Search this site

Trust Resolutions – Why Timing and Evidence Matter A recent decision of the Administrative Review Tribunal ( Goldenville Family Trust v Commissioner of Taxation  [2025]) highlights the importance of documentation and evidence when it comes to tax planning and the consequences of not getting this right. The case involved a family trust which generated significant amounts of income. For the 2015, 2016 and 2017 income years, the trustee attempted to distribute most of the income to a non-resident beneficiary. As the trustee believed the income was classified as interest (this was challenged successfully by the ATO), the trustee assumed that the income would be subject to a final Australian tax at 10%, under the non-resident withholding rules. This was clearly more favourable than having the income taxed in the hands of Australian resident beneficiaries at higher marginal rates. However, the ATO argued that the distribution resolutions were invalid and the Tribunal agreed. Why? The main reason was a lack of evidence to prove that the distribution decisions were made before the end of the relevant financial years. While there were some documents that were purportedly dated and signed “30 June”, the Tribunal wasn’t convinced that the decisions were actually made before year-end and it was more likely that these documents were prepared on a retrospective basis. The evidence suggested the decisions were probably made many months after year-end, once the accountant had finalised the financial statements. The outcome was that default beneficiaries (all Australian residents) were taxed on the income at higher rates. Timing of trust resolution decisions is critical For a trust distribution to be effective for tax purposes, trustees must reach a decision on how income will be allocated by 30 June each year (or sometimes earlier, depending on the trust deed). It might be OK to prepare the formal paperwork later, but those documents must reflect a genuine decision made before year-end. For example, let’s say a trust has a corporate trustee with multiple directors. The directors meet at a particular location on 29 June and make formal decisions about how the income of the trust will be appointed to beneficiaries for that year. Someone keeps handwritten notes of the meeting and the decisions that are made. On 5 July the minutes are typed up and signed. The ATO indicates that this will normally be acceptable, but subject to any specific requirements in the trust deed. If the ATO believes the decision was made after 30 June (or documents were backdated), the resolution can be declared invalid. In that case, you might find that one or more default beneficiaries are taxed on the taxable income of the trust or the trustee is taxed at penalty rates. This could be an unexpected and costly tax outcome and could also lead to other problems in terms of who is really entitled to the cash. Broader lessons – it’s not just about trust distributions The timing issue is not confined just to trust distribution situations. Other areas of the tax system also turn on when a decision or agreement is actually made, not just when it is eventually recorded. For example, if a private company makes a loan to a shareholder in a given year, that loan must be repaid in full or placed under a complying Division 7A loan agreement by the earlier of the due date or lodgement date of the company’s tax return for the year of the loan. If not, a deemed unfranked dividend can be triggered for tax purposes. If a complying loan agreement is put in place then minimum annual repayments normally need to be made to avoid deemed dividends being recognised for tax purposes. A common way to deal with loan repayments is by using a set-off arrangement involving dividends that have been declared by the company. However, in order for the set-off arrangement to be valid there are a number of steps that need to be followed before the relevant deadline. The ATO will typically want to see evidence which proves: When the dividend was declared; and When the parties agreed to set-off the dividend against the loan balance. If there isn’t sufficient evidence to prove that these steps were taken by the relevant deadline then you might find that there is a taxable unfranked deemed dividend that needs to be recognised by the borrower in their tax return. Documenting decisions before year-end The key lesson from cases like Goldenville  is that documentation shouldn’t be an afterthought — lack of contemporaneous documentation can fundamentally change the tax outcome. What normally matters most is when the relevant decision is actually made, not when the paperwork is drafted. In practice, this often means: Check relevant deadlines and what needs to occur before that deadline. If a decision needs to be made before the deadline, ensure that a formal process is followed to do this. For example, determine whether certain individuals need to hold a meeting or whether a circular resolution could be used. Produce contemporaneous evidence of the fact that the decision has been made. You might consider sending a brief email to your accountant or lawyer explaining the decision that has been made before the relevant deadline , basically providing a time-stamped record of the decision. Finalise paperwork: formal minutes of meetings can sometimes be prepared after year-end, but they must accurately reflect the earlier decision. Thinking carefully about timing — and building a habit of producing clear evidence of decisions as they are made — is often the difference between a tax planning strategy working as intended and an expensive dispute with the ATO. Don’t leave your trust resolutions until it’s too late. Speak with Collins Hume before 30 June to make sure your decisions are properly documented and compliant.

A Fresh, Joyful Look at the New B1G1: Your Invitation to Something Remarkable There’s something special happening at B1G1 — and you’re invited to experience it firsthand. A simple link is all it takes to access a memorable, 45-minute session designed to inspire, uplift and reconnect people with the heart of giving. It may feel unusual to call a link a “gift”, but in this case, it truly is. Register here: b1g1.com/nowyoucan Behind that link are two extraordinary presenters who have crafted something refreshingly simple yet powerfully moving. Their goal is to spark clarity around purpose, impact and the future of the B1G1 movement. It’s designed for business owners, purpose-led teams and anyone eager to experience giving in a new, energising way. As one presenter described it, “The session takes everything people love about B1G1 and makes it feel brand new again — more accessible, more human and more joy-filled than ever.” This free event will explore the refreshed vision of B1G1 and highlight how everyday actions can meaningfully contribute to the shared journey toward 1,000,000,000 impacts . With real stories, practical insights and a renewed sense of possibility, attendees will walk away feeling inspired and empowered to make an even greater difference. Paul Dunn, B1G1 Co-Founder, encapsulates the spirit of the session perfectly:“What’s been created here isn’t just a presentation — it’s an experience. People tell us they come away feeling uplifted, energised and deeply connected to the idea that small things, done consistently, create extraordinary outcomes.” Whether you're already part of the B1G1 community or discovering it for the first time, this is a rare opportunity to reconnect with what giving really means. Register for free: b1g1.com/nowyoucan Give yourself the gift of 45 minutes on 10 December . Reserve your place now and share the link with someone who deserves to feel inspired too: b1g1.com/nowyoucan . About Collins Hume and B1G1 Like you, we care deeply about a better future — for your family and families worldwide. Access to essentials like clean water, education and food is a cause we all share.   Through our partnership with B1G1, every time you engage with Collins Hume, you’re helping make a meaningful difference on a global scale. Read more »

Our homes are our castles … so the saying goes.  How do we keep living in our castles longer as we grow older? There are many things you need to do to be able to keep living and functioning in your home. Of the many things to do – there are some activities you can do and like to do … there are some activities you don’t like to do or don’t want to do any more … and there are some activities that you can’t do or struggle with and need some help. This is an appropriate starting point for many people … to sit down with a piece of paper and draw three columns on the page with the headings above and put all those activities that are required to live in your castle longer into one of those three columns.  (TIP: Family Aged Care Advocates is happy to help you with this important exercise if you need a hand.) Who helps us if we don’t, won’t or can’t do certain activities any more?  Some of us simply don’t have families or people around us who can help out. Others may have families who live a long way away so can’t help even if they want to. Some have families or people nearby but don’t want to bother them because they’re busy with their own lives. And then there are those who simply don’t want their families or neighbours to be to actively involved in what we do or need … and there are typically good reasons for that. The Government through their home care support programmes have been relied upon to effectively “fill the home activities gap” for a lot of people. But as we now all well know by now, these home care programmes have changed as from 1 November. And let me tell you, the effectiveness of these changes are already being questioned (loudly) by many. This article will not analyse these issues, but let me highlight a couple of things you should know about these changes and how they will affect you: Home care is now focussed on “user pays” and the Government have introduced a co-contribution payment arrangement for home care services that particularly impacts part-pensioners and self-funded retirees – the more you have … the more you will pay Hourly rates for home care services and activities have increased The Government are still not meeting the demand for home care packages and aged care facility rooms … and don’t seem to have an immediate interest or focus on that. Exactly what does that means for you? As an example, home cleaning and lawn maintenance activities have increased in hourly rates from around $60 per hour to $100 per hour. A self-funded retiree will be asked to make a financial contribution to these services that could be as high as $80 per hour. Therefore, it may well be worth considering opting for private services in these areas if possible rather than through a Government home care package.  Family Aged Care Advocates can help you with that. There are also many activities that aren’t offered in your typical home care packages.  Things such as organising important documents, doing your banking, checking your financial statements for scams or fraud, paying bills, talking to financial, business and Government organisations, organising appointments and activities outside the home … and the list goes on. How can Family Aged Care Advocates help you? Family Aged Care Advocates can help you with all of this. We sit with you and put together an agreed programme, then visit you regularly to help you get the things you need to live in your castle for longer done. Give us a call on 0411 264 002 or email shane@faca.com.au  to organise a day and time for a discussion … at your home. Shane Hayes Family Aged Care Advocates

One of the fastest ways to boost profitability isn’t cutting costs. It’s setting the right price from the outset. Yet many businesses still charge rates that don’t fully cover their costs, let alone create the profit margins needed to grow and reinvest. Price too low and margins erode until there’s little left to build the business. Price too high and, without clear value to support it, you risk losing customers. The challenge is striking the balance: a pricing structure that covers real costs, rewards your expertise and fuels long-term growth. Why Smart Pricing Matters The right pricing strategy does more than generate revenue – it underpins the sustainability of your business. When prices are aligned with costs, market position and value delivered, you gain: Healthy margins that protect cash flow and fund growth Confidence in quoting and invoicing, knowing your numbers support profitability Resilience, as pricing stays connected to changing market conditions and rising expenses. Smart pricing creates a foundation for stronger businesses – business owners that weather change, invest in opportunities and continue to grow. From Pricing to Performance Getting your pricing right is only the first step. Without regular review, even the best strategy will eventually fall behind. Costs shift, competitors adjust and productivity fluctuates. That’s why the most successful businesses treat pricing as a living process, not a one-off decision. By reviewing performance regularly through financial check-ins and monitoring key business metrics you can keep pricing aligned with your goals. This ensures your margins remain intact, your growth trajectory is steady and your business stays ahead of the curve. The Leadership Edge For business owners and leaders, pricing isn’t just about numbers – it’s about control. When you know your pricing supports profitability, you gain clarity and confidence in decision-making. You also ensure your business has the financial strength to attract talent, retain customers and seize opportunities.   Smart pricing, backed by regular review, turns uncertainty into strategy. It’s one of the clearest ways to transform your bottom line and shift from merely surviving to thriving. Smart pricing. Stronger margins. Better business. In today’s fast-moving market, businesses can’t afford to underprice their services. Strategic pricing builds stability, resilience and room to grow. Get it right, and you’ll see the difference in stronger margins, better cash flow and the confidence to invest in the future. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you.

The Australian Taxation Office (ATO) is significantly tightening its approach to late lodgement and payment of Business Activity Statements (BAS). With higher penalties and compounding interest now firmly in focus, it’s essential for businesses to understand the financial consequences of missing BAS deadlines. Penalties for Late Lodgement of BAS If your BAS is not lodged by the due date, the ATO may apply a Failure to Lodge (FTL) penalty . This penalty depends on the size of your business and how long the BAS remains outstanding. Small Entities (annual turnover under $1 million) Penalty:  1 penalty unit per 28-day period (or part thereof) overdue, up to 5 units 2024–25 value:  1 penalty unit = $313 Maximum penalty:   $1,565 Medium Entities (annual turnover $1 million–$20 million) Penalty:  2 penalty units per 28-day period (or part thereof) overdue, up to 10 units Maximum penalty:   $3,130 Large Entities (annual turnover $20 million+) Penalty:  5 penalty units per 28-day period (or part thereof) overdue, up to 25 units Maximum penalty:   $7,825 Interest on Late BAS Payments Businesses that fail to pay BAS liabilities on time will incur the General Interest Charge (GIC) . Calculated daily  on outstanding balances Compounded  until the debt is cleared Rate formula:  10-year Treasury bond rate + 7% Current ATO GIC rate:   11.38% p.a. How to Avoid ATO BAS Penalties Lodge on time:  Even if there’s nothing to report, lodge a nil BAS  to avoid automatic penalties. Communicate early:  If you can’t lodge or pay by the deadline, contact Collins Hume  or the ATO before the due date to arrange a deferral or payment plan. Stay organised:  Use reminders, cloud accounting software or ATO online services to stay on top of deadlines. Why the ATO Is Increasing Enforcement The ATO has stated it is placing a stronger emphasis on BAS compliance. Businesses with a history of late lodgements will face reduced leniency and an increased likelihood that penalties will not  be remitted. Take Action Now To reduce the risk of penalties and interest: Lodge every BAS on time, even nil returns Seek assistance from Collins Hume  if you are falling behind Set automated reminders for due dates If bookkeeping is becoming overwhelming, we can connect you with a reliable bookkeeper to keep your records up to date. For full details, visit the ATO’s guidance on Failure to Lodge on Time Penalty » If you’re concerned about BAS deadlines or want help staying compliant, speak with the Collins Hume team on 02 6686 3000 today.

Why tech adoption matters Running a small or medium business is often a juggling act – staff, customers, compliance, cash flow. For many owners, finding the time to step back and invest in digital transformation feels impossible. But technology adoption isn't just about keeping up with the times. It's a direct pathway to improved efficiency, stronger competitiveness and sustainable growth. The Technology Gap Holding Back Australian Businesses Research from CPA Australia shows a clear divide: only 26% of Australian small and medium enterprises (SMEs) invested in profitable technology last year, compared to 56% across the Asia-Pacific region 1 . While Australian owners are busy staying afloat, our regional counterparts in Singapore, Malaysia, and Vietnam are harnessing digital tools to expand sales, sharpen operations and reach global markets. The consequences are already visible. Just 55% of Australian small businesses expect growth in 2025, well below the regional average of 71% 1 . That gap highlights the risk of delaying technology adoption – while competitors are building resilience, many local businesses remain vulnerable. Why Digital Transformation Matters for SME Business Owners For business owners, the benefits of technology aren't abstract. They're practical, measurable and directly linked to profitability: Improved productivity:  Cloud accounting, AI assistants and automation help reduce admin load, freeing owners and teams to focus on revenue-generating work 2,7 New revenue streams:  With 67% of regional businesses earning over 10% of revenue online versus just 39% in Australia, digital channels remain an untapped opportunity 3 Smarter decision-making:  Tools like digital financial reporting and AI-driven analytics help give real-time clarity on cash flow, customer behaviour and profitability 4 Resilience in tough markets:  Inventory systems, supply-chain platforms and collaboration tools help businesses pivot quickly when conditions change 5 Stronger talent attraction:  Today's workforce expects digital workplaces – falling behind risks losing talent to more modern competitors 6 How to Start Tech Adoption without the Overwhelm You don't need to overhaul your business overnight. Start small, focus on quick wins and scale with confidence: Adopt simple cloud tools:  online booking systems, digital payments and customer relationship apps deliver immediate impact 7 Seek expert advice:  only 18% of Australian SMEs use IT consultants, but the right advice can save costly mistakes 1 Use available incentives:  government rebates and tax deductions often support digital adoption when available 5 Share knowledge with peers:  collaborating through networks or advisors can shorten the learning curve and help spread best practice 6 Technology adoption isn't optional anymore. It's the difference between standing still and building a business that can adapt, grow and thrive in the years ahead. Forward-thinking owners who embrace digital transformation will be the ones driving competitiveness and seizing new opportunities, both locally and globally. Ready to explore what digital adoption could mean for your business? Collins Hume ‘s Strategy360 business advisory team helps business owners cut through the noise, identify the right tools and implement technology strategies that support long-term growth. If you'd like to discuss where to start, we're here to guide you. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you. Sources CPA Australia, Australian small businesses: Too busy to tech up, too behind to catch up (11 Aug 2025) Deloitte, State of Generative AI in the Enterprise - 2024 year-end Generative AI report Shopify, Australian Retail Report 2024 PwC, 28th Annual Global CEO Survey 2025 OECD, SME and Entrepreneurship Outlook 2023 Microsoft & LinkedIn, 2024 Work Trend Index - AI at Work McKinsey Global Institute, A Microscope on Small Businesses: Spotting Opportunities to Boost Productivity (May 2024)

Big Balances Beware If your super balance is comfortably below $3 million, you can probably relax — the proposed changes to the super rules shouldn’t adversely affect you (yet). But if your super is nudging that level, or if you’re clearly over, the Treasurer’s latest announcement could change how you think about super’s generous tax breaks. For some time now the Government has been planning to introduce targeted measures to reduce tax concessions for those with superannuation balances over $3 million. This has commonly been referred to as the Division 296 tax. However, the Government has reworked the proposed new tax — part of the Better Targeted Superannuation Concessions (BTSC) policy — attempting to make it simpler, fairer and more practical. After a wave of industry criticism, the revised version keeps the broad policy intent (reducing tax concessions for very large balances) but removes some of the more problematic features. We break down what’s changed and what it means for you. What’s Changing and Why It’s Simpler The original 2023 proposal aimed to apply an extra 15% tax on “earnings” from super balances above $3 million. The big flaw? “Earnings” included unrealised gains — paper profits on assets like property or shares that hadn’t been sold. This meant some people could have owed tax on increases in value they hadn’t actually received in cash. The reworked model drops unrealised gains from the equation entirely, taxing only realised earnings — actual income and capital gains when assets are sold. This makes the system far more practical and aligned with everyday tax rules. No more worrying about funding a tax bill on assets you haven’t sold. A Fairer, Tiered Approach The new rules introduce a two-tier system for high balances: Tier 1 ($3m–$10m): Extra 15% tax on earnings from this portion (making a total rate of 30%). Tier 2 (over $10m): Extra 25% tax on earnings above $10m (for a total rate of 40%). Both thresholds will be indexed annually to inflation ($150,000 steps for the $3m tier and $500,000 for the $10m tier), which should prevent “bracket creep” over time. Importantly, the start date has been pushed back to 1 July 2026, with the first assessments expected in 2027–28. The Government estimates less than 0.5% of Australians will be affected at the $3m level, and fewer than 0.1% at the $10m mark. What This Means in Practice Here are a couple of examples from Treasury to help you get your head around this. Consider Megan, who has a $4.5 million super balance split between an SMSF and an APRA fund. She earns $300,000 in realised income for the year within the super system. The super balance above $3m represents is one-third of the total balance, so she’ll pay $15,000 in additional Division 296 tax (15% × 33.33% × $300,000). Emma, on the other hand, has $12.9 million in her SMSF and $840,000 in earnings. She pays 15% on the Tier 1 portion and an extra 10% on the Tier 2 portion, a total of around $115,000 in extra tax. These examples show how the tax scales up progressively. The ATO will calculate each individual’s total super balance across all funds (SMSFs and APRA funds) and determine the proportionate amount of earnings to be taxed. Why It’s Still Good News (for Most) For many SMSF members, this update is a relief. By removing unrealised gains, it eliminates valuation headaches and liquidity pressures — particularly for those holding property or unlisted assets. That said, individuals with super balances above $10m will face a higher overall rate (up to 40%), which may prompt a rethink of long-term strategies. However, remember that updated legislation relating to this measure hasn’t been introduced to Parliament and things could change before the proposed rules become reality. Low Income Superannuation Tax Offset In addition to introducing the revamped Division 296 tax, the Government has announced that it will increase the Low Income Superannuation Tax Offset (LISTO) from $37,000 to $45,000 from 1 July 2027. The maximum payment will also increase to $810. Treasury estimates that the average increase in the LISTO payment will be $410 for affected workers. What to Do Now Check your total super balance (TSB) now and project where it may be by 2026. Seek advice early — strategies like managing liquidity, reviewing asset allocations and timing asset sales could make a real difference. Stay informed — draft legislation is expected in 2026. Overall, the Government’s revised approach strikes a more balanced tone: fewer administrative headaches for most, but less generosity for the ultra-wealthy. If your balance is near or above $3 million, now’s the time to plan ahead — not panic. Collins Hume will keep you updated through our client communications.

Why business owners and leaders can’t afford to overlook strategic planning Running a small or mid-sized business comes with constant pressures – managing operations, meeting customer demands and keeping pace with competitors. It’s easy to get caught up in the day-to-day and lose sight of the bigger picture. But without a clear strategy, growth stalls, risks multiply and opportunities pass you by. That’s where strategic planning comes in. Far from being a corporate buzzword, it’s the foundation for sustainable, long-term success – whether your goal is scaling operations, improving financial performance, or preparing for a future business valuation. What Strategic Planning Means for Your Business At its simplest, strategic planning is about setting long-term goals, defining the actions needed to achieve them and aligning your resources to stay on course. It’s about answering the big questions: Where do you want to be, and how will you get there? For business owners, tapping into strategic advisory services provides clarity, external perspective and accountability that can accelerate growth and sharpen focus. The Business Benefits of Strategic Planning For small and medium businesses, strategic planning delivers clear advantages: Direction and Focus  – A roadmap that keeps your business aligned with your vision and prevents distraction Adaptability  – The ability to anticipate change and pivot quickly in a fast-moving market Risk Management  – Early identification of threats and proactive contingency planning Resource Optimisation  – Smarter allocation of time, money, and people for maximum ROI Value Building  – Creating a business that not only performs well today but is also attractive to future investors, buyers or successors. How Expert Guidance Makes the Difference Strategic planning is only powerful if it’s implemented well. That’s where specialised expertise adds value. With the right advisors, business owners can gain:   Personalised Insight  – A clear picture of strengths, weaknesses, and growth opportunities Data-Driven Analysis  – Market trends and competitor insights that cut through the noise Goal Setting & Execution  – Practical steps to turn vision into results Succession Planning  – Ensuring a smooth transition when leadership changes, protecting both legacy and enterprise value Mentoring and Support  – Guidance to strengthen leadership capability, build team confidence, and maintain accountability over time. The Bottom Line Strategic planning isn’t a one-off exercise – it’s a living process that helps your business grow smarter, not just bigger. For business owners and leaders, it’s the difference between reacting to challenges and shaping your own future. Ready to unlock your business’s potential? Let’s work together to build a strategic plan that improves financial performance, strengthens resilience and delivers long-term results through proven strategic advisory services. Contact us today to start your journey toward sustainable success. Read more at https://www.collinshume.com/strategy360

Running a business isn’t just about making profits; it’s about managing them wisely. For many Australian business owners, the challenge lies in drawing a line between personal and business finances. Without structure, it can be easy to blur the boundaries, risking both cash flow and growth. A dividend policy offers the clarity needed to reward owners fairly  while keeping the business financially healthy. Why every business needs a Dividend Policy A dividend policy provides discipline around how profits are distributed Instead of random withdrawals, it creates a predictable framework for owner rewards More importantly, it ensures that money is available for tax, reinvestment and working capital. In today’s regulatory environment, this structure is not optional. The ATO is tightening its stance on shareholder payments, ownership groups are expanding, and the practice of running personal expenses through the business is increasingly risky. A clear dividend policy protects both the business and its owners. What is a Dividend Policy? At its core, a dividend policy is a set of rules that determines: When dividends are paid How much is paid How profits are balanced between owner rewards and reinvestment. This framework moves a business away from ad-hoc withdrawals and towards a commercial system that supports both growth and stability. Discipline is the real advantage Experience shows that the most successful businesses are those with discipline. Owners who pay themselves wages, keep finances separate and use structured dividend policies consistently outperform those who dip into business accounts at will. A dividend policy enforces this discipline, creating predictability and strengthening long-term sustainability. When should Dividends be paid? For private businesses, the best approach is usually quarterly or half-yearly dividends. Quarterly: Reflects true business performance without reacting to short-term fluctuations Half-yearly: Aligns with listed company practices and maintains consistency Annual dividends often feel too distant, while monthly payouts are prone to volatility. How much should be paid? The percentage of profits allocated to dividends depends on business type and maturity: Established businesses with steady cash flow:  20-40% of earnings works well High-growth businesses:  Retain more earnings for reinvestment Capital-intensive industries (manufacturing, construction, etc):  Keep higher reserves for stock, WIP and debt servicing Service businesses with smoother cash flow:  More flexibility to pay higher dividends. Debt levels also matter. In some cases, paying down debt delivers greater long-term value than distributing profits. Avoiding the ‘danger zone’ One of the biggest risks is declaring dividends the business cannot afford. Doing so can drain cash reserves and force owners to reinject capital, damaging both confidence and financial stability. Forward planning is essential. Businesses should model 6-12 months of cash flow to determine what is sustainable before declaring a dividend. Keeping policies relevant Even the best dividend policy is ineffective if ignored. Business owners should: Review regularly every 6-12 months to ensure alignment with current goals Stick to the rules if the policy dictates a dividend, pay it consistently. Having discipline builds confidence among owners and investors alike. Your Financial Performance: Why work with an Outsourced CFO? Many businesses turn to outsourced CFO (‘Chief Financial Officer’) services to design and manage dividend policies. A CFO can: Tailor policies to business goals and tax structures Model safe cash flow and working capital Balance shareholder returns with reinvestment needs Ensure dividends are declared and executed correctly. The result is financial clarity, consistent owner rewards, and stronger business performance. Final word for Business Owners A dividend policy may not sound like the most exciting part of business ownership, but it can transform financial discipline and provide a practical step that aligns rewards with growth and protects long-term stability. Now is the time to review if your business has a clear dividend policy in place. The right framework can prevent financial stress, keep shareholders motivated and provide peace of mind. If you’re looking to implement or review your dividend policy, professional guidance can help you structure it correctly from the start. An experienced advisor can ensure your approach works for your industry, your cash flow and your growth ambitions. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you. Further reading Australian Taxation Office. Using your business money and assets for private purposes » Australian Taxation Office. Privately owned and wealthy groups – Areas of focus 2024-25 » Australian Taxation Office. Tax performance programs for private groups »

Strategies for Couples to Thrive Together There comes a time in every relationship when finances move beyond “yours” and “mine” and start to become “ours.” Having joint finances might be sparked by a decision to move in together, tie the knot or simply make a bigger commitment to your shared future. Suddenly, you’re not just managing your budgets, but navigating the complexities of shared expenses, joint goals, and perhaps even a joint bank account. This transition can be exciting, but it also brings a unique set of challenges. Take Mark and Lisa, for example. They were thrilled to be moving in together, but quickly realised their spending habits were worlds apart. Lisa, the spender, loved to indulge in spontaneous shopping sprees, while Mark, the saver, preferred to keep a close eye on his budget. Their differing approaches led to more than a few disagreements and growing resentment. To overcome this hurdle, they decided to create a joint budget that included a “fun money” allowance for each of them and their discretionary spending. This way, Lisa could enjoy her shopping without derailing their shared financial goals, and Mark had the peace of mind of knowing their overall finances were on track. By compromising and communicating openly, they found a solution that worked for both of them. Just like Mark and Lisa, every couple will face their unique financial hurdles. But with open communication about finances, a proactive approach, and a willingness to understand each other’s perspectives, you can build a strong and secure financial future together. Steps to overcome frustrations and tension around money in your marriage include active listening, respecting each other’s perspectives, and finding compromises that work for both of you. With open communication and a proactive approach, you can build a solid financial foundation for your future together. Communicate and Create Your Financial Roadmap as a Couple Before you even think about combining finances, understand your individual goals on money, financial situations, and financial habits. This means having honest conversations about: Income Sources:  What are your incomes? Are there any side hustles or investments to consider? Is there any income disparity? Current Spending Habits:  Are you a spender or a saver? Track your expenses to get a clear picture. Debt:  Do you have any outstanding loans, credit card debt, or student loans? Be transparent about the amounts and repayment plans. And maybe come up with some debt management strategies. Financial Disparities:  Is there a significant difference in your incomes? Will one of you take time away from work to raise the kids? Or perhaps one of you needs to provide child support for children from a previous marriage? These might be things you need to address in your shared finances. Risk Tolerance:  Are you comfortable with investments or prefer a more risk-averse approach? Agreeing on if and how you’ll invest if you both choose to have one. Emergency Fund:  Do you have savings set aside for unexpected expenses? Credit Reports and Credit Score:  It’s also a good idea to discuss your credit reports and credit scores, as these can impact your ability to secure loans or rent a property together. For more information on this, you could read our comprehensive  12-step guide  to creating your financial plan. Learn how to set financial goals, create a budget, develop an investment strategy, and plan for retirement, all while protecting your family and building wealth. Setting Shared Goals Once you have a good grasp of your finances, it’s time to start thinking about your shared financial future. What are your common goals as a couple? Do you want to buy a house, travel the world, or start a family? Setting clear life and financial goals will help you prioritise your spending and saving. Using the SMART goals framework (Specific, Measurable, Achievable, Relevant, Time-bound) can be particularly helpful when setting these financial targets. Making Money Talks a Habit Communication is key to a healthy financial relationship. Make it a habit to talk about money regularly. This doesn’t have to be a formal budget meeting every week, but it should be an open and ongoing dialogue. Have regular financial check-ins with each other about spending, saving, and any financial concerns that may arise. Saving money as a couple requires teamwork and a tailored approach. Since there’s no one-size-fits-all solution, experiment with different budgeting methods until you find one that suits your unique needs and preferences. Work on getting on the same page when it comes to your financial goals and priorities (this might take some time and vulnerability!) – this shared vision will keep you motivated and working together. Finally, recognise and play to each other’s strengths. If one of you is a budgeting whiz while the other excels at finding deals, leverage those skills to create a balanced and successful financial partnership. Overcoming common financial hurdles often requires a shift in mindset. Mutual respect, with clear boundaries about spending and saving, and maintaining open and honest communication about finances, will help you navigate your inevitable differences. It is vital to defuse any developing resentment or feelings of shame about any uncommunicated financial mistakes in order to achieve a strong financial partnership. Important Conversations Open and honest communication is the bedrock of any successful financial partnership. Here are some key and sometimes even difficult conversations to have with your partner: Splitting Costs:  Before merging finances, decide how you’ll divide shared expenses like rent, utilities, and groceries. Will you split everything 50/50, or will you contribute proportionally based on your individual incomes? Finding a system that feels fair to both of you is essential. Combining Savings:  Combining savings is a big step. If you choose this path, make sure you’re both crystal clear on your shared savings goals. Are you saving for a house deposit, a dream holiday, or a comfortable retirement? Ensure you have a mutual understanding of how those savings will be used and when. Long and Short-Term Goals:  Don’t forget to discuss your individual and shared financial aspirations. Do you dream of early retirement, starting a business, or pursuing further education? Talking about both short-term and long-term goals will help you align your financial priorities and work together to achieve them. Q. How do I talk to my partner about our finances? It usually leads to tension and disagreements. This is a tough one. Different people come to a relationship with different experiences and associations with money, and some find it difficult to talk about. If your partner is uncomfortable talking about money, but it’s something that needs to be done, try following some of the steps below. 1.  Reassure your partner.  Feeling judged or ‘not enough’ is one of the big sources of insecurity around finances. Make sure that you’re approaching the conversation without judgement, and that your partner knows this. Lay the groundwork before the conversation even happens. 2 . Do it together.   Don’t think of it as you talk to your partner about their finances or how they manage money. Try and approach it as both of you in this together, and both of you have things that you want to bring up and potentially things that you need to change. 3.  Decide on the goals of the conversation at the start.  If you’d like to just get more comfortable talking about money together, make that the goal of the first conversation. You don’t have to solve everything at once. Make sure the goal is something you can agree on. 4.  Set the scene.  Create an atmosphere that is cosy and comfortable, don’t spring the chat on your partner in Woolies. 5.  Be willing to be wrong and willing to be vulnerable.  Everything you expect from your partner, you should expect from yourself. If you want your partner to change, you have to be willing to listen to their complaints or requests from you as well. 6.  Celebrate your wins.  If you’ve had your first conversation about money and you got through it without a fight, openly celebrate that. We don’t learn how to have these hard chats in school, so well done for doing the hard work and teaching yourself.   Combining Finances: Three Approaches  When it comes to managing money as a couple, there’s no one-size-fits-all solution. Each approach has its own set of advantages and disadvantages. Let’s explore the most common methods. 1. Separate Accounts Keeping your finances separate offers the highest degree of individual financial freedom. Couples maintain their accounts and are responsible for their spending and debts. They may split shared expenses equally or proportionally based on income. 2. Joint Accounts In this approach, all income goes into a single shared account. This simplifies budgeting and expense tracking, providing a clear picture of the couple’s finances. Pros:  It’s easy to track family spending, no need to divide expenses, adaptable to changing family needs. This approach can make it feel easier to work together towards common goals, and strengthen trust and unity. Cons:  There is more potential for conflict due to differing spending habits, lack of individual financial freedom, and difficulty keeping gifts secret. Another downside is this one partner maintains more control of the joint finances, it may limit the financial independence of the other partner. 3. Hybrid Approach This method combines the benefits of both separate and joint accounts. Couples maintain a joint account for shared expenses and individual accounts for personal spending. A predetermined amount is transferred to personal accounts regularly. Pros:  Balances individual freedom with shared financial responsibility, simplifies bill paying while allowing for personal spending and encourages joint goal setting and retirement planning. Cons:  Requires managing multiple accounts, the fixed personal allowance might feel restrictive to some. Which approach best suits you? The best approach depends on your circumstances, communication style, and financial goals as a couple. Openly discuss your preferences, spending habits, and financial priorities to determine what works best for you. Key Relationship Stages & Your Finances Dating Keep your financial freedom and get to know each other. Enjoy the early stages of your relationship without merging finances. Split costs fairly and openly discuss your comfort levels with spending. A joint account for shared activities can simplify things. Consider opening a joint account for shared expenses like date nights or weekend trips. This can make it easier to track shared expenses and avoid awkward money conversations. Moving In Together Open a joint account for household expenses. This can include rent, utilities, and groceries. Contribute to the account proportionally to your income. Maintain separate accounts for personal spending. This allows you to retain your financial independence and avoid arguments about spending habits. Discuss financial goals, habits, and any existing debts. This will help you build trust and avoid financial surprises down the road. Engaged Create a joint savings account for wedding expenses and future goals. This will help you stay organised and on track with your financial goals. Engage in serious financial planning. Discuss long-term goals, such as buying a house or retirement planning. Consider investment strategies and how you will manage your finances as a married couple. Consider consolidating debts if beneficial. This can help you save money on interest and simplify your finances. Married Choose a joint savings strategy that works for you. This could involve keeping separate accounts for personal spending and a joint account for shared expenses or merging all of your finances into one account. Continue to communicate openly about your finances. This will help you stay on the same page and avoid financial disagreements. Additional Considerations Financial compatibility is important. Before merging finances, make sure that you and your partner are on the same page about money management. Merging finances is a big step. Take your time and don’t feel pressured to merge your finances before you’re ready. Seek professional advice if needed. A financial advisor can help you create a financial plan that meets your needs. Remember, there is no right or wrong way to merge finances. The best approach is the one that works for you and your partner. Communicate openly and honestly about your finances, and be willing to compromise. Life throws curveballs. Discuss how you’ll handle situations where one partner may be unable to work, such as parental leave, illness or even major life events. Should You Get a Prenuptial Agreement (BFA)? In Australia, a prenup is called a Binding Financial Agreement (BFA), and it’s essentially a roadmap for your finances if things don’t work out. It covers how you’ll divide property and assets, handle debts, and manage other financial matters like inheritances and spousal maintenance. Prenups aren’t about anticipating failure but they should be thought carefully about. They should be mutually beneficial. If they damage trust, they have the potential to set your relationship on a rocky course, so don’t take this step lightly. If you’re considering a BFA, it’s worth speaking with a legal expert to understand how it could work for your specific situation. You can read more about BFAs  here. Building a Solid Financial Future Together Navigating joint finances as a couple can initially feel challenging, but with open communication, mutual understanding, and strategic planning, it can pave the way for a strong financial partnership. Whether you’re merging your accounts or maintaining separate ones, the key is to stay aligned on your goals and values while respecting each other’s financial habits. Remember that each couple’s financial journey is unique, and finding the approach that works for you both is essential. As you embark on this journey together, don’t shy away from seeking professional advice when needed. Financial advisors can provide invaluable insights tailored to your situation, ensuring you remain on track toward your shared dreams. Be proactive in discussing financial challenges, life changes, and plans to foster trust and collaboration. Ultimately, a healthy financial relationship not only strengthens your finances but also fortifies your bond as a couple. Embrace the process, celebrate your milestones, and support each other as you grow together on this path to financial wellness. With dedication and teamwork, you can not only survive but thrive together in the realm of joint finances. For more clarity on how advice could help you, please feel free to get in touch with EWAR. P . 02 5562 6260 (Ballina) P.  07 5230 4198 (Gold Coast) E:   support@ewar.com.au   W:   www.ewar.com.au     Ballina Office Address: 97 Tamar Street, Ballina, NSW 2478 Gold Coast Office Address: 80-82 Upton St, Bundall, QLD 4217   BallinaGCFP Pty Ltd ABN 12 670 111 583 trading as Essential Wealth & Retirement is a Corporate Authorised Representative no. 1305335 of GPS Wealth Ltd AFSL 254 544. A word of caution: the included material in this article has been provided as General Advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding this communication. We have taken care to prepare this material, but any decisions or actions you take as a result of you reading this communication are entirely your own.

At Collins Hume, we’re proud to introduce our newest Senior Accountant, Carmilla Fitzgerald. With over two decades of public practice experience and a career built on helping clients achieve their goals, Carmilla brings both depth of expertise and a genuine passion for tax and business growth. Originally from the Northern Rivers, Carmilla spent more than 20 years on the Central Coast before deciding it was time to make a sea change back home. The decision to join Collins Hume was not made lightly. She first did her due diligence on the firm, digging into how we serve clients, our community engagement, and the culture reflected across our website. What she found was a team with a strong client focus, fun energy and award-winning recognition — the kind of environment she knew she wanted to be part of. When asked what drives her, Carmilla doesn’t hesitate, “I love it, I really do. I love seeing businesses grow and doing the best I can to help them achieve their goals at the end of the day.” For Carmilla, tax is not just compliance; it’s her “happy place.” She excels at minimising tax in practical, effective ways that allow business owners  to focus on what matters most to them. Having worked with clients nationwide, she understands the pressure of staying on top of compliance and how vital it is to have a trusted adviser in your corner. Day to day, Carmilla will be taking on client responsibilities across business tax returns while also supporting Kelly and Chris’ teams as a versatile ‘swing’ accountant. She thrives on detail, client conversations and finding tailored solutions that keep businesses moving forward. Outside of work, Carmilla’s adventurous spirit comes through in her love of travel and outdoor pursuits. She’s a qualified open-water diver, has sailed through a Royal Yachting Association course, and even kept bees in the past — a hobby she hopes to return to once she’s resettled. We’re delighted to welcome Carmilla back to the Northern Rivers and to our Collins Hume team. With her energy, expertise and client-first approach, she’s already making an impact. About Carmilla Carmilla is an Associate Member of The Tax Institute, a Registered Tax Agent and a Xero Certified Advisor. She is due to complete her Bachelor of Business and Enterprise (Accounting & Business Management) at Southern Cross University in November 2025, with plans to pursue Chartered Accountant (CAANZ) status immediately after.

Why leadership (not luck) drives sustainable growth When you look at businesses that consistently scale year after year, it’s tempting to think they’ve cracked some secret formula. But the truth is simpler and tougher. Sustainable success isn’t about luck, and it’s not even about strategy on its own. It comes down to leadership. High-performing businesses share four common traits that strengthen financial performance, attract the right people and build long-term value. 1. High Standards Consistently aiming higher not only lifts performance but also builds resilience into the business model. Strong business owners don’t settle for “good enough.” They define clear, measurable benchmarks and hold both themselves and their teams accountable. This isn’t about chasing perfection – it’s about recognising what excellence looks like and working towards it, even when it’s uncomfortable. 2. A Sense of Urgency Addressing issues quickly prevents small cracks from becoming structural problems and preserves business valuation over the long term. When things slip – whether it’s performance, targets, or outcomes – top leaders don’t wait for the quarter-end report to address it. They act today. Urgency isn’t about stress; it’s about protecting momentum. 3. Zero Tolerance for Poor Performance Underperformance isn’t part of the culture. Great businesses don’t excuse poor results as “inevitable.” They act with intent, involving their teams to uncover the why and resolve it fast. This sends a clear message: underperformance isn’t part of the culture. Over time, this approach strengthens succession planning by ensuring future leaders are developed in an environment of accountability.   4. They Attract and Retain A-Grade People High standards and accountability create a culture that naturally draws top performers. Talented people want to work with other high achievers, and when the bar is set high, they stay. By contrast, a culture that tolerates underperformance risks losing its best talent. Strong mentoring and strategic advisory services ensure these A-players see a pathway to grow within your business. Building Long-Term Value These four traits aren’t nice-to-haves; they are the baseline for business owners who want to strengthen financial performance, build enterprise value and prepare for future succession. By combining leadership discipline with advisory support and mentoring, you create a culture that scales sustainably while increasing the attractiveness of your business to potential buyers or investors. Ready to strengthen your business performance and build long-term value? Talk with us about how strategic advisory services can help you lift standards, improve financial performance and prepare your business for the future. Read more at https://www.collinshume.com/strategy360