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With FY25 in the rear-view mirror, many small and medium businesses (SMEs) are re-evaluating their priorities. The message is clear: surviving uncertainty is no longer enough – sustainable success must be the goal. Published insights from the Australian Chamber of Commerce and Industry (ACCI) paint a sobering picture: nearly half of Australia’s small businesses considered closing last year. Mounting red tape and rising operational costs are sapping time, energy and cash – three things no business can afford to waste. So, what can business owners do to futureproof their businesses through FY26? Here are three essential focus areas: 1. Prioritise Financial Performance Planning Now more than ever, businesses need a clear, actionable financial roadmap. That means moving beyond basic budgeting into full-spectrum financial planning – cash flow forecasting, risk assessment and investment prioritisation. It also means embracing tools that make this easier. Integrated platforms that handle invoicing, accounting, reporting and approvals in one place help reduce manual work, cut down errors and improve decision-making. Automating financial processes isn’t a luxury – it’s now a necessity to stay competitive. 2. Build and Maintain Loyal Customer Relationships Loyal customers are the engine room of SME success. They provide repeat business, refer others and are more forgiving during tough times. But loyalty doesn’t happen by accident – it’s earned through consistent service, personalisation and open communication. Use insights from past transactions and customer feedback to tailor offerings and sharpen your marketing. Focus on quality interactions over quantity. In a tightening economy, a trusted relationship is worth far more than a one-off sale. 3. Stay Adaptable and Innovate Smartly Innovation doesn’t have to mean launching new products or spending big. It’s often about using the resources you already have, like leveraging customer data, applying market insights or adjusting your offerings to respond to economic shifts (e.g. aligning promotions with tax changes or industry trends). Keep scanning the horizon for signals: changes in customer behaviour, emerging technologies or policy shifts can all present opportunities if you’re ready to act. Looking Ahead No one is denying that FY26 comes with challenges. But business owners that put strategy, systems and people first are best placed to weather short-term storms and build long-term value. By focusing on what matters – solid financial foundations, loyal customer bases and flexible operations – small businesses can reclaim control and chart a sustainable path forward. Ready to position your business for success in FY26 and beyond? Want to turn strategy into real-world results? Chat with Nathan at Strategy360 to explore practical steps you can take now to strengthen your business, boost resilience and build momentum for FY26. Congratulations to Nathan McGrath, named 2025 Ballina Shire Business Excellence Awards Outstanding Business Leader – 21 Employees & Over! A well-deserved recognition for exceptional leadership and commitment to business excellence. Read more » 🌏 Collins Hume was honoured with the Excellence in Sustainability award at the 2025 Ballina Shire Business Excellence Awards and then again at the Business NSW Northern Rivers Business Awards, recognising our commitment to reducing environmental impact. Both awards reflect the tangible steps Collins Hume is taking to embed sustainability into everyday operations, using strategies that align with our values and the needs of our community.

What is the PPSR? The Personal Property Securities Register (PPSR) is a national online noticeboard that helps businesses protect their legal rights to goods, stock or equipment when those items are leased, sold on credit or in someone else’s possession. Why Your Business Should Use It If you’re a small business, tradie or supplier offering goods before full payment, the PPSR can help you: Retain ownership until you're paid in full (with a registered security interest) Reclaim goods if a customer becomes insolvent Avoid losing equipment leased or hired out Safeguard IP and stock on consignment Reduce risk of losing goods in transit or if seized Check second-hand goods aren’t tied to someone else’s debt Real-World Risks Without PPSR A written contract isn’t always enough if your client goes bust. Your gear left on-site or in transit could be considered their asset. IP-heavy work like prototypes or designs could be lost without protection. Equipment hired out could be unrecoverable in insolvency. Second-hand gear could be repossessed by someone else's creditor. Benefits of PPSR Registration Secure your goods and income Back up contracts with enforceable legal rights Reduce financial risk from customer defaults Improve your credit profile and lender confidence Low-cost: just $6 for 7 years Before You Buy or Lease Always run a $2 PPSR check to ensure second-hand items like vehicles, trailers or machinery are debt-free. This protects your investment and avoids unexpected repossession. Register your interest early — before shipping or handover Use retention of title clauses in contracts and invoices Keep your records clean by ending registrations when no longer needed Only register when a valid agreement exists to avoid legal issues Want to safeguard your business assets? Talk with your Collins Hume Accountant or Advisor about setting up PPSR protection today. Or visit ppsr.gov.au  to learn more.

With the purchasing of luxury vehicles on the rise it’s important to be aware of some specific features of the tax system that can impact on the real cost of purchase. Often the tax rules provide taxpayers with a worse tax outcome if the car will be used for business or other income producing purposes compared with a non-luxury car, but this depends on the situation. Let’s take a look at the key features of the tax system dealing with luxury cars and the practical impact they can have on your tax position. Depreciation deductions and GST credits  Normally when someone purchases a motor vehicle which will be used in their business or other income producing activities there will be an opportunity to claim depreciation deductions over the effective life of the vehicle. Rather than claiming an immediate deduction for the cost of the vehicle, you will typically be claiming a deduction for the cost of the vehicle gradually over a number of years. Likewise, a taxpayer who is registered for GST might be able to claim back GST credits on the cost of purchasing a motor vehicle that will be used in their business activities. However, when you are dealing with a luxury car the tax rules will sometimes limit your ability to claim depreciation deductions and GST credits, impacting on the after-tax cost of acquiring the car. How does it work?  Each year the ATO publishes a luxury car limit which is $69,674 for the 2025-26 income year. If the total cost of the car exceeds this limit, then this can impact the GST credits or depreciation deductions that can be claimed. Let’s assume that Alice buys a new car for $88,000 (including GST) in July 2025. To keep things simple, let’s say Alice uses the car solely in her business activities and is registered for GST. The first issue for Alice is that rather than claiming GST credits of $8,000, her GST credit claim will be limited to $6,334 (ie, 11th x $69,674). We then subtract the GST credits that can be claimed from the total cost, leaving $81,666. As this still exceeds the luxury car limit, Alice’s depreciation deductions will be capped as well. While she actually spent $89,000 on the car, she can only claim depreciation deductions based on a deemed cost of $69,674. The end result is that Alice has missed out on some GST credits and depreciation deductions because she bought a luxury car.   Exceptions to the rules  There are some important exceptions to these rules. The rules only apply to vehicles which are classified as ‘cars’ under the tax system. That is, the car limit doesn’t apply if the vehicle is designed to carry a load of at least one tonne or it is designed to carry at least 9 passengers. The rules only apply if the vehicle was designed mainly for carrying passengers. The way we determine this depends on the nature of the vehicle and whether we are dealing with a dual cab ute or not. For example, let’s assume Steve buys a ute which is designed to carry a load of at least one tonne. This isn’t classified as a car for tax purposes so Steve won’t miss out on GST credits or depreciation deductions. However, let’s assume Jenny has bought a dual cab ute which is designed to carry a load of less than one tonne and fewer than 9 passengers. This is classified as a car and the luxury car limit will apply unless we can show that it wasn’t designed mainly to carry passengers. As we are dealing with a dual cab ute, we multiply the vehicle’s designed seating capacity (including the driver's) by 68kg. If the total passenger weight determined using this formula doesn’t exceed the remaining 'load' capacity, we should be able to argue that the ute wasn’t designed mainly for the principal purpose of carrying passengers, which means that Jenny should be able to claim depreciation deductions based on the full cost of the vehicle. The approach would be different if we were dealing with something other than a dual cab ute, such as a four-wheel drive vehicle. Luxury car lease arrangements Normally when someone enters into a lease arrangement for a car and they use the car in their business or employment duties there’s an opportunity to claim deductions for the lease payments, adjusted for any private usage. However, if the value of the car exceeds the luxury car limit then the tax rules apply differently. Basically, what happens is that the taxpayer is deemed to have purchased the car using borrowed money. Rather than claiming a deduction for the actual lease payments, instead we will be claiming deductions for notional interest charges and depreciation, subject to the luxury car limit referred to above.  Luxury car tax  Cars with a luxury car tax (LCT) value which is over the LCT threshold for that year are subject to LCT, which is calculated as 33% of the amount above the LCT threshold. The LCT thresholds for the 2025-26 income year are: $91,387 for fuel-efficient vehicles $80,567 for all other vehicles that fall within the scope of the LCT rules From 1 July 2025 the definition of a fuel-efficient vehicle has changed, meaning that a car will only qualify for the higher LCT threshold if it has a fuel consumption that does not exceed 3.5 litres per 100km (this was 7 litres per 100km before 1 July 2025). Buying a car or other motor vehicle can be a complex process and there will be a range of factors to consider. If you need assistance with the tax side of things please let us know before you jump in and sign any agreements.

What a night! Our team is still buzzing after being named Business of the Year  at the 2025 Northern Rivers Business Awards. The Northern Rivers community is full of inspiring people and business owners, so to be recognised among them is a real honour. On top of that, we proudly brought home: Excellence in Business & Professional Services recognising outstanding achievements, innovation and client service in our field Excellence in Sustainability  celebrating businesses that make measurable environmental and social impact beyond their core services. We were especially thrilled to see Kirra Connell  recognised as Highly Commended in the Outstanding Trainee of the Year category, and Nathan McGrath  celebrated as a finalist for Outstanding Business Leader. With strong community roots and a forward-thinking mindset, Collins Hume continues to support clients, develop our people and contribute to the Northern Rivers with purpose and pride — we wouldn’t be the business we are without them. Christopher Atkinson, Collins Hume Chief Executive, summed it up best: "When Collins Hume began In 1980 our mission was simple: To be the best tax service In Ballina, but the world has changed and so have we.” “Our overriding purpose is: To Inspire business owners to achieve business and lifestyle success In powerful and meaningful ways. Working every day with 32 delightful humans engaged in that purpose is an honour." As business support and advice becomes a growing service across the accounting profession, Collins Hume sees sustainability as central to that role. Clients increasingly turn to their accountants as trusted advisers, and we believe leading by example — through ESG initiatives and giving impacts — strengthens our ability to guide small businesses towards more resilient, responsible and future-focused strategies. Next stop: we’ll be representing our stunning region at the NSW Business Awards on 29 October in Sydney, lining up against some of the best businesses across the state. Wish us luck! A huge thank you to Business NSW Northern Rivers, Ballina Chamber of Commerce, Ballina RSL and category sponsor Telstra for coordinating such a brilliant evening, and to all the incredible businesses who took part to help celebrate and showcase everything that makes our region so special. Read more on this story Ballina News Daily feature story https://ballinanewsdaily.com.au/2025/09/28/ballina-businesses-shine-as-mayor-calls-on-premier-to-visit/   Photo credits: Ballina News Daily. See more at https://www.collinshume.com/awards

Chris Horne knows that tax and super isn’t always about the numbers. In his role, Chris’ pathway has led him into a specialist niche space — often an intricate one — where psychology, trust and careful listening matter as much as technical skill. Over his 10 years with Collins Hume, Chris has focused on supporting larger clients and family groups — many of them retired or passing responsibility to the next generation. In practice, this means looking after complex client issues that need more all-encompassing support, preparing to unwind business structures when they come to a close, and helping clients understand that what looks like “tax simplified” could, in fact, make things more complicated. Importantly, Chris also recognises when succession and estate planning should be considered, connecting clients with specialists to guide those conversations further to support wealth accumulators or retirees with asset protection and legacy considerations. What makes his contribution distinctive is the way he approaches these intricacies. Chris listens carefully, notices nuances and pays attention to what isn’t said as much as what is. His flair lies in combining technical nouse with personal care — very much a “compassionate bedside patter” — drawing out what really matters when there is hesitancy, whether in complex family arrangements or broader client groups. His efforts are strengthened by the wider services Collins Hume provides — often business valuations conducted by Strategy360 , streamlined bookkeeping by the Books360 team, and the adoption of AI if necessary — ensuring clients benefit from broad and forward-looking support. For Chris, Collins Hume is the right professional home because of its flexibility, mutual respect and alignment of family values. Having leaders like the Partners who share those priorities has been important in shaping how he balances career and life. “I’ve been here 10 years, and both the clients and the people I work with continue to inspire me,” says Chris. “Collins Hume was progressive when I joined in 2015, and the firm has come in leaps and bounds in embracing our digital business and financial environment.” This month marks 10 years since Chris joined Collins Hume — a milestone that reflects his commitment and the depth of specialist services he has provided in this complex area. It’s his steady, specialist approach — balancing technical expertise with sensitivity to client needs — that has made Chris a trusted adviser for Collins Hume’s clients over the past decade, and will continue to guide his work in the years ahead. Looking forward, Chris is clear that preparation is everything “If you’re thinking about selling your business in the next five years, get in touch. The earlier those conversations start, the better the outcomes tend to be,” Chris added. At Collins Hume Chris Horne is a Senior Accountant and Chartered Accountant (CAANZ) with a Bachelor of Business (Accounting), a Graduate Diploma in Superannuation (UNSW) and is a Xero Certified Advisor. Outside of work he is Team Manager of the Byron Bay soccer team, follows the AFL’s Geelong Cats and enjoys cooking, gardening and woodwork.

Collins Hume Senior Accountant Kristy Dooley always had an interest in accounting. It was only when she embarked on her double degree that studying tort law confirmed what she thought all along — accounting was her passion and how she wanted to move forward in the world. After leaving New England for the Northern Rivers and a sea change in 2018, Kristy joined Collins Hume bringing with her a swag of accounting and tax expertise that included self-managed super funds, farming and agribusiness, small business, bookkeeping and internal accounting assistance. The fact that Kristy gets to help business owners is an immensely enjoyable part of her role. Being a country girl, her agricultural know-how has been particularly useful for Collins Hume’s macadamia and livestock clients, especially when natural disasters necessitated accessing much-needed grant assistance. “I like teaching financial literacy to our clients,” says Kristy. “I’m very motivated to help people understand their situation and I like to think that I have the empathy and understanding of each person’s circumstances to explain things well and help get things done.” Kristy also brings her vast experience and a common sense approach to improving Collins Hume as a business. “As a team leader, I manage our production line and workflow so we all operate succinctly and efficiently. A rewarding part of that is assisting, reviewing and mentoring our accounting juniors to advance their abilities and progress.” Coming from a large family, Kristy’s spare time is consumed with running her kids to sport and being involved with her parents and siblings. She also enjoys cooking and gardening, spending time in the bush or at the beach and immersing herself in a good book. Kristy is also planning to brush up on her high school Italian. “The main drawcard for me moving to Collins Hume was the attitude to family and lifestyle which they do very well. Having such an accommodating and flexible work environment lends itself to creating a great tribe with a positive vibe.” “Plus we have interested and enthusiastic clients who want to better themselves, and I’m a big promoter of that,” Kristy added. — Before joining Collins Hume, Kristy Dooley worked at all levels of public practice, from accounting graduate all the way to Partnership for an accounting firm in Armidale. She holds a Bachelor of Commerce (UNE), a Bachelor of Laws (UNE) and a Diploma of Financial Planning. Kristy is also a Chartered Accountant (CAANZ) and rounds out the range of Collins Hume’s expertise with her interest and experience in agribusiness. Copyright 2022. Collins Hume Ballina & Byron Bay NSW

Back in March this year the Government announced its intention to ban non-compete clauses for low and middle-income employees and consult on the use of non-compete clauses for those on higher incomes. The Government has indicated that the reforms in this area will take effect from 2027. This didn’t come as a complete surprise as the Competition Review had already published an issues paper on the topic and the PC had also issued a report indicating that limiting the use of unreasonable restraint of trade clauses would have a material impact on wages for workers. Treasury has since issued a consultation paper, seeking feedback in the following key areas: How the proposed ban on non-compete clauses should be implemented; Whether additional reforms are required to the use of post-employment restraints, including for high-income employees; Whether changes are needed to clarify how restrictions on concurrent employment should apply to part-time or casual employees; and Details necessary to implement the proposed ban on no-poach and wage-fixing agreements in the Competition and Consumer Act. Treasury makes it clear that the Government is not planning to change the way the rules apply to restraints of trade outside employment arrangements (eg. on sale of a business) or change the use of confidentiality clauses in employment. If the proposed reforms end up being implemented, then this could have a direct impact on a range of employers and their workers. Existing agreements will need to be reviewed and potentially updated. However, it is too early at the moment to guess how this will end up, we will keep you up to date as further information becomes available.

This tax season, we’ve seen a surge in questions about whether interest on a loan can be claimed as a tax deduction. It’s a great question as the way interest expenses are treated can significantly affect your overall tax position. However, the rules aren’t always straightforward. Here’s what you need to know. The purpose of the loan The most important thing when looking at the tax treatment of interest expenses is to identify what the borrowed money has been used for. That is, why did you borrow the money? For interest expenses to be deductible you generally need to show that the borrowed funds have been used for business or other income producing purposes. The security used for the loan isn’t relevant in determining the tax treatment.  Let’s take a very simple scenario where Harry borrows money to buy a new private residence. The loan is secured against an existing rental property. As the borrowed money is used to acquire a private asset the interest won’t be deductible, even though the loan is secured against an income producing asset.  Redraw v offset accounts  While the economic impact of these arrangements might seem somewhat similar, they are treated very differently under the tax system. This is an area to be especially careful with. If you have an existing loan account arrangement, you’ve paid off some of the loan balance and you then use a redraw facility to access those funds again, this is treated as a new borrowing. We then follow the golden rule to determine the tax treatment. That is, what have the redrawn funds been used for? An offset account is different because money sitting in an offset account is basically treated much like your personal savings. If you withdraw money from an offset account you aren’t borrowing money, even if this leads to a higher interest charge on a linked loan account. As a result, you need to look back at what the original loan was used for. Let’s compare two scenarios that might seem similar from an economic perspective: Example 1: Lara’s redraw facility Lara borrowed some money five years ago to acquire her main residence. She has made some additional repayments against the loan balance. Lara redraws some of the funds and uses them to acquire some listed shares. Lara now has a mixed purpose loan. Part of the loan balance relates to the main residence and the interest accruing on this portion of the loan isn’t deductible. However, interest accruing on the redrawn amount should typically be deductible where the funds have been used to acquire income producing investments. Example 2: Peter’s offset account Peter also borrowed money to acquire a main residence. Rather than making additional repayments against the loan balance, Peter has deposited the funds into an offset account, which reduces the interest accruing on the home loan. Peter subsequently withdraws some of the money from the offset account to acquire listed shares. This increases the amount of interest accruing on the home loan. However, Peter can’t claim any of the interest as a deduction because the loan was used solely to acquire a private residence. Peter simply used his own savings to acquire the shares. Parking borrowed money in an offset account We have seen an increase in clients establishing a loan facility with the intention of using the funds for business or investment purposes in the near future. Sometimes clients will withdraw funds from the facility and then leave them sitting in an existing offset account while waiting to acquire an income producing asset. This can cause problems when it comes to claiming interest deductions.  First, even if the offset account is linked to a loan account that has been used for income producing purposes, this won’t normally be sufficient to enable interest expenses incurred on the new loan from being deductible while the funds are sitting in the offset account.  For example, let’s say Duncan has an existing rental property loan which has an offset account attached to it. Duncan takes out a new loan, expecting to use the funds to acquire some shares. While waiting to purchase the shares, he deposits the funds into the offset account, which reduces the interest accruing on the rental property loan. It is unlikely that Duncan will be able to claim a deduction for interest accruing on the new loan because the borrowed funds are not being used to produce income, they are simply being applied to reduce some interest expenses on a different loan. To make things worse, there is also a risk that parking the funds in an offset account for a period of time might taint the interest on the new loan account into the future, even if money is subsequently withdrawn from the offset account and used to acquire an income producing asset.  For example, even if Duncan subsequently withdraws the funds from the offset account to acquire some listed shares, there is a risk that the ATO won’t allow interest accruing on the second loan from being deductible. The risk would be higher if there were already funds in the offset account when the borrowed funds were deposited into that account or if Duncan had deposited any other funds into the account before the withdrawal was made. This is because we now can’t really trace through and determine the ultimate source of the funds that have been used to acquire the shares.  To do list It’s worth reaching out to us before entering into any new loan arrangements. In this area, mistakes are often difficult to fix after the fact, which can lead to poor tax outcomes. That’s why getting advice from a tax professional before committing to a loan is essential. We can work alongside you and your financial adviser to ensure your loan is structured in a way that makes financial sense and protects your tax position. Being across the above updates will enable you to have more control over your cash flow, compliance risk and strategic planning. If you have questions about how these changes affect your business or personal situation, Collins Hume is always here to help.

The aged care system in Australia is complex and confusing … And it’s about to become even more so with widespread changes now timetabled for 1 November this year.  Sometimes, people need to move fast in a system where the aged care journey is typically very slow and cumbersome. Running community forums on aged care, people contact me to want to attend and I hear the words, “I / we want to come along to your aged care event.  It’s not us yet.  We just want to come along to listen and get some information.” That’s totally fine.  But there are a number of things you can do / control to make the journey smoother and faster if you actually find yourself in that situation at some future time. Here are some things to consider and hopefully do now rather than wait for a crisis. 1. Get your legal documents done / reviewed Make sure you have a Will, an Enduring Power of Attorney (financial matters) and an Enduring Guardian (health & care matters). If you don’t have these and you are able to – make sure you see a Solicitor and get them done. If you have these documents already (or think you have) but they were done some time ago – make sure you know where the originals are stored and review them to ensure they accurately reflect your present wishes and expectations. Ensure the person / people nominated for various roles know they’ve been nominated and that they clearly understand their role and responsibilities (especially if they are a friend or neighbour). 2. Register with My Aged Care The aged care journey does not start until you are registered with My Aged Care. It’s a phone call (P: 1800 200 422) to request that you be registered on the system even if you don’t need anything else right now. You may be asked if you want an assessment done – often over the phone there and then.  Up to you if you want to take that offer up. Just get registered. 3. Nominate people who can talk and act on your behalf With organisations like My Aged Care and Centrelink, you can nominate someone to act as a back-up Authority (responsible person) on your behalf if you are unable to for whatever reason. It is wise to have someone nominated and that doesn’t have to be your partner (if you have one). It could be a responsible family member or someone else you implicitly trust (choose wisely). 4. Get all your important documents sorted and together For someone to step into your life to help handle your affairs, it’s important that they know what is expected of them … AND (most importantly) where to find all your important documents. Buying a hard cover folder with plastic inserts to store these documents in one location is an extremely useful exercise. You simply replace the “old” documents / statements with the “new” documents / statements and keep in a place where the important trusted people in your life know where to find the folder. This makes a difficult job so much less stressful rather than having to find and sort through reams of paperwork. Trust me – I’ve seen both sides of the fence with this and I know what side of the fence I want to be on. How Family Aged Care Advocates (FACA) work Family Aged Care Advocates guide you and your family through this ever-changing aged care maze so you can clearly understand what all these changes exactly mean for your particular situation. Mistakes or misunderstandings can be costly and time-consuming to fix. Feel free to visit FACA at www.familyagedcareadvocates.com.au  or call Shane Hayes on 0411 264 002. Shane Hayes Family Aged Care Advocates

What We Took Away from REimagining Your Business – Forever On Friday 5 September, 100 business owners and leaders joined us in Ballina for REimagining Your Business – Forever , a Collins Hume live event designed to shift the way we lead, grow and create meaningful impact through business. Featuring TEDx keynotes Paul Dunn and Masami Sato, the session delivered exactly what we hoped — clarity, energy and dozens of lightbulb moments that challenged conventional thinking and left attendees motivated to do things differently. We explored what it means to lead in the new transformation economy, how small shifts in strategy can generate big results, and how pricing with purpose can help businesses not just grow, but thrive. The conversations, insights and connection in the room reminded us why face-to-face events still matter — and always will. What’s Next? If you joined us on the day, you’ll have received a follow-up email containing the event resources and presentation materials, along with details of a special Strategy360 offer exclusively for attendees. This offer remains valid — please reach out if you’d like to take the next step. Contact Nathan McGrath at strategy360@collinshume.com.au  or call 02 6686 3000. Join the Giving Movement If you were inspired by the impact of B1G1 and want to bring purpose into your own business, visit b1g1.com/join-us  and use the code GIVING010 to join Collins Hume’s Giving Hive — a global community of businesses making a difference through everyday actions. As part of our own commitment to Business for Good, we’re proud to share that 365 days of clean water were given on behalf of every attendee. Then we doubled it. Thanks to the support of those who came and purchased tickets, the total giving impact reached a remarkable 70,810 days of clean water through B1G1 — a tangible, lasting legacy from a single morning of learning and leadership. A huge thank you to everyone who joined us, and to our Event Partners Business NSW and MYOB for helping make it possible. We’re already planning our next event and look forward to seeing you. Until then, thank you again for being part of a community that believes in growing with purpose — together. #LiveYourLegacy

In support of young Australians and in response to the rising cost of living, the Australian Government has passed legislation to reduce student loan debt by 20% and change the way that loan repayments are determined. 20% reduction in student debt The reduction is expected to benefit more than 3 million Australians and remove over $16 billion in outstanding debt. The 20% reduction will be automatically applied to anyone with the following student loans: HELP loans (eg, HECS-HELP, FEE-HELP, STARTUP-HELP, SA-HELP, OS-HELP) VET Student loans Australian Apprenticeship Support Loans Student Start-up Loans Student Financial Supplement Scheme. The reduction will be based on the loan balance at 1 June 2025, before indexation was applied. Indexation will only apply to the reduced balance. The ATO will apply the reduction automatically on a retrospective basis and will adjust the indexation that is applied. No action is needed from those with a student loan balance and the Government has indicated that you will be notified once the reduction has been applied. If you had a HELP debt showing on your ATO account on 1 April 2025 but you paid the debt off after 1 June 2025 then the reduction will normally trigger a credit to your HELP account. If you don’t have any other outstanding tax or other debts to the Commonwealth, then the credit should be refunded to you. The HELP debt estimator  is a useful tool to get an idea of the reduction amount, please reach out if you need any help in working out eligibility. Changes to repayments The Government has also modified the way that HELP and student loan repayments operate, primarily by increasing the amount that individuals can earn before they need to make repayments. The minimum repayment threshold for the 2025-26 year is being increased from $56,156 to $67,000. The threshold was $54,435 for the 2024-25 year. Under the new repayment system an individual will only need to make a compulsory repayment for the 2025-26 year if their income is above$67,000. The repayments will be calculated only against the portion of income that is above $67,000. Repayments will still be made through the tax system and will typically be determined when tax returns are lodged with the ATO. For many people the change in the rules will mean they have more disposable income in the short term, but it will take longer to pay off student loans. The main exception to this will be when an individual chooses to make voluntary repayments. As always, please reach out if there’s anything that Collins Hume can help you understand better, assist you with or if there’s anything else that you’d like us to focus on.

Superannuation guarantee: due dates and considerations for employees and employers On 1 July 2025 the superannuation guarantee rate increased to 12% which is the final stage of a series of previously legislated increases. Employers currently need to make superannuation guarantee (SG) contributions for their employees by 28 days after the end of each quarter (28 October, 28 January, 28 April and 28 July). There is an extra day’s allowance when these dates fall on a public holiday. To comply with these rules the contribution must be in the employee’s superannuation fund on or before this date, unless the employer is using the ATO small business superannuation clearing house (SBSCH). The ATO has been applying considerable compliance resources in this space in recent years which can have an impact on both employees and employers. Employers To be eligible to claim a tax deduction on SG contributions the quarterly amount must be in the employee’s super account on or before the above quarterly due dates. The only exception to this is where the employer is using the ATO SBSCH. In that case a contribution is considered made provided it has been received by the SBSCH on or before the due date. Employers using commercial clearing houses should be mindful of turnaround times. Commercial clearing houses collect and distribute employee contributions and may be linked to accounting / payroll software or provided by some superannuation platforms. Anecdotally it seems that turnaround times for some clearing houses could be up to 14 days, so it is recommended that employers allow sufficient time before the quarterly deadlines when processing their employee SG contributions. If these deadlines are missed (yes even by a day!) that will trigger a superannuation guarantee charge (SGC) requirement which will result in a loss of the tax deduction and other penalties. The SGC requirements are outlined in the ATO link below: The super guarantee charge | Australian Taxation Office Employers do have the option to make SG payments more frequently than quarterly and this is something that employers will need to become used to if the proposed ‘payday’ superannuation reforms become law. This change is proposed to commence from 1 July 2026 and would require SG to be paid at the same frequency as salary or wages. There is some discussion on the payday super proposal at this link  (noting that this is not yet law). The SBSCH will close at this time so employers using this service should start to consider transitioning to a commercial clearing house, please let us know you would like assistance with this. Employees It is recommended that you regularly check your superannuation fund statements and reconcile employer contributions to the amounts listed on your pay slips. Where SG contributions are not received on time (or at all!) employees are encouraged to discuss this first with their employer. Should this not result in a satisfactory conclusion, employees can consider bringing this to the attention of the ATO. Being across the above updates will enable you to have more control over your cash flow, compliance risk and strategic planning. If you have questions about how these changes affect your business or personal situation, Collins Hume is always here to help.