment. Employers will be liable for the superannuation guarantee charge (SGC) if contributions are not made on time, which includes an interest component and administrative penalties.

Action: Review and tighten your payroll processes to ensure compliance and avoid extra interest charges. This may involve upgrading payroll systems or processes to handle more frequent super payments and a review of your cashflow to ensure the change of timing for super payments won’t cause undue strain on business cashflow.

Employers should also prepare for the impact of the final increase in the Superannuation Guarantee rate from 11.5% to 12%, which will come into effect from 1 July 2025.

Tax cuts and fuel excise

As outlined above, the current government has implemented tax cuts set to start from 1 July 2026. However, the Coalition has proposed an alternative approach. If they come into power, they may repeal these tax cuts and instead focus on reducing the fuel excise. The fuel excise is a flat sales tax levied on petrol and diesel, currently set at 50.8 cents per litre. The Coalition’s plan includes halving the fuel excise for one year, which they argue will provide immediate cost-of-living relief by lowering fuel prices.

Action: Stay informed about potential changes and adjust your plans accordingly. If the Coalition’s proposal is implemented, it could impact your business’s operating costs, particularly if you rely on transportation. Conversely, the repeal of income tax cuts would mean less tax relief for the general public in the long term.

The treatment of Trusts and UPEs

Recently, the ATO has intensified its audit activities on private groups, particularly focusing on trusts and Division 7A.

For trusts, the ATO typically examines the validity of trust distribution resolutions. This includes ensuring that the definition, classification and streaming of income are consistent with the trust deed, along with the beneficiaries being eligible to receive income from the trust. They also review factors such as income tax return disclosures, consistency with financial statements and check if a Family Trust Election or Interposed Entity Election is required.

Following the ATO’s loss in the Full Federal Court in the Bendel case, there is significant uncertainty regarding the tax implications of Unpaid Present Entitlements (UPEs) owing from trusts to private companies and in particular how Division 7A may apply. In the Bendel case, the Court ruled that UPEs are not considered loans for Division 7A purposes, overturning the ATO’s long-held view. This decision means that income allocated but not paid to a corporate beneficiary may be able to be retained in the trust without triggering Division 7A’s strict requirements.

The specifics of the Bendel case and UPEs more broadly will be covered in further detail in future publications. However, the ATO’s application for special leave to appeal to the High Court, along with its interim Decision Impact Statement noting that it will continue to administer the law based on its view rather than the Full Federal Court’s position, is likely to cause much consternation. This will be particularly relevant in the lead-up to the lodgement of 30 June 2024 income tax returns and tax planning for the current financial year.

Action: For 30 June 2025 trust distributions, consider waiting until closer to 30 June before determining which beneficiaries to distribute to this year and the relevant distribution amounts. Whilst the Bendel decision may provide more flexibility to distribute to corporate beneficiaries, the ATO’s application for special leave to appeal the decision to the High Court means the final position is still uncertain. The ATO have also indicated they will closely scrutinise other trust aspects outside of Division 7A.

Accordingly, be ready to act promptly once more is known on the flexibility surrounding trust distributions.

Next steps

Navigating tax planning during uncertain times requires staying informed and proactive. By keeping abreast of both confirmed and pending tax changes and interpretations, you can make more informed decisions for your business.

Look out for our post-election comprehensive guide and checklist, which will help you work through these and other tax planning issues with your advisor. In the meantime, if you have any questions, please contact us for personalised assistance.

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This change in focus means that businesses and their accountants will have less flexibility in obtaining lodgement extensions. While accountants operating under the Tax Agent Lodgement Programme may still access extended deadlines, the general expectation is that businesses will proactively plan and meet their lodgement and payment obligations on time.

Adding to these changes, the Australian Government has introduced a Bill proposing that from 1 July 2025, GIC and SIC will no longer be tax-deductible. If enacted, this change will increase the effective cost of late tax payments for businesses, further compounding the ATO’s stricter compliance stance.

Tighter rules on interest remission

Previously, ATO staff often exercised discretion in remitting General Interest Charge (GIC) and Shortfall Interest Charge (SIC). However, the ATO has now indicated that remission decisions will more closely follow established guidelines, limiting the circumstances in which interest relief is granted.

The remission of interest is governed by section 8AAG of the Taxation Administration Act 1953. The Commissioner may remit interest if:

• The delay in payment was not due to the taxpayer’s actions or omissions and the taxpayer took reasonable steps to mitigate the delay.
• Although the delay was due to the taxpayer’s actions or omissions, they took reasonable action to address the delay and remission is deemed fair and reasonable.
• Special circumstances exist, making it fair and reasonable to remit all or part of the interest charge.

Given this stricter approach, businesses should expect fewer instances of interest remission and should plan accordingly to minimise exposure to GIC and SIC.

The cost of late tax payments – GIC and SIC no longer deductible

At present, businesses can deduct GIC and SIC expenses from their taxable income, effectively lowering their overall tax liability and reducing the financial impact of these charges.

Once the changes take effect, any GIC or SIC incurred from 1 July 2025 will be non-deductible, meaning that businesses will bear the full financial impact of these charges.

Although GIC accrues retrospectively daily, it is not incurred until the ATO issue an assessment for the income tax due, which crystallises the liability. If an assessment or amended assessment is issued on or after 1 July 2025, any GIC or SIC arising from that assessment will be non-deductible, nor will the daily GIC/SIC charge from that date. 

The combined effect of stricter remission policies and the removal of tax deductibility creates a strong incentive for businesses to avoid late payments altogether.

Actions for businesses to mitigate impact

To prepare for these changes, businesses should:

• Enhance tax planning: Work closely with advisers to anticipate tax liabilities well in advance and lodge on time.
• Strengthen financial controls: Implement systems to monitor tax obligations and avoid last-minute surprises.
• Consider alternative funding: Evaluate the cost of external financing versus the increasing burden of non-deductible ATO interest charges.
• Engage proactively with the ATO: If unavoidable, initiate early discussions with the ATO regarding payment plans or remission requests, keeping in mind that interest remission will be more difficult to secure under the new guidelines.

The ATO’s evolving stance on compliance, combined with the proposed removal of tax deductibility for GIC and SIC, marks a significant shift in tax administration. Businesses should take proactive steps to ensure timely lodgement and payment to avoid increased costs and potential penalties.

If you would like to discuss how these changes may impact your business, contact your local William Buck advisor for tailored guidance.

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Well, yes, actually. In our view, one particular aspect of the Budget could have significant and long-lasting repercussions for many Australian businesses, regardless of their size or industry.

The Budget announced that the Government will ‘strengthen the fairness and sustainability of Australia’s tax system by providing $999.0 million over four years to the Australian Taxation Office (ATO) to extend and expand tax compliance activities.’

Ostensibly, the ATO crackdown will be directed at tax avoidance, the shadow economy and the personal income tax program. However, it would be naïve to believe that a war-chest of that size will not directly lead to additional resources for ATO audits and reviews across a range of industries and risk areas.

A perennial risk in the eyes of the ATO is the R&D tax incentive (RDTI) – the lifeblood of many innovative startups and scaleups.

“History doesn’t repeat itself, but it rhymes” – Mark Twain

As far as the number and intensity of ATO reviews and audits go, things come in cycles. For RDTI, this cycle is complicated by the fact that the incentive is co-administered by the ATO together with a second Government body – the Department of Industry, Science and Resources (DISR), also known as AusIndustry.

Many founders can remember 2018 and 2019, when audit activity surrounding RDTI claims reached a crescendo to the point that some genuinely innovative startups and scaleups, so concerned were they about the media headlines of denied RDTI claims, avoided making a claim altogether – to them, the RDTI was just not worth the risk anymore. This was not a good outcome for the tech sector or the economy as a whole.

Due to the extent of public outcry, there was an easing of pressure before COVID struck and for two or three years there was hardly any review and audit activity as the focus turned towards supporting businesses and protecting jobs.

However, we have seen a steady increase in ATO and DISR reviews over the last 18 months. It is starting to feel like 2018 and the massive increase in ATO resourcing likely spells rough seas ahead for RDTI claimants. The climate is clearly shifting and tech companies need to adapt accordingly.

Some common ways RDTI claims become unstuck – and how to avoid getting caught out

RDTI is often described as a form of non-dilutive capital for startups and scaleups, which is somewhat accurate. However, if we continue with that analogy, RDTI is a form of capital whose ‘investor’ can ask for the money back within a 4-year window if the rules are not followed. This money has strings attached.

So what can Australian tech companies do to minimise the risk of being asked to pay back their RDTI? What pitfalls do they need to avoid?

Expenses incurred to related parties – These are typically viewed by the ATO as high-risk, and understandably so. Having sufficient appropriate documentation will be key to defending your RDTI claim. You must ensure that, at a bare minimum, there needs to be a contract and invoices that clearly spell out what is being provided and at what cost-structure. The ATO expectation is that the details in those contracts and invoices accurately reflect the R&D activities being registered with DISR. An inability to clearly demonstrate the link between the two could spell trouble.

Sweat equity – Has your startup paid a supplier or contractor with shares instead of cash? Unless structured properly, their expenses may not be claimable for the RDTI and may not even be tax-deductible. Refer to this ATO document for more information.

For hardware and advanced manufacturing companies – We are seeing the ATO demand comprehensive documentation from claimants detailing how specific pieces of plant and equipment are being used to conduct R&D activities. Importantly, the ATO expects to see records of how the machinery is being used and how that usage is different to ordinary business activities. Accordingly, we encourage people to keep detailed written records of experimentation and testing, as well as machinery usage reports and photos of the equipment and output. Additionally, expenses on buildings and fixtures to buildings are generally ineligible for RDTI.

Expenditure not at risk – Expenditure on R&D activities may not be claimable where the company is not bearing the financial risk associated with that expenditure. An example is expenditure for which the company is recompensed, or expected to be recompensed, regardless of the outcome of those activities. Post-revenue B2B businesses that deliver major projects have a higher risk of being selected for audit focusing on this issue.

Government grants – Special rules may apply to reduce the RDTI to prevent claimants from receiving a benefit under both the RDTI and another government grant for the same expenditure unless that grant is the CRC program. If your R&D expenses were funded in whole or in part by a government grant, ensure your RDTI is adjusted accordingly.

The above are by no means a comprehensive list of things that can go wrong in an RDTI claim for a typical tech startup or scaleup. In fact, this article is a follow-up to a previous article, and the points raised there remain highly relevant today. I would strongly recommend giving it a read: How to steer clear of R&D tax incentive landmines when you’re a startup

Lastly, in addition to reducing risk, this also is a great time of the year to implement tax planning measures before 30 June that legitimately optimises your RDTI claim – see here for our article on tax planning.

If you’d like tax advice on how to navigate the R&D Tax Incentive, contact your local William Buck advisor.

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Sections 180 to 184 of the Corporations Act detail the key legal obligations, requiring directors to act honestly, in good faith and in the company’s best interests and to avoid prioritising personal interests.
Directors are also expected to exercise their powers and perform their duties with reasonable care and diligence. This includes ensuring that the company complies with record-keeping and financial reporting
requirements as per the Corporations Act.

A critical duty for directors is to monitor the company’s financial position and to ensure that it does not trade while insolvent or when insolvency is suspected. Proactive steps to address financial difficulties can help avoid more serious consequences.

Even when a company enters external administration, such as liquidation or voluntary administration, a director’s duties continue. In these situations, directors have an important role in assisting the external administrator.

Specifically, directors must assist the external administrator by:

• Providing access to the company’s assets
• Handing over the company’s books and records
• Providing a report on the company’s activities and property
• Meeting with the external administrator to provide information and assistance.Fulfilling these obligations is essential to minimise the impact on creditors and facilitate a smooth administration process.

Failure to meet these obligations can lead to serious consequences, including legal action by the Australian Securities & Investments Commission (ASIC), which is responsible for enforcing corporate law.

To avoid such issues, directors should be aware that ASIC actively pursues misconduct, and that non-compliance can result in court proceedings and potential fines.

ASIC Deputy Chair Sarah Court emphasised the importance of directors assisting liquidators, noting in a past media release that ASIC prosecutes those who fail to provide necessary assistance. According to ASIC’s 2022/23 Annual Report, a significant number of convictions have involved directors failing to assist liquidators, resulting in substantial fines.

Practical advice for Directors:

• Stay informed: Ensure you have a clear understanding of your duties and obligations under the Corporations Act.
• Maintain accurate records: Keep comprehensive and up-to-date financial records.
• Monitor business performance: Ensure there are systems and processes in place to obtain regular monthly reporting on the company’s financial position and, if you need assistance in interrupting the financial information, seek assistance from a qualified accountant.
• Seek professional advice: If you suspect financial difficulties, seek advice from qualified professionals like the William Buck Restructuring & Insolvency team as early as possible.
• Cooperate fully: If the company enters external administration, cooperate fully with the external administrator.
• Separate personal from corporate: Clearly keep personal affairs and records distinct from the company’s.

By taking these steps, directors can fulfill their obligations, minimise potential negative consequences, and contribute to a more efficient and equitable outcome for all stakeholders.

Contact your local William Buck Restructuring and Insolvency advisor if you need any further assistance with this transition.

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What happens if that critical person responsible for servicing the debt, unexpectedly passes away or becomes incapacitated? Without a plan in place, the burden of repayment could threaten the business’s survival. Debt repayment responsibilities don’t pause for tragedy and businesses unprepared for such circumstances might be forced to liquidate assets, compromise cash flow or even shut down entirely.

This is where debt protection insurance comes in. It ensures your business can meet its financial obligations, even under the most challenging and unexpected circumstances. By planning ahead, you can protect your assets, secure your operations and provide peace of mind for your stakeholders.

What is debt protection insurance?

Debt protection insurance is a policy specifically designed to repay or reduce business debts if a key individual dies or becomes permanently disabled. This insurance can cover a variety of financial liabilities, such as loans, mortgages or other lines of credit, providing the business with the financial breathing room it needs to navigate a difficult transition.

How does it work? The scenarios below highlight how the different outcomes and risks of not having a policy in place.

Scenario 1: No debt protection insurance in place

Emma and Jack co-own a manufacturing business with a $1 million loan used for expansion. When Jack unexpectedly passes away the business faces significant challenges:

• Financial strain: The business struggles to service the loan, forcing Emma to divert resources or risk asset liquidation.
• Operational challenges: Cash flow issues disrupt daily operations and stall growth plans.
• Stakeholder confidence: Lenders and clients question the business’s stability, leading to strained relationships and lost opportunities.

Ultimately, the lack of a contingency plan threatens both the business’s operations and its reputation.

Scenario 2: Debt protection insurance in place

In the same situation, if the business had a debt protection insurance policy, the loan is fully repaid through the policy payout. This would allow Emma to:

• Maintain financial stability: The business avoids the strain of servicing debt and retains its critical assets.
• Ensure business continuity: Emma can focus on operations and growth without financial distraction.
• Reassure stakeholders: Stakeholders remain confident in the business’s ability to meet obligations, preserving trust and confidence among leaders, clients and employees.

With the safety net provided by the policy, the business can weather the storm and continue to thrive.

Without debt protection insurance, the loss of a key person responsible for debt repayment could lead to:

• Asset liquidation or foreclosure.
• Cash flow problems impacting payroll and operations.
• Reduced stakeholder confidence, leading to lost opportunities or partnerships.
• Potential business closure.

Debt Protection Insurance is an essential safety net for businesses with financial liabilities. It ensures that even in challenging times, your business remains resilient and is capable of meeting its obligations, maintaining stability and focus on the future and if structured correctly, could be tax deductible for your business.

Contact your local William Buck Advisor today to explore Debt Protection Insurance tailored to your business’s needs. Planning now can mean the difference between survival and success.

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With a pivotal election on the horizon, the firm urges policymakers to prioritise bipartisan collaboration to simplify the complex tax system and benefit all Australians.

Todd Want, Head of Tax Services at William Buck, said reforming Australia’s complex tax system would benefit all Australians.

“The budget’s provisions, including energy bill rebates and support for Australian producers, are acknowledged as positive steps. However, we believe a significant opportunity to overhaul the tax system was missed.”

“It represents yet another missed opportunity to overhaul our tax system comprehensively. Simplification and reform are crucial to fostering sustainable growth and ensuring the system works effectively for all Australians,” said Mr Want.

“With the election looming, this budget seems like a missed opportunity by the government to provide long-term relief to businesses across the country. We encourage all parties to use this election as an opportunity to look at a broad reform of our system,” said Mr Want.

The government’s fourth budget included a $150 energy bill rebate for small businesses and up to $25,000 for eligible businesses to fund energy upgrades.

Mr Want said the measures announced in this budget would help businesses, but the forecast of nearly a decade of deficits paints a gloomy picture.

“Small businesses will welcome the support provided in this budget, which will help businesses manage costs and invest in more sustainable operations. However, the budget also showcases the need for policymakers to stop kicking the can down the road on tax reform.”

“The deficits over the coming years highlight the ever-increasing tax burden on Australia’s younger generations, which is unacceptable and can only be resolved by updating our outdated tax system,” added Mr. Want.

William Buck believes that a simplified and reformed tax system is essential for fostering sustainable economic growth and ensuring fairness for all Australians.

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Now more than ever, ensuring your business and investment structures are robust and fully compliant is essential to mitigate risk and safeguard your wealth.

Navigating the complexities of private wealth and succession

The ATO’s focus on private wealth stems from a rise in business and private wealth restructures that appear to be linked to succession planning. Key triggers that may attract ATO attention include

• Division 7A loans: These loans, often made between companies and shareholders or their associates, can have significant tax implications for private wealth structures if not structured and managed correctly.
• Asset movements within family groups: Transferring assets between family members or entities within a family group can trigger capital gains tax or other tax liabilities if not handled carefully.
• Restructuring of family member interests: Changes to ownership structures or the way family members participate in the business can have complex tax and legal implications for wealth distribution and succession.
• Trusts and estate planning: Trusts are often used in succession planning to manage and distribute wealth, but they require careful consideration to ensure compliance with tax laws and achieve the desired outcomes.

Why your business structure matters: Ensuring compliance and safeguarding our wealth.

Choosing the right business structure is a fundamental decision that impacts tax obligations, asset protection, and succession planning. However, with the ATO increasing its scrutiny, the priority should be ensuring that your structure is not only suitable but also fully compliant with evolving tax laws.

It’s important to remember that your business structure isn’t a static entity; it needs to adapt as your circumstances change. Regular reviews are essential to ensure it remains aligned with your evolving goals, particularly as you approach retirement and consider succession.

Your business and wealth structures should be regularly reviewed to ensure they align with current regulations and do not expose you to unnecessary risks. Compliance is not just about avoiding penalties—it’s about maintaining financial security and ensuring the smooth transfer of wealth within your family.

With the ATO shining a spotlight on private wealth and succession planning, now is the time to assess your structure and address any compliance gaps before they become an issue.

If you need guidance on ensuring your business and wealth structures meet ATO requirements, contact your local William Buck advisor for expert advice.

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This article dives into the practical applications of artificial intelligence for businesses, exploring how AI-driven platforms are automating tasks like bookkeeping and invoice processing, freeing up business owners’ time for strategic decision-making. But it’s not just about saving time; AI is also about gaining a competitive edge through advanced tools that can provide real-time cash flow forecasting and dynamic pricing insights, helping business owners make data-driven decisions.

AI in Accounting and Finance: a must have; not a luxury

AI-powered tools are revolutionising financial management, helping businesses streamline processes, reduce errors and make more informed decisions.

• Automated bookkeeping and reconciliation
  AI-driven platforms like Xero, MYOB, QuickBooks and Dext eliminate tedious data entry by automatically categorising transactions and reconciling accounts, as well as drafting AP/AR entries and attaching relevant paperwork from uploads and email inputs. This not only saves time but also significantly reduces human errors.
• Real time cashflow forecasting
  Tools like Fathom, Float and Futrli analyse spending patterns, upcoming payments and seasonal fluctuations to provide accurate cash flow predictions—helping businesses avoid cash shortages before they happen.
• AI-Driven accounts payable and receivable
  Software such as Bill.com and Ramp automates invoice processing, payment approvals and collections. Businesses can cut down the time spent on chasing payments while improving cash flow management.
• Dynamic pricing and financial insights
  AI-driven analytics tools like Pricefx and ProfitWell help businesses set optimal pricing by analysing market trends, competitor pricing and customer behaviour. These insights allow for smarter pricing strategies that maximise revenue without losing competitiveness.
• Fraud detection and risk analysis
  AI-powered fraud detection solutions proactively analyse transaction patterns and flag potential fraud before it happens. Businesses relying on manual checks are at a severe disadvantage when it comes to identifying financial risks in real time.

AI beyond Finance: transforming every aspect of business

AI isn’t just about finance—it’s reshaping sales, marketing, customer service and operations. Here’s how businesses are using AI outside of finance:

• AI-Powered customer support
  Chatbots and virtual assistants like Intercom, Drift, and ChatGPT-powered support tools handle customer inquiries instantly, reducing response times and improving customer satisfaction without overloading staff.
• Sales and lead generation
  AI-driven platforms such as HubSpot and Apollo analyse customer behaviour, automate outreach and refine marketing strategies based on real-time data, helping businesses close more deals with less effort.
• Predictive maintenance for equipment
  Businesses in logistics, construction, and manufacturing are using AI-powered predictive maintenance tools like Uptake and Avathon to monitor machinery health, preventing costly breakdowns before they happen.
• AI-Optimised inventory management
  Retailers and wholesalers use AI solutions like Luminate, Unleashed and Cin7 Core to predict demand, optimise stock levels and automate reordering—preventing stockouts and excess inventory.
• Automated content creation and marketing
  AI-powered tools like Jasper and Copy.ai help businesses generate marketing copy, social media content and ad campaigns in minutes, allowing teams to scale their marketing efforts with minimal manual input.

The bottom line: AI isn’t optional—it’s essential

AI is no longer a ‘nice-to-have’ for businesses—it’s a key to staying competitive. Companies that integrate AI into their operations gain efficiency, cut costs and make smarter decisions while those that hesitate risk inefficiency, lost revenue and falling behind more agile competitors.

If you’d like to discuss how artificial intelligence and data driven decision making can help your business, contact your local William Buck Advisor

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Who is affected?

These changes affect several groups:

1. Current Tier 2 NFP entities with expenses less than $5 million that do not have public accountability.
2. Incorporated societies that are not registered charities and have not previously adopted NFP standards.
3. All Tier 3 NFP entities.

These changes are mandatory for most entities with financial year-ends on or after 31 March 2025.

Incorporated Societies

The final deadline for re-registering under the new Incorporated Societies Act 2022 is 5 April 2026. Before then, incorporated societies will need to ensure their new constitution complies with the new Act and is approved by members at a general meeting. We recommend that you register as soon as possible to avoid any complications.

For the first reporting period after the new constitution is registered, a society will need to prepare its annual report under the XRB’s standards. E.g. if your new constitution was registered in February 2025 and your financial year end is March 2025, you will need to follow the new Tier 3 reporting standard when preparing your 2025 annual report.

Key changes for Tier 3 entities

Whether an existing or new Tier 3 entity, the revised Tier 3 reporting standard introduces several key changes:

1. Service performance reporting: There is new terminology to use in your service performance report and better guidance on how to select your ‘significant activities and achievements’.
2. Asset valuation: Tier 3 entities can now revalue property, plant and equipment based on independent valuations or rateable values, and publicly traded financial investments can be measured at their current market value.
3. Opting up: The opting-up provisions now allow Tier 3 entities to recognise certain transactions directly in accumulated funds rather than in comprehensive revenue and expenses when opting up to Tier 2 standards. This simplifies the process and reduces the reporting burden for entities choosing to opt up.
4. Accumulated funds: The new disclosure requirements for accumulated funds enhance transparency and accountability. Entities must now provide detailed information about how they manage their reserves, including the purpose, plans and expected application of each reserve. This helps stakeholders understand how the entity is using its resources to achieve its objectives.
5. Revenue and expenses categories: The revised categories for revenue and expenses provide greater clarity and make it easier to aggregate and report financial information. The new categories are more clearly defined, and entities can still relabel them using terminology more appropriate for their specific circumstances. This flexibility allows for customised reporting while maintaining consistency and comparability across entities.
6. Revenue recognition: The new model for revenue recognition replaces the previous ‘use or return’ conditions with a focus on ‘documented expectations’ for significant grants, donations and bequests. This change aligns Tier 3 reporting with Tier 2, promoting consistency and accuracy in revenue recognition.

Next steps

We recommend that Tier 3 organisations should take the following steps to prepare for these changes:

• Understand the specific impact of the changes on their organisation. In particular, all entities will be affected by the changes in service performance reporting and the new revenue and expense categories
• Work with their accounting provider to ensure compliance. Make contact before the end of your financial year so that you are well prepared.

Relevant resources

• Incorporated Societies website: https://is-register.companiesoffice.govt.nz/
• Getting ready for re-registering: https://is-register.companiesoffice.govt.nz/assets/IS-Guide-to-reregistering.pdf
• Financial reporting standards for small societies: https://is-register.companiesoffice.govt.nz/help-centre/financial-reporting-standards-for-small-societies/
• Charities services: https://www.charities.govt.nz/
• XRB website: https://www.xrb.govt.nz/standards/accounting-standards/
• Tier 3 (NFP) standard: https://www.xrb.govt.nz/standards/accounting-standards/for-profit-standards/tier-3-not-for-profit-standard/ (for detailed information on the new reporting requirements)

By proactively addressing these changes and utilising the available resources, NFP organisations can ensure they meet their reporting obligations and maintain transparency and accountability in their financial reporting.

If you’d like help in navigating these NFP reporting changes, contact your local William Buck Advisor today.

The post Navigating Not-for-Profit financial reporting changes appeared first on William Buck Australia.

However, businesses often overlook the potential risks associated with losing such individuals.

What would happen if a key person were unexpectedly lost due to death, disability, or serious illness?

The repercussions could be profound, including declining revenue, operational disruptions, lost client confidence and a negative ripple effect on staff morale. Without proper planning, even a thriving business can face immense challenges and in worst-case scenarios, risk collapse.

This is where key person insurance becomes invaluable – a tool designed to safeguard your business against the financial and operational fallout of losing a key contributor. By planning ahead, you can ensure your business’s resilience and protect its long-term vision, even in the face of unexpected events.

What is key person insurance?

Key person insurance is a life or disability insurance policy taken out by a business on an individual whose absence would significantly impact the organisation. If the key person passes away or becomes temporarily or permanently incapacitated, the policy provides a lump-sum payment to the business.

Why is it essential?

1. Business continuity: Protects your business against financial disruptions caused by the unexpected loss of a critical individual.
2. Reputation management: Helps maintain client and stakeholder confidence during periods of uncertainty.
3. Financial resilience: Provides funds to recruit and train a replacement, cover revenue shortfalls or pay off debts.
4. Peace of mind: Enables business owners to focus on navigating challenges rather than worrying about immediate financial survival.

The following scenarios highlight the different outcomes and risks of not having a policy in place.

Scenario 1: No key person cover in place

Sarah and Tom co-own a successful architectural firm. Sarah’s expertise in client relationships and design innovation makes her indispensable, contributing to 60% of the firm’s projects. When Sarah passes away unexpectedly, the business faces significant challenges like:

• Financial strain: Revenue declines as Sarah contributed 60% of the projects and recruiting a replacement becomes an expensive and lengthy process.
• Operational challenges: Tom struggles to balance daily operations while attempting to fill Sarah’s role.
• Reputational damage: Delayed projects and uncertainty erode client trust, threatening the firm’s long-term success.

Scenario 2: Key person cover in place

With Key person insurance in place, the architectural firm receives a payout upon Sarah’s passing.

This allows Tom to:

• Cover revenue losses and fund recruitment and training for Sarah’s replacement
• Maintain day-to-day operational continuity without financial strain, and
• Preserve client confidence, ensuring projects proceed as planned and the firm’s reputation remains intact.

The policy acts as a financial lifeline, allowing the business to remain stable and secure, even in the face of significant loss.

The cost of inaction

Failing to invest in key person insurance, can leave your business vulnerable to:

• Revenue loss: Decline in income due to the absence of the key person’s contributions.
• Financial strain: Increased costs for recruitment and training of a replacement.
• Operational disruption: Delays in projects and reduced efficiency.
• Reputation damage: Erosion of client and stakeholder confidence.
• Business instability: Heightened risk of financial instability or closure.

Investing in key person insurance ensures your business remains resilient, even in challenging times and protects everything you’ve worked hard to build

Key person insurance is more than a safety net, it’s an investment in your business’s future and if structured correctly, could be tax-deductible for your business. By planning for the unexpected, you can ensure financial stability, protect your reputation, and navigate challenging transitions with confidence.

Contact your local William Buck advisor to explore Key Person insurance solutions tailored to your business’s needs.

The post Protecting your business with key person insurance appeared first on William Buck Australia.

As 31 March approaches, are you ready to wrap up the financial year with confidence — or risk penalties and missed savings?

Here are the top considerations to keep in mind before the end-of-financial year (EOFY) deadline.

1. Income and tax obligations: plan smart, pay less

Provisional tax payments

Missing your provisional tax deadline could result in unnecessary penalties and interest. Check your IRD payment schedules now — your final payment needs to be made by 7 May to avoid penalties and keep your business tax strategies on track.

Don’t leave bad debts hanging

If you’ve got unpaid invoices that aren’t going to be recovered, write them off before 31 March. Claiming a reduction by finalising bad debts helps maintain accurate records and lower your tax bill.

2. Maximise your deductions and expenses

Prepaid expenses = more savings

Depending on IRD thresholds, expenses like rent, insurance, and subscriptions could be deductible expenses you may be able to claim in advance. Look ahead and consider early payments to maximise tax benefits.
For example, under IRD rules, prepaying $2,000 in business insurance before 31 March could qualify as a deduction this year.

Review last year’s fixed asset register

Review your fixed assets to ensure they are all still in use and note any that need removing. Removing obsolete or sold assets ensures your depreciation claims stay accurate and your balance sheet reflects current operations to ensure you do not leave any surprises during future auditing activities.

Stock valuation: reduce taxable income

A proper stocktake can reveal slow-moving, obsolete or damaged inventory that should be written off. Lower stock values can reduce taxable income, so don’t overlook this simple adjustment.

Employee bonuses and benefits

If you’re rewarding your team with bonuses or incentives, make sure these are paid within 63 days of the balance date — for most taxpayers, payments need to be made by 31 March to qualify for a tax deduction this year. Bonuses should also be settled by 2 June to ensure they count for this tax year.

3. GST and PAYE compliance: stay on the right side of the IRD

GST adjustments matter

Ensure proper adjustments are made to offset the private use of business assets, bad debt write-offs and other necessary transactions before filing your final GST return. These adjustments are vital to tax compliance and should not be rushed or overlooked at EOFY.

Payroll and KiwiSaver: no room for mistakes

Double-check that all PAYE and KiwiSaver obligations are met. Late payments can lead to unnecessary penalties, so ensure all payroll deductions are up to date to stay compliant.

4. Trusts and Companies: take action before 31 March

Trust distributions

With recent trust tax rate changes, trustees should review and finalise distributions before 31 March to avoid unnecessary tax burdens and minimise your exposure to the new trust tax rate.

Dividend decisions

If you own a company, should you declare dividends now or later? Reviewing dividend options can help optimise shareholder tax efficiency. Now is the time to evaluate if declaring a dividend will benefit shareholders before the new financial year.

5. Get organised and file with confidence

Sort your financial records

A cluttered tax season is a stressful tax season. Maintaining accurate records by ensuring all invoices, receipts, and records are in place helps reduce risk in case of an IRD audit and supports faster, stress-free filing.

Seek professional advice

A tax expert can help you uncover savings and ensure full compliance with IRD regulations. If you’re unsure about anything, now’s the time to get expert guidance. Tax planning shouldn’t be left to guesswork. Work with a financial advisor to ensure you are prepared for the End of financial year

EOFY is more than just a deadline, it’s a golden opportunity to review your financial health, cut down your tax bill, and prepare for a prosperous new financial year. Take proactive steps now, and you’ll thank yourself later!

Contact your local William Buck advisor today to optimise your end-of-financial-year position.

The post End-of-Financial-Year considerations for taxpayers in New Zealand appeared first on William Buck Australia.

But what does it mean to be truly data-driven? And how can businesses ensure they are collecting, interpreting and applying data effectively?

The power of data-driven decision making

Data-driven decision-making (DDDM) involves collecting and analysing relevant data to guide strategic, financial and operational choices. When executed correctly, it provides businesses with a clear picture of their current position and future trajectory, helping you:

• Identify growth opportunities
• Optimise cashflow and financial planning
• Improve operational efficiency
• Mitigate risks and adapt to market changes
• Enhance customer experiences and engagement, and
• Understand employee engagement.

A business that embraces data-driven strategies is better positioned to respond proactively rather than reactively to challenges. However, to maximise the benefits, businesses must ensure that the data they use is accurate, timely and relevant.

How to collect reliable business data

To make intelligent business decisions, you need access to the right data. The key is to collect data from multiple reliable sources and ensure it is both comprehensive and up-to-date.

1. Financial reporting systems

A robust accounting system allows businesses to track revenue, expenses and profitability in real time. Most good systems allow automation of bank feeds, invoice creation and reconciliation, so you should use it where available. Using the software the way it is supposed to be used also minimises errors and improves the accuracy of reports.

2. Customer Relationship Management (CRM) software

A CRM system records customer interactions, sales trends and buying behaviours, helping businesses tailor marketing strategies and improve customer retention.

3. Operational data and Key Performance Indicators (KPIs)

Tracking operational data—such as production efficiency, inventory levels and workforce productivity—ensures businesses can optimise their processes and reduce inefficiencies.

4. Market and industry analysis

Staying informed about industry trends, competitor performance and economic conditions allows businesses to benchmark their position and adjust strategies accordingly.

5. Garbage in, garbage out

The quality of business decisions is only as good as the data being used. If inaccurate, incomplete or poorly structured data enters your systems, the insights drawn from it will be flawed. Businesses must implement strict data governance protocols to ensure that:

• Data is consistently recorded with clear formatting and categorisation
• Input errors are minimised through validation rules and automation
• Only authorised personnel handle and modify key financial and operational data, and
• Duplicate or outdated information is regularly cleaned and removed.

By establishing these controls, businesses can avoid misleading reports that result in poor decision-making, ensuring they extract meaningful and actionable insights from their data.

Interpreting data for better decision making

Collecting data is only half the equation. Businesses must also know how to interpret and apply this information effectively.

1. Look for patterns and trends

Historical data can reveal trends in customer demand, seasonal fluctuations and market shifts. Identifying these patterns helps businesses forecast future cash and inventory requirements, expected performance and plan accordingly.

2. Use visualisation tools

Dashboards, graphs and charts make complex data easier to understand. Tools such as Power BI can be used with Access Point Interfaces (API’s) to collect data from multiple sources and present them in consolidated reports. Most accounting platforms have in-built or add-on reporting structures to create similar reports to help businesses analyse financial and operational data at a glance.

3. Apply scenario planning: What if?

By modelling different business scenarios—such as revenue drops, increased expenses or supply chain disruptions—businesses can prepare contingency plans and reduce risk exposure. ‘What if’ scenarios can also be used to assess business cases for expansion, acquisitions or other investment decisions.

The Importance of 3-Way cashflow Forecasting

One of the most critical aspects of data-driven decision-making is 3-way cashflow forecasting, which integrates three key financial statements:

• Profit and Loss statement – Shows business revenue, expenses and net profit.
• Balance sheet – Provides a snapshot of assets, liabilities and equity.
• Cashflow statement – Tracks the movement of cash in and out of the business.

Unlike traditional cashflow forecasting, which only considers cash inflows and outflows, a 3-way forecast provides a holistic view of a business’s financial health. It allows business owners to:

• Predict future cashflow issues before they arise
• Ensure sufficient working capital for growth
• Identify opportunities for reinvestment or debt reduction, and
• Gain a clearer picture of financial sustainability.

For businesses looking to scale or secure financing, a well-prepared 3-way forecast is essential in demonstrating financial viability to investors and lenders.

Applying data insights to business strategy

Once businesses have collected and analysed their data, the next step is turning insights into action.

1. Align data with business goals

Whether the goal is increasing profitability, reducing costs or expanding into new markets, decisions should be backed by concrete data rather than assumptions.

2. Implement real-time reporting

Regularly reviewing financial and operational data ensures business leaders can make adjustments promptly rather than waiting for month-end reports. There should be a strict month-end reporting timeline that produces financial statements and updates to all forecasts and budgets.

3. Foster a data driven culture

Encouraging employees at all levels to utilise data in their decision-making processes ensures consistency and improves accountability.

Use AI and generative tools to enhance decision making

Artificial intelligence (AI) and generative tools are transforming how businesses interpret and apply data. These technologies provide real-time insights, automation and predictive analytics to enhance decision-making. Businesses can leverage AI in many ways, a few of which are:

• Predictive analytics – AI models can analyse historical data to predict future sales trends, customer behaviour and financial risks.
• Automated reporting – AI-driven tools can generate financial reports, detect anomalies and highlight key trends without manual intervention.
• Conversational AI and chatbots – Businesses can use AI-powered assistants to quickly extract insights from large datasets, making data more accessible.
• Scenario analysis – AI models can simulate different business scenarios to assess potential risks and opportunities.

By integrating AI into data analysis, businesses can streamline decision-making, improve accuracy and free up time for strategic planning. However, it is important to be careful what you upload into AI as, in many cases, that data will then be publicly available.

In a world where uncertainty is a constant, businesses that embrace accurate, timely data are better positioned to succeed. By implementing effective data collection, interpretation and forecasting methods, business leaders can make more informed decisions, mitigate risks and drive sustainable growth.

For businesses looking to refine their approach to financial planning and cashflow forecasting, engaging with an experienced advisory team can provide the expertise needed to unlock long-term success.

If you’d like to discuss how William Buck can help your business become more data-driven, contact our team today.

The post Why data-driven decision making is critical for business success appeared first on William Buck Australia.

According to the South Australian Business Chamber’s Survey of Business Expectations, released today, South Australian business confidence has risen to its highest level since March 2023. But, lingering high costs of doing business reflects a more challenging operating environment for many South Australian Businesses. 75.1% of respondents voted costs as the most significant issue affecting their operations, 20.3 percentage points more than the second most voted which was profitability/profit margins.

The cost increases and squeeze on business profitability highlights the challenging environment facing so many businesses. On balance, it’s surprising that businesses are more optimistic about conditions than they were last quarter.

Energy price hikes remain a huge part of this, 38.9% of surveyed businesses reported their bills increasing 21% or more in the last year, with 8.1% saying they rose by more than half.

Energy prices are pushing many businesses to invest in generating power as close to where they consume it as they can to decrease their exposure to grid infrastructure charges and minimise electricity costs. 54% of respondents have solar panels installed in their businesses while only 15% of respondents have batteries. I suspect as battery technology improves this will become more widespread, especially among electricity intensive industries.

Another expense that is topical is the price of servicing debt. While it’s certainly not critical for every business, many capital intensive businesses using leverage are feeling the impact of prolonged higher interest rates. For most businesses, while this month’s interest rate cut alone will be immaterial, the change in sentiment among consumers could herald a brighter outlook.

The survey’s Cost of Materials and Cost of Overheads Index both rose in the quarter and remain at near all-time highs and have been elevated for the last couple of years. One of the main issues with the prolonged high-cost business environment is that businesses have already pursued many practicable cost-saving measures across their operations. As a result, identifying and implementing further measures is becoming increasingly challenging. This is perhaps most true of agriculture and manufacturing firms, 86% and 83% respectively voted costs of doing business among their main issues.

After passing on previous price rises to customers, many businesses now looking to increase prices further are meeting resistance, particularly as inflation has eased. As a result, businesses in this space are finding their profit margins are continuing to be compressed. Global trade faces a period of uncertainty and likely volatility in the short term The direct impact of Trump’s tariffs will play out over time, but the indirect impact on our exporters could be interesting. If, for example, competing nations move away from exporting to the US, this may increase competition for Australian goods in other markets and prove challenging.

I do get a sense from many businesses I speak to that there is an appetite for nuclear energy to form part of our energy mix. This isn’t universal, but after years of energy price rises, many businesses wish to see a long-term solution, and while acknowledging the pitfalls of nuclear such as establishment cost, lead times and the politics of it, many clients feel its time has come.

Without a significant improvement in the cost of doing business in South Australia, the small increase in confidence we are seeing will remain fragile.

The post SA business confidence up slightly, but certain costs still bite appeared first on William Buck Australia.

Another significant change is the upcoming government-proposed changes to the Medicare Benefits Schedule (MBS), initially slated for 1 November 2024 but now postponed to 1 July 2025. Here’s what you need to know and how it may impact your practice.

Strengthening Medicare – changes to bulk billing

The proposed changes are a further expansion of the bulk billing incentives that are currently paid to GPs that bulk bill children under the age of 16 and concession card holders, which would be extended to cover any eligible patient.

A new Bulk Billing Practice Incentive Program will apply to participating practices, allowing them to receive an additional 12.5% loading payment for every $1 earned through MBS benefits. Conditions will be applied, requiring practices to fully bulk bill and participate in MyMedicare.

The changes would take effect from 1 November 2025 and appear to be supported by both the Government and the Opposition.

Chronic Disease Management – current system & rebates

Under the current system, patients diagnosed with a Chronic Disease are eligible for Medicare rebates when visiting their General Practitioner (GP) for a GP Management Plan (GPMP) and Team Care Arrangement (TCA). Patients can receive these rebates once a year, with additional eligibility for reviews every three months.

For example, a patient who has a chronic disease that requires management by a GP, as well as a non-GP specialist and allied health professionals, requires a TCA, which helps coordinate the care provided by this team of professionals.

The current Medicare rebates for Chronic Disease Management Items:

• New GPMP (Item Number 721): $164.35 (once a year)
• New TCA (Item Number 723): $130.25 (once a year)
• Review GPMP (Item Number 732): $82.10 (three times a year)
• Review TCA (Item Number 732): $82.10 (three times a year)

In total, the current maximum Medicare rebate for GPMP/TCA items per patient per year amounts to $787.20. For a GP practice managing 2,000 patients on GPMP/TCA, this translates to total fees of $1,574,400, with practice service fees at 35% equating to $551,040.

Upcoming changes from 1 July 2025 to Chronic Disease Management

From 1 July 2025, the proposed new Chronic Condition Management Item (GPCCM) will be introduced, which includes a name change as well as changes to the item numbers and claim amounts:

While the Government hasn’t provided the exact amounts as yet, below is an example as an indication of how it could apply to practices:

• New GPCCP (Item Number 965): $120.00 (once a year) (estimate only)
• Review GPCCP (Item Number 967 – TBC): $120.00 (three times a year) (estimate only)

In this example, the new Medicare rebate per patient per year could be $480.00 per patient. For a practice managing 2,000 patients on GPCCP, this will result in total fees of $960,000, with practice service fees at 35% equating to $336,000.

Financial implications

Depending on the actual rate implemented for the new item numbers, GP practices currently managing 2,000 patients on GPMP could see a decrease in service fee revenue by $215,040. This reduction is significant, especially for practices that predominantly bulk bill.

Key considerations

1. Shift from Chronic Disease to Chronic Condition: The name change could potentially broaden the eligibility, allowing patients with chronic conditions who were not previously eligible for a GPMP to qualify for GPCCP.
2. Reduction in paperwork: Removing TCA will decrease the administrative burden on GPs and their nurses, potentially resulting in savings on wages.
3. Bulk Billing practices: Currently, many GPs bulk bill for GPMP and TCA consults. This practice encourages regular patient visits and proactive disease management, helping prevent future health issues and hospital admissions.

Adaptation strategies

The proposed changes necessitate adaptation strategies for GP practices. Identifying additional patients who require extra care under the new Chronic Condition Management framework will be crucial. Practices will also need to evaluate how to balance the decrease in MC funding with potential increases in patient volumes.

With changes to Bulk billing, practices will need to analyse the income streams and determine what is best for the practice moving forward, as a high number have already moved to mixed billing rather than full bulk billing.

As these changes loom on the horizon, staying informed and proactive will be key to navigating the evolving landscape of chronic condition management. The healthcare community will need to work collaboratively to ensure continued high-quality care for patients while managing the financial implications for practices.

If you’d like support navigating these changes, contact your local William Buck Health Team Advisor.

The post Understanding potential changes to the Medicare Benefits Schedule and their effects on GP practices appeared first on William Buck Australia.

However, one crucial yet often overlooked step is deciding what to do with the proceeds from the sale of your practice (assuming there are proceeds as sales to medical practice consolidators are quite common these days). Suddenly, you’re faced with a substantial sum of money that needs a new home. Depending on your life stage, financial position and goals, there are several common approaches to consider.

Consulting your advisors

First and foremost, it is essential to seek advice from your accountant and financial advisor if you are contemplating a sale. There can be significant tax implications and opportunities that you need to understand. For instance, you may need to allocate a portion of the proceeds to cover a potentially large tax bill the following year.

Your accountant and financial advisor will work to understand your goals and objectives, helping you develop a strategy that aligns with your financial aspirations.

Clearing non-deductible debt

If you still have a home loan or any other non-deductible (non-income earning) debt, using the sale proceeds to clear that debt can be a prudent step. This can provide a sense of financial freedom and reduce ongoing interest expenses.

Investing outside of superannuation

You have the option to invest the money outside of superannuation in shares, property or other asset classes. It is generally advisable to do this through a family trust, as it offers greater asset protection and flexibility in reducing tax on those investments.

Maximising super contributions

You could make concessional (tax-deductible) contributions up to $30,000 per annum to superannuation. This can help reduce the tax on the sale while boosting your superannuation for retirement. If your superannuation balance is less than $500,000, you may be able to catch up on prior years in which you did not contribute the maximum amount while also creating a substantial tax deduction.

You can also make non-concessional (after-tax) superannuation contributions to enhance your balance. If eligible, you may even be able to make a small business superannuation contribution, allowing for additional super contributions and minimising tax on the sale. It is crucial to consider which super fund is suitable and how this money will be invested.

Case study – Dr Susan Smith

Dr. Susan Smith recently received the proceeds from the sale of her ophthalmology medical practice. Before initiating the sale process, Susan engaged her accountant and financial advisor to explore various strategies.

Susan received $1 million from the sale. She used the first $350,000 to clear the remaining mortgage on her home and then made $150,000 of tax-deductible superannuation contributions by maximising her $30,000 concessional contribution limit and catching up on prior year contributions, minimising the tax on the sale. The remaining $500,000 was invested in her family trust, with sufficient funds set aside within the trust for the anticipated tax liability next year.

Overall, Susan successfully cleared her mortgage, built her superannuation for retirement with a significant tax deduction, and invested the rest to generate a passive income stream. Susan may also qualify for the Small Business Capital Gains Tax concessions to reduce her tax bill further, but this is subject to eligibility.

As seen in the example above, there are many competing and complex options for utilising your medical practice sale proceeds and the tax outcomes can vary significantly.

If you would like to discuss your exit plan or financial goals, contact your local William Buck advisor.

The post How do I invest the proceeds after selling my practice? appeared first on William Buck Australia.

The tax treatment of income from personal exertion falls under the Personal Services Income (PSI) attribution regime. This legislation effectively treats individuals earning PSI as a quasi-employee. This involves looking through any structures, such as a medical company or trust, which may be in place to attribute the income generated back to the individual who earned that income.

For example, if Dr Chan is earning $400,000 in personal income from his work as a doctor after business expenses, this income must, under law, be included in Dr Chan’s personal income tax return in the year that it has been earned. He does NOT have the option to;

• leave significant amounts of income in a medical company to be taxed at the company tax rate, or
• split the income with other family members to reduce his tax.

If Dr Chan were to alienate some of this income away from himself, this would be considered tax avoidance and would incur substantial penalties from the Australian Tax Office (ATO).

When considering PSI, it must be clear that the type of income covered is only personally generated income. It does not include income generated by a medical practice from service fees or income from investments that may be held in another structure, such as a trust. The ATO have a particular focus on this activity, and as such, we explain some of the facts (and the fiction) of Personal Services Income.

I can split my income as a doctor because I have a company or trust

False.

The ATO will look through any structure to see how the income is derived. This is the key focus of the PSI legislation. If a medical practitioner derives income as a result of their personal work or exertion, this income is PSI and must be attributed to the individual performing the work.

It is sometimes mistakenly assumed that if you meet the requirements to be classified as what is called a Personal Services Business, you can split your income between yourself and your family members. This is not the case. Where personal exertion income is split inappropriately with associates, the ATO is likely to consider this tax avoidance and ignore any tax benefits obtained.

I work at several practices, so 80% of my income does not come from one source so that I can split my income.

False – this income is still derived as a result of their personal work or exertion as a medical practitioner. This income remains income generated from personal services and must be attributed to the individual performing the work.

The income I generate means I am a personal services business, so can I pay my spouse a wage and superannuation?

True – provided you are considered a personal services business (PSB).

If your spouse or an associate provides services to you that are necessary for the generation of your income and you remunerate them at a market rate, these payments will be a tax deduction to you. If no work is performed, no payments can be made to them.

You may choose to maximise any superannuation contributions on behalf of your spouse (working in your business) up to the concessional cap, even if the superannuation contribution exceeds the value of the work performed. The current concessional cap for the 2025 financial year is $30,000. This position is supported by Tax Determination 2005/29 and Ryan’s case.

I use a medical company because if provides me with asset protection from my patients

False – Sometimes, sole traders are encouraged to operate through a company to take advantage of the additional legal protection and limited liability offered under a corporate structure.

In our experience, these protections are not all that valuable to a professional, such as a medical practitioner, where any failure is likely to be at a professional level. In these cases, the limitation of liability offered by a company will not offer any protection to the person. Therefore, it is vital that medical practitioners maintain an appropriate level of professional indemnity insurance, regardless of the trading structure they have in place.

In relation to professional failings (such as medical malpractice) it will be largely irrelevant, from an asset protection perspective, if the medical practitioner is trading as a sole trader, or through a different entity such as a company.

For more information about what can be considered Personal Services Income or to know more about your income could be classified, contact your local William Buck advisor.

The post Income splitting the facts vs the fiction appeared first on William Buck Australia.

Understanding Division 7A

Division 7A of the Income Tax Assessment Act 1936 addresses certain loans, payments and forgiveness by private companies to shareholders or associates of shareholders. The intention behind this provision is to prevent profits or assets from being provided to shareholders or their associates tax-free by treating those loans and payments as dividends unless they are either repaid in full or placed under the terms of a complying loan arrangement.

The Commissioner’s view since 2010

Since the 2010 financial year, the Commissioner of Taxation has taken the stance that a UPE from a trust to a company qualifies as a ‘loan’ for Division 7A purposes. Consequently, to avoid it being treated as a deemed dividend by the company back to the trust, the UPE needed to be either:

1. Paid in full by the trust to the company within particular timeframes,
2. Put on ordinary complying Division 7A loan terms (i.e. paid back over a particular timeframe with principal and interest repayments), or
3. For certain years and types of arrangements, put under a ‘sub-trust’ arrangement, which may’ve had more favourable repayment terms than an ordinary Division 7A loan.

Before the 2010 financial year, such a UPE could remain unpaid from the trust to the company indefinitely and Division 7A would essentially only apply to such an arrangement if the trust made a loan to a shareholder or associate of a shareholder of the company rather than, for example, the trust retaining the funds to use in its business or investment activities.

The judgment’s impact

The Court’s judgment, which notably lacked any legislative history commentary, focused on the words in the tax law defining ‘loan’ for Division 7A purposes. Unless the Commissioner successfully appeals this decision, or there is legislative reform, this interpretation restores the position on UPEs to that which existed before the 2010 financial year.

Practical considerations

This decision brings up several practical questions, including:

• Will the Commissioner seek leave to appeal the Full Court’s decision to the High Court and if granted, will they be successful?
• How should UPEs already placed under arrangements to comply with the now-invalidated Commissioner’s view be handled?
• For June 2023 UPEs, which would have required placement under an arrangement by the lodgement day of 2024 tax returns, what actions should be taken if those returns have not yet been lodged?
• What should taxpayers do with their tax planning for the year ending 30 June 2025, or indeed lodging tax returns for the year ending 30 June 2024?

While the Court decision was unanimous and a major win for taxpayers, it is not the end of this issue. It is crucial for affected taxpayers to seek expert advice on how the decision impacts their current structure and what future opportunities may be available. While the implications of this decision are potentially substantial for a broad group of people, maintaining an ongoing understanding of the issue is essential for effective tax planning and compliance.

If you’d like practical advice on how this might affect you, contact your local William Buck Tax Advisor.

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Why would medical professionals consider purchasing their business premises with an SMSF?

There are several reasons why the purchase of business real property may be of great advantage to consider, including:

Tax benefits: Although this should never be the sole reason, a primary advantage to owning an asset in super is the tax advantages. Rental income generated from the commercial premises is taxed at the concessional rate of 15% within the SMSF. If the property is sold after retirement, the capital gains tax can be reduced to zero if the SMSF is in the pension phase

Asset protection: Assets held within a compliant SMSF may be better protected from creditors in the event of business difficulties or legal disputes, offering medical practitioners greater financial security

Greater control and security: Medical professionals can have direct control over the investment decisions related to the commercial property, including maintenance and negotiating lease terms – although these terms still need to be on a commercial arms-length basis.

Potential for capital appreciation: Like any property investment, commercial premises purchased by an SMSF have the potential for capital appreciation, contributing to a more comfortable retirement nest egg.

When wouldn’t this be a good Idea?

Buying a property with your super isn’t always a good idea. If an ill-considered decision is made, it could also be a hard and costly exercise to unwind. Some of the initial considerations to weigh up before going down this path are:

Enough capital under your super(s) to get started

The upfront costs associated with purchasing property, including deposit, stamp duty and legal fees, can be significant. This might not be feasible for all SMSFs, especially those with limited funds.

Liquidity issues

Property is an illiquid asset, meaning it cannot be quickly converted to cash. This can pose a problem if the SMSF needs to access funds for other investments, expenses or member access in the future.

Compliance and complexity of holding an SMSF

Managing an SMSF and ensuring compliance with all regulations can be complex and time-consuming. Non-compliance can result in severe penalties.

Being risk-averse or having a short investment timeframe

Property markets can be volatile. A downturn in the market can affect the value of the investment and the rental income payable.

OK, you have decided to buy your business premise within an SMSF. What else should you consider?

Investment potential: Evaluate the potential for capital growth and rental income of the property. Consider the location, demand for commercial properties in the area and the overall economic outlook.

Investment timeframes: Align the investment with your retirement goals. Consider how long you plan to hold the property and whether it will provide the desired returns by the time you retire.

Liquidity: Ensure that the SMSF has sufficient liquidity to cover unexpected expenses, such as property repairs or periods of vacancy. This is crucial to avoid financial strain on the fund

Exit strategy: Plan how you will exit the investment. Options include selling the property, transferring it to members upon retirement or refinancing. Consider the tax implications and market conditions at the time of exit

Costs and GST registration: Be aware of all costs involved, including purchase price, stamp duty, legal fees and ongoing maintenance.

Fund diversification: Holding a single property within an SMSF can expose the fund to concentration risk. Diversifying investments across different asset classes can mitigate this risk and provide more stable returns.

What are the funding options to purchase the property?

Option 1 – Buy outright using the existing SMSF Balance:

Potential suitable for very large super balances.

Although the simplest to initiate, it is also the most capital intensive and requires careful planning to ensure there are sufficient funds available without compromising other investments.

Option 2 – Making extra contributions to Super:

Potentially suitable for larger balance super funds that do not wish to borrow.

Members can make additional contributions to their super to increase their SMSF balance. This can be done through concessional (pre-tax) or non-concessional (post-tax) contributions, subject to contribution caps.

Limited Recourse Borrowing Arrangement (LRBA):

Potentially suitable for medium to high super balances where additional capital required.

An SMSF can borrow money to purchase property through a LRBA. This allows the SMSF to acquire a higher-value property than it could with its own funds alone. However, LRBAs come with strict compliance requirements and higher costs to set up and maintain – not least of which are loan repayments.

Purchasing business premises through an SMSF can be a strategic move for medical professionals, offering tax benefits, asset protection and control over investments. However, it requires careful consideration of the costs, liquidity, compliance requirements and market risks.

To ensure that this strategy aligns with your financial goals and retirement plans, contact your local William Buck Advisor.

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