Updates to Budget Measures and New Developments Since the Federal Treasurer handed down the 2026-27 Federal Budget on 12 May 2026 there has been a significant amount of commentary on some of the more controversial proposals, including the decision to replace the CGT discount with an indexation system and impose a 30% minimum tax rate on discretionary trusts. Since our latest update in this area, the Government has announced some changes to these proposals, as well as some other areas of the tax system that weren’t initially impacted by the Budget. CGT Changes On Budget night the Treasurer announced that the existing 50% CGT discount for individuals and trusts would be replaced with an indexation system and a 30% minimum tax rate on capital gains accruing from 1 July 2027 (with limited exceptions). However, the Government has announced that it plans to introduce a new Innovative Business CGT Concession that would provide a 50% CGT discount to early-stage investors, including founders and employee share scheme participants in innovative start-up businesses. A consultation paper has been released on the design of this concession. In addition, the Government is taking steps to increase the annual turnover threshold that applies in determining whether a small business or its owner can access the existing 50% “active asset reduction” under the small business CGT concessions, from $2m to $10m. This change would apply from 1 July 2027. The existing $2m turnover threshold would remain in place for the other three small business CGT concessions, being the 15 year exemption, retirement exemption and small business rollover relief. Taxpayers who can’t pass the turnover test can still access the concessions if they can pass a $6m net asset value test. Testamentary Trusts In the Budget the Government announced that a 30% minimum rate of tax would apply to the net taxable income of discretionary trusts from 1 July 2028. The Government had indicated that this would apply to testamentary trusts, unless they already existed at 12 May 2026. However, the Government has announced that it will now exempt income from all testamentary trusts from the new minimum tax rate rules, as long as they are established for “genuine testamentary purposes”. The exclusion from the rules will be limited to income from assets of the relevant deceased estate. For discretionary testamentary trusts established on or after 1 July 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities. SMSF Borrowing Arrangements As a result of negotiations with the Greens in connection with the changes to the CGT discount and negative gearing, the Government has agreed to remove the ability for SMSFs to borrow to purchase residential property (SMSF borrowing is commonly known as a limited recourse borrowing arrangement). It seems that existing arrangements will be grandfathered. We will keep you updated as more developments occur. However, please don’t hesitate to contact us if you wish to discuss how these changes impact your tax position.

From Passion to Purpose: How Collins Hume helped Byron Homemade Pizza rise from local favourite to regional success For Damian “Damo” Casiro and Benji White, Byron Homemade Pizza has always been about more than serving great food. From the beginning, they set out to build a business guided by strong values, genuine hospitality and a passion for bringing people together. Today, the Byron Homemade Group encompasses two successful brands — Byron Homemade Pizza and Jimmy Chimichurri — providing pizza catering, frozen pizzas and handcrafted Argentinian chimichurri throughout the Northern Rivers and beyond. Like many successful businesses, however, the journey has not been without challenges. As demand grew, so too did the pressures of managing cash flow, leading people, finding staff and maintaining the resilience needed to keep moving forward. It was during this period that Collins Hume became an important part of their business. "Successful businesses aren't built simply by working harder,” says Partner Peter Fowler. “They're built by creating clarity, making good decisions and designing a business that supports the life you actually want to live." Working alongside Damian and Benji, Peter and the Collins Hume team helped strengthen the business through proactive tax planning, cash flow management, BAS reporting and practical commercial advice that supported growth without losing sight of the owners' vision. Learning has also been an important part of the journey. Damian attended Collins Hume's Strategy360 'Cash Is King' event in 2025 and the Top Performer business benchmarking workshop earlier this year. Led by Nathan McGrath, Damian and Benji gained practical insights into one of the biggest challenges facing many growing businesses — cash flow. Combined with ongoing advice from Nathan, both sessions reinforced practical strategies that continue to support their business as it grows. For Damian and Benji, having trusted advisers who genuinely understand their business and the people behind it make all the difference. "Collins Hume don't just look at the numbers. They understand where we're trying to go and give us confidence to make better business decisions. Collins Hume feels like part of our team." The business has continued to evolve while staying true to its original mission — supplying quality food and memorable experiences across the Northern Rivers through both its catering operations and growing wholesale products. Their philosophy remains remarkably simple. "Patience, consistency and believing in what we do have always been our secret ingredients. We've stayed committed to our mission, vision and values from day one,” says Damian. That clarity of purpose is equally reflected in the advice they now share with aspiring entrepreneurs. "Do something you genuinely love. When your purpose is clear, the inevitable challenges become much easier to navigate." Peter says the Byron Homemade story demonstrates that sustainable growth rarely happens by accident. "Damian and Benji have built something authentic because they've remained true to their values while continually investing in the business.” “Our role is to provide the financial confidence and strategic support that allows passionate business owners to keep growing with purpose." Today, Byron Homemade Pizza caters for weddings, corporate functions, festivals and private events across the region while Jimmy Chimichurri continues introducing customers to authentic Argentinian flavours through its growing product range. Their success is built on far more than exceptional food. It is the result of clear values, consistent effort, trusted advice and a business designed to thrive for the long term. About The Byron Homemade Group Explore The Byron Homemade Pizza Team’s catering services, frozen pizzas and mobile pizza experiences at www.byronhomemadepizza.com, discover the story behind their handcrafted sauces at www.jimmychimichurri.com, or follow their latest creations and events on Instagram @byronhomemadepizza and @jimmy.chimi.

Why Strategic Advisory Support matters more than ever for Business Owners For small and medium businesses (SMBs) the past few years have felt like operating in permanent uncertainty. Rising interest rates. Inflationary pressure. Supply chain disruption. Labour shortages. Regulatory change. Global instability. A rapidly shifting tax environment. Increased reporting expectations from lenders, investors and government agencies. Business owners are not just dealing with one challenge at a time. They are trying to make decisions in an environment where the variables keep moving. That reality is changing what businesses need from their advisers. The traditional compliance relationship still matters. Importantly, this is not about replacing compliance services. It is about building on them. Tax returns, BAS, financial statements and compliance reporting remain essential. But increasingly, SMBs are looking for something more practical and forward-looking from their accounting and advisory relationships. They are looking for guidance. And they are seeking clarity. They are looking for a strategic partner who can help them interpret what is happening around them and make informed decisions with confidence. And there is growing recognition across our profession that SMBs require deeper advisory support to navigate complexity and plan effectively for the future. Why SMBs are seeking more Strategic Advisory Support This is where a structured advisory approach can make a material difference. In uncertain economic conditions, business owners often find themselves asking questions such as: Where are the pressure points in the business? What will cash flow look like six months from now? Which parts of the business are most profitable? How exposed are we to interest rate or market changes? Are we pricing correctly? What are top-performing businesses doing differently? How do we improve business value and reduce operational risk? What should we prioritise first? These are not year-end questions. They are operational and strategic questions that impact daily decision making. Rather than focusing purely on historical reporting, strategic advisory and Chief Financial Officer (CFO) Services provide business owners with forward-looking insights, benchmarking data, planning frameworks and ongoing accountability. That support becomes particularly valuable during periods of volatility, where delayed decisions or poor visibility can quickly erode profitability and business value. Moving Beyond Historical Reporting One of the major shifts occurring is the move from reactive reporting to proactive business guidance. The objective is not simply to generate reports. It is to support better decision making. Many SMBs already have access to data. The challenge is knowing what the data means and what action should follow. Through a Value-Centred Advisory Framework, advisers can help businesses turn financial information into clearer strategic direction. That may include strategic financial guidance, forward-looking business insights, performance analysis, risk and value improvement planning, and structured decision-making support designed to help business owners navigate growth, uncertainty and operational complexity with confidence. What top-performing businesses do differently For many SMBs, it is not a lack of effort holding them back. It is a lack of visibility. One of the strongest themes emerging from benchmarking and advisory work is that high-performing businesses tend to operate with greater visibility and discipline around performance measurement. Businesses that consistently outperform their peers typically operate with stronger financial visibility, clearer performance measurement, more disciplined decision-making processes and a greater focus on aligning operational activity with long-term strategic and commercial outcomes. This is why benchmarking has become increasingly valuable within business advice conversations. Understanding what top-performing businesses are doing differently can provide meaningful context for owners trying to improve profitability, efficiency, resilience and long-term value. Risk Reduction and Business Value Improvement The most robust businesses typically build value long before they need to. Periods of economic uncertainty place greater focus on risk management and business value. Many business owners only begin thinking seriously about valuation when a sale, succession event, dispute or funding requirement emerges. A proactive advisory approach can help businesses better understand the drivers of long-term value, resilience and sustainability, while identifying areas where operational, financial or strategic improvements may strengthen performance, reduce risk and support future growth outcomes. Improving these areas not only supports future valuation outcomes; it can also improve resilience, lender confidence, succession readiness and overall business performance today. Why this matters right now The businesses most likely to navigate volatility successfully are often those with stronger visibility, better planning frameworks and access to informed strategic guidance. The current business environment is placing enormous pressure on SMB owners. Many are making high-impact decisions while managing uncertainty on multiple fronts simultaneously. That creates a strong case for more structured strategic support. For some businesses, the real question may no longer be whether they should consider advisory support. It may be whether they can afford not to. The Opportunity for SMBs This is where Strategic Advisory Support can become highly valuable. Strategic advisory and CFO Services are not just for large corporates. Increasingly, SMBs are recognising the value of having access to: Strategic Advisory Services Financial Performance Insights Valuations and Value Building Advice Succession Planning Mentoring and Accountability Benchmarking Intelligence In many cases, business owners do not necessarily need more information. They need clearer interpretation, prioritisation and direction. If your business is navigating uncertainty, growth pressure, margin challenges or strategic change, now may be the right time to consider if your current reporting processes are providing enough visibility and direction. Read more on contact Nathan McGrath on 02 6686 3000. A structured advisory approach using a Value-Centred Advisory Framework can help provide greater clarity around planning, performance, risk reduction and long-term business value improvement. Inspo: Towers, P. 2026, From Compliance to Virtual CFO Leadership, ESS BIZTOOLS

Collins Hume | We have one focus — YOU —with us, you'll be looking way beyond the traditional horizons most accountants are restricted to. TEAM. Christopher Atkinson Partner & CEO FCPA B Bus chris.atkinson@collinshume.com.au "People in small to medium business are the backbone of the community" Kelly Crethar Partner CPA B Bus (Acc & Bus Law) kelly.crethar@collinshume.com.au "You'll never know what's possible until you try" Jamie Doyle Partner CPA B Bus (Acc) jamie.doyle@collinshume.com.au “Providing business owners with the knowledge, solutions and tools to succeed" Peter Fowler Partner MBA, FCPA, B Acc, SSA, JP, SA Fin peter.fowler@collinshume.com.au "We work to live, we don't live to work" Nathan McGrath Senior Business Adviser MBA, Dip Financial Planning, Foundations of Directorship (AICD) nathan.mcgrath@collinshume.com.au "Don't wait for tomorrow; now is the time to start working on your business” Naomi Monk Practice Manager & CIO Cert Bookkeeping naomi.monk@collinshume.com.au “Be generous, true and fierce” Kristy Dooley Senior Accountant CA B Com, B Laws, Dip Financial Planning kristy.dooley@collinshume.com.au "You do you" Shannon McDonald Senior Accountant CPA B Bus (Accounting & Finance), Xero Certified Advisor, Xero Migration & Xero Payroll Champion shannon.mcdonald@collinshume.com.au "Three ways to ultimate success: The first way is to be kind. The second way is to be kind. The third way is to be kind." Riley Gollan Senior Accountant CPA B Business (Finance & Accounting) Dip Sport Development riley.gollan@collinshume.com.au "It's supposed to be hard. If it were easy, everyone would do it" Brodie Cook Senior Accountant CA brodie.cook@collinshume.com.au "When you can’t find the sunshine, be the sunshine" Marisa Worling Senior Accountant CPA B Bus (Accounting) Xero Certified Adviser marisa.worling@collinshume.com.au "Don't sweat the small stuff" Chris Horne Senior Accountant CA B Bus (Accounting), Grad Dip Super (UNSW) chris.horne@collinshume.com.au "Strength through Trust" Carmilla Fitzgerald Senior Accountant Xero Certified Advisor carmilla.fitzgerald@collinshume.com.au "You miss 100% of the shots you don't take" Kim Roy Accountant B Bus (Coms) kim.roy@collinshume.com.au "Try seeing the world from other people's perspective not just your own" Sam Gardnir Accountant B Business (Finance) sam.gardnir@collinshume.com.au "A journey of a thousand miles begins with one step" Kaleb Morhaus Undergraduate Accountant Xero Certified Advisor kaleb.morhaus@collinshume.com.au "You'll never walk alone" Nerida Byron Bookkeeper Cert IV Accounting & Bookkeeping, Xero Certified Advisor, Xero Payroll Certified nerida.byron@collinshume.com.au "If you stop learning, you just stop, so learning is magic" Kirra Connell Junior Trainee Accountant Business Cert lll, Xero Certified Advisor, Xero Payroll Certified kirra.connell@collinshume.com.au "Nothing will work unless you do" Carol Holton Business Host Cert IV in Frontline Management carol.holton@collinshume.com.au "Life's too short to sweat the small stuff; things always have a way of working themselves out" Lucy Flanagan Executive Assistant Cert III (TAFE Award Recipient) & Cert IV Business Admin, JP lucy.flanagan@collinshume.com.au "If everything is too precious or perfect, you lose that little bit of spark" Kylie Griffith Executive Assistant JP kylie.griffith@collinshume.com.au "Life is a journey not a destination" Tamara Hepburn Executive Assistant Dip Accounting, Dip Hosp & Events Management, Cert III IT tamara.hepburn@collinshume.com.au "Vulnerability isn’t a weakness. It’s the ability to show up even when you can’t control the outcome." Lani Winston Executive Assistant Cert III Business Admin lani.winston@collinshume.com.au "The more you know, the less you don’t" Join our team — we make accounting fun! We're an award-winning team of family-friendly accountants and business advisers passionate about quality work and exceptional service. We also give back to our community. We're an inspiring and caring bunch. Our workplace is about lifestyle, fun, enjoyment, and leaving a legacy of a better world. Our business is also a bit different. We are members of 1% for the Planet, and our Climate Neutral Certification supports this. We always seek talented professionals who align with our values and vision. If you're interested, don't hesitate to contact us and join our team.

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 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 Your Financial Safety Checklist

YOU. That’s all we focus on. You, your family, your wealth and the legacy you (and we) leave. That’s it. Join us on this amazing journey. WORKING TOGETHER. Would you like assistance from Collins Hume to enhance your business profits, valuation and lifestyle? * YES NO Would you like an obligation-free review of your superannuation and wealth creation strategies with a financial adviser? * YES NO Would you like our finance broker to contact you for a complimentary review of your home loan or investment loans? * YES NO Submit Thanks for submitting!