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Key Changes to Self Managed Super Fund (SMSF) Borrowing Rules Explained To ensure passage of the negative gearing and CGT discount changes that were announced in the May 2026 Federal Budget the Government agreed to make amendments to the SMSF borrowing rules. SMSFs are able to borrow in restricted circumstances which includes borrowing under a limited recourse borrowing arrangement (LRBA) to purchase a single acquirable asset. While there have previously been no specific legislative restrictions on the type of asset a SMSF can borrow to purchase, most commonly we see LRBAs being used to purchase property. Up until this point, this could have been any type of real property. These amendments will mean that when SMSF trustees wish to borrow to purchase a property, it must meet the business real property (BRP) definition. This BRP definition relates to usage of the property rather than zoning or what the property was originally built for. This change became law on 26 June 2026, but the Bill includes a 45 day transitional period which will finish on 10 August 2026. This transitional period may allow for arrangements that are currently being implemented on non-BRP assets to be allowable under the new rules where settlement occurs after 10 August 2026, provided the arrangement to purchase the property was entered into on or before 10 August 2026. We recommend that SMSF trustees who are currently implementing LRBA arrangements on non-BRP assets seek specialist SMSF legal advice to ensure their arrangements meet these transitional rules. While this change has been referred to in the media as a ban on super funds borrowing to purchase residential property, the use of the BRP definition makes the change slightly more complex than this. As this definition relates to usage of the property, it is possible that some residentially designed properties could meet the BRP definition (for example, a medical practice that operates from a residentially designed terrace dwelling). The BRP definition also requires that the property is wholly and exclusively used for business purposes. This could mean that some properties that may initially appear to be commercial in nature may not meet the BRP definition (for example, a mixed use residential and retail property on a single title). The updated rules allow for existing LRBAs over non-BRP assets to continue. They also allow for existing arrangements to be refinanced, subject to lender availability and approval. We recommend that SMSF trustees entering into new LRBAs seek advice from specialist legal and financial advisers to ensure the new requirements are met.

Understanding the Tax Implications of the 2026–27 Vehicle Thresholds If you're thinking about purchasing or leasing a vehicle for your business this financial year, it's worth understanding the updated car thresholds that apply from 1 July 2026. While these limits may seem technical, they can have a practical impact on the amount you can claim for tax depreciation deductions, the GST credits that are available, and whether luxury car tax (LCT) could apply. Knowing how these rules work before signing a contract can help you make a more informed decision and potentially improve your overall tax and cash flow position. The car limit – understanding the depreciation cap For vehicles first used or leased in the 2026–27 income year, the car limit is $69,883. This limit generally represents the maximum value that can be used when calculating tax depreciation deductions for a passenger vehicle, regardless of how much was actually paid for the car. From a commercial perspective, this is an important consideration if you're looking at a higher-value vehicle. While purchasing a more expensive car may still make sense for operational or business reasons, the portion of the purchase price above the car limit will generally not attract depreciation deductions. If the vehicle is used for both business and private purposes - which is common for many business owners - you would typically only be able to claim deductions for the business-use portion. Maintaining appropriate records, such as a valid logbook and odometer readings, remains an important part of supporting those claims should the ATO undertake a review or audit. Rather than focusing solely on the purchase price, it is often worthwhile considering the overall after-tax cost of the vehicle. In many cases, a vehicle priced around the car limit may provide similar practical benefits while maximising the available tax deductions. It's also worth confirming which depreciation rules apply to your circumstances, including whether any simplified depreciation concessions are available so that deductions can be claimed at a faster rate. GST credits – also subject to a cap Businesses that are registered for GST may also be entitled to claim GST credits when purchasing a business vehicle. However, where the purchase price exceeds the car limit, the GST credit is also capped. For the 2026–27 financial year, the maximum GST credit available is $6,353 (being one-eleventh of the $69,883 car limit) for passenger vehicles. Even if the vehicle costs considerably more, the GST credit will generally not increase beyond this amount. However, when the vehicle is sold you will normally need to pay GST on the full sale price. For many businesses, GST credits can provide an important short-term cash flow benefit, so it is important to ensure they are claimed correctly and within the relevant time limits through your Business Activity Statement (BAS). Luxury Car Tax thresholds increase The Luxury Car Tax (LCT) thresholds have also increased from 1 July 2026 and are now: $91,661 for fuel-efficient vehicles $80,809 for all other vehicles. Where applicable, LCT is generally imposed at 33% of the value above the relevant threshold, increasing the overall purchase cost of eligible vehicles. If you're considering a premium vehicle, these thresholds may become an important part of the purchasing decision. In particular, many fuel-efficient vehicles, including a range of hybrid and electric models, benefit from the higher threshold. Depending on the vehicle selected, this could potentially reduce the amount of LCT payable while also delivering lower running costs over the life of the vehicle. Planning ahead can pay off These updated thresholds apply to vehicles first used or leased from 1 July 2026, making now an ideal time to review any planned vehicle purchases. Before making a decision, it may be worthwhile considering: The total after-tax cost of ownership, including depreciation deductions, GST credits and any LCT Whether purchasing or leasing is likely to be more suitable for your circumstances The expected business use of the vehicle and the records you'll need to maintain; and How the purchase fits within your broader cash flow and business plans. Whether you're replacing a work vehicle, expanding your fleet or purchasing a new car for client-facing activities, taking these factors into account can help ensure the vehicle meets both your operational requirements and your tax objectives. Key takeaways A business vehicle is often a significant investment, and while tax considerations shouldn't drive the decision, they can influence the overall cost of ownership. Before committing to a purchase, it's worth speaking with your tax accountant to model the likely tax outcomes based on your individual circumstances. A little planning upfront may help you maximise available tax concessions, avoid unexpected costs and ensure the purchase aligns with your broader business strategy. For more information, refer to the ATO’s Small Business Newsroom: Car thresholds from 1 July | Australian Taxation Office, or contact Collins Hume on 02 6686 3000 to discuss how these changes may apply to your business.

Independent Business Valuation Supports Cavvanba’s Employee Ownership and Growth When the departure of a key employee and original owner forced Collins Hume client Cavvanba Consulting to restructure, an independent business valuation provided the foundation for a fair and transparent employee share ownership model. The process gave employees confidence in the benchmark value of the shares and gave Cavvanba a clearer view of its performance. As the business expanded, cash flow became the other vital part of the equation. Background Cavvanba is an Australian, employee-owned environmental consulting firm specialising in the assessment, remediation and management of contaminated sites. They deliver efficient, innovative solutions to technical and regulatory challenges, supporting landowners, developers and regulators with contaminated land assessment, remediation management and environmental auditing. Facing a defining business moment “Cavvanba's biggest challenge came just three years into the business, when a key employee and original owner departed, forcing a significant restructure,” General Manager Rob McLelland says. The change prompted the owners to reconsider the kind of business they wanted to build and who would share in its future. “This period pushed us to re-examine why we were in business, what mattered most to us, and how we wanted to move forward.” As a precursor for employees being able to buy into the firm, Cavvanba needed an objective benchmark for the value of its shares. Collins Hume supported the restructure and completed an independent valuation to help create a credible basis for employee ownership. “An independent valuation was particularly important because employees needed confidence that the share price had been established objectively. It gave everyone a clear and credible starting point while supporting a fair transition of ownership,” Partner Peter Fowler says. The restructure became a springboard for expansion rather than a setback. “That process ultimately led to bringing on new partners, opening a new office, and growing our team and client base into the successful business we are today.” A valuation that revealed more than a share price While the immediate need was to establish a benchmark value for the shares, the valuation also encouraged Cavvanba to examine the business more critically. “The independent business valuation provides a few different benefits for us,” Rob says. “It gives a benchmark valuation of the shares in the business, allowing employees to buy into the business with confidence.” The analysis brought the firm’s performance, risks and value drivers into sharper focus, giving its owners useful evidence for decisions beyond the ownership transition. “It requires us to complete an internal analysis of how the business is working for us.” “It gives us a real picture of how the business is performing relative to previous years and against industry benchmarks.” For Collins Hume Senior Business Adviser Nathan McGrath, this is where a valuation becomes a practical management tool rather than simply a transaction requirement. “A meaningful valuation should give business owners more than a final number. It should provide practical insight into how the business is performing, what is driving its value and where attention may be needed to support future growth,” Nathan says. Growth put cash flow in focus Opening another office, adding people and serving a larger client base brought new working-capital demands. Cavvanba’s experience reinforced that profitability alone does not fund growth: cash must be available when wages, systems and other operating costs fall due. “Be very conscious of cash flow as your business expands,” Rob says. Collins Hume helps Cavvanba maintain visibility over its financial position so decisions about recruitment and investment can be made with their cash flow impact understood. “Strong cash flow management gives a growing business greater flexibility. It allows owners to identify upcoming pressure points, plan investments and make decisions with a clearer understanding of the financial impact,” Nathan says. A culture suited to employee ownership Cavvanba’s ownership model works because it is supported by a culture of shared responsibility. Employees have a personal stake in the firm’s performance, while the business benefits from people who are invested in its long-term direction. “We are intentionally a high-performing, close-knit team who genuinely enjoy working together. We value and encourage quality work, strong client relationships, and supporting each other professionally and personally. Our culture is collaborative, down-to-earth, and built on trust, initiative and continual learning,” Rob says. Its experience also showed why a plan should provide direction without becoming a constraint. “Have a clear plan but be willing to be flexible and adapt as your plan unfolds, because things will never go exactly to plan.” For Cavvanba, that flexibility transformed an unexpected ownership change into a stronger structure, an expanded business and a pathway for employees to participate in its future. Advice that evolves with the business Collins Hume has advised Cavvanba from its early days through its restructure, employee ownership transition and growth. “Collins Hume has provided us with expert financial and tax advice since our business started,” Rob says. That support also gives Cavvanba access to ideas and connections beyond its own operations. “They have organised numerous educational days that we have attended, that have helped in expanding our knowledge of best business practices and offered connection within the local business community.” Collins Hume continues to work with Cavvanba as the firm develops its employee-owned model, manages the cash flow demands of growth and plans its next moves. Learn more about Cavvanba Consulting at www.cavvanba.com

Collins Hume | We have one focus — YOU —with us, you'll be looking way beyond the traditional horizons most accountants are restricted to. Welcome to Collins Hume (Flipbook) TAX PREPARATION FEES GUIDE Capital Gains Reform: Business Valuation Factsheet Payday Super FAQs for Business Owners Payday Super Readiness Checklist Payday Super 2026-2027 Federal Budget Report Individual Tax Return Preparation Checklist Property Investors Tax Return Checklist Is It Tax Deductible? Tax Deduction Checklist Tax Items to Consider Deduction substantiation requirements ATO Crackdown on Late BAS Lodgement Rental Property Tax Deductions (ATO Factsheet) FBT01 What You Need to Know About 2025 FBT FBT13 Should you lodge an FBT return? FBT14 Potential FBT Audits FBT15 What is a car fringe benefit? FBT16 Providing cars to employees FBT17 Entertaining, meals and FBT FBT18 Minor and infrequent benefits exemptions FBT20 Workhorse Vehicles Client to Agent linking_Online Services for Business already set up Client to Agent linking_Online Services for Business not set up Achieve Ultimate Financial Freedom

Collins Hume | We have one focus — YOU —with us, you'll be looking way beyond the traditional horizons most accountants are restricted to. PRIVACY. 1. INTRODUCTION 1.1 In the course of our business in Australia, there may be circumstances where we collect personal information. Our privacy policy has been developed to ensure that such information is handled appropriately. 1.2 We are committed to complying with the Privacy Act 1988 (Cth) (Privacy Act) in relation to all personal information we collect. This commitment is demonstrated in this policy. The Privacy Act incorporates the Australian Privacy Principles (APPs). The APPs set out the way in which personal information must be treated. 1.3 This privacy policy also incorporates our policy on managing credit information (see particularly section 8 onwards). Who does this privacy policy apply to? 1.4 This policy applies to any person for whom we currently hold, or may in the future collect, personal information. What information does this privacy policy apply to? 1.5 In broad terms, 'personal information' is information or opinions relating to a particular individual who can be identified. 1.6 Information is not personal information where they cannot be linked to an identifiable individual. 2. HOW DO WE MANAGE THE PERSONAL INFORMATION WE COLLECT? 2.1 We manage the personal information we collect in numerous ways, such as by: a. implementing security systems for protecting personal information from misuse, interference and loss from unauthorised access, modification or disclosure; b. regularly providing staff with training on privacy issues; c. appropriately supervising staff who regularly handle personal information; d. implementing procedures for receiving and responding to complaints; e. appointing a privacy officer within the business to monitor privacy compliance. f. having access to audit trails of information accessed and printed; g. allowing individuals the option of not identifying themselves, or using a pseudonym, when dealing with us in particular circumstances; and h. allowing our clients to access their tax returns and other information on secure portals in particular circumstances. 2.2 As with all personal information, we will take reasonable steps to destroy or permanently de-identify personal information if that information is no longer needed for the purposes for which we are authorised to use it. 2.3 In limited circumstances, it may be possible for you to use a pseudonym or remain anonymous when dealing with us. If you wish to use a pseudonym or remain anonymous you should notify us when making first enquiries or providing initial instructions. We will use our best endeavours to deal with your request, subject to our professional obligations and ability to perform the accounting service to you without using your name. In most cases, our professional obligations will require you to deal with us using your real name. 2.4 We are also subject to professional obligations which may affect how we deal with personal information. 3. WHAT KINDS OF PERSONAL INFORMATION DO WE COLLECT AND HOLD? Personal information 3.1 We may collect and hold personal information about you, which may include: a. sensitive information (see below); b. contact information; c. financial information; d. date and place of birth; e. employment arrangements; f. tax returns and tax file numbers; g. credit information; h. banking details; and i. any other personal information required to perform the financial or accounting service for you. Sensitive information 3.2 'Sensitive information' is a subset of personal information and includes personal information that may have serious ramifications for the individual concerned if used inappropriately. 3.3 The sensitive information we collect and hold about an individual may include any of the following if it is relevant in providing the accounting or financial service to the individual (such as completing tax returns etc): a. health information; b. religious affiliation; c. political opinions; d. membership of professional or trade associations; and e. membership of trade unions. 3.4 We will not collect sensitive information without the individual's consent to whom the information relates unless permitted under the Privacy Act. 4. HOW AND WHEN DO WE COLLECT PERSONAL INFORMATION? 4.1 Our usual approach to collecting personal information is to collect it directly from you. 4.2 We may also collect personal information in other ways, which may include: a. from marketing and business development events; b. through referrals from individuals or other entities; c. from third party providers and suppliers; d. from government agencies (such as the ATO); and e. from paid search providers. 5. HOW DO WE HOLD PERSONAL INFORMATION? 5.1 Our usual approach to holding personal information includes: (a) physically at our premises (securely); and (b) electronically: (i) on secure online servers; (ii) on a private cloud; (iii) by a third party data storage provider; and (iv) on our website. 5.2 We secure the personal information we hold in numerous ways, including: a. using unique access codes to access our premises after hours; b. using audit trails on printer access; c. using secure servers to store personal information; d. using unique usernames, passwords and other protections on systems that can access personal information; and e. holding certain sensitive documents securely. 6. WHY DO WE COLLECT, HOLD, USE OR DISCLOSE PERSONAL INFORMATION? 6.1 We take reasonable steps to use and disclose personal information for the primary purpose for which we collect it. The primary purpose for which information is collected varies, depending on the particular service being provided, but is generally to provide accounting or financial services to you or your business. 6.2 In the case of potential employees, the primary purpose the information is collected is to assess the individual's suitability for employment. 6.3 Personal information may also be used or disclosed by us for secondary purposes which are within your reasonable expectations and which are related to the primary purpose of collection. 6.4 For example, we may collect and use your personal information: a. to provide you with updates that are relevant to you or your business; b. to invite you to events; and c. other marketing purposes. 6.5 We may disclose personal information: a. to other service providers or referral partners in order to provide the accounting or financial service to you, or to assist our functions or activities (such as debt collection agencies or law firms); b. to our external auditors; c. to government agencies (such as the ATO); and d. to our third party technology providers (such as our data storage providers). 6.6 Otherwise, we will only disclose personal information to third parties if permitted by the Privacy Act. 7. WILL WE DISCLOSE PERSONAL INFORMATION OUTSIDE AUSTRALIA? 7.1 We do not disclose personal information outside of Australia 8. HOW DO WE MANAGE YOUR CREDIT INFORMATION? What kinds of credit information may we collect? 8.1 In the course of providing accounting or financial services to you, we may collect and hold the following kinds of credit information: a. your identification information; b. information about any credit that has been provided to you; c. your repayment history; d. information about your overdue payments; e. if terms and conditions of your credit arrangements are varied; f. if any court proceedings are initiated against you in relation to your credit activities; g. information about any bankruptcy or debt agreements involving you; h. any publicly available information about your credit worthiness; and i. any information about you where you may have fraudulently or otherwise committed a serious credit infringement. 8.2 In some circumstances, we may collect credit information and personal information from credit reporting bodies (e.g. Veda). The kinds of information we collect may include any of those kinds of information mentioned above in sections 3.1 and 8.1. 8.3 We may also collect personal information from other credit providers (e.g. banks) that collect information, which may affect your credit worthiness, from credit reporting bodies. The kinds of personal information we collect may include any of those kinds of information mentioned above in section 3.1. How and when do we collect credit information? 8.4 In most cases, we will only collect credit information about you if you disclose it to us and it is relevant in providing you with the accounting or financial service. 8.5 On occasions, we may also collect credit information from a credit reporting body (eg Veda or Dun & Bradstreet). We usually do not collect credit information from other sources. How do we store and hold the credit information? 8.6 We store and hold credit information in the same manner as outlined in section 3 of this policy. Why do we collect the credit information? 8.7 Our usual purpose for collecting, holding, using and disclosing credit information about you is to enable us to provide you with the accounting or financial service. 8.8 We may also collect the credit information to process payments. Overseas disclosure of the credit information 8.9 We will not disclose your credit information to entities without an Australian link unless you expressly request us to. How can I access my credit information, correct errors or make a complaint? 8.10 You can access and correct your credit information, or complain about a breach of your privacy in the same manner as set out in section 9 of this policy. 9. HOW DO YOU MAKE COMPLAINTS AND ACCESS AND CORRECT YOUR PERSONAL INFORMATION? 9.1 It is important that the information we hold about you is up-to-date. You should contact us if your personal information changes. Access to information and correcting personal information 9.1 You may request access to the personal information held by us or ask us for your personal information to be corrected by using the contact details in this section. 9.2 We will grant you access to your personal information as soon as possible, subject to the request circumstances. 9.3 In keeping with our commitment to protect the privacy of personal information, we may not disclose personal information to you without proof of identity. 9.4 We may deny access to personal information if: a. the request is unreasonable; b. providing access would have an unreasonable impact on the privacy of another person; c. providing access would pose a serious and imminent threat to the life or health of any person; d. providing access would compromise our professional obligations; or e. there are other legal grounds to deny the request. 9.5 We may charge a fee for reasonable costs incurred in responding to an access request. The fee (if any) will be disclosed prior to it being levied. 9.6 If the personal information that we hold is not accurate, complete and up-to-date, we will take reasonable steps to correct it so that it is accurate, complete and up-to-date, where it is appropriate to do so. Complaints 9.7 If you wish to complain about an alleged privacy breach, they you must follow the following process: a. The complaint must be firstly made to us in writing, using the contact details in this section. We will have a reasonable time to respond to the complaint. b. In the unlikely event the privacy issue cannot be resolved, you may take your complaint to the Office of the Australian Information Commissioner. Who to contact 9.8 A person may make a complaint or request to access or correct personal information about them held by us. We will take reasonable steps to ensure the personal information we hold is accurate and complete. Such a request must be made in writing to the following address or contact officer: Contact: Naomi Monk (Privacy Officer) Postal Address: PO Box 731, Ballina NSW 2478 Telephone number: (02) 6686 3000 Email address: mail@collinshume.com.au 10. CHANGES TO THE POLICY 10.1 We may update, modify or remove this policy at any time without prior notice. Any changes to the privacy policy will be published on our website. 10.2 This policy was last updated in December 2022. If you have any comments on the policy, please contact the privacy officer with the contact details in section 9 of this policy.

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